Finance Act 2025
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-1"><num>Part 1</num><heading>Income tax, capital gains tax and corporate taxes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-income-tax-charge-rates-etc"><heading>Income tax charge, rates etc</heading><section eId="section-1"><num>1</num><heading>Income tax charge for tax year 2025-26</heading><content><p>Income tax is charged for the tax year 2025-26.</p></content></section><section eId="section-2"><num>2</num><heading>Main rates of income tax for tax year 2025-26</heading><intro><p>For the tax year 2025-26 the main rates of income tax are as follows—</p></intro><level class="para1" eId="section-2-a"><num>(a)</num><content><p>the basic rate is 20%,</p></content></level><level class="para1" eId="section-2-b"><num>(b)</num><content><p>the higher rate is 40%, and</p></content></level><level class="para1" eId="section-2-c"><num>(c)</num><content><p>the additional rate is 45%.</p></content></level></section><section eId="section-3"><num>3</num><heading>Default and savings rates of income tax for tax year 2025-26</heading><subsection eId="section-3-1"><num>(1)</num><intro><p>For the tax year 2025-26 the default rates of income tax are as follows—</p></intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content><p>the default basic rate is 20%,</p></content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content><p>the default higher rate is 40%, and</p></content></level><level class="para1" eId="section-3-1-c"><num>(c)</num><content><p>the default additional rate is 45%.</p></content></level></subsection><subsection eId="section-3-2"><num>(2)</num><intro><p>For the tax year 2025-26 the savings rates of income tax are as follows—</p></intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content><p>the savings basic rate is 20%,</p></content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content><p>the savings higher rate is 40%, and</p></content></level><level class="para1" eId="section-3-2-c"><num>(c)</num><content><p>the savings additional rate is 45%.</p></content></level></subsection></section><section eId="section-4"><num>4</num><heading>Freezing starting rate limit for savings for tax year 2025-26</heading><subsection eId="section-4-1"><num>(1)</num><content><p>For the tax year 2025-26 the amount specified in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/12">(3)</a> of <ref eId="c00001" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (the starting rate limit for savings) is “£5,000”.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p>Accordingly, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/21">section 21</a> of <ref eId="c00002" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2025-26.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-income-tax-provisions-relating-to-cars"><heading>Income tax provisions relating to cars</heading><section eId="section-5"><num>5</num><heading>Appropriate percentage for cars: tax year 2028-29</heading><subsection eId="section-5-1"><num>(1)</num><content><p>Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc) is amended as follows.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p><mod> In section 139 (cars with a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (1), for the table (as substituted by section 11(7) of FA 2023) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 1–50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 51–54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 55–59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 60–64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 65–74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-3"><num>(3)</num><intro><p>In subsection (3) of section 139 (as amended by section 11(3) of FA 2023)—</p></intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “21%” substitute <quotedText>“22%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-5-4"><num>(4)</num><content><p><mod> In section 140 (cars without a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-5"><num>(5)</num><intro><p>In subsection (3) of section 140—</p></intro><level class="para1" eId="section-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “2%” substitute <quotedText>“7%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-5-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-5-6"><num>(6)</num><content><p><mod>In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-5-7"><num>(7)</num><content><p><mod> In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-8"><num>(8)</num><content><p><mod>In subsection (3) of section 142, for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-5-9"><num>(9)</num><content><p>The amendments made by subsections <ref href="#section-5-2">(2)</ref> to <ref href="#section-5-8">(8)</ref> have effect for the tax year 2028-29.</p></content></subsection><subsection eId="section-5-10"><num>(10)</num><intro><p>In consequence of the amendments made by this section, in section 139, omit—</p></intro><level class="para1" eId="section-5-10-a"><num>(a)</num><content><p>in subsection (2), paragraph (b) together with the “and” before it, and</p></content></level><level class="para1" eId="section-5-10-b"><num>(b)</num><content><p>subsections (5) to (5B).</p></content></level></subsection><subsection eId="section-5-11"><num>(11)</num><content><p>The amendments made by subsection <ref href="#section-5-10">(10)</ref> have effect for the for the tax year 2028-29 and subsequent tax years.</p></content></subsection></section><section eId="section-6"><num>6</num><heading>Appropriate percentage for cars: subsequent tax years</heading><subsection eId="section-6-1"><num>(1)</num><content><p>Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc), as amended by section <ref href="#section-5">5</ref>, is amended as follows.</p></content></subsection><subsection eId="section-6-2"><num>(2)</num><content><p><mod>In section 139 of ITEPA 2003, in subsection (1), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 1–50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 51–54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 55–59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 60–64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 65–74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-3"><num>(3)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-6-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “22%” substitute <quotedText>“23%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-6-4"><num>(4)</num><content><p><mod> In section 140 (cars without a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-5"><num>(5)</num><intro><p>In subsection (3) of section 140—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “7%” substitute <quotedText>“9%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-6-6"><num>(6)</num><content><p><mod>In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></subsection><subsection eId="section-6-7"><num>(7)</num><content><p><mod> In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-8"><num>(8)</num><content><p><mod>In subsection (3) of section 142, for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></subsection><subsection eId="section-6-9"><num>(9)</num><content><p>The amendments made by this section have effect for the tax year 2029-30 and subsequent tax years.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-capital-gains-tax-rates-and-reliefs"><heading>Capital gains tax rates and reliefs</heading><section eId="section-7"><num>7</num><heading>Main rates of CGT for gains other than carried interest gains</heading><subsection eId="section-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">section 1H</a> of <ref eId="c00003" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (the main rates of CGT)—</p></intro><level class="para1" eId="section-7-1-a"><num>(a)</num><content><p>omit subsection (1A) (which sets out the rates for residential property gains accruing to individuals),</p></content></level><level class="para1" eId="section-7-1-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (3)</a> (which sets out the rates for gains accruing to individuals that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-b-i"><num>(i)</num><content><p><mod>for “10%” substitute <quotedText>“18%”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-7-1-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="section-7-1-c"><num>(c)</num><content><p>omit subsection (4A) (which sets out the rates for residential property gains accruing to personal representatives),</p></content></level><level class="para1" eId="section-7-1-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (6)</a> (which sets out the rates for gains accruing to personal representatives that are not residential property gains or carried interest gains), for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level><level class="para1" eId="section-7-1-e"><num>(e)</num><content><p>omit subsection (7) (which sets out the rates for residential property gains accruing to trustees), and</p></content></level><level class="para1" eId="section-7-1-f"><num>(f)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (8)</a> (which sets out the rates for gains accruing to trustees that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-f-i"><num>(i)</num><content><p>omit “Other”, and</p></content></level><level class="para2" eId="section-7-1-f-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>.</mod></p></content></level></level></subsection><subsection eId="section-7-2"><num>(2)</num><content><p><ref href="#schedule-1">Schedule 1</ref> contains amendments in consequence of the provision made by this section.</p></content></subsection><subsection eId="section-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-7">this section</ref> and that Schedule have effect in relation to disposals made on or after 30 October 2024.</p></content></subsection></section><section eId="section-8"><num>8</num><heading>Business asset disposal relief: increase in rate</heading><subsection eId="section-8-1"><num>(1)</num><content><p><mod>In section 169N of TCGA 1992 (business asset disposal relief), in subsection (3) (which specifies the rate of CGT for the relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-2"><num>(2)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-8-1">(1)</ref>, in section 1H(1)(a) of TCGA 1992 (which refers to the rate for business asset disposal relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>The amendments made by subsections <ref href="#section-8-1">(1)</ref> and <ref href="#section-8-2">(2)</ref> have effect in relation to disposals made on or after 6 April 2025.</p></content></subsection><subsection eId="section-8-4"><num>(4)</num><content><p><mod>In section 169N(3) of TCGA 1992 (as amended by subsection <ref href="#section-8-1">(1)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-5"><num>(5)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-8-4">(4)</ref>, in section 1H(1)(a) of TCGA 1992 (as amended by subsection <ref href="#section-8-2">(2)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-6"><num>(6)</num><content><p>The amendments made by subsections <ref href="#section-8-4">(4)</ref> and <ref href="#section-8-5">(5)</ref> have effect in relation to disposals made on or after 6 April 2026.</p></content></subsection></section><section eId="section-9"><num>9</num><heading>Investors’ relief: increase in rate</heading><subsection eId="section-9-1"><num>(1)</num><content><p><mod>In section 169VC(2) of TCGA 1992 (which specifies the rate of CGT for the relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-9-1">(1)</ref>, in section 1H(1)(b) of TCGA 1992 (which refers to the rate for investors’ relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-3"><num>(3)</num><content><p><mod>In consequence of the amendments made by subsection <ref href="#section-9-1">(1)</ref> and <ref href="#section-8">section 8</ref><ref href="#section-8-1">(1)</ref>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> of TCGA 1992 (income taxed at higher rates or gains exceeding unused basic rate band), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">(a)</a> (which refers to the rate for business asset disposal relief and investors’ relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-4"><num>(4)</num><content><p>The amendments made by subsections <ref href="#section-9-1">(1)</ref> to <ref href="#section-9-3">(3)</ref> have effect in relation to disposals made on or after 6 April 2025.</p></content></subsection><subsection eId="section-9-5"><num>(5)</num><content><p><mod>In section 169VC(2) of TCGA 1992 (as amended by subsection <ref href="#section-9-1">(1)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-6"><num>(6)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-9-5">(5)</ref>, in section 1H(1)(b) of TCGA 1992 (as amended by subsection (2)), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-7"><num>(7)</num><content><p><mod>In consequence of the amendments made by subsection <ref href="#section-9-5">(5)</ref> and <ref href="#section-8">section 8</ref><ref href="#section-8-4">(4)</ref>, in section 1I(4)(a) of TCGA 1992 (as amended by subsection <ref href="#section-9-3">(3)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-8"><num>(8)</num><content><p>The amendments made by subsections <ref href="#section-9-5">(5)</ref> to <ref href="#section-9-7">(7)</ref> have effect in relation to disposals made on or after 6 April 2026.</p></content></subsection></section><section eId="section-10"><num>10</num><heading>Investors’ relief: reduction in amount qualifying for relief</heading><subsection eId="section-10-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-10-1-a"><num>(a)</num><content><p>section 169VK(1) and (2) of TCGA 1992 (which specify the amount of gains qualifying for the relief in the case of disposals by individuals), and</p></content></level><level class="para1" eId="section-10-1-b"><num>(b)</num><content><p>section 169VL(2) and (3) of that Act (which specify the amount of gains qualifying for the relief in the case of disposals by trustees),</p></content></level><wrapUp><p><mod>for “£10 million” substitute <quotedText>“£1 million”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to disposals made on or after 30 October 2024.</p></content></subsection></section><section eId="section-11"><num>11</num><heading>Sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref>: transitional provision</heading><content><p>Schedule <ref href="#schedule-2">2</ref> contains transitional provision in connection with the provision made by sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref>.</p></content></section><section eId="section-12"><num>12</num><heading>Rate of CGT for carried interest gains</heading><subsection eId="section-12-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">section 1H</a> of <ref eId="c00004" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (which sets out the main rates of CGT)—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>omit subsection (2) (which provides for rates of 18% or 28% on carried interest gains accruing to individuals),</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p><mod>in subsection (3), for “Other chargeable gains” substitute <quotedText>“Chargeable gains other than carried interest gains (see subsections (4B) and (9) to (11))”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-1-c"><num>(c)</num><content><p><mod>before subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4B)</num><content><p>Chargeable gains accruing in a tax year to an individual that are carried interest gains are charged to capital gains tax at a rate of 32%.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-12-1-d"><num>(d)</num><content><p><mod>in subsection (5) (which provides for the rate of CGT on carried interest gains accruing to personal representatives of a deceased individual), for “28%” substitute <quotedText>“32%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-12-2"><num>(2)</num><intro><p>In section 1I of that Act (income taxed at higher rates or gains exceeding unused basic rate band), as amended by paragraph <ref href="#schedule-1-paragraph-2">2</ref> of <ref href="#schedule-1">Schedule 1</ref>—</p></intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><p><mod>before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>This section applies for the purpose of determining the rate of capital gains tax that applies to gains accruing to an individual in a tax year that are not carried interest gains and, in the following provisions of this section, references to gains (or amounts chargeable to capital gains tax) do not include carried interest gains.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><p><mod>in subsection (1), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><p><mod>in subsection (2), in the words after paragraph (b), for the words from “is charged at” to the end substitute <quotedText>“is charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content><p><mod>in subsection (5), for the words from “are then charged—” to the end substitute <quotedText>“are then charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-e"><num>(e)</num><content><p><mod>in subsection (7), for the words from “as then remains” to the end substitute <quotedText>“as then remains to gains other than entrepreneur or investor gains.”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-12-2-f"><num>(f)</num><content><p><mod>in subsection (9), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText></mod></p></content></level></subsection><subsection eId="section-12-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-7">this section</ref> have effect in relation to carried interest arising on or after 6 April 2025.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-corporation-tax-charge-and-rates"><heading>Corporation tax charge and rates</heading><section eId="section-13"><num>13</num><heading>Charge and main rate for financial year 2026</heading><subsection eId="section-13-1"><num>(1)</num><content><p>Corporation tax is charged for the financial year 2026.</p></content></subsection><subsection eId="section-13-2"><num>(2)</num><content><p>The main rate of corporation tax for that year is 25%.</p></content></subsection></section><section eId="section-14"><num>14</num><heading>Standard small profits rate and fraction for financial year 2026</heading><intro><p>For the purposes of Part 3A of CTA 2010, for the financial year 2026—</p></intro><level class="para1" eId="section-14-a"><num>(a)</num><content><p>the standard small profits rate is 19%, and</p></content></level><level class="para1" eId="section-14-b"><num>(b)</num><content><p>the standard marginal relief fraction is 3/200ths.</p></content></level></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-oil-and-gas"><heading>Oil and gas</heading><section eId="section-15"><num>15</num><heading>Increase in rate of energy (oil and gas) profits levy</heading><subsection eId="section-15-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (charge to tax), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">subsection (1)</a>, for “35%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-15-2"><num>(2)</num><content><p>The amendment made by <ref href="#section-15-1">subsection (1)</ref> has effect for accounting periods beginning on or after 1 November 2024.</p></content></subsection><subsection eId="section-15-3"><num>(3)</num><intro><p>In the case of an accounting period (a “straddling period”) beginning before 1 November 2024 and ending on or after that date—</p></intro><level class="para1" eId="section-15-3-a"><num>(a)</num><content><p>the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is to apply as if so much of the straddling period as falls before that date, and so much of the straddling period as falls on or after that date, were separate accounting periods, and</p></content></level><level class="para1" eId="section-15-3-b"><num>(b)</num><content><p>the company’s levy profits or loss determined for the straddling period (on the assumption that the whole of that period were a qualifying period) are apportioned to the two separate accounting periods in accordance with <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/17">section 17</a> of <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>, which is to apply for the purposes of <ref href="#section-15">this section</ref> as it applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/15">sections 15</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">16</a> of <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>.</p></content></level></subsection><subsection eId="section-15-4"><num>(4)</num><intro><p>In the case of a straddling period, the Instalment Payments Regulations 1998 are to apply separately—</p></intro><level class="para1" eId="section-15-4-a"><num>(a)</num><content><p>in relation to the levy, and</p></content></level><level class="para1" eId="section-15-4-b"><num>(b)</num><content><p>in relation to any other tax chargeable on the company.</p></content></level></subsection><subsection eId="section-15-5"><num>(5)</num><intro><p>In their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, the Instalment Payments Regulations 1998 are to have effect in relation to the levy—</p></intro><level class="para1" eId="section-15-5-a"><num>(a)</num><content><p>as if the two separate accounting periods deemed to arise under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a) </ref>were accounting periods for the purposes of those Regulations and as if the levy were chargeable for those deemed accounting periods, but</p></content></level><level class="para1" eId="section-15-5-b"><num>(b)</num><content><p>as if the final instalment payment for the deemed accounting period ending on 31 October 2024 became due and payable on the date on which the next instalment payment after 31 October 2024 would have become due and payable for the straddling period in the absence of this section.</p></content></level></subsection><subsection eId="section-15-6"><num>(6)</num><intro><p>Any reference in the Instalment Payments Regulations 1998 to the total liability of a company is accordingly to be read—</p></intro><level class="para1" eId="section-15-6-a"><num>(a)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, as a reference to the levy, and</p></content></level><level class="para1" eId="section-15-6-b"><num>(b)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-b">(b)</ref>, as a reference to the amount that would be the company’s total liability for the straddling period if the levy were left out of account.</p></content></level></subsection><subsection eId="section-15-7"><num>(7)</num><intro><p>For the purposes of the Instalment Payments Regulations 1998—</p></intro><level class="para1" eId="section-15-7-a"><num>(a)</num><content><p>a company is to be regarded as a large company as respects the deemed accounting periods under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a)</ref> only if it is a large company for those purposes as respects the straddling period, and</p></content></level><level class="para1" eId="section-15-7-b"><num>(b)</num><content><p>any question whether a company is a large company as respects the straddling period is to be determined as it would have been determined apart from <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref>.</p></content></level></subsection><subsection eId="section-15-8"><num>(8)</num><content><p>In <ref href="#section-15">this section</ref> “<term refersTo="#term-the-instalment-payment-regulations-1998" eId="term-the-instalment-payment-regulations-1998">the Instalment Payment Regulations 1998</term>” means the <ref eId="c00010" href="https://www.legislation.gov.uk/uksi/1998/3175">Corporation Tax (Instalment Payments) Regulations 1998</ref> (<ref eId="c00011" href="http://www.legislation.gov.uk/id/uksi/1998/3175">S.I. 1998/3175</ref>).</p></content></subsection></section><section eId="section-16"><num>16</num><heading>Relief from levy for investment expenditure</heading><subsection eId="section-16-1"><num>(1)</num><content><p>The <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is amended as follows.</p></content></subsection><subsection eId="section-16-2"><num>(2)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/2">section 2</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>2</num><heading>Additional expenditure treated as incurred for purposes of section 1</heading><subsection><num>(1)</num><content><p>This section applies for the purposes of section 1 if, in a qualifying accounting period, a company has incurred investment expenditure.</p></content></subsection><subsection><num>(2)</num><intro><p>Expenditure is “investment expenditure” of a company so far as the expenditure—</p></intro><level class="para1"><num>(a)</num><content><p>is capital expenditure on the de-carbonisation of its upstream petroleum production,</p></content></level><level class="para1"><num>(b)</num><content><p>is incurred for the purposes of oil-related activities,</p></content></level><level class="para1"><num>(c)</num><content><p>is not incurred for disqualifying purposes, and</p></content></level><level class="para1"><num>(d)</num><content><p>does not consist of financing costs or decommissioning costs.</p></content></level></subsection><subsection><num>(3)</num><content><p>For the purposes of section 1 the company is to be treated as if, in addition to the investment expenditure incurred by it in the accounting period, it had incurred in that period expenditure of an amount equal to 66% of the amount of that investment expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>if investment expenditure is incurred partly for the purposes of oil-related activities and partly for other purposes, the expenditure is to be attributed to the oil-related activities on a just and reasonable basis, and</p></content></level><level class="para1"><num>(b)</num><content><p>if a company incurs expenditure part of which is capital expenditure on the de-carbonisation of its upstream petroleum production and part of which is not, the expenditure is to be apportioned on a just and reasonable basis.</p></content></level></subsection><subsection><num>(5)</num><content><p>This section needs to be read with section 6 (which prevents recycling etc of assets to generate relief).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-16-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/3">sections 3</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/4">4</a> (definitions of “operating expenditure” and “leasing expenditure”).</p></content></subsection><subsection eId="section-16-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(1)</a> (when investment expenditure is incurred)—</p></intro><level class="para1" eId="section-16-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (a)</a>, omit “in the case of capital expenditure,”, and</p></content></level><level class="para1" eId="section-16-4-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (b)</a>.</p></content></level></subsection><subsection eId="section-16-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/18">section 18</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/18">(1)</a> (interpretation), omit the definitions of “leasing expenditure” and “operating expenditure”.</p></content></subsection><subsection eId="section-16-6"><num>(6)</num><content><p>The amendments made by <ref href="#section-16">this section</ref> have effect in relation to expenditure incurred on or after 1 November 2024 (and section 7 of the Energy (Oil and Gas) Profits Levy Act 2022 applies for the purposes of this section as it applies for the purposes of that Act).</p></content></subsection></section><section eId="section-17"><num>17</num><heading>Extending the period for which levy has effect</heading><subsection eId="section-17-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (charge to tax), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">subsection (3)</a> (which sets out the accounting periods by reference to which the tax is charged), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">paragraph (b)</a>, for “2028” substitute <quotedText>“2030”</quotedText>.</mod></p></content></subsection><subsection eId="section-17-2"><num>(2)</num><intro><p>In consequence of the amendment made by <ref href="#section-17-1">subsection (1)</ref>—</p></intro><level class="para1" eId="section-17-2-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(2)</a> of <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (when investment expenditure is incurred), for “2028” substitute <quotedText>“2030”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-17-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">section 16</a> of <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (transitional provision for accounting periods straddling 31 March 2028), for “2028”, in each place (including the heading), substitute <quotedText>“2030”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-18"><num>18</num><heading>Decommissioning of carbon storage installations</heading><content><p><ref href="#schedule-3">Schedule 3</ref> makes provision for certain payments into a decommissioning fund to be treated as decommissioning expenditure for the purposes of corporation tax, income tax and petroleum revenue tax.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-international-matters"><heading>International matters</heading><section eId="section-19"><num>19</num><heading>Pillar Two</heading><subsection eId="section-19-1"><num>(1)</num><intro><p>Schedule <ref href="#schedule-4">4</ref>—</p></intro><level class="para1" eId="section-19-1-a"><num>(a)</num><content><p>makes provision about the UTPR, and</p></content></level><level class="para1" eId="section-19-1-b"><num>(b)</num><content><p>makes other amendments to Parts 3 and 4 of F(No. 2)A 2023.</p></content></level></subsection></section><section eId="section-20"><num>20</num><heading>Offshore receipts in respect of intangible property</heading><subsection eId="section-20-1"><num>(1)</num><content><p>ITTOIA 2005 is amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><intro><p>In section 574 (overview of Part 5)—</p></intro><level class="para1" eId="section-20-2-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (aa);</p></content></level><level class="para1" eId="section-20-2-b"><num>(b)</num><content><p>in subsection (2) omit “(but see section 608X)”.</p></content></level></subsection><subsection eId="section-20-3"><num>(3)</num><content><p>Omit Chapter 2A (offshore receipts in respect of intangible property) of Part 5.</p></content></subsection><subsection eId="section-20-4"><num>(4)</num><content><p>In section 576 (priority between Chapters within Part 5) omit subsection (1).</p></content></subsection><subsection eId="section-20-5"><num>(5)</num><content><p>In section 873(3) (procedure for orders and regulations) omit paragraph (ba).</p></content></subsection><subsection eId="section-20-6"><num>(6)</num><content><p>TIOPA 2010 is amended as follows.</p></content></subsection><subsection eId="section-20-7"><num>(7)</num><intro><p>In section 157(1) (direct participation)—</p></intro><level class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="section-20-7-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level></subsection><subsection eId="section-20-8"><num>(8)</num><intro><p>In section 159(1) (indirect participation: potential direct participant)—</p></intro><level class="para1" eId="section-20-8-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="section-20-8-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level></subsection><subsection eId="section-20-9"><num>(9)</num><content><p>In section 160(1) (indirect participation: one of several major participants) omit paragraph (f) and the “and” preceding it.</p></content></subsection><subsection eId="section-20-10"><num>(10)</num><content><p>In consequence of subsections <ref href="#section-20-1">(1)</ref> to <ref href="#section-20-9">(9)</ref>, omit Schedule 3 to FA 2019 (offshore receipts in respect of intangible property).</p></content></subsection><subsection eId="section-20-11"><num>(11)</num><content><p>Omit section 981A of ITA 2007 (offshore receipts in respect of intangible property: exception from duties to deduct).</p></content></subsection><subsection eId="section-20-12"><num>(12)</num><content><p>The amendments made by this section have effect in relation to income arising on or after 31 December 2024.</p></content></subsection></section><section eId="section-21"><num>21</num><heading>Application of PAYE in relation to internationally mobile employees etc.</heading><subsection eId="section-21-1"><num>(1)</num><content><p><mod>For section 690 of ITEPA 2003 (employee non-resident etc) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e1871"><num>690</num><heading>Internationally mobile employees</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee is or has been internationally mobile at any time in tax year 2025-26 or a subsequent tax year.</p></content></subsection><subsection eId="d25e1881"><num>(2)</num><intro><p>An employee is “internationally mobile” at a time in a tax year if at that time the employee works or is likely to work both inside and outside the UK during the tax year (“the mobile tax year”) and at that time—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be non-UK resident for the mobile tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>the mobile tax year is or is likely to be a split year as respects the employee.</p></content></level></subsection><subsection eId="d25e1899"><num>(3)</num><content><p>If the employer makes an uncertain payment to the employee in any tax year, the entire payment is to be treated for the purposes of PAYE regulations as a payment of PAYE income of the employee.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section and sections <ref href="#d25e1980">690A</ref> and <ref href="#d25e2183">690B</ref>, an “<term refersTo="#term-uncertain-payment">uncertain payment</term>” means a payment of, or on account of, the income of the employee to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>the employer is unable to ascertain the extent to which the income is PAYE income, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reason for the employer being unable to ascertain that extent is connected to the employee being or having been internationally mobile in the mobile tax year.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e1899">(3)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section and sections <ref href="#d25e1980">690A</ref> to <ref href="#d25e32354">690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>any reference to a payment made by the employer includes a reference to a payment made by a person acting on behalf of the employer and at the expense of the employer or a person connected with the employer, and</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where section 689 or 689A applies, any reference to a payment made by the employer is to be read as a reference to a payment treated, for the purposes of PAYE regulations, as made by the relevant person.</p></content></level></subsection></section><section eId="d25e1980"><num>690A</num><heading>Employer notification for internationally mobile employees</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee is or has been internationally mobile within the meaning of <ref href="#d25e1871">section 690</ref><ref href="#d25e1881">(2)</ref> at any time in tax year 2025-26 or a subsequent tax year (“the mobile tax year”).</p></content></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the mobile tax year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat a proportion of any uncertain payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection eId="d25e2013"><num>(3)</num><content><p>If a notice given under this section has effect, the proportion of any uncertain payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(4)</num><content><p>But if <ref href="#d25e32161">section 690D</ref><ref href="#d25e32225">(4)</ref> (employer notification for qualifying new resident) also applies to a payment made by the employer, <ref href="#d25e2013">subsection (3)</ref> does not apply to the payment to the extent that it is a qualifying payment within the meaning of section <ref href="#d25e32161">690D</ref>.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e2183">section 690B</ref> (direction by HMRC in relation to internationally mobile employees) in relation to the employee and the mobile tax year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e2183">section 690B</ref> is given to the appropriate person in relation to the employee and the mobile tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>where the notice was given on the basis that the employee was likely to be a non-UK resident for the mobile tax year, a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under section <ref href="#d25e32161">690D</ref> (employer notification for qualifying new resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e2013">(3)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and sections <ref href="#d25e2183">690B</ref>, <ref href="#d25e32161">690D</ref> and <ref href="#d25e32354">690E</ref> —</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 693 (cash vouchers), section 694 (non-cash vouchers) or section 695 (credit-tokens), the employer is to be treated as making a payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><intro><p>“<term refersTo="#term-the-appropriate-person">the appropriate person</term>” means—</p></intro><level class="para2" eId="d25e2156"><num>(i)</num><content><p>the person designated by the employer for the purpose of this section and sections <ref href="#d25e2183">690B</ref>, <ref href="#d25e32161">690D</ref> and <ref href="#d25e32354">690E</ref> and, if no person is so designated, the employer, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in a case where section 689 or 689A applies, the references to the employer in <ref href="#d25e2156">sub-paragraph (i)</ref> are to be read as references to the relevant person (within the meaning of section 689 or 689A).</p></content></level></level></subsection></section><section eId="d25e2183"><num>690B</num><heading>Direction by HMRC in relation to internationally mobile employees</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the mobile tax year under section <ref href="#d25e1980">690A</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any uncertain payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e2208"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any uncertain payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e2208">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the mobile tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a date specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e2253"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e2208">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any uncertain payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies in relation to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e2208">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e2208">subsection (2)</ref> ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>the notice to which the direction relates was given on the basis that the employee was likely to be non-UK resident for the mobile tax year, and</p></content></level><level class="para1"><num>(b)</num><intro><p>a notice has subsequently been—</p></intro><level class="para2"><num>(i)</num><content><p>given by the appropriate person under section <ref href="#d25e32161">690D</ref> (employer notification for qualifying new resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e2253">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section><section eId="d25e2345"><num>690C</num><heading>Employees who were internationally mobile etc. before 2025-26</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee falls within <ref href="#d25e2361">subsection (2)</ref> or <ref href="#d25e2379">(3)</ref> in relation to a tax year that was before tax year 2025-26.</p></content></subsection><subsection eId="d25e2361"><num>(2)</num><intro><p>An employee falls within this subsection in relation to a tax year if the employee worked both inside and outside the UK in that tax year and—</p></intro><level class="para1"><num>(a)</num><content><p>the employee was non-UK resident for that tax year or it appears likely to the employer that the employee was non-UK resident, or</p></content></level><level class="para1"><num>(b)</num><content><p>the tax year was a spilt year as respects the employee or it appears likely to the employer that the tax year was such a year.</p></content></level></subsection><subsection eId="d25e2379"><num>(3)</num><intro><p>An employee falls within this subsection in relation to a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee worked outside the UK in the tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the employee met the requirement of section 26A for that tax year or it appears likely to the employer that the employee met that requirement, and</p></content></level><level class="para1"><num>(c)</num><content><p>the employee has made a claim under section 809B of ITA 2007 (claim for remittance basis) for that tax year or it appears likely to the employer that the employee has or will make such a claim.</p></content></level></subsection><subsection eId="d25e2403"><num>(4)</num><content><p>If the employer makes a payment to the employee of, or on account of, general earnings for that tax year, the amount of the payment that is to be treated as PAYE income for the purposes of the PAYE regulations is the amount that, on the basis of the best estimate that can be reasonably made, is likely to be PAYE income.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purposes of <ref href="#d25e2403">subsection (4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where this section applies to an employee because it appears likely to the employer that a certain state of affairs exists, the employer may assume that state of affairs exists;</p></content></level><level class="para1"><num>(b)</num><content><p>whether general earnings are “for” that tax year is determined in accordance with sections 29 and 30.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-21-2"><num>(2)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection><subsection eId="section-21-3"><num>(3)</num><content><p>Any direction given by an officer of Revenue and Customs under section 690 of ITEPA 2003 (employee non-resident etc) has no effect in relation to tax year 2025-2026 or any subsequent tax year.</p></content></subsection></section><section eId="section-22"><num>22</num><heading>Advance pricing agreements: indirect participation in financing cases</heading><subsection eId="section-22-1"><num>(1)</num><intro><p>In section 158 of TIOPA 2010 (which sets out how to read references to indirect participation for the purposes of, among other provisions, provisions relating to advance pricing agreements under Part 5 of that Act)—</p></intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content><p>in subsection (4), omit paragraph (c) (but not the “and” at the end of that paragraph), and</p></content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>For the purposes of section 219(2) (which is in Part 5), a person is indirectly participating in the management, control or capital of another person only if any of sections 159 to 162 so provide.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-22-2"><num>(2)</num><intro><p>In section 161 of that Act (indirect participation in financing cases)—</p></intro><level class="para1" eId="section-22-2-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-22-2-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-22-3"><num>(3)</num><intro><p>In section 162 of that Act (indirect participation in further financing cases)—</p></intro><level class="para1" eId="section-22-3-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-22-3-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-22-4"><num>(4)</num><content><p><mod>In section 219(4) of that Act (which sets out how to interpret references to associates by referring to, among other provisions, provisions in Part 4 of that Act that explain the meaning of indirect participation), for “and 160(1)” substitute <quotedText>“, 160(1), 161(1) and 162(1)”</quotedText>.</mod></p></content></subsection><subsection eId="section-22-5"><num>(5)</num><content><p>The amendments made by this section are treated as always having had effect.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-reliefs-for-businesses"><heading>Reliefs for businesses</heading><section eId="section-23"><num>23</num><heading>Expenditure on zero-emission cars</heading><subsection eId="section-23-1"><num>(1)</num><content><p>Section 45D of CAA 2001 (expenditure on zero-emission cars) is amended as follows.</p></content></subsection><subsection eId="section-23-2"><num>(2)</num><content><p><mod>In subsection (1)(a), for the words from “the period” to the end substitute <quotedText>“the relevant period,”</quotedText>.</mod></p></content></subsection><subsection eId="section-23-3"><num>(3)</num><content><p>Omit subsection (1A).</p></content></subsection><subsection eId="section-23-4"><num>(4)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>The “relevant period” is the period beginning with 17 April 2002 and ending with—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of expenditure incurred by a company within the charge to corporation tax, 31 March 2026, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of expenditure incurred by a person within the charge to income tax, 5 April 2026.</p></content></level></subsection><subsection><num>(1C)</num><content><p>The Treasury may by regulations amend subsection (1B) so as to extend the relevant period.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-24"><num>24</num><heading>Expenditure on plant or machinery for electric vehicle charging point</heading><content><p><mod>In section 45EA of CAA 2001 (expenditure on plant or machinery for electric vehicle charging point), in subsection (3)(a) and (b) (which specify the date on or before which expenditure must be incurred to qualify for a first-year allowance), for “2025” substitute <quotedText>“2026”</quotedText>.</mod></p></content></section><section eId="section-25"><num>25</num><heading>Commercial letting of furnished holiday accommodation</heading><content><p><ref href="#schedule-5">Schedule 5</ref> contains provision abolishing the special rules relating to the commercial letting of furnished holiday accommodation.</p></content></section><section eId="section-26"><num>26</num><heading>Films and television programmes: increased relief for visual effects</heading><subsection eId="section-26-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/part/14A">Part 14A</a> of <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (films, television programmes and video games), after section 1179EB insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>1179EC</num><heading>Special credit for visual effects</heading><subsection><num>(1)</num><content><p>This section applies in relation to a qualifying film or qualifying television programme.</p></content></subsection><subsection><num>(2)</num><intro><p>The production company is entitled to claim an additional amount of audiovisual expenditure credit for an accounting period (“the claim period”) that is the completion period (see section 1179DY) or a subsequent accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the company has incurred relevant visual effects expenditure on the film or programme in that period or an earlier accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>where a claim has been made for Chapter 3 credit (whether for the claim period or earlier), the relevant percentage for the purposes of all such claims was the percentage given by subsection (2) or (5) of section 1179DV.</p></content></level></subsection><subsection eId="d25e2673"><num>(3)</num><intro><p>The additional amount is equal to—</p></intro><level class="para1" eId="d25e2679"><num>(a)</num><content><p>39% of the total amount of the relevant visual effects expenditure incurred on the film or programme in the claim period and in previous periods, less</p></content></level><level class="para1"><num>(b)</num><intro><p>the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>where Chapter 3 credits have been claimed by the production company, the adjusted VFX portion of those credits, and</p></content></level><level class="para2"><num>(ii)</num><content><p>any additional amounts of audiovisual expenditure credit previously claimed under this section.</p></content></level></level></subsection><subsection eId="d25e2703"><num>(4)</num><content><p>Take the following steps to determine the adjusted VFX portion of previously claimed Chapter 3 credits—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1 (identify the total UK expenditure in the AVEC period)</i></p><p>Determine the total amount of the company’s relevant global expenditure (see section 1179CA(2)) that—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>is UK expenditure (see section 1179AB), and</p></item><item><num>(b)</num><p>was incurred for accounting periods falling within the company’s AVEC period.</p></item></blockList></item><item><p><i>Step 2 (identify the amount of visual effects expenditure)</i></p><p>Determine how much of the result of Step 1 is relevant visual effects expenditure.</p></item><item><p><i>Step 3 (determine the extent to which the 80% cap applied)</i></p><p>Determine the amount (if any) of the excess to be deducted at Step 3 in section 1179CA(1) for the most recent accounting period for which a claim for Chapter 3 credit was made (which may be the claim period).</p><p>If that amount is nil go to Step 4, otherwise go to Step 5.</p></item><item><p><i>Step 4 (where the 80% cap did not apply, calculate the adjusted VFX portion)</i></p><p>If this Step applies, the adjusted VFX portion is the amount given by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of Chapter 3 credits claimed by the production company, by</p></item><item><num>(b)</num><p>the amount given by dividing the result of Step 2 by the result of Step 1.</p></item></blockList></item><item><p><i>Step 5 (treat the 80% cap as affecting the VFX portion first)</i></p><p>Subtract the result of Step 3 from the result of Step 2.</p><p>If the result is nil or less, the adjusted VFX portion is nil. If not, go to Step 6.</p></item><item><p><i>Step 6 (calculate the adjusted VFX portion, taking account of the 80% cap)</i></p><p>If this Step applies, the adjusted VFX portion is the amount given by multiplying the result of Step 5 by 0.34.</p></item></blockList></content></subsection><subsection><num>(5)</num><intro><p>The Treasury may by regulations replace—</p></intro><level class="para1"><num>(a)</num><content><p>the percentage for the time being specified in <ref href="#d25e2673">subsection (3)</ref><ref href="#d25e2679">(a)</ref>, or</p></content></level><level class="para1"><num>(b)</num><content><p>the number for the time being specified in Step 6 in <ref href="#d25e2703">subsection (4)</ref> as the number by which the result of Step 5 in that subsection is multiplied.</p></content></level></subsection><subsection><num>(6)</num><content><p>Sections 1179C and 1179CB to 1179CI (treatment of expenditure credits) apply to the additional amount as they apply to an expenditure credit under Chapter 3.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>a company’s “<term refersTo="#term-avec-period">AVEC period</term>” means the period beginning with the commencement of the first accounting period for which this Part applies further to the election by the company under section 1179B(1) and ending with the end of the claim period;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-chapter-3-credit">Chapter 3 credit</term>” means an audiovisual expenditure credit in respect of the film or television programme determined under section 1179CA;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-visual-effects-expenditure">relevant visual effects expenditure</term>” means UK expenditure that—</p></intro><level class="para1"><num>(a)</num><content><p>is incurred in respect of relevant visual effects work carried out in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>counts as relevant production expenditure for the purposes of section 1179CA(2) (see section 1179DR);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-visual-effects-work">relevant visual effects work</term>” means work consisting of the use of computer technology to create or alter images for inclusion in the film or programme.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-26-2"><num>(2)</num><content><p>The amendment made by <ref href="#section-26-1">subsection (1)</ref> has effect only in relation to expenditure incurred on or after 1 January 2025.</p></content></subsection><subsection eId="section-26-3"><num>(3)</num><content><p>A claim for audiovisual expenditure credit may not be made in reliance on that amendment before 1 April 2025.</p></content></subsection></section><section eId="section-27"><num>27</num><heading>Certification of films etc: minor amendments</heading><subsection eId="section-27-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179AA">section 1179AA</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179AA">(7)</a> of <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (qualifying companies)—</p></intro><level class="para1" eId="section-27-1-a"><num>(a)</num><content><p><mod>after “for” insert <quotedText>“—”</quotedText>;</mod></p></content></level><level class="para1" eId="section-27-1-b"><num>(b)</num><content><p>the words from “a production” to the end become paragraph (a);</p></content></level><level class="para1" eId="section-27-1-c"><num>(c)</num><content><p><mod>at the end, insert <quotedText startQuote="“">;</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the submission of a film, television programme or video game certificate after the end of an accounting period.</p></content></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-27-2"><num>(2)</num><content><p>Section 1179DJ of CTA 2009 (British certification condition: films and television programmes) is amended as set out in subsections <ref href="#section-27-3">(3)</ref> to <ref href="#section-27-6">(6)</ref>.</p></content></subsection><subsection eId="section-27-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (2)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> (including the dash before paragraph (a)) and insert <quotedText>“the production company’s company tax return for the period is accompanied by a valid interim certificate.”</quotedText></mod></p></content></subsection><subsection eId="section-27-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (3)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the production company’s company tax return for the completion period is accompanied by a valid final certificate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the production company has abandoned production activities in relation to the film or programme and the production company’s company tax return for the completion period is accompanied by a valid interim certificate.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-27-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (6)</a>, for the words from the beginning to “that period” substitute <quotedText>“If a certificate is revoked after the production company’s company tax return for a period is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-6"><num>(6)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsections (7)</a> and (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>Subsection (6) does not apply to the extent that a direction under paragraph 3 of Schedule 1 to the Films Act 1985 or section 1179DM provides that the certificate is to be treated as having effect.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this section, a certificate is valid if it has effect on the day on which the production company’s company tax return is submitted.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-27-7"><num>(7)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">Section 1179FC</a> of <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (British certification condition: video games) is amended as set out in subsections <ref href="#section-27-8">(8)</ref> to <ref href="#section-27-11">(11)</ref>.</p></content></subsection><subsection eId="section-27-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (2)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> (including the dash before paragraph (a)) and insert <quotedText>“the production company’s company tax return for the period is accompanied by a valid interim certificate.”</quotedText></mod></p></content></subsection><subsection eId="section-27-9"><num>(9)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (3)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the production company’s company tax return for the completion period is accompanied by a valid final certificate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the production company has abandoned production activities in relation to the video game and the production company’s company tax return for the completion period is accompanied by a valid interim certificate.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-27-10"><num>(10)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (6)</a>, for the words from the beginning to “that period” substitute <quotedText>“If a certificate is revoked after the production company’s company tax return for a period is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-11"><num>(11)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsections (7)</a> and (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>Subsection (6) does not apply to the extent that a direction under section 1179FF provides that the certificate is to be treated as having effect.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this section, a certificate is valid if it has effect on the day on which the production company’s company tax return is submitted.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-27-12"><num>(12)</num><content><p><mod>In section 1179DJA(9) of <ref eId="c00019" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (certification as a low-budget film), for the words “a low-budget certificate” to the end substitute <quotedText>“the production company’s company tax return for the period is accompanied by a low-budget certificate which has effect on that day the return is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-13"><num>(13)</num><content><p>In section 15 of the F(No.2)A 2024 (certification as a low-budget film: transitional), omit <a href="https://www.legislation.gov.uk/ukpga/2024/12/section/15">subsection (8)</a>.</p></content></subsection><subsection eId="section-27-14"><num>(14)</num><content><p>The amendments made by <ref href="#section-80">this section</ref> have effect in relation to claims made on or after the day on which this Act is passed.</p></content></subsection><subsection eId="section-27-15"><num>(15)</num><content><p><mod>In relation to an accounting period beginning on or before 30 October 2024, sections 1179DJ(8) and 1179FC(8) of CTA 2009 (as inserted by subsections <ref href="#section-27-6">(6)</ref> and <ref href="#section-27-11">(11)</ref>) have effect as if they read as follows—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><intro><p>For the purposes of this section, a certificate is valid if—</p></intro><level class="para1"><num>(a)</num><content><p>it has effect on the day on which the production company’s company tax return is submitted, or</p></content></level><level class="para1"><num>(b)</num><content><p>it had effect on the last day of the accounting period to which the return relates.</p></content></level></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-28"><num>28</num><heading>Films etc: unpaid amounts</heading><subsection eId="section-28-1"><num>(1)</num><content><p><ref eId="c00020" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><intro><p>In section 1179DT (excluded expenditure)—</p></intro><level class="para1" eId="section-28-2-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level><level class="para1" eId="section-28-2-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DT">subsection (1)</a>;</p></content></level><level class="para1" eId="section-28-2-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-28-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DX">section 1179DX</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DX">(3)</a>.</p></content></subsection><subsection eId="section-28-4"><num>(4)</num><intro><p>In section 1179FL (excluded expenditure)—</p></intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FL">subsection (1)</a>;</p></content></level><level class="para1" eId="section-28-4-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-28-5"><num>(5)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FP">section 1179FP</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FP">(3)</a>.</p></content></subsection><subsection eId="section-28-6"><num>(6)</num><content><p>The amendments in <ref href="#section-28">this section</ref> have effect in relation to claims made on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-29"><num>29</num><heading>Research and development relief: Northern Ireland companies</heading><subsection eId="section-29-1"><num>(1)</num><content><p>CTA 2009 is amended as set out in subsections (2) to (5).</p></content></subsection><subsection eId="section-29-2"><num>(2)</num><content><p><mod>In section 1112A (overview), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>Section 1112J contains provision about the amount of relief to which certain Northern Ireland companies are entitled under Chapter 2.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-29-3"><num>(3)</num><content><p><mod>For section 1112J and the heading above substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Northern Ireland companies</heading><section><num>1112J</num><heading>Chapter 2 relief for Northern Ireland companies</heading><subsection><num>(1)</num><content><p>This section applies for the purpose of determining the entitlement of a Northern Ireland company to relief under Chapter 2.</p></content></subsection><subsection><num>(2)</num><content><p>A Northern Ireland company is entitled to additional relief under Chapter 2 only to the extent that the additional relief would be exempted from notification under Article 108(3) of the TFEU by a de minimis aid regulation listed in paragraph 3.4 of Annex 5 to the Windsor Framework (as amended or replaced from time to time).</p></content></subsection><subsection><num>(3)</num><content><p>In subsection (2), “<term refersTo="#term-additional-relief">additional relief</term>” means the difference between the value of the relief claimed by the company under Chapter 2 in respect of expenditure and the value of the relief that could have been obtained by the company under Chapter 1A in respect of that expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>This section does not apply to a company in relation to an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in this subsection.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-northern-ireland-company">Northern Ireland company</term>” means a company whose registered office is in Northern Ireland;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-tfeu">TFEU</term>” means the Treaty on the Functioning of the European Union as it has effect by virtue of Article 10 of the Windsor Framework;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-windsor-framework">Windsor Framework</term>” means the part of the EU withdrawal agreement known as the Windsor Framework by virtue of Joint Declaration No. 1/2023 of 24th March 2023 made by the European Union and the United Kingdom in the Joint Committee established by the EU withdrawal agreement.</p></content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-29-4"><num>(4)</num><intro><p>In subsection 1138A(1) (research and development undertaken abroad)—</p></intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content><p><mod>for subsection (1)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>the research and development is undertaken, or contracted out, by a company whose registered office is in Northern Ireland.</p></content></level></quotedStructure></mod></p></content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Subsection (1)(b) does not apply in relation to a company in respect of an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in section 1112J(4) (restriction of Chapter 2 relief for Northern Ireland companies).</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-29-5"><num>(5)</num><content><p>In section 1142E(b) (orders and regulations: ancillary provision), omit “or areas”.</p></content></subsection><subsection eId="section-29-6"><num>(6)</num><content><p>The Research and Development (Chapter 2 Relief) Regulations 2024 are revoked.</p></content></subsection><subsection eId="section-29-7"><num>(7)</num><intro><p>The Relief for Research and Development (Content of Claim Notifications, Additional Information Requirements and Miscellaneous Amendments) Regulations 2023 are amended as follows—</p></intro><level class="para1" eId="section-29-7-a"><num>(a)</num><content><p>in regulation 3(4), omit the definition for “the Chapter 2 Regulations”;</p></content></level><level class="para1" eId="section-29-7-b"><num>(b)</num><content><p><mod>in paragraph 1(2)(b) of Schedule 2, for “regulation 2(3) of the Chapter 2 Regulations” substitute <quotedText>“section 1112J(4) of CTA 2009”</quotedText>;</mod></p></content></level><level class="para1" eId="section-29-7-c"><num>(c)</num><content><p><mod>in paragraph 10 of Schedule 2 omit sub-paragraphs (1)(a) and (b) and (2) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a statement to the effect that any additional relief claimed by the company under Chapter 2 would be de minimis state aid, and</p></content></level><level class="para1"><num>(b)</num><content><p>the total value of de minimis state aid received by the company from the United Kingdom in the period of three years ending with the day on which the claim is made;</p></content></level></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><intro><p>For the purposes of sub-paragraph (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-additional-relief">additional relief</term>” has the meaning given in section 1112J(3) of CTA 2009;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-de-minimis-state-aid">de minimis state aid</term>” means aid that is exempted from notification as described in section 1112J(2) of CTA 2009.</p></content></hcontainer></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-29-8"><num>(8)</num><intro><p>The Income and Corporation Taxes (Electronic Communications) Regulations 2003 are amended as follows—</p></intro><level class="para1" eId="section-29-8-a"><num>(a)</num><content><p><mod>in regulation 2(1)(a)(xi) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>;</mod></p></content></level><level class="para1" eId="section-29-8-b"><num>(b)</num><content><p><mod>in regulation 3(2AA)(c) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-29-9"><num>(9)</num><content><p>The amendments and revocation made by this section have effect in relation to claims made on or after 30 October 2024.</p></content></subsection></section><section eId="section-30"><num>30</num><heading>Research and development intensity condition: transitional provision</heading><subsection eId="section-30-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 1 to FA 2024 (higher rate of payable credit for R&D-intensive SMEs between 1 April 2023 and 1 April 2024), for sub-paragraph (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><intro><p>But that section is to be read for the purposes of sub-paragraph (3) as if—</p></intro><level class="para1"><num>(a)</num><content><p><mod>in subsections (2) and (3), for “30%” there were substituted <quotedText>“40%”</quotedText>;</mod></p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (7), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>it is expenditure in respect of which the company is entitled to relief under this Chapter or Chapter 6A of Part 3 for the period.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>The amendment made by this section is to be treated as always having had effect.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-employeeownership-trusts"><heading>Employee-ownership trusts</heading><section eId="section-31"><num>31</num><heading>Employee-ownership trusts</heading><content><p><ref href="#schedule-6">Schedule 6</ref> makes provision about employee ownership trusts.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-miscellaneous-measures"><heading>Miscellaneous measures</heading><section eId="section-32"><num>32</num><heading>Overseas transfer charge: pension schemes in EEA state or Gibraltar</heading><subsection eId="section-32-1"><num>(1)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions) omit section 244C (exclusion from overseas transfer charge where receiving scheme in EEA state or Gibraltar, and member resident in UK or EEA state).</p></content></subsection><subsection eId="section-32-2"><num>(2)</num><content><p>Subsections <ref href="#section-32-3">(3)</ref> to <ref href="#section-32-5">(5)</ref> contain amendments consequential on the repeal made by subsection (1).</p></content></subsection><subsection eId="section-32-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>—</p></intro><level class="para1" eId="section-32-3-a"><num>(a)</num><content><p>in section 244J (persons liable to charge), in subsection (4) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-3-b"><num>(b)</num><content><p>in section 244K (meaning of “<term refersTo="#term-transferred-value" eId="term-transferred-value">transferred value</term>”), in subsection (6) omit “or 244C”.</p></content></level></subsection><subsection eId="section-32-4"><num>(4)</num><intro><p>In the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 (<ref eId="c00023" href="http://www.legislation.gov.uk/id/uksi/2006/208">S.I. 2006/208</ref>)—</p></intro><level class="para1" eId="section-32-4-a"><num>(a)</num><intro><p>in regulation 3 (information to be provided to QROPS) in paragraph (2C)—</p></intro><level class="para2" eId="section-32-4-a-i"><num>(i)</num><content><p><mod>for “neither” substitute <quotedText>“not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-32-4-a-ii"><num>(ii)</num><content><p>omit paragraph (b) and the “nor” before it;</p></content></level></level><level class="para1" eId="section-32-4-b"><num>(b)</num><content><p>in regulation 3AF (information provided by member to QROPS: inward and outward transfers), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-4-c"><num>(c)</num><content><p>in regulation 3AG (provision of information about liability for overseas transfer charge), in paragraph (2)(d) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-4-d"><num>(d)</num><content><p>in regulation 3AH (accounting for overseas transfer charge where change of circumstances), in paragraph (1)(a)(ii) omit “or 244C(3)”.</p></content></level></subsection><subsection eId="section-32-5"><num>(5)</num><intro><p>In the <ref eId="c00024" href="https://www.legislation.gov.uk/uksi/2006/567">Registered Pension Schemes (Provision of Information) Regulations 2006</ref> (<ref eId="c00025" href="http://www.legislation.gov.uk/id/uksi/2006/567">S.I. 2006/567</ref>)—</p></intro><level class="para1" eId="section-32-5-a"><num>(a)</num><content><p>in regulation 11BB (information provided by members to scheme administrators), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-5-b"><num>(b)</num><content><p>in regulation 12A (information provided by scheme administrators to members), in paragraph (2)(d) omit “or 244C”.</p></content></level></subsection><subsection eId="section-32-6"><num>(6)</num><content><p>Subject to <ref href="#section-32-7">subsections (7)</ref> and <ref href="#section-32-8">(8)</ref>, the amendments made by this section have effect in relation to transfers made on or after 30 October 2024.</p></content></subsection><subsection eId="section-32-7"><num>(7)</num><intro><p>The amendments do not have effect in relation to a transfer that is made—</p></intro><level class="para1" eId="section-32-7-a"><num>(a)</num><content><p>in execution of a request made before 30 October 2024, and</p></content></level><level class="para1" eId="section-32-7-b"><num>(b)</num><content><p>before 30 April 2025.</p></content></level></subsection><subsection eId="section-32-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-32-8-a"><num>(a)</num><content><p>the repeal made by <ref href="#section-32-1">subsection (1)</ref> does not have effect in relation to a transfer, but</p></content></level><level class="para1" eId="section-32-8-b"><num>(b)</num><content><p>the tax consequences of that transfer depend on the tax consequences of a later transfer in relation to which the repeal does have effect,</p></content></level><wrapUp><p>the tax consequences of the earlier transfer are to be determined as if the repeal did not have effect in relation to the later transfer.</p></wrapUp></subsection></section><section eId="section-33"><num>33</num><heading>Overseas pension schemes established in EEA states</heading><subsection eId="section-33-1"><num>(1)</num><content><p>The <ref eId="c00026" href="https://www.legislation.gov.uk/uksi/2006/206">Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006</ref> (<ref eId="c00027" href="http://www.legislation.gov.uk/id/uksi/2006/206">S.I. 2006/206</ref>) are amended as follows.</p></content></subsection><subsection eId="section-33-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">regulation 2</a> (requirements of an overseas pension scheme), in <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">paragraph (2)</a>, for <span><a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">sub-paragraphs (a)</a> to <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">(d)</a></span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><intro><p>the scheme is an occupational pension scheme and—</p></intro><level class="para2"><num>(i)</num><content><p>the scheme is regulated by a body in the country or territory in which the scheme is established that regulates occupational pension schemes, or</p></content></level><level class="para2"><num>(ii)</num><content><p>there is no body in that country or territory that regulates occupational pension schemes;</p></content></level></level><level class="para1"><num>(b)</num><content><p>the scheme is not an occupational pension scheme and the scheme is regulated by a body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes; or</p></content></level><level class="para1"><num>(c)</num><intro><p>the scheme is not an occupational pension scheme and—</p></intro><level class="para2"><num>(i)</num><content><p>there is no body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the establishment of the scheme was regulated, and the provision of the scheme is regulated, by a body in that country or territory that regulates providers of pension schemes.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">regulation 3</a> (recognised overseas pension schemes: prescribed countries or territories and prescribed requirements), in <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">paragraph (2)</a> (prescribed countries) omit <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">sub-paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">(b)</a>.</p></content></subsection><subsection eId="section-33-4"><num>(4)</num><content><p><span><ref href="#section-33-1">Subsections (1)</ref> to <ref href="#section-33-3">(3)</ref></span> come into force on 6 April 2025.</p></content></subsection></section><section eId="section-34"><num>34</num><heading>Pension scheme administrators required to be resident in United Kingdom</heading><subsection eId="section-34-1"><num>(1)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00028" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions), <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/270">section 270</a> (meaning of “<term refersTo="#term-scheme-administrator" eId="term-scheme-administrator">scheme administrator</term>”) is amended as follows.</p></content></subsection><subsection eId="section-34-2"><num>(2)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-34-2-a"><num>(a)</num><intro><p>in the opening words—</p></intro><level class="para2" eId="section-34-2-a-i"><num>(i)</num><content><p><mod>for “cannot be” substitute <quotedText>“is not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-34-2-a-ii"><num>(ii)</num><content><p><mod>for “unless” substitute <quotedText>“at any time unless, at that time,”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content><p>in paragraph (a) omit the words from “or another” to the end.</p></content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content><p>In subsection (3)(b) omit the words from “, whether resident” to the end;</p></content></subsection><subsection eId="section-34-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subsection><subsection eId="section-34-5"><num>(5)</num><content><p><span>Subsections (1) to (4)</span> come into force on 6 April 2026.</p></content></subsection></section><section eId="section-35"><num>35</num><heading>Alternative finance: diminishing shared ownership refinancing arrangements</heading><content><p>Schedule <ref href="#schedule-7">7</ref> makes provision about diminishing shared ownership refinancing arrangements.</p></content></section><section eId="section-36"><num>36</num><heading>Statutory neonatal care pay</heading><subsection eId="section-36-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subsection><subsection eId="section-36-2"><num>(2)</num><intro><p>In section 660 (taxable UK benefits)—</p></intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content><p><mod>in Table A in subsection (1), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Statutory neonatal care pay</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">SSCBA 1992</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 171ZZ16</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content><p><mod>in subsection (2), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>statutory neonatal care pay;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-36-3"><num>(3)</num><content><p><mod>In paragraph 48 of Schedule 2 (notice of possible effect of deductions under SIP partnership share agreement on employee’s benefit entitlement), in sub-paragraph (2) after “statutory sick pay” insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></subsection><subsection eId="section-36-4"><num>(4)</num><intro><p>In regulation 2 of the Employee Share Ownership Plans (Partnership Shares—Notice of Effects on Benefits, Statutory Sick Pay and Statutory Maternity Pay) Regulations 2000 (<ref eId="c00029" href="http://www.legislation.gov.uk/id/uksi/2000/2090">S.I. 2000/2090</ref>)—</p></intro><level class="para1" eId="section-36-4-a"><num>(a)</num><content><p><mod>after “<term refersTo="#term-statutory-maternity-pay" eId="term-statutory-maternity-pay">statutory maternity pay</term>” (in the first place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>;</mod></p></content></level><level class="para1" eId="section-36-4-b"><num>(b)</num><content><p><mod>after “<term refersTo="#term-statutory-sick-pay" eId="term-statutory-sick-pay">statutory sick pay</term>” (in the second place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-36-5"><num>(5)</num><content><p><ref href="#section-36-4">Subsection (4)</ref> comes into force on 6 April 2025.</p></content></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-income-tax-charge-rates-etc"><heading>Income tax charge, rates etc</heading><section eId="section-1"><num>1</num><heading>Income tax charge for tax year 2025-26</heading><content><p>Income tax is charged for the tax year 2025-26.</p></content></section><section eId="section-2"><num>2</num><heading>Main rates of income tax for tax year 2025-26</heading><intro><p>For the tax year 2025-26 the main rates of income tax are as follows—</p></intro><level class="para1" eId="section-2-a"><num>(a)</num><content><p>the basic rate is 20%,</p></content></level><level class="para1" eId="section-2-b"><num>(b)</num><content><p>the higher rate is 40%, and</p></content></level><level class="para1" eId="section-2-c"><num>(c)</num><content><p>the additional rate is 45%.</p></content></level></section><section eId="section-3"><num>3</num><heading>Default and savings rates of income tax for tax year 2025-26</heading><subsection eId="section-3-1"><num>(1)</num><intro><p>For the tax year 2025-26 the default rates of income tax are as follows—</p></intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content><p>the default basic rate is 20%,</p></content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content><p>the default higher rate is 40%, and</p></content></level><level class="para1" eId="section-3-1-c"><num>(c)</num><content><p>the default additional rate is 45%.</p></content></level></subsection><subsection eId="section-3-2"><num>(2)</num><intro><p>For the tax year 2025-26 the savings rates of income tax are as follows—</p></intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content><p>the savings basic rate is 20%,</p></content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content><p>the savings higher rate is 40%, and</p></content></level><level class="para1" eId="section-3-2-c"><num>(c)</num><content><p>the savings additional rate is 45%.</p></content></level></subsection></section><section eId="section-4"><num>4</num><heading>Freezing starting rate limit for savings for tax year 2025-26</heading><subsection eId="section-4-1"><num>(1)</num><content><p>For the tax year 2025-26 the amount specified in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/12">(3)</a> of <ref eId="c00001" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (the starting rate limit for savings) is “£5,000”.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p>Accordingly, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/21">section 21</a> of <ref eId="c00002" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2025-26.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1"><num>1</num><heading>Income tax charge for tax year 2025-26</heading><content><p>Income tax is charged for the tax year 2025-26.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2"><num>2</num><heading>Main rates of income tax for tax year 2025-26</heading><intro><p>For the tax year 2025-26 the main rates of income tax are as follows—</p></intro><level class="para1" eId="section-2-a"><num>(a)</num><content><p>the basic rate is 20%,</p></content></level><level class="para1" eId="section-2-b"><num>(b)</num><content><p>the higher rate is 40%, and</p></content></level><level class="para1" eId="section-2-c"><num>(c)</num><content><p>the additional rate is 45%.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-a"><num>(a)</num><content><p>the basic rate is 20%,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-b"><num>(b)</num><content><p>the higher rate is 40%, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-c"><num>(c)</num><content><p>the additional rate is 45%.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3"><num>3</num><heading>Default and savings rates of income tax for tax year 2025-26</heading><subsection eId="section-3-1"><num>(1)</num><intro><p>For the tax year 2025-26 the default rates of income tax are as follows—</p></intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content><p>the default basic rate is 20%,</p></content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content><p>the default higher rate is 40%, and</p></content></level><level class="para1" eId="section-3-1-c"><num>(c)</num><content><p>the default additional rate is 45%.</p></content></level></subsection><subsection eId="section-3-2"><num>(2)</num><intro><p>For the tax year 2025-26 the savings rates of income tax are as follows—</p></intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content><p>the savings basic rate is 20%,</p></content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content><p>the savings higher rate is 40%, and</p></content></level><level class="para1" eId="section-3-2-c"><num>(c)</num><content><p>the savings additional rate is 45%.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-1"><num>(1)</num><intro><p>For the tax year 2025-26 the default rates of income tax are as follows—</p></intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content><p>the default basic rate is 20%,</p></content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content><p>the default higher rate is 40%, and</p></content></level><level class="para1" eId="section-3-1-c"><num>(c)</num><content><p>the default additional rate is 45%.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-1-a"><num>(a)</num><content><p>the default basic rate is 20%,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-1-b"><num>(b)</num><content><p>the default higher rate is 40%, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-1-c"><num>(c)</num><content><p>the default additional rate is 45%.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-2"><num>(2)</num><intro><p>For the tax year 2025-26 the savings rates of income tax are as follows—</p></intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content><p>the savings basic rate is 20%,</p></content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content><p>the savings higher rate is 40%, and</p></content></level><level class="para1" eId="section-3-2-c"><num>(c)</num><content><p>the savings additional rate is 45%.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-a"><num>(a)</num><content><p>the savings basic rate is 20%,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-b"><num>(b)</num><content><p>the savings higher rate is 40%, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-c"><num>(c)</num><content><p>the savings additional rate is 45%.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4"><num>4</num><heading>Freezing starting rate limit for savings for tax year 2025-26</heading><subsection eId="section-4-1"><num>(1)</num><content><p>For the tax year 2025-26 the amount specified in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/12">(3)</a> of <ref eId="c00001" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (the starting rate limit for savings) is “£5,000”.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p>Accordingly, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/21">section 21</a> of <ref eId="c00002" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2025-26.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-1"><num>(1)</num><content><p>For the tax year 2025-26 the amount specified in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/12">(3)</a> of <ref eId="c00001" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (the starting rate limit for savings) is “£5,000”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-2"><num>(2)</num><content><p>Accordingly, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/21">section 21</a> of <ref eId="c00002" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2025-26.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-income-tax-provisions-relating-to-cars"><heading>Income tax provisions relating to cars</heading><section eId="section-5"><num>5</num><heading>Appropriate percentage for cars: tax year 2028-29</heading><subsection eId="section-5-1"><num>(1)</num><content><p>Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc) is amended as follows.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p><mod> In section 139 (cars with a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (1), for the table (as substituted by section 11(7) of FA 2023) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 1–50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 51–54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 55–59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 60–64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 65–74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-3"><num>(3)</num><intro><p>In subsection (3) of section 139 (as amended by section 11(3) of FA 2023)—</p></intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “21%” substitute <quotedText>“22%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-5-4"><num>(4)</num><content><p><mod> In section 140 (cars without a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-5"><num>(5)</num><intro><p>In subsection (3) of section 140—</p></intro><level class="para1" eId="section-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “2%” substitute <quotedText>“7%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-5-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-5-6"><num>(6)</num><content><p><mod>In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-5-7"><num>(7)</num><content><p><mod> In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-8"><num>(8)</num><content><p><mod>In subsection (3) of section 142, for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-5-9"><num>(9)</num><content><p>The amendments made by subsections <ref href="#section-5-2">(2)</ref> to <ref href="#section-5-8">(8)</ref> have effect for the tax year 2028-29.</p></content></subsection><subsection eId="section-5-10"><num>(10)</num><intro><p>In consequence of the amendments made by this section, in section 139, omit—</p></intro><level class="para1" eId="section-5-10-a"><num>(a)</num><content><p>in subsection (2), paragraph (b) together with the “and” before it, and</p></content></level><level class="para1" eId="section-5-10-b"><num>(b)</num><content><p>subsections (5) to (5B).</p></content></level></subsection><subsection eId="section-5-11"><num>(11)</num><content><p>The amendments made by subsection <ref href="#section-5-10">(10)</ref> have effect for the for the tax year 2028-29 and subsequent tax years.</p></content></subsection></section><section eId="section-6"><num>6</num><heading>Appropriate percentage for cars: subsequent tax years</heading><subsection eId="section-6-1"><num>(1)</num><content><p>Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc), as amended by section <ref href="#section-5">5</ref>, is amended as follows.</p></content></subsection><subsection eId="section-6-2"><num>(2)</num><content><p><mod>In section 139 of ITEPA 2003, in subsection (1), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 1–50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 51–54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 55–59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 60–64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 65–74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-3"><num>(3)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-6-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “22%” substitute <quotedText>“23%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-6-4"><num>(4)</num><content><p><mod> In section 140 (cars without a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-5"><num>(5)</num><intro><p>In subsection (3) of section 140—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “7%” substitute <quotedText>“9%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-6-6"><num>(6)</num><content><p><mod>In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></subsection><subsection eId="section-6-7"><num>(7)</num><content><p><mod> In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-8"><num>(8)</num><content><p><mod>In subsection (3) of section 142, for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></subsection><subsection eId="section-6-9"><num>(9)</num><content><p>The amendments made by this section have effect for the tax year 2029-30 and subsequent tax years.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-5"><num>5</num><heading>Appropriate percentage for cars: tax year 2028-29</heading><subsection eId="section-5-1"><num>(1)</num><content><p>Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc) is amended as follows.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p><mod> In section 139 (cars with a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (1), for the table (as substituted by section 11(7) of FA 2023) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 1–50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 51–54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 55–59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 60–64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 65–74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-3"><num>(3)</num><intro><p>In subsection (3) of section 139 (as amended by section 11(3) of FA 2023)—</p></intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “21%” substitute <quotedText>“22%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-5-4"><num>(4)</num><content><p><mod> In section 140 (cars without a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-5"><num>(5)</num><intro><p>In subsection (3) of section 140—</p></intro><level class="para1" eId="section-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “2%” substitute <quotedText>“7%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-5-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-5-6"><num>(6)</num><content><p><mod>In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-5-7"><num>(7)</num><content><p><mod> In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-5-8"><num>(8)</num><content><p><mod>In subsection (3) of section 142, for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-5-9"><num>(9)</num><content><p>The amendments made by subsections <ref href="#section-5-2">(2)</ref> to <ref href="#section-5-8">(8)</ref> have effect for the tax year 2028-29.</p></content></subsection><subsection eId="section-5-10"><num>(10)</num><intro><p>In consequence of the amendments made by this section, in section 139, omit—</p></intro><level class="para1" eId="section-5-10-a"><num>(a)</num><content><p>in subsection (2), paragraph (b) together with the “and” before it, and</p></content></level><level class="para1" eId="section-5-10-b"><num>(b)</num><content><p>subsections (5) to (5B).</p></content></level></subsection><subsection eId="section-5-11"><num>(11)</num><content><p>The amendments made by subsection <ref href="#section-5-10">(10)</ref> have effect for the for the tax year 2028-29 and subsequent tax years.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-1"><num>(1)</num><content><p>Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-5-2"><num>(2)</num><content><p><mod> In section 139 (cars with a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (1), for the table (as substituted by section 11(7) of FA 2023) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 1–50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 51–54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 55–59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 60–64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 65–74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-3"><num>(3)</num><intro><p>In subsection (3) of section 139 (as amended by section 11(3) of FA 2023)—</p></intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “21%” substitute <quotedText>“22%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “21%” substitute <quotedText>“22%”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-5-4"><num>(4)</num><content><p><mod> In section 140 (cars without a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-5"><num>(5)</num><intro><p>In subsection (3) of section 140—</p></intro><level class="para1" eId="section-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “2%” substitute <quotedText>“7%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-5-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “2%” substitute <quotedText>“7%”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-6"><num>(6)</num><content><p><mod>In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-5-7"><num>(7)</num><content><p><mod> In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-8"><num>(8)</num><content><p><mod>In subsection (3) of section 142, for “37%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-9"><num>(9)</num><content><p>The amendments made by subsections <ref href="#section-5-2">(2)</ref> to <ref href="#section-5-8">(8)</ref> have effect for the tax year 2028-29.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-10"><num>(10)</num><intro><p>In consequence of the amendments made by this section, in section 139, omit—</p></intro><level class="para1" eId="section-5-10-a"><num>(a)</num><content><p>in subsection (2), paragraph (b) together with the “and” before it, and</p></content></level><level class="para1" eId="section-5-10-b"><num>(b)</num><content><p>subsections (5) to (5B).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-10-a"><num>(a)</num><content><p>in subsection (2), paragraph (b) together with the “and” before it, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-10-b"><num>(b)</num><content><p>subsections (5) to (5B).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-11"><num>(11)</num><content><p>The amendments made by subsection <ref href="#section-5-10">(10)</ref> have effect for the for the tax year 2028-29 and subsequent tax years.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-6"><num>6</num><heading>Appropriate percentage for cars: subsequent tax years</heading><subsection eId="section-6-1"><num>(1)</num><content><p>Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc), as amended by section <ref href="#section-5">5</ref>, is amended as follows.</p></content></subsection><subsection eId="section-6-2"><num>(2)</num><content><p><mod>In section 139 of ITEPA 2003, in subsection (1), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 1–50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 51–54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 55–59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 60–64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 65–74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-3"><num>(3)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-6-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “22%” substitute <quotedText>“23%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-6-4"><num>(4)</num><content><p><mod> In section 140 (cars without a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-5"><num>(5)</num><intro><p>In subsection (3) of section 140—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “7%” substitute <quotedText>“9%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-6-6"><num>(6)</num><content><p><mod>In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></subsection><subsection eId="section-6-7"><num>(7)</num><content><p><mod> In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection><subsection eId="section-6-8"><num>(8)</num><content><p><mod>In subsection (3) of section 142, for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></subsection><subsection eId="section-6-9"><num>(9)</num><content><p>The amendments made by this section have effect for the tax year 2029-30 and subsequent tax years.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-1"><num>(1)</num><content><p>Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc), as amended by section <ref href="#section-5">5</ref>, is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-6-2"><num>(2)</num><content><p><mod>In section 139 of ITEPA 2003, in subsection (1), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 1–50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 51–54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 55–59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 60–64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Car with CO<sub>2</sub> emissions figure of 65–74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-3"><num>(3)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-6-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “22%” substitute <quotedText>“23%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-6-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “22%” substitute <quotedText>“23%”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-6-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-6-4"><num>(4)</num><content><p><mod> In section 140 (cars without a CO<sub>2</sub> emissions figure: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-5"><num>(5)</num><intro><p>In subsection (3) of section 140—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “7%” substitute <quotedText>“9%”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-6-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “7%” substitute <quotedText>“9%”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-6-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-6"><num>(6)</num><content><p><mod>In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-6-7"><num>(7)</num><content><p><mod> In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cylinder capacity of car in cubic centimetres</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Appropriate percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1,400 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 1,4000 but not more than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">More than 2,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText"> .</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-8"><num>(8)</num><content><p><mod>In subsection (3) of section 142, for “38%” substitute <quotedText>“39%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-9"><num>(9)</num><content><p>The amendments made by this section have effect for the tax year 2029-30 and subsequent tax years.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-capital-gains-tax-rates-and-reliefs"><heading>Capital gains tax rates and reliefs</heading><section eId="section-7"><num>7</num><heading>Main rates of CGT for gains other than carried interest gains</heading><subsection eId="section-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">section 1H</a> of <ref eId="c00003" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (the main rates of CGT)—</p></intro><level class="para1" eId="section-7-1-a"><num>(a)</num><content><p>omit subsection (1A) (which sets out the rates for residential property gains accruing to individuals),</p></content></level><level class="para1" eId="section-7-1-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (3)</a> (which sets out the rates for gains accruing to individuals that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-b-i"><num>(i)</num><content><p><mod>for “10%” substitute <quotedText>“18%”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-7-1-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="section-7-1-c"><num>(c)</num><content><p>omit subsection (4A) (which sets out the rates for residential property gains accruing to personal representatives),</p></content></level><level class="para1" eId="section-7-1-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (6)</a> (which sets out the rates for gains accruing to personal representatives that are not residential property gains or carried interest gains), for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level><level class="para1" eId="section-7-1-e"><num>(e)</num><content><p>omit subsection (7) (which sets out the rates for residential property gains accruing to trustees), and</p></content></level><level class="para1" eId="section-7-1-f"><num>(f)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (8)</a> (which sets out the rates for gains accruing to trustees that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-f-i"><num>(i)</num><content><p>omit “Other”, and</p></content></level><level class="para2" eId="section-7-1-f-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>.</mod></p></content></level></level></subsection><subsection eId="section-7-2"><num>(2)</num><content><p><ref href="#schedule-1">Schedule 1</ref> contains amendments in consequence of the provision made by this section.</p></content></subsection><subsection eId="section-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-7">this section</ref> and that Schedule have effect in relation to disposals made on or after 30 October 2024.</p></content></subsection></section><section eId="section-8"><num>8</num><heading>Business asset disposal relief: increase in rate</heading><subsection eId="section-8-1"><num>(1)</num><content><p><mod>In section 169N of TCGA 1992 (business asset disposal relief), in subsection (3) (which specifies the rate of CGT for the relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-2"><num>(2)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-8-1">(1)</ref>, in section 1H(1)(a) of TCGA 1992 (which refers to the rate for business asset disposal relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>The amendments made by subsections <ref href="#section-8-1">(1)</ref> and <ref href="#section-8-2">(2)</ref> have effect in relation to disposals made on or after 6 April 2025.</p></content></subsection><subsection eId="section-8-4"><num>(4)</num><content><p><mod>In section 169N(3) of TCGA 1992 (as amended by subsection <ref href="#section-8-1">(1)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-5"><num>(5)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-8-4">(4)</ref>, in section 1H(1)(a) of TCGA 1992 (as amended by subsection <ref href="#section-8-2">(2)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-6"><num>(6)</num><content><p>The amendments made by subsections <ref href="#section-8-4">(4)</ref> and <ref href="#section-8-5">(5)</ref> have effect in relation to disposals made on or after 6 April 2026.</p></content></subsection></section><section eId="section-9"><num>9</num><heading>Investors’ relief: increase in rate</heading><subsection eId="section-9-1"><num>(1)</num><content><p><mod>In section 169VC(2) of TCGA 1992 (which specifies the rate of CGT for the relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-9-1">(1)</ref>, in section 1H(1)(b) of TCGA 1992 (which refers to the rate for investors’ relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-3"><num>(3)</num><content><p><mod>In consequence of the amendments made by subsection <ref href="#section-9-1">(1)</ref> and <ref href="#section-8">section 8</ref><ref href="#section-8-1">(1)</ref>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> of TCGA 1992 (income taxed at higher rates or gains exceeding unused basic rate band), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">(a)</a> (which refers to the rate for business asset disposal relief and investors’ relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-4"><num>(4)</num><content><p>The amendments made by subsections <ref href="#section-9-1">(1)</ref> to <ref href="#section-9-3">(3)</ref> have effect in relation to disposals made on or after 6 April 2025.</p></content></subsection><subsection eId="section-9-5"><num>(5)</num><content><p><mod>In section 169VC(2) of TCGA 1992 (as amended by subsection <ref href="#section-9-1">(1)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-6"><num>(6)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-9-5">(5)</ref>, in section 1H(1)(b) of TCGA 1992 (as amended by subsection (2)), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-7"><num>(7)</num><content><p><mod>In consequence of the amendments made by subsection <ref href="#section-9-5">(5)</ref> and <ref href="#section-8">section 8</ref><ref href="#section-8-4">(4)</ref>, in section 1I(4)(a) of TCGA 1992 (as amended by subsection <ref href="#section-9-3">(3)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-8"><num>(8)</num><content><p>The amendments made by subsections <ref href="#section-9-5">(5)</ref> to <ref href="#section-9-7">(7)</ref> have effect in relation to disposals made on or after 6 April 2026.</p></content></subsection></section><section eId="section-10"><num>10</num><heading>Investors’ relief: reduction in amount qualifying for relief</heading><subsection eId="section-10-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-10-1-a"><num>(a)</num><content><p>section 169VK(1) and (2) of TCGA 1992 (which specify the amount of gains qualifying for the relief in the case of disposals by individuals), and</p></content></level><level class="para1" eId="section-10-1-b"><num>(b)</num><content><p>section 169VL(2) and (3) of that Act (which specify the amount of gains qualifying for the relief in the case of disposals by trustees),</p></content></level><wrapUp><p><mod>for “£10 million” substitute <quotedText>“£1 million”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to disposals made on or after 30 October 2024.</p></content></subsection></section><section eId="section-11"><num>11</num><heading>Sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref>: transitional provision</heading><content><p>Schedule <ref href="#schedule-2">2</ref> contains transitional provision in connection with the provision made by sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref>.</p></content></section><section eId="section-12"><num>12</num><heading>Rate of CGT for carried interest gains</heading><subsection eId="section-12-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">section 1H</a> of <ref eId="c00004" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (which sets out the main rates of CGT)—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>omit subsection (2) (which provides for rates of 18% or 28% on carried interest gains accruing to individuals),</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p><mod>in subsection (3), for “Other chargeable gains” substitute <quotedText>“Chargeable gains other than carried interest gains (see subsections (4B) and (9) to (11))”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-1-c"><num>(c)</num><content><p><mod>before subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4B)</num><content><p>Chargeable gains accruing in a tax year to an individual that are carried interest gains are charged to capital gains tax at a rate of 32%.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-12-1-d"><num>(d)</num><content><p><mod>in subsection (5) (which provides for the rate of CGT on carried interest gains accruing to personal representatives of a deceased individual), for “28%” substitute <quotedText>“32%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-12-2"><num>(2)</num><intro><p>In section 1I of that Act (income taxed at higher rates or gains exceeding unused basic rate band), as amended by paragraph <ref href="#schedule-1-paragraph-2">2</ref> of <ref href="#schedule-1">Schedule 1</ref>—</p></intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><p><mod>before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>This section applies for the purpose of determining the rate of capital gains tax that applies to gains accruing to an individual in a tax year that are not carried interest gains and, in the following provisions of this section, references to gains (or amounts chargeable to capital gains tax) do not include carried interest gains.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><p><mod>in subsection (1), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><p><mod>in subsection (2), in the words after paragraph (b), for the words from “is charged at” to the end substitute <quotedText>“is charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content><p><mod>in subsection (5), for the words from “are then charged—” to the end substitute <quotedText>“are then charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-e"><num>(e)</num><content><p><mod>in subsection (7), for the words from “as then remains” to the end substitute <quotedText>“as then remains to gains other than entrepreneur or investor gains.”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-12-2-f"><num>(f)</num><content><p><mod>in subsection (9), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText></mod></p></content></level></subsection><subsection eId="section-12-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-7">this section</ref> have effect in relation to carried interest arising on or after 6 April 2025.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7"><num>7</num><heading>Main rates of CGT for gains other than carried interest gains</heading><subsection eId="section-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">section 1H</a> of <ref eId="c00003" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (the main rates of CGT)—</p></intro><level class="para1" eId="section-7-1-a"><num>(a)</num><content><p>omit subsection (1A) (which sets out the rates for residential property gains accruing to individuals),</p></content></level><level class="para1" eId="section-7-1-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (3)</a> (which sets out the rates for gains accruing to individuals that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-b-i"><num>(i)</num><content><p><mod>for “10%” substitute <quotedText>“18%”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-7-1-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="section-7-1-c"><num>(c)</num><content><p>omit subsection (4A) (which sets out the rates for residential property gains accruing to personal representatives),</p></content></level><level class="para1" eId="section-7-1-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (6)</a> (which sets out the rates for gains accruing to personal representatives that are not residential property gains or carried interest gains), for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level><level class="para1" eId="section-7-1-e"><num>(e)</num><content><p>omit subsection (7) (which sets out the rates for residential property gains accruing to trustees), and</p></content></level><level class="para1" eId="section-7-1-f"><num>(f)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (8)</a> (which sets out the rates for gains accruing to trustees that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-f-i"><num>(i)</num><content><p>omit “Other”, and</p></content></level><level class="para2" eId="section-7-1-f-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>.</mod></p></content></level></level></subsection><subsection eId="section-7-2"><num>(2)</num><content><p><ref href="#schedule-1">Schedule 1</ref> contains amendments in consequence of the provision made by this section.</p></content></subsection><subsection eId="section-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-7">this section</ref> and that Schedule have effect in relation to disposals made on or after 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">section 1H</a> of <ref eId="c00003" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (the main rates of CGT)—</p></intro><level class="para1" eId="section-7-1-a"><num>(a)</num><content><p>omit subsection (1A) (which sets out the rates for residential property gains accruing to individuals),</p></content></level><level class="para1" eId="section-7-1-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (3)</a> (which sets out the rates for gains accruing to individuals that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-b-i"><num>(i)</num><content><p><mod>for “10%” substitute <quotedText>“18%”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-7-1-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="section-7-1-c"><num>(c)</num><content><p>omit subsection (4A) (which sets out the rates for residential property gains accruing to personal representatives),</p></content></level><level class="para1" eId="section-7-1-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (6)</a> (which sets out the rates for gains accruing to personal representatives that are not residential property gains or carried interest gains), for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level><level class="para1" eId="section-7-1-e"><num>(e)</num><content><p>omit subsection (7) (which sets out the rates for residential property gains accruing to trustees), and</p></content></level><level class="para1" eId="section-7-1-f"><num>(f)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (8)</a> (which sets out the rates for gains accruing to trustees that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-f-i"><num>(i)</num><content><p>omit “Other”, and</p></content></level><level class="para2" eId="section-7-1-f-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>.</mod></p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-1-a"><num>(a)</num><content><p>omit subsection (1A) (which sets out the rates for residential property gains accruing to individuals),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-1-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (3)</a> (which sets out the rates for gains accruing to individuals that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-b-i"><num>(i)</num><content><p><mod>for “10%” substitute <quotedText>“18%”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-7-1-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-7-1-b-i"><num>(i)</num><content><p><mod>for “10%” substitute <quotedText>“18%”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-7-1-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-1-c"><num>(c)</num><content><p>omit subsection (4A) (which sets out the rates for residential property gains accruing to personal representatives),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-1-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (6)</a> (which sets out the rates for gains accruing to personal representatives that are not residential property gains or carried interest gains), for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-1-e"><num>(e)</num><content><p>omit subsection (7) (which sets out the rates for residential property gains accruing to trustees), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-1-f"><num>(f)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">subsection (8)</a> (which sets out the rates for gains accruing to trustees that are not residential property gains or carried interest gains)—</p></intro><level class="para2" eId="section-7-1-f-i"><num>(i)</num><content><p>omit “Other”, and</p></content></level><level class="para2" eId="section-7-1-f-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>.</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-7-1-f-i"><num>(i)</num><content><p>omit “Other”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-7-1-f-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-2"><num>(2)</num><content><p><ref href="#schedule-1">Schedule 1</ref> contains amendments in consequence of the provision made by this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-7">this section</ref> and that Schedule have effect in relation to disposals made on or after 30 October 2024.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8"><num>8</num><heading>Business asset disposal relief: increase in rate</heading><subsection eId="section-8-1"><num>(1)</num><content><p><mod>In section 169N of TCGA 1992 (business asset disposal relief), in subsection (3) (which specifies the rate of CGT for the relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-2"><num>(2)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-8-1">(1)</ref>, in section 1H(1)(a) of TCGA 1992 (which refers to the rate for business asset disposal relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>The amendments made by subsections <ref href="#section-8-1">(1)</ref> and <ref href="#section-8-2">(2)</ref> have effect in relation to disposals made on or after 6 April 2025.</p></content></subsection><subsection eId="section-8-4"><num>(4)</num><content><p><mod>In section 169N(3) of TCGA 1992 (as amended by subsection <ref href="#section-8-1">(1)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-5"><num>(5)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-8-4">(4)</ref>, in section 1H(1)(a) of TCGA 1992 (as amended by subsection <ref href="#section-8-2">(2)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-8-6"><num>(6)</num><content><p>The amendments made by subsections <ref href="#section-8-4">(4)</ref> and <ref href="#section-8-5">(5)</ref> have effect in relation to disposals made on or after 6 April 2026.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-1"><num>(1)</num><content><p><mod>In section 169N of TCGA 1992 (business asset disposal relief), in subsection (3) (which specifies the rate of CGT for the relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-2"><num>(2)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-8-1">(1)</ref>, in section 1H(1)(a) of TCGA 1992 (which refers to the rate for business asset disposal relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-3"><num>(3)</num><content><p>The amendments made by subsections <ref href="#section-8-1">(1)</ref> and <ref href="#section-8-2">(2)</ref> have effect in relation to disposals made on or after 6 April 2025.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-4"><num>(4)</num><content><p><mod>In section 169N(3) of TCGA 1992 (as amended by subsection <ref href="#section-8-1">(1)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-5"><num>(5)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-8-4">(4)</ref>, in section 1H(1)(a) of TCGA 1992 (as amended by subsection <ref href="#section-8-2">(2)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-6"><num>(6)</num><content><p>The amendments made by subsections <ref href="#section-8-4">(4)</ref> and <ref href="#section-8-5">(5)</ref> have effect in relation to disposals made on or after 6 April 2026.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9"><num>9</num><heading>Investors’ relief: increase in rate</heading><subsection eId="section-9-1"><num>(1)</num><content><p><mod>In section 169VC(2) of TCGA 1992 (which specifies the rate of CGT for the relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-9-1">(1)</ref>, in section 1H(1)(b) of TCGA 1992 (which refers to the rate for investors’ relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-3"><num>(3)</num><content><p><mod>In consequence of the amendments made by subsection <ref href="#section-9-1">(1)</ref> and <ref href="#section-8">section 8</ref><ref href="#section-8-1">(1)</ref>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> of TCGA 1992 (income taxed at higher rates or gains exceeding unused basic rate band), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">(a)</a> (which refers to the rate for business asset disposal relief and investors’ relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-4"><num>(4)</num><content><p>The amendments made by subsections <ref href="#section-9-1">(1)</ref> to <ref href="#section-9-3">(3)</ref> have effect in relation to disposals made on or after 6 April 2025.</p></content></subsection><subsection eId="section-9-5"><num>(5)</num><content><p><mod>In section 169VC(2) of TCGA 1992 (as amended by subsection <ref href="#section-9-1">(1)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-6"><num>(6)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-9-5">(5)</ref>, in section 1H(1)(b) of TCGA 1992 (as amended by subsection (2)), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-7"><num>(7)</num><content><p><mod>In consequence of the amendments made by subsection <ref href="#section-9-5">(5)</ref> and <ref href="#section-8">section 8</ref><ref href="#section-8-4">(4)</ref>, in section 1I(4)(a) of TCGA 1992 (as amended by subsection <ref href="#section-9-3">(3)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection><subsection eId="section-9-8"><num>(8)</num><content><p>The amendments made by subsections <ref href="#section-9-5">(5)</ref> to <ref href="#section-9-7">(7)</ref> have effect in relation to disposals made on or after 6 April 2026.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-1"><num>(1)</num><content><p><mod>In section 169VC(2) of TCGA 1992 (which specifies the rate of CGT for the relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-2"><num>(2)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-9-1">(1)</ref>, in section 1H(1)(b) of TCGA 1992 (which refers to the rate for investors’ relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-3"><num>(3)</num><content><p><mod>In consequence of the amendments made by subsection <ref href="#section-9-1">(1)</ref> and <ref href="#section-8">section 8</ref><ref href="#section-8-1">(1)</ref>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> of TCGA 1992 (income taxed at higher rates or gains exceeding unused basic rate band), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">(a)</a> (which refers to the rate for business asset disposal relief and investors’ relief), for “10%” substitute <quotedText>“14%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-4"><num>(4)</num><content><p>The amendments made by subsections <ref href="#section-9-1">(1)</ref> to <ref href="#section-9-3">(3)</ref> have effect in relation to disposals made on or after 6 April 2025.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-5"><num>(5)</num><content><p><mod>In section 169VC(2) of TCGA 1992 (as amended by subsection <ref href="#section-9-1">(1)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-6"><num>(6)</num><content><p><mod>In consequence of the amendment made by subsection <ref href="#section-9-5">(5)</ref>, in section 1H(1)(b) of TCGA 1992 (as amended by subsection (2)), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-7"><num>(7)</num><content><p><mod>In consequence of the amendments made by subsection <ref href="#section-9-5">(5)</ref> and <ref href="#section-8">section 8</ref><ref href="#section-8-4">(4)</ref>, in section 1I(4)(a) of TCGA 1992 (as amended by subsection <ref href="#section-9-3">(3)</ref>), for “14%” substitute <quotedText>“18%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-8"><num>(8)</num><content><p>The amendments made by subsections <ref href="#section-9-5">(5)</ref> to <ref href="#section-9-7">(7)</ref> have effect in relation to disposals made on or after 6 April 2026.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10"><num>10</num><heading>Investors’ relief: reduction in amount qualifying for relief</heading><subsection eId="section-10-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-10-1-a"><num>(a)</num><content><p>section 169VK(1) and (2) of TCGA 1992 (which specify the amount of gains qualifying for the relief in the case of disposals by individuals), and</p></content></level><level class="para1" eId="section-10-1-b"><num>(b)</num><content><p>section 169VL(2) and (3) of that Act (which specify the amount of gains qualifying for the relief in the case of disposals by trustees),</p></content></level><wrapUp><p><mod>for “£10 million” substitute <quotedText>“£1 million”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to disposals made on or after 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-10-1-a"><num>(a)</num><content><p>section 169VK(1) and (2) of TCGA 1992 (which specify the amount of gains qualifying for the relief in the case of disposals by individuals), and</p></content></level><level class="para1" eId="section-10-1-b"><num>(b)</num><content><p>section 169VL(2) and (3) of that Act (which specify the amount of gains qualifying for the relief in the case of disposals by trustees),</p></content></level><wrapUp><p><mod>for “£10 million” substitute <quotedText>“£1 million”</quotedText>.</mod></p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-1-a"><num>(a)</num><content><p>section 169VK(1) and (2) of TCGA 1992 (which specify the amount of gains qualifying for the relief in the case of disposals by individuals), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-1-b"><num>(b)</num><content><p>section 169VL(2) and (3) of that Act (which specify the amount of gains qualifying for the relief in the case of disposals by trustees),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to disposals made on or after 30 October 2024.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11"><num>11</num><heading>Sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref>: transitional provision</heading><content><p>Schedule <ref href="#schedule-2">2</ref> contains transitional provision in connection with the provision made by sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref>.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12"><num>12</num><heading>Rate of CGT for carried interest gains</heading><subsection eId="section-12-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">section 1H</a> of <ref eId="c00004" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (which sets out the main rates of CGT)—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>omit subsection (2) (which provides for rates of 18% or 28% on carried interest gains accruing to individuals),</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p><mod>in subsection (3), for “Other chargeable gains” substitute <quotedText>“Chargeable gains other than carried interest gains (see subsections (4B) and (9) to (11))”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-1-c"><num>(c)</num><content><p><mod>before subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4B)</num><content><p>Chargeable gains accruing in a tax year to an individual that are carried interest gains are charged to capital gains tax at a rate of 32%.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-12-1-d"><num>(d)</num><content><p><mod>in subsection (5) (which provides for the rate of CGT on carried interest gains accruing to personal representatives of a deceased individual), for “28%” substitute <quotedText>“32%”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-12-2"><num>(2)</num><intro><p>In section 1I of that Act (income taxed at higher rates or gains exceeding unused basic rate band), as amended by paragraph <ref href="#schedule-1-paragraph-2">2</ref> of <ref href="#schedule-1">Schedule 1</ref>—</p></intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><p><mod>before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>This section applies for the purpose of determining the rate of capital gains tax that applies to gains accruing to an individual in a tax year that are not carried interest gains and, in the following provisions of this section, references to gains (or amounts chargeable to capital gains tax) do not include carried interest gains.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><p><mod>in subsection (1), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><p><mod>in subsection (2), in the words after paragraph (b), for the words from “is charged at” to the end substitute <quotedText>“is charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content><p><mod>in subsection (5), for the words from “are then charged—” to the end substitute <quotedText>“are then charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-e"><num>(e)</num><content><p><mod>in subsection (7), for the words from “as then remains” to the end substitute <quotedText>“as then remains to gains other than entrepreneur or investor gains.”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-12-2-f"><num>(f)</num><content><p><mod>in subsection (9), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText></mod></p></content></level></subsection><subsection eId="section-12-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-7">this section</ref> have effect in relation to carried interest arising on or after 6 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1H">section 1H</a> of <ref eId="c00004" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (which sets out the main rates of CGT)—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>omit subsection (2) (which provides for rates of 18% or 28% on carried interest gains accruing to individuals),</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p><mod>in subsection (3), for “Other chargeable gains” substitute <quotedText>“Chargeable gains other than carried interest gains (see subsections (4B) and (9) to (11))”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-1-c"><num>(c)</num><content><p><mod>before subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4B)</num><content><p>Chargeable gains accruing in a tax year to an individual that are carried interest gains are charged to capital gains tax at a rate of 32%.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-12-1-d"><num>(d)</num><content><p><mod>in subsection (5) (which provides for the rate of CGT on carried interest gains accruing to personal representatives of a deceased individual), for “28%” substitute <quotedText>“32%”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-1-a"><num>(a)</num><content><p>omit subsection (2) (which provides for rates of 18% or 28% on carried interest gains accruing to individuals),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-1-b"><num>(b)</num><content><p><mod>in subsection (3), for “Other chargeable gains” substitute <quotedText>“Chargeable gains other than carried interest gains (see subsections (4B) and (9) to (11))”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-12-1-c"><num>(c)</num><content><p><mod>before subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4B)</num><content><p>Chargeable gains accruing in a tax year to an individual that are carried interest gains are charged to capital gains tax at a rate of 32%.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-1-d"><num>(d)</num><content><p><mod>in subsection (5) (which provides for the rate of CGT on carried interest gains accruing to personal representatives of a deceased individual), for “28%” substitute <quotedText>“32%”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-2"><num>(2)</num><intro><p>In section 1I of that Act (income taxed at higher rates or gains exceeding unused basic rate band), as amended by paragraph <ref href="#schedule-1-paragraph-2">2</ref> of <ref href="#schedule-1">Schedule 1</ref>—</p></intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><p><mod>before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>This section applies for the purpose of determining the rate of capital gains tax that applies to gains accruing to an individual in a tax year that are not carried interest gains and, in the following provisions of this section, references to gains (or amounts chargeable to capital gains tax) do not include carried interest gains.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><p><mod>in subsection (1), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><p><mod>in subsection (2), in the words after paragraph (b), for the words from “is charged at” to the end substitute <quotedText>“is charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content><p><mod>in subsection (5), for the words from “are then charged—” to the end substitute <quotedText>“are then charged at the rate of 24%.”</quotedText>,</mod></p></content></level><level class="para1" eId="section-12-2-e"><num>(e)</num><content><p><mod>in subsection (7), for the words from “as then remains” to the end substitute <quotedText>“as then remains to gains other than entrepreneur or investor gains.”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-12-2-f"><num>(f)</num><content><p><mod>in subsection (9), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-12-2-a"><num>(a)</num><content><p><mod>before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>This section applies for the purpose of determining the rate of capital gains tax that applies to gains accruing to an individual in a tax year that are not carried interest gains and, in the following provisions of this section, references to gains (or amounts chargeable to capital gains tax) do not include carried interest gains.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-b"><num>(b)</num><content><p><mod>in subsection (1), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-c"><num>(c)</num><content><p><mod>in subsection (2), in the words after paragraph (b), for the words from “is charged at” to the end substitute <quotedText>“is charged at the rate of 24%.”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-d"><num>(d)</num><content><p><mod>in subsection (5), for the words from “are then charged—” to the end substitute <quotedText>“are then charged at the rate of 24%.”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-e"><num>(e)</num><content><p><mod>in subsection (7), for the words from “as then remains” to the end substitute <quotedText>“as then remains to gains other than entrepreneur or investor gains.”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-f"><num>(f)</num><content><p><mod>in subsection (9), for the words from “charged—” to the end substitute <quotedText>“charged at the rate of 24%.”</quotedText></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-7">this section</ref> have effect in relation to carried interest arising on or after 6 April 2025.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-corporation-tax-charge-and-rates"><heading>Corporation tax charge and rates</heading><section eId="section-13"><num>13</num><heading>Charge and main rate for financial year 2026</heading><subsection eId="section-13-1"><num>(1)</num><content><p>Corporation tax is charged for the financial year 2026.</p></content></subsection><subsection eId="section-13-2"><num>(2)</num><content><p>The main rate of corporation tax for that year is 25%.</p></content></subsection></section><section eId="section-14"><num>14</num><heading>Standard small profits rate and fraction for financial year 2026</heading><intro><p>For the purposes of Part 3A of CTA 2010, for the financial year 2026—</p></intro><level class="para1" eId="section-14-a"><num>(a)</num><content><p>the standard small profits rate is 19%, and</p></content></level><level class="para1" eId="section-14-b"><num>(b)</num><content><p>the standard marginal relief fraction is 3/200ths.</p></content></level></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13"><num>13</num><heading>Charge and main rate for financial year 2026</heading><subsection eId="section-13-1"><num>(1)</num><content><p>Corporation tax is charged for the financial year 2026.</p></content></subsection><subsection eId="section-13-2"><num>(2)</num><content><p>The main rate of corporation tax for that year is 25%.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-1"><num>(1)</num><content><p>Corporation tax is charged for the financial year 2026.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-2"><num>(2)</num><content><p>The main rate of corporation tax for that year is 25%.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14"><num>14</num><heading>Standard small profits rate and fraction for financial year 2026</heading><intro><p>For the purposes of Part 3A of CTA 2010, for the financial year 2026—</p></intro><level class="para1" eId="section-14-a"><num>(a)</num><content><p>the standard small profits rate is 19%, and</p></content></level><level class="para1" eId="section-14-b"><num>(b)</num><content><p>the standard marginal relief fraction is 3/200ths.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-a"><num>(a)</num><content><p>the standard small profits rate is 19%, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-b"><num>(b)</num><content><p>the standard marginal relief fraction is 3/200ths.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-oil-and-gas"><heading>Oil and gas</heading><section eId="section-15"><num>15</num><heading>Increase in rate of energy (oil and gas) profits levy</heading><subsection eId="section-15-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (charge to tax), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">subsection (1)</a>, for “35%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-15-2"><num>(2)</num><content><p>The amendment made by <ref href="#section-15-1">subsection (1)</ref> has effect for accounting periods beginning on or after 1 November 2024.</p></content></subsection><subsection eId="section-15-3"><num>(3)</num><intro><p>In the case of an accounting period (a “straddling period”) beginning before 1 November 2024 and ending on or after that date—</p></intro><level class="para1" eId="section-15-3-a"><num>(a)</num><content><p>the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is to apply as if so much of the straddling period as falls before that date, and so much of the straddling period as falls on or after that date, were separate accounting periods, and</p></content></level><level class="para1" eId="section-15-3-b"><num>(b)</num><content><p>the company’s levy profits or loss determined for the straddling period (on the assumption that the whole of that period were a qualifying period) are apportioned to the two separate accounting periods in accordance with <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/17">section 17</a> of <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>, which is to apply for the purposes of <ref href="#section-15">this section</ref> as it applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/15">sections 15</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">16</a> of <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>.</p></content></level></subsection><subsection eId="section-15-4"><num>(4)</num><intro><p>In the case of a straddling period, the Instalment Payments Regulations 1998 are to apply separately—</p></intro><level class="para1" eId="section-15-4-a"><num>(a)</num><content><p>in relation to the levy, and</p></content></level><level class="para1" eId="section-15-4-b"><num>(b)</num><content><p>in relation to any other tax chargeable on the company.</p></content></level></subsection><subsection eId="section-15-5"><num>(5)</num><intro><p>In their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, the Instalment Payments Regulations 1998 are to have effect in relation to the levy—</p></intro><level class="para1" eId="section-15-5-a"><num>(a)</num><content><p>as if the two separate accounting periods deemed to arise under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a) </ref>were accounting periods for the purposes of those Regulations and as if the levy were chargeable for those deemed accounting periods, but</p></content></level><level class="para1" eId="section-15-5-b"><num>(b)</num><content><p>as if the final instalment payment for the deemed accounting period ending on 31 October 2024 became due and payable on the date on which the next instalment payment after 31 October 2024 would have become due and payable for the straddling period in the absence of this section.</p></content></level></subsection><subsection eId="section-15-6"><num>(6)</num><intro><p>Any reference in the Instalment Payments Regulations 1998 to the total liability of a company is accordingly to be read—</p></intro><level class="para1" eId="section-15-6-a"><num>(a)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, as a reference to the levy, and</p></content></level><level class="para1" eId="section-15-6-b"><num>(b)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-b">(b)</ref>, as a reference to the amount that would be the company’s total liability for the straddling period if the levy were left out of account.</p></content></level></subsection><subsection eId="section-15-7"><num>(7)</num><intro><p>For the purposes of the Instalment Payments Regulations 1998—</p></intro><level class="para1" eId="section-15-7-a"><num>(a)</num><content><p>a company is to be regarded as a large company as respects the deemed accounting periods under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a)</ref> only if it is a large company for those purposes as respects the straddling period, and</p></content></level><level class="para1" eId="section-15-7-b"><num>(b)</num><content><p>any question whether a company is a large company as respects the straddling period is to be determined as it would have been determined apart from <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref>.</p></content></level></subsection><subsection eId="section-15-8"><num>(8)</num><content><p>In <ref href="#section-15">this section</ref> “<term refersTo="#term-the-instalment-payment-regulations-1998" eId="term-the-instalment-payment-regulations-1998">the Instalment Payment Regulations 1998</term>” means the <ref eId="c00010" href="https://www.legislation.gov.uk/uksi/1998/3175">Corporation Tax (Instalment Payments) Regulations 1998</ref> (<ref eId="c00011" href="http://www.legislation.gov.uk/id/uksi/1998/3175">S.I. 1998/3175</ref>).</p></content></subsection></section><section eId="section-16"><num>16</num><heading>Relief from levy for investment expenditure</heading><subsection eId="section-16-1"><num>(1)</num><content><p>The <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is amended as follows.</p></content></subsection><subsection eId="section-16-2"><num>(2)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/2">section 2</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>2</num><heading>Additional expenditure treated as incurred for purposes of section 1</heading><subsection><num>(1)</num><content><p>This section applies for the purposes of section 1 if, in a qualifying accounting period, a company has incurred investment expenditure.</p></content></subsection><subsection><num>(2)</num><intro><p>Expenditure is “investment expenditure” of a company so far as the expenditure—</p></intro><level class="para1"><num>(a)</num><content><p>is capital expenditure on the de-carbonisation of its upstream petroleum production,</p></content></level><level class="para1"><num>(b)</num><content><p>is incurred for the purposes of oil-related activities,</p></content></level><level class="para1"><num>(c)</num><content><p>is not incurred for disqualifying purposes, and</p></content></level><level class="para1"><num>(d)</num><content><p>does not consist of financing costs or decommissioning costs.</p></content></level></subsection><subsection><num>(3)</num><content><p>For the purposes of section 1 the company is to be treated as if, in addition to the investment expenditure incurred by it in the accounting period, it had incurred in that period expenditure of an amount equal to 66% of the amount of that investment expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>if investment expenditure is incurred partly for the purposes of oil-related activities and partly for other purposes, the expenditure is to be attributed to the oil-related activities on a just and reasonable basis, and</p></content></level><level class="para1"><num>(b)</num><content><p>if a company incurs expenditure part of which is capital expenditure on the de-carbonisation of its upstream petroleum production and part of which is not, the expenditure is to be apportioned on a just and reasonable basis.</p></content></level></subsection><subsection><num>(5)</num><content><p>This section needs to be read with section 6 (which prevents recycling etc of assets to generate relief).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-16-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/3">sections 3</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/4">4</a> (definitions of “operating expenditure” and “leasing expenditure”).</p></content></subsection><subsection eId="section-16-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(1)</a> (when investment expenditure is incurred)—</p></intro><level class="para1" eId="section-16-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (a)</a>, omit “in the case of capital expenditure,”, and</p></content></level><level class="para1" eId="section-16-4-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (b)</a>.</p></content></level></subsection><subsection eId="section-16-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/18">section 18</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/18">(1)</a> (interpretation), omit the definitions of “leasing expenditure” and “operating expenditure”.</p></content></subsection><subsection eId="section-16-6"><num>(6)</num><content><p>The amendments made by <ref href="#section-16">this section</ref> have effect in relation to expenditure incurred on or after 1 November 2024 (and section 7 of the Energy (Oil and Gas) Profits Levy Act 2022 applies for the purposes of this section as it applies for the purposes of that Act).</p></content></subsection></section><section eId="section-17"><num>17</num><heading>Extending the period for which levy has effect</heading><subsection eId="section-17-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (charge to tax), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">subsection (3)</a> (which sets out the accounting periods by reference to which the tax is charged), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">paragraph (b)</a>, for “2028” substitute <quotedText>“2030”</quotedText>.</mod></p></content></subsection><subsection eId="section-17-2"><num>(2)</num><intro><p>In consequence of the amendment made by <ref href="#section-17-1">subsection (1)</ref>—</p></intro><level class="para1" eId="section-17-2-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(2)</a> of <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (when investment expenditure is incurred), for “2028” substitute <quotedText>“2030”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-17-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">section 16</a> of <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (transitional provision for accounting periods straddling 31 March 2028), for “2028”, in each place (including the heading), substitute <quotedText>“2030”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-18"><num>18</num><heading>Decommissioning of carbon storage installations</heading><content><p><ref href="#schedule-3">Schedule 3</ref> makes provision for certain payments into a decommissioning fund to be treated as decommissioning expenditure for the purposes of corporation tax, income tax and petroleum revenue tax.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15"><num>15</num><heading>Increase in rate of energy (oil and gas) profits levy</heading><subsection eId="section-15-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (charge to tax), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">subsection (1)</a>, for “35%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection><subsection eId="section-15-2"><num>(2)</num><content><p>The amendment made by <ref href="#section-15-1">subsection (1)</ref> has effect for accounting periods beginning on or after 1 November 2024.</p></content></subsection><subsection eId="section-15-3"><num>(3)</num><intro><p>In the case of an accounting period (a “straddling period”) beginning before 1 November 2024 and ending on or after that date—</p></intro><level class="para1" eId="section-15-3-a"><num>(a)</num><content><p>the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is to apply as if so much of the straddling period as falls before that date, and so much of the straddling period as falls on or after that date, were separate accounting periods, and</p></content></level><level class="para1" eId="section-15-3-b"><num>(b)</num><content><p>the company’s levy profits or loss determined for the straddling period (on the assumption that the whole of that period were a qualifying period) are apportioned to the two separate accounting periods in accordance with <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/17">section 17</a> of <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>, which is to apply for the purposes of <ref href="#section-15">this section</ref> as it applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/15">sections 15</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">16</a> of <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>.</p></content></level></subsection><subsection eId="section-15-4"><num>(4)</num><intro><p>In the case of a straddling period, the Instalment Payments Regulations 1998 are to apply separately—</p></intro><level class="para1" eId="section-15-4-a"><num>(a)</num><content><p>in relation to the levy, and</p></content></level><level class="para1" eId="section-15-4-b"><num>(b)</num><content><p>in relation to any other tax chargeable on the company.</p></content></level></subsection><subsection eId="section-15-5"><num>(5)</num><intro><p>In their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, the Instalment Payments Regulations 1998 are to have effect in relation to the levy—</p></intro><level class="para1" eId="section-15-5-a"><num>(a)</num><content><p>as if the two separate accounting periods deemed to arise under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a) </ref>were accounting periods for the purposes of those Regulations and as if the levy were chargeable for those deemed accounting periods, but</p></content></level><level class="para1" eId="section-15-5-b"><num>(b)</num><content><p>as if the final instalment payment for the deemed accounting period ending on 31 October 2024 became due and payable on the date on which the next instalment payment after 31 October 2024 would have become due and payable for the straddling period in the absence of this section.</p></content></level></subsection><subsection eId="section-15-6"><num>(6)</num><intro><p>Any reference in the Instalment Payments Regulations 1998 to the total liability of a company is accordingly to be read—</p></intro><level class="para1" eId="section-15-6-a"><num>(a)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, as a reference to the levy, and</p></content></level><level class="para1" eId="section-15-6-b"><num>(b)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-b">(b)</ref>, as a reference to the amount that would be the company’s total liability for the straddling period if the levy were left out of account.</p></content></level></subsection><subsection eId="section-15-7"><num>(7)</num><intro><p>For the purposes of the Instalment Payments Regulations 1998—</p></intro><level class="para1" eId="section-15-7-a"><num>(a)</num><content><p>a company is to be regarded as a large company as respects the deemed accounting periods under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a)</ref> only if it is a large company for those purposes as respects the straddling period, and</p></content></level><level class="para1" eId="section-15-7-b"><num>(b)</num><content><p>any question whether a company is a large company as respects the straddling period is to be determined as it would have been determined apart from <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref>.</p></content></level></subsection><subsection eId="section-15-8"><num>(8)</num><content><p>In <ref href="#section-15">this section</ref> “<term refersTo="#term-the-instalment-payment-regulations-1998" eId="term-the-instalment-payment-regulations-1998">the Instalment Payment Regulations 1998</term>” means the <ref eId="c00010" href="https://www.legislation.gov.uk/uksi/1998/3175">Corporation Tax (Instalment Payments) Regulations 1998</ref> (<ref eId="c00011" href="http://www.legislation.gov.uk/id/uksi/1998/3175">S.I. 1998/3175</ref>).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (charge to tax), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">subsection (1)</a>, for “35%” substitute <quotedText>“38%”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-2"><num>(2)</num><content><p>The amendment made by <ref href="#section-15-1">subsection (1)</ref> has effect for accounting periods beginning on or after 1 November 2024.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-3"><num>(3)</num><intro><p>In the case of an accounting period (a “straddling period”) beginning before 1 November 2024 and ending on or after that date—</p></intro><level class="para1" eId="section-15-3-a"><num>(a)</num><content><p>the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is to apply as if so much of the straddling period as falls before that date, and so much of the straddling period as falls on or after that date, were separate accounting periods, and</p></content></level><level class="para1" eId="section-15-3-b"><num>(b)</num><content><p>the company’s levy profits or loss determined for the straddling period (on the assumption that the whole of that period were a qualifying period) are apportioned to the two separate accounting periods in accordance with <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/17">section 17</a> of <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>, which is to apply for the purposes of <ref href="#section-15">this section</ref> as it applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/15">sections 15</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">16</a> of <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-3-a"><num>(a)</num><content><p>the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is to apply as if so much of the straddling period as falls before that date, and so much of the straddling period as falls on or after that date, were separate accounting periods, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-3-b"><num>(b)</num><content><p>the company’s levy profits or loss determined for the straddling period (on the assumption that the whole of that period were a qualifying period) are apportioned to the two separate accounting periods in accordance with <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/17">section 17</a> of <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>, which is to apply for the purposes of <ref href="#section-15">this section</ref> as it applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/15">sections 15</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">16</a> of <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref>.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-4"><num>(4)</num><intro><p>In the case of a straddling period, the Instalment Payments Regulations 1998 are to apply separately—</p></intro><level class="para1" eId="section-15-4-a"><num>(a)</num><content><p>in relation to the levy, and</p></content></level><level class="para1" eId="section-15-4-b"><num>(b)</num><content><p>in relation to any other tax chargeable on the company.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-4-a"><num>(a)</num><content><p>in relation to the levy, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-4-b"><num>(b)</num><content><p>in relation to any other tax chargeable on the company.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-5"><num>(5)</num><intro><p>In their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, the Instalment Payments Regulations 1998 are to have effect in relation to the levy—</p></intro><level class="para1" eId="section-15-5-a"><num>(a)</num><content><p>as if the two separate accounting periods deemed to arise under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a) </ref>were accounting periods for the purposes of those Regulations and as if the levy were chargeable for those deemed accounting periods, but</p></content></level><level class="para1" eId="section-15-5-b"><num>(b)</num><content><p>as if the final instalment payment for the deemed accounting period ending on 31 October 2024 became due and payable on the date on which the next instalment payment after 31 October 2024 would have become due and payable for the straddling period in the absence of this section.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-5-a"><num>(a)</num><content><p>as if the two separate accounting periods deemed to arise under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a) </ref>were accounting periods for the purposes of those Regulations and as if the levy were chargeable for those deemed accounting periods, but</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-5-b"><num>(b)</num><content><p>as if the final instalment payment for the deemed accounting period ending on 31 October 2024 became due and payable on the date on which the next instalment payment after 31 October 2024 would have become due and payable for the straddling period in the absence of this section.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-6"><num>(6)</num><intro><p>Any reference in the Instalment Payments Regulations 1998 to the total liability of a company is accordingly to be read—</p></intro><level class="para1" eId="section-15-6-a"><num>(a)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, as a reference to the levy, and</p></content></level><level class="para1" eId="section-15-6-b"><num>(b)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-b">(b)</ref>, as a reference to the amount that would be the company’s total liability for the straddling period if the levy were left out of account.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-6-a"><num>(a)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-a">(a)</ref>, as a reference to the levy, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-6-b"><num>(b)</num><content><p>in their application as a result of <ref href="#section-15-4">subsection (4)</ref><ref href="#section-15-4-b">(b)</ref>, as a reference to the amount that would be the company’s total liability for the straddling period if the levy were left out of account.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-7"><num>(7)</num><intro><p>For the purposes of the Instalment Payments Regulations 1998—</p></intro><level class="para1" eId="section-15-7-a"><num>(a)</num><content><p>a company is to be regarded as a large company as respects the deemed accounting periods under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a)</ref> only if it is a large company for those purposes as respects the straddling period, and</p></content></level><level class="para1" eId="section-15-7-b"><num>(b)</num><content><p>any question whether a company is a large company as respects the straddling period is to be determined as it would have been determined apart from <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref>.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-7-a"><num>(a)</num><content><p>a company is to be regarded as a large company as respects the deemed accounting periods under <ref href="#section-15-3">subsection (3)</ref><ref href="#section-15-3-a">(a)</ref> only if it is a large company for those purposes as respects the straddling period, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-7-b"><num>(b)</num><content><p>any question whether a company is a large company as respects the straddling period is to be determined as it would have been determined apart from <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref>.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-8"><num>(8)</num><content><p>In <ref href="#section-15">this section</ref> “<term refersTo="#term-the-instalment-payment-regulations-1998" eId="term-the-instalment-payment-regulations-1998">the Instalment Payment Regulations 1998</term>” means the <ref eId="c00010" href="https://www.legislation.gov.uk/uksi/1998/3175">Corporation Tax (Instalment Payments) Regulations 1998</ref> (<ref eId="c00011" href="http://www.legislation.gov.uk/id/uksi/1998/3175">S.I. 1998/3175</ref>).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16"><num>16</num><heading>Relief from levy for investment expenditure</heading><subsection eId="section-16-1"><num>(1)</num><content><p>The <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is amended as follows.</p></content></subsection><subsection eId="section-16-2"><num>(2)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/2">section 2</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>2</num><heading>Additional expenditure treated as incurred for purposes of section 1</heading><subsection><num>(1)</num><content><p>This section applies for the purposes of section 1 if, in a qualifying accounting period, a company has incurred investment expenditure.</p></content></subsection><subsection><num>(2)</num><intro><p>Expenditure is “investment expenditure” of a company so far as the expenditure—</p></intro><level class="para1"><num>(a)</num><content><p>is capital expenditure on the de-carbonisation of its upstream petroleum production,</p></content></level><level class="para1"><num>(b)</num><content><p>is incurred for the purposes of oil-related activities,</p></content></level><level class="para1"><num>(c)</num><content><p>is not incurred for disqualifying purposes, and</p></content></level><level class="para1"><num>(d)</num><content><p>does not consist of financing costs or decommissioning costs.</p></content></level></subsection><subsection><num>(3)</num><content><p>For the purposes of section 1 the company is to be treated as if, in addition to the investment expenditure incurred by it in the accounting period, it had incurred in that period expenditure of an amount equal to 66% of the amount of that investment expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>if investment expenditure is incurred partly for the purposes of oil-related activities and partly for other purposes, the expenditure is to be attributed to the oil-related activities on a just and reasonable basis, and</p></content></level><level class="para1"><num>(b)</num><content><p>if a company incurs expenditure part of which is capital expenditure on the de-carbonisation of its upstream petroleum production and part of which is not, the expenditure is to be apportioned on a just and reasonable basis.</p></content></level></subsection><subsection><num>(5)</num><content><p>This section needs to be read with section 6 (which prevents recycling etc of assets to generate relief).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-16-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/3">sections 3</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/4">4</a> (definitions of “operating expenditure” and “leasing expenditure”).</p></content></subsection><subsection eId="section-16-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(1)</a> (when investment expenditure is incurred)—</p></intro><level class="para1" eId="section-16-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (a)</a>, omit “in the case of capital expenditure,”, and</p></content></level><level class="para1" eId="section-16-4-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (b)</a>.</p></content></level></subsection><subsection eId="section-16-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/18">section 18</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/18">(1)</a> (interpretation), omit the definitions of “leasing expenditure” and “operating expenditure”.</p></content></subsection><subsection eId="section-16-6"><num>(6)</num><content><p>The amendments made by <ref href="#section-16">this section</ref> have effect in relation to expenditure incurred on or after 1 November 2024 (and section 7 of the Energy (Oil and Gas) Profits Levy Act 2022 applies for the purposes of this section as it applies for the purposes of that Act).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-1"><num>(1)</num><content><p>The <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16-2"><num>(2)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/2">section 2</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>2</num><heading>Additional expenditure treated as incurred for purposes of section 1</heading><subsection><num>(1)</num><content><p>This section applies for the purposes of section 1 if, in a qualifying accounting period, a company has incurred investment expenditure.</p></content></subsection><subsection><num>(2)</num><intro><p>Expenditure is “investment expenditure” of a company so far as the expenditure—</p></intro><level class="para1"><num>(a)</num><content><p>is capital expenditure on the de-carbonisation of its upstream petroleum production,</p></content></level><level class="para1"><num>(b)</num><content><p>is incurred for the purposes of oil-related activities,</p></content></level><level class="para1"><num>(c)</num><content><p>is not incurred for disqualifying purposes, and</p></content></level><level class="para1"><num>(d)</num><content><p>does not consist of financing costs or decommissioning costs.</p></content></level></subsection><subsection><num>(3)</num><content><p>For the purposes of section 1 the company is to be treated as if, in addition to the investment expenditure incurred by it in the accounting period, it had incurred in that period expenditure of an amount equal to 66% of the amount of that investment expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>if investment expenditure is incurred partly for the purposes of oil-related activities and partly for other purposes, the expenditure is to be attributed to the oil-related activities on a just and reasonable basis, and</p></content></level><level class="para1"><num>(b)</num><content><p>if a company incurs expenditure part of which is capital expenditure on the de-carbonisation of its upstream petroleum production and part of which is not, the expenditure is to be apportioned on a just and reasonable basis.</p></content></level></subsection><subsection><num>(5)</num><content><p>This section needs to be read with section 6 (which prevents recycling etc of assets to generate relief).</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/3">sections 3</a> and <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/4">4</a> (definitions of “operating expenditure” and “leasing expenditure”).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(1)</a> (when investment expenditure is incurred)—</p></intro><level class="para1" eId="section-16-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (a)</a>, omit “in the case of capital expenditure,”, and</p></content></level><level class="para1" eId="section-16-4-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (b)</a>.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (a)</a>, omit “in the case of capital expenditure,”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-4-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">paragraph (b)</a>.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/18">section 18</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/18">(1)</a> (interpretation), omit the definitions of “leasing expenditure” and “operating expenditure”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-6"><num>(6)</num><content><p>The amendments made by <ref href="#section-16">this section</ref> have effect in relation to expenditure incurred on or after 1 November 2024 (and section 7 of the Energy (Oil and Gas) Profits Levy Act 2022 applies for the purposes of this section as it applies for the purposes of that Act).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17"><num>17</num><heading>Extending the period for which levy has effect</heading><subsection eId="section-17-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (charge to tax), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">subsection (3)</a> (which sets out the accounting periods by reference to which the tax is charged), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">paragraph (b)</a>, for “2028” substitute <quotedText>“2030”</quotedText>.</mod></p></content></subsection><subsection eId="section-17-2"><num>(2)</num><intro><p>In consequence of the amendment made by <ref href="#section-17-1">subsection (1)</ref>—</p></intro><level class="para1" eId="section-17-2-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(2)</a> of <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (when investment expenditure is incurred), for “2028” substitute <quotedText>“2030”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-17-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">section 16</a> of <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (transitional provision for accounting periods straddling 31 March 2028), for “2028”, in each place (including the heading), substitute <quotedText>“2030”</quotedText>.</mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">section 1</a> of the <ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (charge to tax), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">subsection (3)</a> (which sets out the accounting periods by reference to which the tax is charged), in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">paragraph (b)</a>, for “2028” substitute <quotedText>“2030”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-2"><num>(2)</num><intro><p>In consequence of the amendment made by <ref href="#section-17-1">subsection (1)</ref>—</p></intro><level class="para1" eId="section-17-2-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(2)</a> of <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (when investment expenditure is incurred), for “2028” substitute <quotedText>“2030”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-17-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">section 16</a> of <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (transitional provision for accounting periods straddling 31 March 2028), for “2028”, in each place (including the heading), substitute <quotedText>“2030”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-2-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">section 7</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/7">(2)</a> of <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (when investment expenditure is incurred), for “2028” substitute <quotedText>“2030”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/16">section 16</a> of <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2022/40">that Act</ref> (transitional provision for accounting periods straddling 31 March 2028), for “2028”, in each place (including the heading), substitute <quotedText>“2030”</quotedText>.</mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18"><num>18</num><heading>Decommissioning of carbon storage installations</heading><content><p><ref href="#schedule-3">Schedule 3</ref> makes provision for certain payments into a decommissioning fund to be treated as decommissioning expenditure for the purposes of corporation tax, income tax and petroleum revenue tax.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-international-matters"><heading>International matters</heading><section eId="section-19"><num>19</num><heading>Pillar Two</heading><subsection eId="section-19-1"><num>(1)</num><intro><p>Schedule <ref href="#schedule-4">4</ref>—</p></intro><level class="para1" eId="section-19-1-a"><num>(a)</num><content><p>makes provision about the UTPR, and</p></content></level><level class="para1" eId="section-19-1-b"><num>(b)</num><content><p>makes other amendments to Parts 3 and 4 of F(No. 2)A 2023.</p></content></level></subsection></section><section eId="section-20"><num>20</num><heading>Offshore receipts in respect of intangible property</heading><subsection eId="section-20-1"><num>(1)</num><content><p>ITTOIA 2005 is amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><intro><p>In section 574 (overview of Part 5)—</p></intro><level class="para1" eId="section-20-2-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (aa);</p></content></level><level class="para1" eId="section-20-2-b"><num>(b)</num><content><p>in subsection (2) omit “(but see section 608X)”.</p></content></level></subsection><subsection eId="section-20-3"><num>(3)</num><content><p>Omit Chapter 2A (offshore receipts in respect of intangible property) of Part 5.</p></content></subsection><subsection eId="section-20-4"><num>(4)</num><content><p>In section 576 (priority between Chapters within Part 5) omit subsection (1).</p></content></subsection><subsection eId="section-20-5"><num>(5)</num><content><p>In section 873(3) (procedure for orders and regulations) omit paragraph (ba).</p></content></subsection><subsection eId="section-20-6"><num>(6)</num><content><p>TIOPA 2010 is amended as follows.</p></content></subsection><subsection eId="section-20-7"><num>(7)</num><intro><p>In section 157(1) (direct participation)—</p></intro><level class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="section-20-7-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level></subsection><subsection eId="section-20-8"><num>(8)</num><intro><p>In section 159(1) (indirect participation: potential direct participant)—</p></intro><level class="para1" eId="section-20-8-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="section-20-8-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level></subsection><subsection eId="section-20-9"><num>(9)</num><content><p>In section 160(1) (indirect participation: one of several major participants) omit paragraph (f) and the “and” preceding it.</p></content></subsection><subsection eId="section-20-10"><num>(10)</num><content><p>In consequence of subsections <ref href="#section-20-1">(1)</ref> to <ref href="#section-20-9">(9)</ref>, omit Schedule 3 to FA 2019 (offshore receipts in respect of intangible property).</p></content></subsection><subsection eId="section-20-11"><num>(11)</num><content><p>Omit section 981A of ITA 2007 (offshore receipts in respect of intangible property: exception from duties to deduct).</p></content></subsection><subsection eId="section-20-12"><num>(12)</num><content><p>The amendments made by this section have effect in relation to income arising on or after 31 December 2024.</p></content></subsection></section><section eId="section-21"><num>21</num><heading>Application of PAYE in relation to internationally mobile employees etc.</heading><subsection eId="section-21-1"><num>(1)</num><content><p><mod>For section 690 of ITEPA 2003 (employee non-resident etc) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e1871"><num>690</num><heading>Internationally mobile employees</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee is or has been internationally mobile at any time in tax year 2025-26 or a subsequent tax year.</p></content></subsection><subsection eId="d25e1881"><num>(2)</num><intro><p>An employee is “internationally mobile” at a time in a tax year if at that time the employee works or is likely to work both inside and outside the UK during the tax year (“the mobile tax year”) and at that time—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be non-UK resident for the mobile tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>the mobile tax year is or is likely to be a split year as respects the employee.</p></content></level></subsection><subsection eId="d25e1899"><num>(3)</num><content><p>If the employer makes an uncertain payment to the employee in any tax year, the entire payment is to be treated for the purposes of PAYE regulations as a payment of PAYE income of the employee.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section and sections <ref href="#d25e1980">690A</ref> and <ref href="#d25e2183">690B</ref>, an “<term refersTo="#term-uncertain-payment">uncertain payment</term>” means a payment of, or on account of, the income of the employee to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>the employer is unable to ascertain the extent to which the income is PAYE income, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reason for the employer being unable to ascertain that extent is connected to the employee being or having been internationally mobile in the mobile tax year.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e1899">(3)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section and sections <ref href="#d25e1980">690A</ref> to <ref href="#d25e32354">690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>any reference to a payment made by the employer includes a reference to a payment made by a person acting on behalf of the employer and at the expense of the employer or a person connected with the employer, and</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where section 689 or 689A applies, any reference to a payment made by the employer is to be read as a reference to a payment treated, for the purposes of PAYE regulations, as made by the relevant person.</p></content></level></subsection></section><section eId="d25e1980"><num>690A</num><heading>Employer notification for internationally mobile employees</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee is or has been internationally mobile within the meaning of <ref href="#d25e1871">section 690</ref><ref href="#d25e1881">(2)</ref> at any time in tax year 2025-26 or a subsequent tax year (“the mobile tax year”).</p></content></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the mobile tax year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat a proportion of any uncertain payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection eId="d25e2013"><num>(3)</num><content><p>If a notice given under this section has effect, the proportion of any uncertain payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(4)</num><content><p>But if <ref href="#d25e32161">section 690D</ref><ref href="#d25e32225">(4)</ref> (employer notification for qualifying new resident) also applies to a payment made by the employer, <ref href="#d25e2013">subsection (3)</ref> does not apply to the payment to the extent that it is a qualifying payment within the meaning of section <ref href="#d25e32161">690D</ref>.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e2183">section 690B</ref> (direction by HMRC in relation to internationally mobile employees) in relation to the employee and the mobile tax year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e2183">section 690B</ref> is given to the appropriate person in relation to the employee and the mobile tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>where the notice was given on the basis that the employee was likely to be a non-UK resident for the mobile tax year, a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under section <ref href="#d25e32161">690D</ref> (employer notification for qualifying new resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e2013">(3)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and sections <ref href="#d25e2183">690B</ref>, <ref href="#d25e32161">690D</ref> and <ref href="#d25e32354">690E</ref> —</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 693 (cash vouchers), section 694 (non-cash vouchers) or section 695 (credit-tokens), the employer is to be treated as making a payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><intro><p>“<term refersTo="#term-the-appropriate-person">the appropriate person</term>” means—</p></intro><level class="para2" eId="d25e2156"><num>(i)</num><content><p>the person designated by the employer for the purpose of this section and sections <ref href="#d25e2183">690B</ref>, <ref href="#d25e32161">690D</ref> and <ref href="#d25e32354">690E</ref> and, if no person is so designated, the employer, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in a case where section 689 or 689A applies, the references to the employer in <ref href="#d25e2156">sub-paragraph (i)</ref> are to be read as references to the relevant person (within the meaning of section 689 or 689A).</p></content></level></level></subsection></section><section eId="d25e2183"><num>690B</num><heading>Direction by HMRC in relation to internationally mobile employees</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the mobile tax year under section <ref href="#d25e1980">690A</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any uncertain payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e2208"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any uncertain payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e2208">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the mobile tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a date specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e2253"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e2208">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any uncertain payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies in relation to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e2208">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e2208">subsection (2)</ref> ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>the notice to which the direction relates was given on the basis that the employee was likely to be non-UK resident for the mobile tax year, and</p></content></level><level class="para1"><num>(b)</num><intro><p>a notice has subsequently been—</p></intro><level class="para2"><num>(i)</num><content><p>given by the appropriate person under section <ref href="#d25e32161">690D</ref> (employer notification for qualifying new resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e2253">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section><section eId="d25e2345"><num>690C</num><heading>Employees who were internationally mobile etc. before 2025-26</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee falls within <ref href="#d25e2361">subsection (2)</ref> or <ref href="#d25e2379">(3)</ref> in relation to a tax year that was before tax year 2025-26.</p></content></subsection><subsection eId="d25e2361"><num>(2)</num><intro><p>An employee falls within this subsection in relation to a tax year if the employee worked both inside and outside the UK in that tax year and—</p></intro><level class="para1"><num>(a)</num><content><p>the employee was non-UK resident for that tax year or it appears likely to the employer that the employee was non-UK resident, or</p></content></level><level class="para1"><num>(b)</num><content><p>the tax year was a spilt year as respects the employee or it appears likely to the employer that the tax year was such a year.</p></content></level></subsection><subsection eId="d25e2379"><num>(3)</num><intro><p>An employee falls within this subsection in relation to a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee worked outside the UK in the tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the employee met the requirement of section 26A for that tax year or it appears likely to the employer that the employee met that requirement, and</p></content></level><level class="para1"><num>(c)</num><content><p>the employee has made a claim under section 809B of ITA 2007 (claim for remittance basis) for that tax year or it appears likely to the employer that the employee has or will make such a claim.</p></content></level></subsection><subsection eId="d25e2403"><num>(4)</num><content><p>If the employer makes a payment to the employee of, or on account of, general earnings for that tax year, the amount of the payment that is to be treated as PAYE income for the purposes of the PAYE regulations is the amount that, on the basis of the best estimate that can be reasonably made, is likely to be PAYE income.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purposes of <ref href="#d25e2403">subsection (4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where this section applies to an employee because it appears likely to the employer that a certain state of affairs exists, the employer may assume that state of affairs exists;</p></content></level><level class="para1"><num>(b)</num><content><p>whether general earnings are “for” that tax year is determined in accordance with sections 29 and 30.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-21-2"><num>(2)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection><subsection eId="section-21-3"><num>(3)</num><content><p>Any direction given by an officer of Revenue and Customs under section 690 of ITEPA 2003 (employee non-resident etc) has no effect in relation to tax year 2025-2026 or any subsequent tax year.</p></content></subsection></section><section eId="section-22"><num>22</num><heading>Advance pricing agreements: indirect participation in financing cases</heading><subsection eId="section-22-1"><num>(1)</num><intro><p>In section 158 of TIOPA 2010 (which sets out how to read references to indirect participation for the purposes of, among other provisions, provisions relating to advance pricing agreements under Part 5 of that Act)—</p></intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content><p>in subsection (4), omit paragraph (c) (but not the “and” at the end of that paragraph), and</p></content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>For the purposes of section 219(2) (which is in Part 5), a person is indirectly participating in the management, control or capital of another person only if any of sections 159 to 162 so provide.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-22-2"><num>(2)</num><intro><p>In section 161 of that Act (indirect participation in financing cases)—</p></intro><level class="para1" eId="section-22-2-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-22-2-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-22-3"><num>(3)</num><intro><p>In section 162 of that Act (indirect participation in further financing cases)—</p></intro><level class="para1" eId="section-22-3-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-22-3-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-22-4"><num>(4)</num><content><p><mod>In section 219(4) of that Act (which sets out how to interpret references to associates by referring to, among other provisions, provisions in Part 4 of that Act that explain the meaning of indirect participation), for “and 160(1)” substitute <quotedText>“, 160(1), 161(1) and 162(1)”</quotedText>.</mod></p></content></subsection><subsection eId="section-22-5"><num>(5)</num><content><p>The amendments made by this section are treated as always having had effect.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19"><num>19</num><heading>Pillar Two</heading><subsection eId="section-19-1"><num>(1)</num><intro><p>Schedule <ref href="#schedule-4">4</ref>—</p></intro><level class="para1" eId="section-19-1-a"><num>(a)</num><content><p>makes provision about the UTPR, and</p></content></level><level class="para1" eId="section-19-1-b"><num>(b)</num><content><p>makes other amendments to Parts 3 and 4 of F(No. 2)A 2023.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-1"><num>(1)</num><intro><p>Schedule <ref href="#schedule-4">4</ref>—</p></intro><level class="para1" eId="section-19-1-a"><num>(a)</num><content><p>makes provision about the UTPR, and</p></content></level><level class="para1" eId="section-19-1-b"><num>(b)</num><content><p>makes other amendments to Parts 3 and 4 of F(No. 2)A 2023.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-1-a"><num>(a)</num><content><p>makes provision about the UTPR, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-1-b"><num>(b)</num><content><p>makes other amendments to Parts 3 and 4 of F(No. 2)A 2023.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20"><num>20</num><heading>Offshore receipts in respect of intangible property</heading><subsection eId="section-20-1"><num>(1)</num><content><p>ITTOIA 2005 is amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><intro><p>In section 574 (overview of Part 5)—</p></intro><level class="para1" eId="section-20-2-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (aa);</p></content></level><level class="para1" eId="section-20-2-b"><num>(b)</num><content><p>in subsection (2) omit “(but see section 608X)”.</p></content></level></subsection><subsection eId="section-20-3"><num>(3)</num><content><p>Omit Chapter 2A (offshore receipts in respect of intangible property) of Part 5.</p></content></subsection><subsection eId="section-20-4"><num>(4)</num><content><p>In section 576 (priority between Chapters within Part 5) omit subsection (1).</p></content></subsection><subsection eId="section-20-5"><num>(5)</num><content><p>In section 873(3) (procedure for orders and regulations) omit paragraph (ba).</p></content></subsection><subsection eId="section-20-6"><num>(6)</num><content><p>TIOPA 2010 is amended as follows.</p></content></subsection><subsection eId="section-20-7"><num>(7)</num><intro><p>In section 157(1) (direct participation)—</p></intro><level class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="section-20-7-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level></subsection><subsection eId="section-20-8"><num>(8)</num><intro><p>In section 159(1) (indirect participation: potential direct participant)—</p></intro><level class="para1" eId="section-20-8-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="section-20-8-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level></subsection><subsection eId="section-20-9"><num>(9)</num><content><p>In section 160(1) (indirect participation: one of several major participants) omit paragraph (f) and the “and” preceding it.</p></content></subsection><subsection eId="section-20-10"><num>(10)</num><content><p>In consequence of subsections <ref href="#section-20-1">(1)</ref> to <ref href="#section-20-9">(9)</ref>, omit Schedule 3 to FA 2019 (offshore receipts in respect of intangible property).</p></content></subsection><subsection eId="section-20-11"><num>(11)</num><content><p>Omit section 981A of ITA 2007 (offshore receipts in respect of intangible property: exception from duties to deduct).</p></content></subsection><subsection eId="section-20-12"><num>(12)</num><content><p>The amendments made by this section have effect in relation to income arising on or after 31 December 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-1"><num>(1)</num><content><p>ITTOIA 2005 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-2"><num>(2)</num><intro><p>In section 574 (overview of Part 5)—</p></intro><level class="para1" eId="section-20-2-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (aa);</p></content></level><level class="para1" eId="section-20-2-b"><num>(b)</num><content><p>in subsection (2) omit “(but see section 608X)”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-2-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (aa);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-2-b"><num>(b)</num><content><p>in subsection (2) omit “(but see section 608X)”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-3"><num>(3)</num><content><p>Omit Chapter 2A (offshore receipts in respect of intangible property) of Part 5.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-4"><num>(4)</num><content><p>In section 576 (priority between Chapters within Part 5) omit subsection (1).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-5"><num>(5)</num><content><p>In section 873(3) (procedure for orders and regulations) omit paragraph (ba).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-6"><num>(6)</num><content><p>TIOPA 2010 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-7"><num>(7)</num><intro><p>In section 157(1) (direct participation)—</p></intro><level class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="section-20-7-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-7-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-8"><num>(8)</num><intro><p>In section 159(1) (indirect participation: potential direct participant)—</p></intro><level class="para1" eId="section-20-8-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="section-20-8-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-8-a"><num>(a)</num><content><p><mod>at the end of paragraph (d) insert <quotedText>“, and”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-8-b"><num>(b)</num><content><p>omit paragraph (f) and the “and” preceding it.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-9"><num>(9)</num><content><p>In section 160(1) (indirect participation: one of several major participants) omit paragraph (f) and the “and” preceding it.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-10"><num>(10)</num><content><p>In consequence of subsections <ref href="#section-20-1">(1)</ref> to <ref href="#section-20-9">(9)</ref>, omit Schedule 3 to FA 2019 (offshore receipts in respect of intangible property).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-11"><num>(11)</num><content><p>Omit section 981A of ITA 2007 (offshore receipts in respect of intangible property: exception from duties to deduct).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-12"><num>(12)</num><content><p>The amendments made by this section have effect in relation to income arising on or after 31 December 2024.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-21"><num>21</num><heading>Application of PAYE in relation to internationally mobile employees etc.</heading><subsection eId="section-21-1"><num>(1)</num><content><p><mod>For section 690 of ITEPA 2003 (employee non-resident etc) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e1871"><num>690</num><heading>Internationally mobile employees</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee is or has been internationally mobile at any time in tax year 2025-26 or a subsequent tax year.</p></content></subsection><subsection eId="d25e1881"><num>(2)</num><intro><p>An employee is “internationally mobile” at a time in a tax year if at that time the employee works or is likely to work both inside and outside the UK during the tax year (“the mobile tax year”) and at that time—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be non-UK resident for the mobile tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>the mobile tax year is or is likely to be a split year as respects the employee.</p></content></level></subsection><subsection eId="d25e1899"><num>(3)</num><content><p>If the employer makes an uncertain payment to the employee in any tax year, the entire payment is to be treated for the purposes of PAYE regulations as a payment of PAYE income of the employee.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section and sections <ref href="#d25e1980">690A</ref> and <ref href="#d25e2183">690B</ref>, an “<term refersTo="#term-uncertain-payment">uncertain payment</term>” means a payment of, or on account of, the income of the employee to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>the employer is unable to ascertain the extent to which the income is PAYE income, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reason for the employer being unable to ascertain that extent is connected to the employee being or having been internationally mobile in the mobile tax year.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e1899">(3)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section and sections <ref href="#d25e1980">690A</ref> to <ref href="#d25e32354">690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>any reference to a payment made by the employer includes a reference to a payment made by a person acting on behalf of the employer and at the expense of the employer or a person connected with the employer, and</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where section 689 or 689A applies, any reference to a payment made by the employer is to be read as a reference to a payment treated, for the purposes of PAYE regulations, as made by the relevant person.</p></content></level></subsection></section><section eId="d25e1980"><num>690A</num><heading>Employer notification for internationally mobile employees</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee is or has been internationally mobile within the meaning of <ref href="#d25e1871">section 690</ref><ref href="#d25e1881">(2)</ref> at any time in tax year 2025-26 or a subsequent tax year (“the mobile tax year”).</p></content></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the mobile tax year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat a proportion of any uncertain payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection eId="d25e2013"><num>(3)</num><content><p>If a notice given under this section has effect, the proportion of any uncertain payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(4)</num><content><p>But if <ref href="#d25e32161">section 690D</ref><ref href="#d25e32225">(4)</ref> (employer notification for qualifying new resident) also applies to a payment made by the employer, <ref href="#d25e2013">subsection (3)</ref> does not apply to the payment to the extent that it is a qualifying payment within the meaning of section <ref href="#d25e32161">690D</ref>.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e2183">section 690B</ref> (direction by HMRC in relation to internationally mobile employees) in relation to the employee and the mobile tax year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e2183">section 690B</ref> is given to the appropriate person in relation to the employee and the mobile tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>where the notice was given on the basis that the employee was likely to be a non-UK resident for the mobile tax year, a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under section <ref href="#d25e32161">690D</ref> (employer notification for qualifying new resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e2013">(3)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and sections <ref href="#d25e2183">690B</ref>, <ref href="#d25e32161">690D</ref> and <ref href="#d25e32354">690E</ref> —</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 693 (cash vouchers), section 694 (non-cash vouchers) or section 695 (credit-tokens), the employer is to be treated as making a payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><intro><p>“<term refersTo="#term-the-appropriate-person">the appropriate person</term>” means—</p></intro><level class="para2" eId="d25e2156"><num>(i)</num><content><p>the person designated by the employer for the purpose of this section and sections <ref href="#d25e2183">690B</ref>, <ref href="#d25e32161">690D</ref> and <ref href="#d25e32354">690E</ref> and, if no person is so designated, the employer, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in a case where section 689 or 689A applies, the references to the employer in <ref href="#d25e2156">sub-paragraph (i)</ref> are to be read as references to the relevant person (within the meaning of section 689 or 689A).</p></content></level></level></subsection></section><section eId="d25e2183"><num>690B</num><heading>Direction by HMRC in relation to internationally mobile employees</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the mobile tax year under section <ref href="#d25e1980">690A</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any uncertain payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e2208"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any uncertain payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e2208">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the mobile tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a date specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e2253"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e2208">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any uncertain payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies in relation to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e2208">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e2208">subsection (2)</ref> ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>the notice to which the direction relates was given on the basis that the employee was likely to be non-UK resident for the mobile tax year, and</p></content></level><level class="para1"><num>(b)</num><intro><p>a notice has subsequently been—</p></intro><level class="para2"><num>(i)</num><content><p>given by the appropriate person under section <ref href="#d25e32161">690D</ref> (employer notification for qualifying new resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e2253">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section><section eId="d25e2345"><num>690C</num><heading>Employees who were internationally mobile etc. before 2025-26</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee falls within <ref href="#d25e2361">subsection (2)</ref> or <ref href="#d25e2379">(3)</ref> in relation to a tax year that was before tax year 2025-26.</p></content></subsection><subsection eId="d25e2361"><num>(2)</num><intro><p>An employee falls within this subsection in relation to a tax year if the employee worked both inside and outside the UK in that tax year and—</p></intro><level class="para1"><num>(a)</num><content><p>the employee was non-UK resident for that tax year or it appears likely to the employer that the employee was non-UK resident, or</p></content></level><level class="para1"><num>(b)</num><content><p>the tax year was a spilt year as respects the employee or it appears likely to the employer that the tax year was such a year.</p></content></level></subsection><subsection eId="d25e2379"><num>(3)</num><intro><p>An employee falls within this subsection in relation to a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee worked outside the UK in the tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the employee met the requirement of section 26A for that tax year or it appears likely to the employer that the employee met that requirement, and</p></content></level><level class="para1"><num>(c)</num><content><p>the employee has made a claim under section 809B of ITA 2007 (claim for remittance basis) for that tax year or it appears likely to the employer that the employee has or will make such a claim.</p></content></level></subsection><subsection eId="d25e2403"><num>(4)</num><content><p>If the employer makes a payment to the employee of, or on account of, general earnings for that tax year, the amount of the payment that is to be treated as PAYE income for the purposes of the PAYE regulations is the amount that, on the basis of the best estimate that can be reasonably made, is likely to be PAYE income.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purposes of <ref href="#d25e2403">subsection (4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where this section applies to an employee because it appears likely to the employer that a certain state of affairs exists, the employer may assume that state of affairs exists;</p></content></level><level class="para1"><num>(b)</num><content><p>whether general earnings are “for” that tax year is determined in accordance with sections 29 and 30.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-21-2"><num>(2)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection><subsection eId="section-21-3"><num>(3)</num><content><p>Any direction given by an officer of Revenue and Customs under section 690 of ITEPA 2003 (employee non-resident etc) has no effect in relation to tax year 2025-2026 or any subsequent tax year.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-21-1"><num>(1)</num><content><p><mod>For section 690 of ITEPA 2003 (employee non-resident etc) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e1871"><num>690</num><heading>Internationally mobile employees</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee is or has been internationally mobile at any time in tax year 2025-26 or a subsequent tax year.</p></content></subsection><subsection eId="d25e1881"><num>(2)</num><intro><p>An employee is “internationally mobile” at a time in a tax year if at that time the employee works or is likely to work both inside and outside the UK during the tax year (“the mobile tax year”) and at that time—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be non-UK resident for the mobile tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>the mobile tax year is or is likely to be a split year as respects the employee.</p></content></level></subsection><subsection eId="d25e1899"><num>(3)</num><content><p>If the employer makes an uncertain payment to the employee in any tax year, the entire payment is to be treated for the purposes of PAYE regulations as a payment of PAYE income of the employee.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section and sections <ref href="#d25e1980">690A</ref> and <ref href="#d25e2183">690B</ref>, an “<term refersTo="#term-uncertain-payment">uncertain payment</term>” means a payment of, or on account of, the income of the employee to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>the employer is unable to ascertain the extent to which the income is PAYE income, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reason for the employer being unable to ascertain that extent is connected to the employee being or having been internationally mobile in the mobile tax year.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e1899">(3)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section and sections <ref href="#d25e1980">690A</ref> to <ref href="#d25e32354">690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>any reference to a payment made by the employer includes a reference to a payment made by a person acting on behalf of the employer and at the expense of the employer or a person connected with the employer, and</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where section 689 or 689A applies, any reference to a payment made by the employer is to be read as a reference to a payment treated, for the purposes of PAYE regulations, as made by the relevant person.</p></content></level></subsection></section><section eId="d25e1980"><num>690A</num><heading>Employer notification for internationally mobile employees</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee is or has been internationally mobile within the meaning of <ref href="#d25e1871">section 690</ref><ref href="#d25e1881">(2)</ref> at any time in tax year 2025-26 or a subsequent tax year (“the mobile tax year”).</p></content></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the mobile tax year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat a proportion of any uncertain payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection eId="d25e2013"><num>(3)</num><content><p>If a notice given under this section has effect, the proportion of any uncertain payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(4)</num><content><p>But if <ref href="#d25e32161">section 690D</ref><ref href="#d25e32225">(4)</ref> (employer notification for qualifying new resident) also applies to a payment made by the employer, <ref href="#d25e2013">subsection (3)</ref> does not apply to the payment to the extent that it is a qualifying payment within the meaning of section <ref href="#d25e32161">690D</ref>.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e2183">section 690B</ref> (direction by HMRC in relation to internationally mobile employees) in relation to the employee and the mobile tax year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e2183">section 690B</ref> is given to the appropriate person in relation to the employee and the mobile tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>where the notice was given on the basis that the employee was likely to be a non-UK resident for the mobile tax year, a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under section <ref href="#d25e32161">690D</ref> (employer notification for qualifying new resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e2013">(3)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and sections <ref href="#d25e2183">690B</ref>, <ref href="#d25e32161">690D</ref> and <ref href="#d25e32354">690E</ref> —</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 693 (cash vouchers), section 694 (non-cash vouchers) or section 695 (credit-tokens), the employer is to be treated as making a payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><intro><p>“<term refersTo="#term-the-appropriate-person">the appropriate person</term>” means—</p></intro><level class="para2" eId="d25e2156"><num>(i)</num><content><p>the person designated by the employer for the purpose of this section and sections <ref href="#d25e2183">690B</ref>, <ref href="#d25e32161">690D</ref> and <ref href="#d25e32354">690E</ref> and, if no person is so designated, the employer, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in a case where section 689 or 689A applies, the references to the employer in <ref href="#d25e2156">sub-paragraph (i)</ref> are to be read as references to the relevant person (within the meaning of section 689 or 689A).</p></content></level></level></subsection></section><section eId="d25e2183"><num>690B</num><heading>Direction by HMRC in relation to internationally mobile employees</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the mobile tax year under section <ref href="#d25e1980">690A</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any uncertain payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e2208"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any uncertain payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e2208">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the mobile tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a date specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e2253"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e2208">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any uncertain payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies in relation to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e2208">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e2208">subsection (2)</ref> ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>the notice to which the direction relates was given on the basis that the employee was likely to be non-UK resident for the mobile tax year, and</p></content></level><level class="para1"><num>(b)</num><intro><p>a notice has subsequently been—</p></intro><level class="para2"><num>(i)</num><content><p>given by the appropriate person under section <ref href="#d25e32161">690D</ref> (employer notification for qualifying new resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e2253">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section><section eId="d25e2345"><num>690C</num><heading>Employees who were internationally mobile etc. before 2025-26</heading><subsection><num>(1)</num><content><p>This section applies in relation to an employee if the employee falls within <ref href="#d25e2361">subsection (2)</ref> or <ref href="#d25e2379">(3)</ref> in relation to a tax year that was before tax year 2025-26.</p></content></subsection><subsection eId="d25e2361"><num>(2)</num><intro><p>An employee falls within this subsection in relation to a tax year if the employee worked both inside and outside the UK in that tax year and—</p></intro><level class="para1"><num>(a)</num><content><p>the employee was non-UK resident for that tax year or it appears likely to the employer that the employee was non-UK resident, or</p></content></level><level class="para1"><num>(b)</num><content><p>the tax year was a spilt year as respects the employee or it appears likely to the employer that the tax year was such a year.</p></content></level></subsection><subsection eId="d25e2379"><num>(3)</num><intro><p>An employee falls within this subsection in relation to a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee worked outside the UK in the tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the employee met the requirement of section 26A for that tax year or it appears likely to the employer that the employee met that requirement, and</p></content></level><level class="para1"><num>(c)</num><content><p>the employee has made a claim under section 809B of ITA 2007 (claim for remittance basis) for that tax year or it appears likely to the employer that the employee has or will make such a claim.</p></content></level></subsection><subsection eId="d25e2403"><num>(4)</num><content><p>If the employer makes a payment to the employee of, or on account of, general earnings for that tax year, the amount of the payment that is to be treated as PAYE income for the purposes of the PAYE regulations is the amount that, on the basis of the best estimate that can be reasonably made, is likely to be PAYE income.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purposes of <ref href="#d25e2403">subsection (4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where this section applies to an employee because it appears likely to the employer that a certain state of affairs exists, the employer may assume that state of affairs exists;</p></content></level><level class="para1"><num>(b)</num><content><p>whether general earnings are “for” that tax year is determined in accordance with sections 29 and 30.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-2"><num>(2)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-3"><num>(3)</num><content><p>Any direction given by an officer of Revenue and Customs under section 690 of ITEPA 2003 (employee non-resident etc) has no effect in relation to tax year 2025-2026 or any subsequent tax year.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-22"><num>22</num><heading>Advance pricing agreements: indirect participation in financing cases</heading><subsection eId="section-22-1"><num>(1)</num><intro><p>In section 158 of TIOPA 2010 (which sets out how to read references to indirect participation for the purposes of, among other provisions, provisions relating to advance pricing agreements under Part 5 of that Act)—</p></intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content><p>in subsection (4), omit paragraph (c) (but not the “and” at the end of that paragraph), and</p></content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>For the purposes of section 219(2) (which is in Part 5), a person is indirectly participating in the management, control or capital of another person only if any of sections 159 to 162 so provide.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-22-2"><num>(2)</num><intro><p>In section 161 of that Act (indirect participation in financing cases)—</p></intro><level class="para1" eId="section-22-2-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-22-2-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-22-3"><num>(3)</num><intro><p>In section 162 of that Act (indirect participation in further financing cases)—</p></intro><level class="para1" eId="section-22-3-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-22-3-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-22-4"><num>(4)</num><content><p><mod>In section 219(4) of that Act (which sets out how to interpret references to associates by referring to, among other provisions, provisions in Part 4 of that Act that explain the meaning of indirect participation), for “and 160(1)” substitute <quotedText>“, 160(1), 161(1) and 162(1)”</quotedText>.</mod></p></content></subsection><subsection eId="section-22-5"><num>(5)</num><content><p>The amendments made by this section are treated as always having had effect.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-22-1"><num>(1)</num><intro><p>In section 158 of TIOPA 2010 (which sets out how to read references to indirect participation for the purposes of, among other provisions, provisions relating to advance pricing agreements under Part 5 of that Act)—</p></intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content><p>in subsection (4), omit paragraph (c) (but not the “and” at the end of that paragraph), and</p></content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>For the purposes of section 219(2) (which is in Part 5), a person is indirectly participating in the management, control or capital of another person only if any of sections 159 to 162 so provide.</p></content></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-1-a"><num>(a)</num><content><p>in subsection (4), omit paragraph (c) (but not the “and” at the end of that paragraph), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-22-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>For the purposes of section 219(2) (which is in Part 5), a person is indirectly participating in the management, control or capital of another person only if any of sections 159 to 162 so provide.</p></content></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-2"><num>(2)</num><intro><p>In section 161 of that Act (indirect participation in financing cases)—</p></intro><level class="para1" eId="section-22-2-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-22-2-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-2-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-2-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-3"><num>(3)</num><intro><p>In section 162 of that Act (indirect participation in further financing cases)—</p></intro><level class="para1" eId="section-22-3-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-22-3-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-3-a"><num>(a)</num><content><p><mod>in subsection (1), at the end insert <quotedText>“and, in Part 5, section 219(2)”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-3-b"><num>(b)</num><content><p><mod>in the heading, for “and 175” substitute <quotedText>“, 175 and 219(2)”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-4"><num>(4)</num><content><p><mod>In section 219(4) of that Act (which sets out how to interpret references to associates by referring to, among other provisions, provisions in Part 4 of that Act that explain the meaning of indirect participation), for “and 160(1)” substitute <quotedText>“, 160(1), 161(1) and 162(1)”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-5"><num>(5)</num><content><p>The amendments made by this section are treated as always having had effect.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-reliefs-for-businesses"><heading>Reliefs for businesses</heading><section eId="section-23"><num>23</num><heading>Expenditure on zero-emission cars</heading><subsection eId="section-23-1"><num>(1)</num><content><p>Section 45D of CAA 2001 (expenditure on zero-emission cars) is amended as follows.</p></content></subsection><subsection eId="section-23-2"><num>(2)</num><content><p><mod>In subsection (1)(a), for the words from “the period” to the end substitute <quotedText>“the relevant period,”</quotedText>.</mod></p></content></subsection><subsection eId="section-23-3"><num>(3)</num><content><p>Omit subsection (1A).</p></content></subsection><subsection eId="section-23-4"><num>(4)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>The “relevant period” is the period beginning with 17 April 2002 and ending with—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of expenditure incurred by a company within the charge to corporation tax, 31 March 2026, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of expenditure incurred by a person within the charge to income tax, 5 April 2026.</p></content></level></subsection><subsection><num>(1C)</num><content><p>The Treasury may by regulations amend subsection (1B) so as to extend the relevant period.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-24"><num>24</num><heading>Expenditure on plant or machinery for electric vehicle charging point</heading><content><p><mod>In section 45EA of CAA 2001 (expenditure on plant or machinery for electric vehicle charging point), in subsection (3)(a) and (b) (which specify the date on or before which expenditure must be incurred to qualify for a first-year allowance), for “2025” substitute <quotedText>“2026”</quotedText>.</mod></p></content></section><section eId="section-25"><num>25</num><heading>Commercial letting of furnished holiday accommodation</heading><content><p><ref href="#schedule-5">Schedule 5</ref> contains provision abolishing the special rules relating to the commercial letting of furnished holiday accommodation.</p></content></section><section eId="section-26"><num>26</num><heading>Films and television programmes: increased relief for visual effects</heading><subsection eId="section-26-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/part/14A">Part 14A</a> of <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (films, television programmes and video games), after section 1179EB insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>1179EC</num><heading>Special credit for visual effects</heading><subsection><num>(1)</num><content><p>This section applies in relation to a qualifying film or qualifying television programme.</p></content></subsection><subsection><num>(2)</num><intro><p>The production company is entitled to claim an additional amount of audiovisual expenditure credit for an accounting period (“the claim period”) that is the completion period (see section 1179DY) or a subsequent accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the company has incurred relevant visual effects expenditure on the film or programme in that period or an earlier accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>where a claim has been made for Chapter 3 credit (whether for the claim period or earlier), the relevant percentage for the purposes of all such claims was the percentage given by subsection (2) or (5) of section 1179DV.</p></content></level></subsection><subsection eId="d25e2673"><num>(3)</num><intro><p>The additional amount is equal to—</p></intro><level class="para1" eId="d25e2679"><num>(a)</num><content><p>39% of the total amount of the relevant visual effects expenditure incurred on the film or programme in the claim period and in previous periods, less</p></content></level><level class="para1"><num>(b)</num><intro><p>the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>where Chapter 3 credits have been claimed by the production company, the adjusted VFX portion of those credits, and</p></content></level><level class="para2"><num>(ii)</num><content><p>any additional amounts of audiovisual expenditure credit previously claimed under this section.</p></content></level></level></subsection><subsection eId="d25e2703"><num>(4)</num><content><p>Take the following steps to determine the adjusted VFX portion of previously claimed Chapter 3 credits—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1 (identify the total UK expenditure in the AVEC period)</i></p><p>Determine the total amount of the company’s relevant global expenditure (see section 1179CA(2)) that—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>is UK expenditure (see section 1179AB), and</p></item><item><num>(b)</num><p>was incurred for accounting periods falling within the company’s AVEC period.</p></item></blockList></item><item><p><i>Step 2 (identify the amount of visual effects expenditure)</i></p><p>Determine how much of the result of Step 1 is relevant visual effects expenditure.</p></item><item><p><i>Step 3 (determine the extent to which the 80% cap applied)</i></p><p>Determine the amount (if any) of the excess to be deducted at Step 3 in section 1179CA(1) for the most recent accounting period for which a claim for Chapter 3 credit was made (which may be the claim period).</p><p>If that amount is nil go to Step 4, otherwise go to Step 5.</p></item><item><p><i>Step 4 (where the 80% cap did not apply, calculate the adjusted VFX portion)</i></p><p>If this Step applies, the adjusted VFX portion is the amount given by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of Chapter 3 credits claimed by the production company, by</p></item><item><num>(b)</num><p>the amount given by dividing the result of Step 2 by the result of Step 1.</p></item></blockList></item><item><p><i>Step 5 (treat the 80% cap as affecting the VFX portion first)</i></p><p>Subtract the result of Step 3 from the result of Step 2.</p><p>If the result is nil or less, the adjusted VFX portion is nil. If not, go to Step 6.</p></item><item><p><i>Step 6 (calculate the adjusted VFX portion, taking account of the 80% cap)</i></p><p>If this Step applies, the adjusted VFX portion is the amount given by multiplying the result of Step 5 by 0.34.</p></item></blockList></content></subsection><subsection><num>(5)</num><intro><p>The Treasury may by regulations replace—</p></intro><level class="para1"><num>(a)</num><content><p>the percentage for the time being specified in <ref href="#d25e2673">subsection (3)</ref><ref href="#d25e2679">(a)</ref>, or</p></content></level><level class="para1"><num>(b)</num><content><p>the number for the time being specified in Step 6 in <ref href="#d25e2703">subsection (4)</ref> as the number by which the result of Step 5 in that subsection is multiplied.</p></content></level></subsection><subsection><num>(6)</num><content><p>Sections 1179C and 1179CB to 1179CI (treatment of expenditure credits) apply to the additional amount as they apply to an expenditure credit under Chapter 3.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>a company’s “<term refersTo="#term-avec-period">AVEC period</term>” means the period beginning with the commencement of the first accounting period for which this Part applies further to the election by the company under section 1179B(1) and ending with the end of the claim period;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-chapter-3-credit">Chapter 3 credit</term>” means an audiovisual expenditure credit in respect of the film or television programme determined under section 1179CA;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-visual-effects-expenditure">relevant visual effects expenditure</term>” means UK expenditure that—</p></intro><level class="para1"><num>(a)</num><content><p>is incurred in respect of relevant visual effects work carried out in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>counts as relevant production expenditure for the purposes of section 1179CA(2) (see section 1179DR);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-visual-effects-work">relevant visual effects work</term>” means work consisting of the use of computer technology to create or alter images for inclusion in the film or programme.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-26-2"><num>(2)</num><content><p>The amendment made by <ref href="#section-26-1">subsection (1)</ref> has effect only in relation to expenditure incurred on or after 1 January 2025.</p></content></subsection><subsection eId="section-26-3"><num>(3)</num><content><p>A claim for audiovisual expenditure credit may not be made in reliance on that amendment before 1 April 2025.</p></content></subsection></section><section eId="section-27"><num>27</num><heading>Certification of films etc: minor amendments</heading><subsection eId="section-27-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179AA">section 1179AA</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179AA">(7)</a> of <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (qualifying companies)—</p></intro><level class="para1" eId="section-27-1-a"><num>(a)</num><content><p><mod>after “for” insert <quotedText>“—”</quotedText>;</mod></p></content></level><level class="para1" eId="section-27-1-b"><num>(b)</num><content><p>the words from “a production” to the end become paragraph (a);</p></content></level><level class="para1" eId="section-27-1-c"><num>(c)</num><content><p><mod>at the end, insert <quotedText startQuote="“">;</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the submission of a film, television programme or video game certificate after the end of an accounting period.</p></content></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-27-2"><num>(2)</num><content><p>Section 1179DJ of CTA 2009 (British certification condition: films and television programmes) is amended as set out in subsections <ref href="#section-27-3">(3)</ref> to <ref href="#section-27-6">(6)</ref>.</p></content></subsection><subsection eId="section-27-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (2)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> (including the dash before paragraph (a)) and insert <quotedText>“the production company’s company tax return for the period is accompanied by a valid interim certificate.”</quotedText></mod></p></content></subsection><subsection eId="section-27-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (3)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the production company’s company tax return for the completion period is accompanied by a valid final certificate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the production company has abandoned production activities in relation to the film or programme and the production company’s company tax return for the completion period is accompanied by a valid interim certificate.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-27-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (6)</a>, for the words from the beginning to “that period” substitute <quotedText>“If a certificate is revoked after the production company’s company tax return for a period is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-6"><num>(6)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsections (7)</a> and (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>Subsection (6) does not apply to the extent that a direction under paragraph 3 of Schedule 1 to the Films Act 1985 or section 1179DM provides that the certificate is to be treated as having effect.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this section, a certificate is valid if it has effect on the day on which the production company’s company tax return is submitted.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-27-7"><num>(7)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">Section 1179FC</a> of <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (British certification condition: video games) is amended as set out in subsections <ref href="#section-27-8">(8)</ref> to <ref href="#section-27-11">(11)</ref>.</p></content></subsection><subsection eId="section-27-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (2)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> (including the dash before paragraph (a)) and insert <quotedText>“the production company’s company tax return for the period is accompanied by a valid interim certificate.”</quotedText></mod></p></content></subsection><subsection eId="section-27-9"><num>(9)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (3)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the production company’s company tax return for the completion period is accompanied by a valid final certificate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the production company has abandoned production activities in relation to the video game and the production company’s company tax return for the completion period is accompanied by a valid interim certificate.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-27-10"><num>(10)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (6)</a>, for the words from the beginning to “that period” substitute <quotedText>“If a certificate is revoked after the production company’s company tax return for a period is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-11"><num>(11)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsections (7)</a> and (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>Subsection (6) does not apply to the extent that a direction under section 1179FF provides that the certificate is to be treated as having effect.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this section, a certificate is valid if it has effect on the day on which the production company’s company tax return is submitted.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-27-12"><num>(12)</num><content><p><mod>In section 1179DJA(9) of <ref eId="c00019" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (certification as a low-budget film), for the words “a low-budget certificate” to the end substitute <quotedText>“the production company’s company tax return for the period is accompanied by a low-budget certificate which has effect on that day the return is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-13"><num>(13)</num><content><p>In section 15 of the F(No.2)A 2024 (certification as a low-budget film: transitional), omit <a href="https://www.legislation.gov.uk/ukpga/2024/12/section/15">subsection (8)</a>.</p></content></subsection><subsection eId="section-27-14"><num>(14)</num><content><p>The amendments made by <ref href="#section-80">this section</ref> have effect in relation to claims made on or after the day on which this Act is passed.</p></content></subsection><subsection eId="section-27-15"><num>(15)</num><content><p><mod>In relation to an accounting period beginning on or before 30 October 2024, sections 1179DJ(8) and 1179FC(8) of CTA 2009 (as inserted by subsections <ref href="#section-27-6">(6)</ref> and <ref href="#section-27-11">(11)</ref>) have effect as if they read as follows—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><intro><p>For the purposes of this section, a certificate is valid if—</p></intro><level class="para1"><num>(a)</num><content><p>it has effect on the day on which the production company’s company tax return is submitted, or</p></content></level><level class="para1"><num>(b)</num><content><p>it had effect on the last day of the accounting period to which the return relates.</p></content></level></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-28"><num>28</num><heading>Films etc: unpaid amounts</heading><subsection eId="section-28-1"><num>(1)</num><content><p><ref eId="c00020" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><intro><p>In section 1179DT (excluded expenditure)—</p></intro><level class="para1" eId="section-28-2-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level><level class="para1" eId="section-28-2-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DT">subsection (1)</a>;</p></content></level><level class="para1" eId="section-28-2-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-28-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DX">section 1179DX</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DX">(3)</a>.</p></content></subsection><subsection eId="section-28-4"><num>(4)</num><intro><p>In section 1179FL (excluded expenditure)—</p></intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FL">subsection (1)</a>;</p></content></level><level class="para1" eId="section-28-4-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-28-5"><num>(5)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FP">section 1179FP</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FP">(3)</a>.</p></content></subsection><subsection eId="section-28-6"><num>(6)</num><content><p>The amendments in <ref href="#section-28">this section</ref> have effect in relation to claims made on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-29"><num>29</num><heading>Research and development relief: Northern Ireland companies</heading><subsection eId="section-29-1"><num>(1)</num><content><p>CTA 2009 is amended as set out in subsections (2) to (5).</p></content></subsection><subsection eId="section-29-2"><num>(2)</num><content><p><mod>In section 1112A (overview), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>Section 1112J contains provision about the amount of relief to which certain Northern Ireland companies are entitled under Chapter 2.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-29-3"><num>(3)</num><content><p><mod>For section 1112J and the heading above substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Northern Ireland companies</heading><section><num>1112J</num><heading>Chapter 2 relief for Northern Ireland companies</heading><subsection><num>(1)</num><content><p>This section applies for the purpose of determining the entitlement of a Northern Ireland company to relief under Chapter 2.</p></content></subsection><subsection><num>(2)</num><content><p>A Northern Ireland company is entitled to additional relief under Chapter 2 only to the extent that the additional relief would be exempted from notification under Article 108(3) of the TFEU by a de minimis aid regulation listed in paragraph 3.4 of Annex 5 to the Windsor Framework (as amended or replaced from time to time).</p></content></subsection><subsection><num>(3)</num><content><p>In subsection (2), “<term refersTo="#term-additional-relief">additional relief</term>” means the difference between the value of the relief claimed by the company under Chapter 2 in respect of expenditure and the value of the relief that could have been obtained by the company under Chapter 1A in respect of that expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>This section does not apply to a company in relation to an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in this subsection.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-northern-ireland-company">Northern Ireland company</term>” means a company whose registered office is in Northern Ireland;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-tfeu">TFEU</term>” means the Treaty on the Functioning of the European Union as it has effect by virtue of Article 10 of the Windsor Framework;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-windsor-framework">Windsor Framework</term>” means the part of the EU withdrawal agreement known as the Windsor Framework by virtue of Joint Declaration No. 1/2023 of 24th March 2023 made by the European Union and the United Kingdom in the Joint Committee established by the EU withdrawal agreement.</p></content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-29-4"><num>(4)</num><intro><p>In subsection 1138A(1) (research and development undertaken abroad)—</p></intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content><p><mod>for subsection (1)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>the research and development is undertaken, or contracted out, by a company whose registered office is in Northern Ireland.</p></content></level></quotedStructure></mod></p></content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Subsection (1)(b) does not apply in relation to a company in respect of an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in section 1112J(4) (restriction of Chapter 2 relief for Northern Ireland companies).</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-29-5"><num>(5)</num><content><p>In section 1142E(b) (orders and regulations: ancillary provision), omit “or areas”.</p></content></subsection><subsection eId="section-29-6"><num>(6)</num><content><p>The Research and Development (Chapter 2 Relief) Regulations 2024 are revoked.</p></content></subsection><subsection eId="section-29-7"><num>(7)</num><intro><p>The Relief for Research and Development (Content of Claim Notifications, Additional Information Requirements and Miscellaneous Amendments) Regulations 2023 are amended as follows—</p></intro><level class="para1" eId="section-29-7-a"><num>(a)</num><content><p>in regulation 3(4), omit the definition for “the Chapter 2 Regulations”;</p></content></level><level class="para1" eId="section-29-7-b"><num>(b)</num><content><p><mod>in paragraph 1(2)(b) of Schedule 2, for “regulation 2(3) of the Chapter 2 Regulations” substitute <quotedText>“section 1112J(4) of CTA 2009”</quotedText>;</mod></p></content></level><level class="para1" eId="section-29-7-c"><num>(c)</num><content><p><mod>in paragraph 10 of Schedule 2 omit sub-paragraphs (1)(a) and (b) and (2) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a statement to the effect that any additional relief claimed by the company under Chapter 2 would be de minimis state aid, and</p></content></level><level class="para1"><num>(b)</num><content><p>the total value of de minimis state aid received by the company from the United Kingdom in the period of three years ending with the day on which the claim is made;</p></content></level></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><intro><p>For the purposes of sub-paragraph (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-additional-relief">additional relief</term>” has the meaning given in section 1112J(3) of CTA 2009;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-de-minimis-state-aid">de minimis state aid</term>” means aid that is exempted from notification as described in section 1112J(2) of CTA 2009.</p></content></hcontainer></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-29-8"><num>(8)</num><intro><p>The Income and Corporation Taxes (Electronic Communications) Regulations 2003 are amended as follows—</p></intro><level class="para1" eId="section-29-8-a"><num>(a)</num><content><p><mod>in regulation 2(1)(a)(xi) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>;</mod></p></content></level><level class="para1" eId="section-29-8-b"><num>(b)</num><content><p><mod>in regulation 3(2AA)(c) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-29-9"><num>(9)</num><content><p>The amendments and revocation made by this section have effect in relation to claims made on or after 30 October 2024.</p></content></subsection></section><section eId="section-30"><num>30</num><heading>Research and development intensity condition: transitional provision</heading><subsection eId="section-30-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 1 to FA 2024 (higher rate of payable credit for R&D-intensive SMEs between 1 April 2023 and 1 April 2024), for sub-paragraph (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><intro><p>But that section is to be read for the purposes of sub-paragraph (3) as if—</p></intro><level class="para1"><num>(a)</num><content><p><mod>in subsections (2) and (3), for “30%” there were substituted <quotedText>“40%”</quotedText>;</mod></p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (7), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>it is expenditure in respect of which the company is entitled to relief under this Chapter or Chapter 6A of Part 3 for the period.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>The amendment made by this section is to be treated as always having had effect.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23"><num>23</num><heading>Expenditure on zero-emission cars</heading><subsection eId="section-23-1"><num>(1)</num><content><p>Section 45D of CAA 2001 (expenditure on zero-emission cars) is amended as follows.</p></content></subsection><subsection eId="section-23-2"><num>(2)</num><content><p><mod>In subsection (1)(a), for the words from “the period” to the end substitute <quotedText>“the relevant period,”</quotedText>.</mod></p></content></subsection><subsection eId="section-23-3"><num>(3)</num><content><p>Omit subsection (1A).</p></content></subsection><subsection eId="section-23-4"><num>(4)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>The “relevant period” is the period beginning with 17 April 2002 and ending with—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of expenditure incurred by a company within the charge to corporation tax, 31 March 2026, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of expenditure incurred by a person within the charge to income tax, 5 April 2026.</p></content></level></subsection><subsection><num>(1C)</num><content><p>The Treasury may by regulations amend subsection (1B) so as to extend the relevant period.</p></content></subsection></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-1"><num>(1)</num><content><p>Section 45D of CAA 2001 (expenditure on zero-emission cars) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-2"><num>(2)</num><content><p><mod>In subsection (1)(a), for the words from “the period” to the end substitute <quotedText>“the relevant period,”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-3"><num>(3)</num><content><p>Omit subsection (1A).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23-4"><num>(4)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>The “relevant period” is the period beginning with 17 April 2002 and ending with—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of expenditure incurred by a company within the charge to corporation tax, 31 March 2026, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of expenditure incurred by a person within the charge to income tax, 5 April 2026.</p></content></level></subsection><subsection><num>(1C)</num><content><p>The Treasury may by regulations amend subsection (1B) so as to extend the relevant period.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24"><num>24</num><heading>Expenditure on plant or machinery for electric vehicle charging point</heading><content><p><mod>In section 45EA of CAA 2001 (expenditure on plant or machinery for electric vehicle charging point), in subsection (3)(a) and (b) (which specify the date on or before which expenditure must be incurred to qualify for a first-year allowance), for “2025” substitute <quotedText>“2026”</quotedText>.</mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25"><num>25</num><heading>Commercial letting of furnished holiday accommodation</heading><content><p><ref href="#schedule-5">Schedule 5</ref> contains provision abolishing the special rules relating to the commercial letting of furnished holiday accommodation.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-26"><num>26</num><heading>Films and television programmes: increased relief for visual effects</heading><subsection eId="section-26-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/part/14A">Part 14A</a> of <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (films, television programmes and video games), after section 1179EB insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>1179EC</num><heading>Special credit for visual effects</heading><subsection><num>(1)</num><content><p>This section applies in relation to a qualifying film or qualifying television programme.</p></content></subsection><subsection><num>(2)</num><intro><p>The production company is entitled to claim an additional amount of audiovisual expenditure credit for an accounting period (“the claim period”) that is the completion period (see section 1179DY) or a subsequent accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the company has incurred relevant visual effects expenditure on the film or programme in that period or an earlier accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>where a claim has been made for Chapter 3 credit (whether for the claim period or earlier), the relevant percentage for the purposes of all such claims was the percentage given by subsection (2) or (5) of section 1179DV.</p></content></level></subsection><subsection eId="d25e2673"><num>(3)</num><intro><p>The additional amount is equal to—</p></intro><level class="para1" eId="d25e2679"><num>(a)</num><content><p>39% of the total amount of the relevant visual effects expenditure incurred on the film or programme in the claim period and in previous periods, less</p></content></level><level class="para1"><num>(b)</num><intro><p>the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>where Chapter 3 credits have been claimed by the production company, the adjusted VFX portion of those credits, and</p></content></level><level class="para2"><num>(ii)</num><content><p>any additional amounts of audiovisual expenditure credit previously claimed under this section.</p></content></level></level></subsection><subsection eId="d25e2703"><num>(4)</num><content><p>Take the following steps to determine the adjusted VFX portion of previously claimed Chapter 3 credits—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1 (identify the total UK expenditure in the AVEC period)</i></p><p>Determine the total amount of the company’s relevant global expenditure (see section 1179CA(2)) that—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>is UK expenditure (see section 1179AB), and</p></item><item><num>(b)</num><p>was incurred for accounting periods falling within the company’s AVEC period.</p></item></blockList></item><item><p><i>Step 2 (identify the amount of visual effects expenditure)</i></p><p>Determine how much of the result of Step 1 is relevant visual effects expenditure.</p></item><item><p><i>Step 3 (determine the extent to which the 80% cap applied)</i></p><p>Determine the amount (if any) of the excess to be deducted at Step 3 in section 1179CA(1) for the most recent accounting period for which a claim for Chapter 3 credit was made (which may be the claim period).</p><p>If that amount is nil go to Step 4, otherwise go to Step 5.</p></item><item><p><i>Step 4 (where the 80% cap did not apply, calculate the adjusted VFX portion)</i></p><p>If this Step applies, the adjusted VFX portion is the amount given by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of Chapter 3 credits claimed by the production company, by</p></item><item><num>(b)</num><p>the amount given by dividing the result of Step 2 by the result of Step 1.</p></item></blockList></item><item><p><i>Step 5 (treat the 80% cap as affecting the VFX portion first)</i></p><p>Subtract the result of Step 3 from the result of Step 2.</p><p>If the result is nil or less, the adjusted VFX portion is nil. If not, go to Step 6.</p></item><item><p><i>Step 6 (calculate the adjusted VFX portion, taking account of the 80% cap)</i></p><p>If this Step applies, the adjusted VFX portion is the amount given by multiplying the result of Step 5 by 0.34.</p></item></blockList></content></subsection><subsection><num>(5)</num><intro><p>The Treasury may by regulations replace—</p></intro><level class="para1"><num>(a)</num><content><p>the percentage for the time being specified in <ref href="#d25e2673">subsection (3)</ref><ref href="#d25e2679">(a)</ref>, or</p></content></level><level class="para1"><num>(b)</num><content><p>the number for the time being specified in Step 6 in <ref href="#d25e2703">subsection (4)</ref> as the number by which the result of Step 5 in that subsection is multiplied.</p></content></level></subsection><subsection><num>(6)</num><content><p>Sections 1179C and 1179CB to 1179CI (treatment of expenditure credits) apply to the additional amount as they apply to an expenditure credit under Chapter 3.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>a company’s “<term refersTo="#term-avec-period">AVEC period</term>” means the period beginning with the commencement of the first accounting period for which this Part applies further to the election by the company under section 1179B(1) and ending with the end of the claim period;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-chapter-3-credit">Chapter 3 credit</term>” means an audiovisual expenditure credit in respect of the film or television programme determined under section 1179CA;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-visual-effects-expenditure">relevant visual effects expenditure</term>” means UK expenditure that—</p></intro><level class="para1"><num>(a)</num><content><p>is incurred in respect of relevant visual effects work carried out in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>counts as relevant production expenditure for the purposes of section 1179CA(2) (see section 1179DR);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-visual-effects-work">relevant visual effects work</term>” means work consisting of the use of computer technology to create or alter images for inclusion in the film or programme.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-26-2"><num>(2)</num><content><p>The amendment made by <ref href="#section-26-1">subsection (1)</ref> has effect only in relation to expenditure incurred on or after 1 January 2025.</p></content></subsection><subsection eId="section-26-3"><num>(3)</num><content><p>A claim for audiovisual expenditure credit may not be made in reliance on that amendment before 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-26-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/part/14A">Part 14A</a> of <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (films, television programmes and video games), after section 1179EB insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>1179EC</num><heading>Special credit for visual effects</heading><subsection><num>(1)</num><content><p>This section applies in relation to a qualifying film or qualifying television programme.</p></content></subsection><subsection><num>(2)</num><intro><p>The production company is entitled to claim an additional amount of audiovisual expenditure credit for an accounting period (“the claim period”) that is the completion period (see section 1179DY) or a subsequent accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the company has incurred relevant visual effects expenditure on the film or programme in that period or an earlier accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>where a claim has been made for Chapter 3 credit (whether for the claim period or earlier), the relevant percentage for the purposes of all such claims was the percentage given by subsection (2) or (5) of section 1179DV.</p></content></level></subsection><subsection eId="d25e2673"><num>(3)</num><intro><p>The additional amount is equal to—</p></intro><level class="para1" eId="d25e2679"><num>(a)</num><content><p>39% of the total amount of the relevant visual effects expenditure incurred on the film or programme in the claim period and in previous periods, less</p></content></level><level class="para1"><num>(b)</num><intro><p>the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>where Chapter 3 credits have been claimed by the production company, the adjusted VFX portion of those credits, and</p></content></level><level class="para2"><num>(ii)</num><content><p>any additional amounts of audiovisual expenditure credit previously claimed under this section.</p></content></level></level></subsection><subsection eId="d25e2703"><num>(4)</num><content><p>Take the following steps to determine the adjusted VFX portion of previously claimed Chapter 3 credits—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1 (identify the total UK expenditure in the AVEC period)</i></p><p>Determine the total amount of the company’s relevant global expenditure (see section 1179CA(2)) that—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>is UK expenditure (see section 1179AB), and</p></item><item><num>(b)</num><p>was incurred for accounting periods falling within the company’s AVEC period.</p></item></blockList></item><item><p><i>Step 2 (identify the amount of visual effects expenditure)</i></p><p>Determine how much of the result of Step 1 is relevant visual effects expenditure.</p></item><item><p><i>Step 3 (determine the extent to which the 80% cap applied)</i></p><p>Determine the amount (if any) of the excess to be deducted at Step 3 in section 1179CA(1) for the most recent accounting period for which a claim for Chapter 3 credit was made (which may be the claim period).</p><p>If that amount is nil go to Step 4, otherwise go to Step 5.</p></item><item><p><i>Step 4 (where the 80% cap did not apply, calculate the adjusted VFX portion)</i></p><p>If this Step applies, the adjusted VFX portion is the amount given by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of Chapter 3 credits claimed by the production company, by</p></item><item><num>(b)</num><p>the amount given by dividing the result of Step 2 by the result of Step 1.</p></item></blockList></item><item><p><i>Step 5 (treat the 80% cap as affecting the VFX portion first)</i></p><p>Subtract the result of Step 3 from the result of Step 2.</p><p>If the result is nil or less, the adjusted VFX portion is nil. If not, go to Step 6.</p></item><item><p><i>Step 6 (calculate the adjusted VFX portion, taking account of the 80% cap)</i></p><p>If this Step applies, the adjusted VFX portion is the amount given by multiplying the result of Step 5 by 0.34.</p></item></blockList></content></subsection><subsection><num>(5)</num><intro><p>The Treasury may by regulations replace—</p></intro><level class="para1"><num>(a)</num><content><p>the percentage for the time being specified in <ref href="#d25e2673">subsection (3)</ref><ref href="#d25e2679">(a)</ref>, or</p></content></level><level class="para1"><num>(b)</num><content><p>the number for the time being specified in Step 6 in <ref href="#d25e2703">subsection (4)</ref> as the number by which the result of Step 5 in that subsection is multiplied.</p></content></level></subsection><subsection><num>(6)</num><content><p>Sections 1179C and 1179CB to 1179CI (treatment of expenditure credits) apply to the additional amount as they apply to an expenditure credit under Chapter 3.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>a company’s “<term refersTo="#term-avec-period">AVEC period</term>” means the period beginning with the commencement of the first accounting period for which this Part applies further to the election by the company under section 1179B(1) and ending with the end of the claim period;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-chapter-3-credit">Chapter 3 credit</term>” means an audiovisual expenditure credit in respect of the film or television programme determined under section 1179CA;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-visual-effects-expenditure">relevant visual effects expenditure</term>” means UK expenditure that—</p></intro><level class="para1"><num>(a)</num><content><p>is incurred in respect of relevant visual effects work carried out in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>counts as relevant production expenditure for the purposes of section 1179CA(2) (see section 1179DR);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-visual-effects-work">relevant visual effects work</term>” means work consisting of the use of computer technology to create or alter images for inclusion in the film or programme.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-2"><num>(2)</num><content><p>The amendment made by <ref href="#section-26-1">subsection (1)</ref> has effect only in relation to expenditure incurred on or after 1 January 2025.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-3"><num>(3)</num><content><p>A claim for audiovisual expenditure credit may not be made in reliance on that amendment before 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27"><num>27</num><heading>Certification of films etc: minor amendments</heading><subsection eId="section-27-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179AA">section 1179AA</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179AA">(7)</a> of <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (qualifying companies)—</p></intro><level class="para1" eId="section-27-1-a"><num>(a)</num><content><p><mod>after “for” insert <quotedText>“—”</quotedText>;</mod></p></content></level><level class="para1" eId="section-27-1-b"><num>(b)</num><content><p>the words from “a production” to the end become paragraph (a);</p></content></level><level class="para1" eId="section-27-1-c"><num>(c)</num><content><p><mod>at the end, insert <quotedText startQuote="“">;</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the submission of a film, television programme or video game certificate after the end of an accounting period.</p></content></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-27-2"><num>(2)</num><content><p>Section 1179DJ of CTA 2009 (British certification condition: films and television programmes) is amended as set out in subsections <ref href="#section-27-3">(3)</ref> to <ref href="#section-27-6">(6)</ref>.</p></content></subsection><subsection eId="section-27-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (2)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> (including the dash before paragraph (a)) and insert <quotedText>“the production company’s company tax return for the period is accompanied by a valid interim certificate.”</quotedText></mod></p></content></subsection><subsection eId="section-27-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (3)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the production company’s company tax return for the completion period is accompanied by a valid final certificate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the production company has abandoned production activities in relation to the film or programme and the production company’s company tax return for the completion period is accompanied by a valid interim certificate.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-27-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (6)</a>, for the words from the beginning to “that period” substitute <quotedText>“If a certificate is revoked after the production company’s company tax return for a period is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-6"><num>(6)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsections (7)</a> and (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>Subsection (6) does not apply to the extent that a direction under paragraph 3 of Schedule 1 to the Films Act 1985 or section 1179DM provides that the certificate is to be treated as having effect.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this section, a certificate is valid if it has effect on the day on which the production company’s company tax return is submitted.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-27-7"><num>(7)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">Section 1179FC</a> of <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (British certification condition: video games) is amended as set out in subsections <ref href="#section-27-8">(8)</ref> to <ref href="#section-27-11">(11)</ref>.</p></content></subsection><subsection eId="section-27-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (2)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> (including the dash before paragraph (a)) and insert <quotedText>“the production company’s company tax return for the period is accompanied by a valid interim certificate.”</quotedText></mod></p></content></subsection><subsection eId="section-27-9"><num>(9)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (3)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the production company’s company tax return for the completion period is accompanied by a valid final certificate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the production company has abandoned production activities in relation to the video game and the production company’s company tax return for the completion period is accompanied by a valid interim certificate.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-27-10"><num>(10)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (6)</a>, for the words from the beginning to “that period” substitute <quotedText>“If a certificate is revoked after the production company’s company tax return for a period is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-11"><num>(11)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsections (7)</a> and (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>Subsection (6) does not apply to the extent that a direction under section 1179FF provides that the certificate is to be treated as having effect.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this section, a certificate is valid if it has effect on the day on which the production company’s company tax return is submitted.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-27-12"><num>(12)</num><content><p><mod>In section 1179DJA(9) of <ref eId="c00019" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (certification as a low-budget film), for the words “a low-budget certificate” to the end substitute <quotedText>“the production company’s company tax return for the period is accompanied by a low-budget certificate which has effect on that day the return is submitted”</quotedText>.</mod></p></content></subsection><subsection eId="section-27-13"><num>(13)</num><content><p>In section 15 of the F(No.2)A 2024 (certification as a low-budget film: transitional), omit <a href="https://www.legislation.gov.uk/ukpga/2024/12/section/15">subsection (8)</a>.</p></content></subsection><subsection eId="section-27-14"><num>(14)</num><content><p>The amendments made by <ref href="#section-80">this section</ref> have effect in relation to claims made on or after the day on which this Act is passed.</p></content></subsection><subsection eId="section-27-15"><num>(15)</num><content><p><mod>In relation to an accounting period beginning on or before 30 October 2024, sections 1179DJ(8) and 1179FC(8) of CTA 2009 (as inserted by subsections <ref href="#section-27-6">(6)</ref> and <ref href="#section-27-11">(11)</ref>) have effect as if they read as follows—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><intro><p>For the purposes of this section, a certificate is valid if—</p></intro><level class="para1"><num>(a)</num><content><p>it has effect on the day on which the production company’s company tax return is submitted, or</p></content></level><level class="para1"><num>(b)</num><content><p>it had effect on the last day of the accounting period to which the return relates.</p></content></level></subsection></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179AA">section 1179AA</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179AA">(7)</a> of <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (qualifying companies)—</p></intro><level class="para1" eId="section-27-1-a"><num>(a)</num><content><p><mod>after “for” insert <quotedText>“—”</quotedText>;</mod></p></content></level><level class="para1" eId="section-27-1-b"><num>(b)</num><content><p>the words from “a production” to the end become paragraph (a);</p></content></level><level class="para1" eId="section-27-1-c"><num>(c)</num><content><p><mod>at the end, insert <quotedText startQuote="“">;</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the submission of a film, television programme or video game certificate after the end of an accounting period.</p></content></level></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-27-1-a"><num>(a)</num><content><p><mod>after “for” insert <quotedText>“—”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-27-1-b"><num>(b)</num><content><p>the words from “a production” to the end become paragraph (a);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-27-1-c"><num>(c)</num><content><p><mod>at the end, insert <quotedText startQuote="“">;</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the submission of a film, television programme or video game certificate after the end of an accounting period.</p></content></level></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-2"><num>(2)</num><content><p>Section 1179DJ of CTA 2009 (British certification condition: films and television programmes) is amended as set out in subsections <ref href="#section-27-3">(3)</ref> to <ref href="#section-27-6">(6)</ref>.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (2)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> (including the dash before paragraph (a)) and insert <quotedText>“the production company’s company tax return for the period is accompanied by a valid interim certificate.”</quotedText></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (3)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the production company’s company tax return for the completion period is accompanied by a valid final certificate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the production company has abandoned production activities in relation to the film or programme and the production company’s company tax return for the completion period is accompanied by a valid interim certificate.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (6)</a>, for the words from the beginning to “that period” substitute <quotedText>“If a certificate is revoked after the production company’s company tax return for a period is submitted”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-6"><num>(6)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsections (7)</a> and (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>Subsection (6) does not apply to the extent that a direction under paragraph 3 of Schedule 1 to the Films Act 1985 or section 1179DM provides that the certificate is to be treated as having effect.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this section, a certificate is valid if it has effect on the day on which the production company’s company tax return is submitted.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-7"><num>(7)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">Section 1179FC</a> of <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (British certification condition: video games) is amended as set out in subsections <ref href="#section-27-8">(8)</ref> to <ref href="#section-27-11">(11)</ref>.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (2)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> (including the dash before paragraph (a)) and insert <quotedText>“the production company’s company tax return for the period is accompanied by a valid interim certificate.”</quotedText></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-9"><num>(9)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (3)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">(b)</a> and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the production company’s company tax return for the completion period is accompanied by a valid final certificate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the production company has abandoned production activities in relation to the video game and the production company’s company tax return for the completion period is accompanied by a valid interim certificate.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-10"><num>(10)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsection (6)</a>, for the words from the beginning to “that period” substitute <quotedText>“If a certificate is revoked after the production company’s company tax return for a period is submitted”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-11"><num>(11)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FC">subsections (7)</a> and (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>Subsection (6) does not apply to the extent that a direction under section 1179FF provides that the certificate is to be treated as having effect.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this section, a certificate is valid if it has effect on the day on which the production company’s company tax return is submitted.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-12"><num>(12)</num><content><p><mod>In section 1179DJA(9) of <ref eId="c00019" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> (certification as a low-budget film), for the words “a low-budget certificate” to the end substitute <quotedText>“the production company’s company tax return for the period is accompanied by a low-budget certificate which has effect on that day the return is submitted”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-13"><num>(13)</num><content><p>In section 15 of the F(No.2)A 2024 (certification as a low-budget film: transitional), omit <a href="https://www.legislation.gov.uk/ukpga/2024/12/section/15">subsection (8)</a>.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-14"><num>(14)</num><content><p>The amendments made by <ref href="#section-80">this section</ref> have effect in relation to claims made on or after the day on which this Act is passed.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-15"><num>(15)</num><content><p><mod>In relation to an accounting period beginning on or before 30 October 2024, sections 1179DJ(8) and 1179FC(8) of CTA 2009 (as inserted by subsections <ref href="#section-27-6">(6)</ref> and <ref href="#section-27-11">(11)</ref>) have effect as if they read as follows—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><intro><p>For the purposes of this section, a certificate is valid if—</p></intro><level class="para1"><num>(a)</num><content><p>it has effect on the day on which the production company’s company tax return is submitted, or</p></content></level><level class="para1"><num>(b)</num><content><p>it had effect on the last day of the accounting period to which the return relates.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28"><num>28</num><heading>Films etc: unpaid amounts</heading><subsection eId="section-28-1"><num>(1)</num><content><p><ref eId="c00020" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><intro><p>In section 1179DT (excluded expenditure)—</p></intro><level class="para1" eId="section-28-2-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level><level class="para1" eId="section-28-2-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DT">subsection (1)</a>;</p></content></level><level class="para1" eId="section-28-2-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-28-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DX">section 1179DX</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DX">(3)</a>.</p></content></subsection><subsection eId="section-28-4"><num>(4)</num><intro><p>In section 1179FL (excluded expenditure)—</p></intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FL">subsection (1)</a>;</p></content></level><level class="para1" eId="section-28-4-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-28-5"><num>(5)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FP">section 1179FP</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FP">(3)</a>.</p></content></subsection><subsection eId="section-28-6"><num>(6)</num><content><p>The amendments in <ref href="#section-28">this section</ref> have effect in relation to claims made on or after the day on which this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-1"><num>(1)</num><content><p><ref eId="c00020" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-2"><num>(2)</num><intro><p>In section 1179DT (excluded expenditure)—</p></intro><level class="para1" eId="section-28-2-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level><level class="para1" eId="section-28-2-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DT">subsection (1)</a>;</p></content></level><level class="para1" eId="section-28-2-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-2-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-2-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DT">subsection (1)</a>;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-28-2-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DX">section 1179DX</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179DX">(3)</a>.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-4"><num>(4)</num><intro><p>In section 1179FL (excluded expenditure)—</p></intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FL">subsection (1)</a>;</p></content></level><level class="para1" eId="section-28-4-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-4-a"><num>(a)</num><content><p><mod>in the section heading, at the end insert <quotedText>“and unpaid amounts”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-4-b"><num>(b)</num><content><p>the existing provision becomes <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FL">subsection (1)</a>;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-28-4-c"><num>(c)</num><content><p><mod>at the end, as a new subsection, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>Expenditure is excluded expenditure for an accounting period to the extent that it is not paid before the end of the period of four months beginning with the first day after the final day of the accounting period.</p></content></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-5"><num>(5)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FP">section 1179FP</a><a href="https://www.legislation.gov.uk/ukpga/2009/4/section/1179FP">(3)</a>.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-6"><num>(6)</num><content><p>The amendments in <ref href="#section-28">this section</ref> have effect in relation to claims made on or after the day on which this Act is passed.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29"><num>29</num><heading>Research and development relief: Northern Ireland companies</heading><subsection eId="section-29-1"><num>(1)</num><content><p>CTA 2009 is amended as set out in subsections (2) to (5).</p></content></subsection><subsection eId="section-29-2"><num>(2)</num><content><p><mod>In section 1112A (overview), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>Section 1112J contains provision about the amount of relief to which certain Northern Ireland companies are entitled under Chapter 2.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-29-3"><num>(3)</num><content><p><mod>For section 1112J and the heading above substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Northern Ireland companies</heading><section><num>1112J</num><heading>Chapter 2 relief for Northern Ireland companies</heading><subsection><num>(1)</num><content><p>This section applies for the purpose of determining the entitlement of a Northern Ireland company to relief under Chapter 2.</p></content></subsection><subsection><num>(2)</num><content><p>A Northern Ireland company is entitled to additional relief under Chapter 2 only to the extent that the additional relief would be exempted from notification under Article 108(3) of the TFEU by a de minimis aid regulation listed in paragraph 3.4 of Annex 5 to the Windsor Framework (as amended or replaced from time to time).</p></content></subsection><subsection><num>(3)</num><content><p>In subsection (2), “<term refersTo="#term-additional-relief">additional relief</term>” means the difference between the value of the relief claimed by the company under Chapter 2 in respect of expenditure and the value of the relief that could have been obtained by the company under Chapter 1A in respect of that expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>This section does not apply to a company in relation to an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in this subsection.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-northern-ireland-company">Northern Ireland company</term>” means a company whose registered office is in Northern Ireland;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-tfeu">TFEU</term>” means the Treaty on the Functioning of the European Union as it has effect by virtue of Article 10 of the Windsor Framework;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-windsor-framework">Windsor Framework</term>” means the part of the EU withdrawal agreement known as the Windsor Framework by virtue of Joint Declaration No. 1/2023 of 24th March 2023 made by the European Union and the United Kingdom in the Joint Committee established by the EU withdrawal agreement.</p></content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-29-4"><num>(4)</num><intro><p>In subsection 1138A(1) (research and development undertaken abroad)—</p></intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content><p><mod>for subsection (1)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>the research and development is undertaken, or contracted out, by a company whose registered office is in Northern Ireland.</p></content></level></quotedStructure></mod></p></content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Subsection (1)(b) does not apply in relation to a company in respect of an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in section 1112J(4) (restriction of Chapter 2 relief for Northern Ireland companies).</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-29-5"><num>(5)</num><content><p>In section 1142E(b) (orders and regulations: ancillary provision), omit “or areas”.</p></content></subsection><subsection eId="section-29-6"><num>(6)</num><content><p>The Research and Development (Chapter 2 Relief) Regulations 2024 are revoked.</p></content></subsection><subsection eId="section-29-7"><num>(7)</num><intro><p>The Relief for Research and Development (Content of Claim Notifications, Additional Information Requirements and Miscellaneous Amendments) Regulations 2023 are amended as follows—</p></intro><level class="para1" eId="section-29-7-a"><num>(a)</num><content><p>in regulation 3(4), omit the definition for “the Chapter 2 Regulations”;</p></content></level><level class="para1" eId="section-29-7-b"><num>(b)</num><content><p><mod>in paragraph 1(2)(b) of Schedule 2, for “regulation 2(3) of the Chapter 2 Regulations” substitute <quotedText>“section 1112J(4) of CTA 2009”</quotedText>;</mod></p></content></level><level class="para1" eId="section-29-7-c"><num>(c)</num><content><p><mod>in paragraph 10 of Schedule 2 omit sub-paragraphs (1)(a) and (b) and (2) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a statement to the effect that any additional relief claimed by the company under Chapter 2 would be de minimis state aid, and</p></content></level><level class="para1"><num>(b)</num><content><p>the total value of de minimis state aid received by the company from the United Kingdom in the period of three years ending with the day on which the claim is made;</p></content></level></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><intro><p>For the purposes of sub-paragraph (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-additional-relief">additional relief</term>” has the meaning given in section 1112J(3) of CTA 2009;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-de-minimis-state-aid">de minimis state aid</term>” means aid that is exempted from notification as described in section 1112J(2) of CTA 2009.</p></content></hcontainer></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-29-8"><num>(8)</num><intro><p>The Income and Corporation Taxes (Electronic Communications) Regulations 2003 are amended as follows—</p></intro><level class="para1" eId="section-29-8-a"><num>(a)</num><content><p><mod>in regulation 2(1)(a)(xi) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>;</mod></p></content></level><level class="para1" eId="section-29-8-b"><num>(b)</num><content><p><mod>in regulation 3(2AA)(c) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-29-9"><num>(9)</num><content><p>The amendments and revocation made by this section have effect in relation to claims made on or after 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-1"><num>(1)</num><content><p>CTA 2009 is amended as set out in subsections (2) to (5).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29-2"><num>(2)</num><content><p><mod>In section 1112A (overview), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>Section 1112J contains provision about the amount of relief to which certain Northern Ireland companies are entitled under Chapter 2.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29-3"><num>(3)</num><content><p><mod>For section 1112J and the heading above substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Northern Ireland companies</heading><section><num>1112J</num><heading>Chapter 2 relief for Northern Ireland companies</heading><subsection><num>(1)</num><content><p>This section applies for the purpose of determining the entitlement of a Northern Ireland company to relief under Chapter 2.</p></content></subsection><subsection><num>(2)</num><content><p>A Northern Ireland company is entitled to additional relief under Chapter 2 only to the extent that the additional relief would be exempted from notification under Article 108(3) of the TFEU by a de minimis aid regulation listed in paragraph 3.4 of Annex 5 to the Windsor Framework (as amended or replaced from time to time).</p></content></subsection><subsection><num>(3)</num><content><p>In subsection (2), “<term refersTo="#term-additional-relief">additional relief</term>” means the difference between the value of the relief claimed by the company under Chapter 2 in respect of expenditure and the value of the relief that could have been obtained by the company under Chapter 1A in respect of that expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>This section does not apply to a company in relation to an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in this subsection.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-northern-ireland-company">Northern Ireland company</term>” means a company whose registered office is in Northern Ireland;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-tfeu">TFEU</term>” means the Treaty on the Functioning of the European Union as it has effect by virtue of Article 10 of the Windsor Framework;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-windsor-framework">Windsor Framework</term>” means the part of the EU withdrawal agreement known as the Windsor Framework by virtue of Joint Declaration No. 1/2023 of 24th March 2023 made by the European Union and the United Kingdom in the Joint Committee established by the EU withdrawal agreement.</p></content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29-4"><num>(4)</num><intro><p>In subsection 1138A(1) (research and development undertaken abroad)—</p></intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content><p><mod>for subsection (1)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>the research and development is undertaken, or contracted out, by a company whose registered office is in Northern Ireland.</p></content></level></quotedStructure></mod></p></content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Subsection (1)(b) does not apply in relation to a company in respect of an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in section 1112J(4) (restriction of Chapter 2 relief for Northern Ireland companies).</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-29-4-a"><num>(a)</num><content><p><mod>for subsection (1)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>the research and development is undertaken, or contracted out, by a company whose registered office is in Northern Ireland.</p></content></level></quotedStructure></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-29-4-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Subsection (1)(b) does not apply in relation to a company in respect of an accounting period if the company—</p></intro><level class="para1"><num>(a)</num><intro><p>has not, at any time during the accounting period, carried on a trade involving—</p></intro><level class="para2"><num>(i)</num><content><p>trade in goods, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in section 1112J(4) (restriction of Chapter 2 relief for Northern Ireland companies).</p></content></level></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-5"><num>(5)</num><content><p>In section 1142E(b) (orders and regulations: ancillary provision), omit “or areas”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-6"><num>(6)</num><content><p>The Research and Development (Chapter 2 Relief) Regulations 2024 are revoked.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29-7"><num>(7)</num><intro><p>The Relief for Research and Development (Content of Claim Notifications, Additional Information Requirements and Miscellaneous Amendments) Regulations 2023 are amended as follows—</p></intro><level class="para1" eId="section-29-7-a"><num>(a)</num><content><p>in regulation 3(4), omit the definition for “the Chapter 2 Regulations”;</p></content></level><level class="para1" eId="section-29-7-b"><num>(b)</num><content><p><mod>in paragraph 1(2)(b) of Schedule 2, for “regulation 2(3) of the Chapter 2 Regulations” substitute <quotedText>“section 1112J(4) of CTA 2009”</quotedText>;</mod></p></content></level><level class="para1" eId="section-29-7-c"><num>(c)</num><content><p><mod>in paragraph 10 of Schedule 2 omit sub-paragraphs (1)(a) and (b) and (2) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a statement to the effect that any additional relief claimed by the company under Chapter 2 would be de minimis state aid, and</p></content></level><level class="para1"><num>(b)</num><content><p>the total value of de minimis state aid received by the company from the United Kingdom in the period of three years ending with the day on which the claim is made;</p></content></level></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><intro><p>For the purposes of sub-paragraph (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-additional-relief">additional relief</term>” has the meaning given in section 1112J(3) of CTA 2009;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-de-minimis-state-aid">de minimis state aid</term>” means aid that is exempted from notification as described in section 1112J(2) of CTA 2009.</p></content></hcontainer></subparagraph></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-29-7-a"><num>(a)</num><content><p>in regulation 3(4), omit the definition for “the Chapter 2 Regulations”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-29-7-b"><num>(b)</num><content><p><mod>in paragraph 1(2)(b) of Schedule 2, for “regulation 2(3) of the Chapter 2 Regulations” substitute <quotedText>“section 1112J(4) of CTA 2009”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-29-7-c"><num>(c)</num><content><p><mod>in paragraph 10 of Schedule 2 omit sub-paragraphs (1)(a) and (b) and (2) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a statement to the effect that any additional relief claimed by the company under Chapter 2 would be de minimis state aid, and</p></content></level><level class="para1"><num>(b)</num><content><p>the total value of de minimis state aid received by the company from the United Kingdom in the period of three years ending with the day on which the claim is made;</p></content></level></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><intro><p>For the purposes of sub-paragraph (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-additional-relief">additional relief</term>” has the meaning given in section 1112J(3) of CTA 2009;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-de-minimis-state-aid">de minimis state aid</term>” means aid that is exempted from notification as described in section 1112J(2) of CTA 2009.</p></content></hcontainer></subparagraph></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-8"><num>(8)</num><intro><p>The Income and Corporation Taxes (Electronic Communications) Regulations 2003 are amended as follows—</p></intro><level class="para1" eId="section-29-8-a"><num>(a)</num><content><p><mod>in regulation 2(1)(a)(xi) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>;</mod></p></content></level><level class="para1" eId="section-29-8-b"><num>(b)</num><content><p><mod>in regulation 3(2AA)(c) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-29-8-a"><num>(a)</num><content><p><mod>in regulation 2(1)(a)(xi) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-29-8-b"><num>(b)</num><content><p><mod>in regulation 3(2AA)(c) for “regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024” substitute <quotedText>“section 1112J(4)(b) of CTA 2009”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-9"><num>(9)</num><content><p>The amendments and revocation made by this section have effect in relation to claims made on or after 30 October 2024.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30"><num>30</num><heading>Research and development intensity condition: transitional provision</heading><subsection eId="section-30-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 1 to FA 2024 (higher rate of payable credit for R&D-intensive SMEs between 1 April 2023 and 1 April 2024), for sub-paragraph (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><intro><p>But that section is to be read for the purposes of sub-paragraph (3) as if—</p></intro><level class="para1"><num>(a)</num><content><p><mod>in subsections (2) and (3), for “30%” there were substituted <quotedText>“40%”</quotedText>;</mod></p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (7), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>it is expenditure in respect of which the company is entitled to relief under this Chapter or Chapter 6A of Part 3 for the period.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>The amendment made by this section is to be treated as always having had effect.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 1 to FA 2024 (higher rate of payable credit for R&D-intensive SMEs between 1 April 2023 and 1 April 2024), for sub-paragraph (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><intro><p>But that section is to be read for the purposes of sub-paragraph (3) as if—</p></intro><level class="para1"><num>(a)</num><content><p><mod>in subsections (2) and (3), for “30%” there were substituted <quotedText>“40%”</quotedText>;</mod></p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (7), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>it is expenditure in respect of which the company is entitled to relief under this Chapter or Chapter 6A of Part 3 for the period.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-2"><num>(2)</num><content><p>The amendment made by this section is to be treated as always having had effect.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-employeeownership-trusts"><heading>Employee-ownership trusts</heading><section eId="section-31"><num>31</num><heading>Employee-ownership trusts</heading><content><p><ref href="#schedule-6">Schedule 6</ref> makes provision about employee ownership trusts.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31"><num>31</num><heading>Employee-ownership trusts</heading><content><p><ref href="#schedule-6">Schedule 6</ref> makes provision about employee ownership trusts.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-miscellaneous-measures"><heading>Miscellaneous measures</heading><section eId="section-32"><num>32</num><heading>Overseas transfer charge: pension schemes in EEA state or Gibraltar</heading><subsection eId="section-32-1"><num>(1)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions) omit section 244C (exclusion from overseas transfer charge where receiving scheme in EEA state or Gibraltar, and member resident in UK or EEA state).</p></content></subsection><subsection eId="section-32-2"><num>(2)</num><content><p>Subsections <ref href="#section-32-3">(3)</ref> to <ref href="#section-32-5">(5)</ref> contain amendments consequential on the repeal made by subsection (1).</p></content></subsection><subsection eId="section-32-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>—</p></intro><level class="para1" eId="section-32-3-a"><num>(a)</num><content><p>in section 244J (persons liable to charge), in subsection (4) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-3-b"><num>(b)</num><content><p>in section 244K (meaning of “<term refersTo="#term-transferred-value" eId="term-transferred-value">transferred value</term>”), in subsection (6) omit “or 244C”.</p></content></level></subsection><subsection eId="section-32-4"><num>(4)</num><intro><p>In the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 (<ref eId="c00023" href="http://www.legislation.gov.uk/id/uksi/2006/208">S.I. 2006/208</ref>)—</p></intro><level class="para1" eId="section-32-4-a"><num>(a)</num><intro><p>in regulation 3 (information to be provided to QROPS) in paragraph (2C)—</p></intro><level class="para2" eId="section-32-4-a-i"><num>(i)</num><content><p><mod>for “neither” substitute <quotedText>“not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-32-4-a-ii"><num>(ii)</num><content><p>omit paragraph (b) and the “nor” before it;</p></content></level></level><level class="para1" eId="section-32-4-b"><num>(b)</num><content><p>in regulation 3AF (information provided by member to QROPS: inward and outward transfers), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-4-c"><num>(c)</num><content><p>in regulation 3AG (provision of information about liability for overseas transfer charge), in paragraph (2)(d) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-4-d"><num>(d)</num><content><p>in regulation 3AH (accounting for overseas transfer charge where change of circumstances), in paragraph (1)(a)(ii) omit “or 244C(3)”.</p></content></level></subsection><subsection eId="section-32-5"><num>(5)</num><intro><p>In the <ref eId="c00024" href="https://www.legislation.gov.uk/uksi/2006/567">Registered Pension Schemes (Provision of Information) Regulations 2006</ref> (<ref eId="c00025" href="http://www.legislation.gov.uk/id/uksi/2006/567">S.I. 2006/567</ref>)—</p></intro><level class="para1" eId="section-32-5-a"><num>(a)</num><content><p>in regulation 11BB (information provided by members to scheme administrators), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-5-b"><num>(b)</num><content><p>in regulation 12A (information provided by scheme administrators to members), in paragraph (2)(d) omit “or 244C”.</p></content></level></subsection><subsection eId="section-32-6"><num>(6)</num><content><p>Subject to <ref href="#section-32-7">subsections (7)</ref> and <ref href="#section-32-8">(8)</ref>, the amendments made by this section have effect in relation to transfers made on or after 30 October 2024.</p></content></subsection><subsection eId="section-32-7"><num>(7)</num><intro><p>The amendments do not have effect in relation to a transfer that is made—</p></intro><level class="para1" eId="section-32-7-a"><num>(a)</num><content><p>in execution of a request made before 30 October 2024, and</p></content></level><level class="para1" eId="section-32-7-b"><num>(b)</num><content><p>before 30 April 2025.</p></content></level></subsection><subsection eId="section-32-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-32-8-a"><num>(a)</num><content><p>the repeal made by <ref href="#section-32-1">subsection (1)</ref> does not have effect in relation to a transfer, but</p></content></level><level class="para1" eId="section-32-8-b"><num>(b)</num><content><p>the tax consequences of that transfer depend on the tax consequences of a later transfer in relation to which the repeal does have effect,</p></content></level><wrapUp><p>the tax consequences of the earlier transfer are to be determined as if the repeal did not have effect in relation to the later transfer.</p></wrapUp></subsection></section><section eId="section-33"><num>33</num><heading>Overseas pension schemes established in EEA states</heading><subsection eId="section-33-1"><num>(1)</num><content><p>The <ref eId="c00026" href="https://www.legislation.gov.uk/uksi/2006/206">Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006</ref> (<ref eId="c00027" href="http://www.legislation.gov.uk/id/uksi/2006/206">S.I. 2006/206</ref>) are amended as follows.</p></content></subsection><subsection eId="section-33-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">regulation 2</a> (requirements of an overseas pension scheme), in <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">paragraph (2)</a>, for <span><a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">sub-paragraphs (a)</a> to <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">(d)</a></span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><intro><p>the scheme is an occupational pension scheme and—</p></intro><level class="para2"><num>(i)</num><content><p>the scheme is regulated by a body in the country or territory in which the scheme is established that regulates occupational pension schemes, or</p></content></level><level class="para2"><num>(ii)</num><content><p>there is no body in that country or territory that regulates occupational pension schemes;</p></content></level></level><level class="para1"><num>(b)</num><content><p>the scheme is not an occupational pension scheme and the scheme is regulated by a body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes; or</p></content></level><level class="para1"><num>(c)</num><intro><p>the scheme is not an occupational pension scheme and—</p></intro><level class="para2"><num>(i)</num><content><p>there is no body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the establishment of the scheme was regulated, and the provision of the scheme is regulated, by a body in that country or territory that regulates providers of pension schemes.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">regulation 3</a> (recognised overseas pension schemes: prescribed countries or territories and prescribed requirements), in <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">paragraph (2)</a> (prescribed countries) omit <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">sub-paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">(b)</a>.</p></content></subsection><subsection eId="section-33-4"><num>(4)</num><content><p><span><ref href="#section-33-1">Subsections (1)</ref> to <ref href="#section-33-3">(3)</ref></span> come into force on 6 April 2025.</p></content></subsection></section><section eId="section-34"><num>34</num><heading>Pension scheme administrators required to be resident in United Kingdom</heading><subsection eId="section-34-1"><num>(1)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00028" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions), <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/270">section 270</a> (meaning of “<term refersTo="#term-scheme-administrator" eId="term-scheme-administrator">scheme administrator</term>”) is amended as follows.</p></content></subsection><subsection eId="section-34-2"><num>(2)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-34-2-a"><num>(a)</num><intro><p>in the opening words—</p></intro><level class="para2" eId="section-34-2-a-i"><num>(i)</num><content><p><mod>for “cannot be” substitute <quotedText>“is not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-34-2-a-ii"><num>(ii)</num><content><p><mod>for “unless” substitute <quotedText>“at any time unless, at that time,”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content><p>in paragraph (a) omit the words from “or another” to the end.</p></content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content><p>In subsection (3)(b) omit the words from “, whether resident” to the end;</p></content></subsection><subsection eId="section-34-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subsection><subsection eId="section-34-5"><num>(5)</num><content><p><span>Subsections (1) to (4)</span> come into force on 6 April 2026.</p></content></subsection></section><section eId="section-35"><num>35</num><heading>Alternative finance: diminishing shared ownership refinancing arrangements</heading><content><p>Schedule <ref href="#schedule-7">7</ref> makes provision about diminishing shared ownership refinancing arrangements.</p></content></section><section eId="section-36"><num>36</num><heading>Statutory neonatal care pay</heading><subsection eId="section-36-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subsection><subsection eId="section-36-2"><num>(2)</num><intro><p>In section 660 (taxable UK benefits)—</p></intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content><p><mod>in Table A in subsection (1), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Statutory neonatal care pay</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">SSCBA 1992</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 171ZZ16</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content><p><mod>in subsection (2), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>statutory neonatal care pay;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-36-3"><num>(3)</num><content><p><mod>In paragraph 48 of Schedule 2 (notice of possible effect of deductions under SIP partnership share agreement on employee’s benefit entitlement), in sub-paragraph (2) after “statutory sick pay” insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></subsection><subsection eId="section-36-4"><num>(4)</num><intro><p>In regulation 2 of the Employee Share Ownership Plans (Partnership Shares—Notice of Effects on Benefits, Statutory Sick Pay and Statutory Maternity Pay) Regulations 2000 (<ref eId="c00029" href="http://www.legislation.gov.uk/id/uksi/2000/2090">S.I. 2000/2090</ref>)—</p></intro><level class="para1" eId="section-36-4-a"><num>(a)</num><content><p><mod>after “<term refersTo="#term-statutory-maternity-pay" eId="term-statutory-maternity-pay">statutory maternity pay</term>” (in the first place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>;</mod></p></content></level><level class="para1" eId="section-36-4-b"><num>(b)</num><content><p><mod>after “<term refersTo="#term-statutory-sick-pay" eId="term-statutory-sick-pay">statutory sick pay</term>” (in the second place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-36-5"><num>(5)</num><content><p><ref href="#section-36-4">Subsection (4)</ref> comes into force on 6 April 2025.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32"><num>32</num><heading>Overseas transfer charge: pension schemes in EEA state or Gibraltar</heading><subsection eId="section-32-1"><num>(1)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions) omit section 244C (exclusion from overseas transfer charge where receiving scheme in EEA state or Gibraltar, and member resident in UK or EEA state).</p></content></subsection><subsection eId="section-32-2"><num>(2)</num><content><p>Subsections <ref href="#section-32-3">(3)</ref> to <ref href="#section-32-5">(5)</ref> contain amendments consequential on the repeal made by subsection (1).</p></content></subsection><subsection eId="section-32-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>—</p></intro><level class="para1" eId="section-32-3-a"><num>(a)</num><content><p>in section 244J (persons liable to charge), in subsection (4) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-3-b"><num>(b)</num><content><p>in section 244K (meaning of “<term refersTo="#term-transferred-value" eId="term-transferred-value">transferred value</term>”), in subsection (6) omit “or 244C”.</p></content></level></subsection><subsection eId="section-32-4"><num>(4)</num><intro><p>In the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 (<ref eId="c00023" href="http://www.legislation.gov.uk/id/uksi/2006/208">S.I. 2006/208</ref>)—</p></intro><level class="para1" eId="section-32-4-a"><num>(a)</num><intro><p>in regulation 3 (information to be provided to QROPS) in paragraph (2C)—</p></intro><level class="para2" eId="section-32-4-a-i"><num>(i)</num><content><p><mod>for “neither” substitute <quotedText>“not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-32-4-a-ii"><num>(ii)</num><content><p>omit paragraph (b) and the “nor” before it;</p></content></level></level><level class="para1" eId="section-32-4-b"><num>(b)</num><content><p>in regulation 3AF (information provided by member to QROPS: inward and outward transfers), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-4-c"><num>(c)</num><content><p>in regulation 3AG (provision of information about liability for overseas transfer charge), in paragraph (2)(d) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-4-d"><num>(d)</num><content><p>in regulation 3AH (accounting for overseas transfer charge where change of circumstances), in paragraph (1)(a)(ii) omit “or 244C(3)”.</p></content></level></subsection><subsection eId="section-32-5"><num>(5)</num><intro><p>In the <ref eId="c00024" href="https://www.legislation.gov.uk/uksi/2006/567">Registered Pension Schemes (Provision of Information) Regulations 2006</ref> (<ref eId="c00025" href="http://www.legislation.gov.uk/id/uksi/2006/567">S.I. 2006/567</ref>)—</p></intro><level class="para1" eId="section-32-5-a"><num>(a)</num><content><p>in regulation 11BB (information provided by members to scheme administrators), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-5-b"><num>(b)</num><content><p>in regulation 12A (information provided by scheme administrators to members), in paragraph (2)(d) omit “or 244C”.</p></content></level></subsection><subsection eId="section-32-6"><num>(6)</num><content><p>Subject to <ref href="#section-32-7">subsections (7)</ref> and <ref href="#section-32-8">(8)</ref>, the amendments made by this section have effect in relation to transfers made on or after 30 October 2024.</p></content></subsection><subsection eId="section-32-7"><num>(7)</num><intro><p>The amendments do not have effect in relation to a transfer that is made—</p></intro><level class="para1" eId="section-32-7-a"><num>(a)</num><content><p>in execution of a request made before 30 October 2024, and</p></content></level><level class="para1" eId="section-32-7-b"><num>(b)</num><content><p>before 30 April 2025.</p></content></level></subsection><subsection eId="section-32-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-32-8-a"><num>(a)</num><content><p>the repeal made by <ref href="#section-32-1">subsection (1)</ref> does not have effect in relation to a transfer, but</p></content></level><level class="para1" eId="section-32-8-b"><num>(b)</num><content><p>the tax consequences of that transfer depend on the tax consequences of a later transfer in relation to which the repeal does have effect,</p></content></level><wrapUp><p>the tax consequences of the earlier transfer are to be determined as if the repeal did not have effect in relation to the later transfer.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-1"><num>(1)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions) omit section 244C (exclusion from overseas transfer charge where receiving scheme in EEA state or Gibraltar, and member resident in UK or EEA state).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-2"><num>(2)</num><content><p>Subsections <ref href="#section-32-3">(3)</ref> to <ref href="#section-32-5">(5)</ref> contain amendments consequential on the repeal made by subsection (1).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>—</p></intro><level class="para1" eId="section-32-3-a"><num>(a)</num><content><p>in section 244J (persons liable to charge), in subsection (4) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-3-b"><num>(b)</num><content><p>in section 244K (meaning of “<term refersTo="#term-transferred-value" eId="term-transferred-value">transferred value</term>”), in subsection (6) omit “or 244C”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-3-a"><num>(a)</num><content><p>in section 244J (persons liable to charge), in subsection (4) omit “or 244C”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-3-b"><num>(b)</num><content><p>in section 244K (meaning of “<term refersTo="#term-transferred-value" eId="term-transferred-value">transferred value</term>”), in subsection (6) omit “or 244C”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-4"><num>(4)</num><intro><p>In the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 (<ref eId="c00023" href="http://www.legislation.gov.uk/id/uksi/2006/208">S.I. 2006/208</ref>)—</p></intro><level class="para1" eId="section-32-4-a"><num>(a)</num><intro><p>in regulation 3 (information to be provided to QROPS) in paragraph (2C)—</p></intro><level class="para2" eId="section-32-4-a-i"><num>(i)</num><content><p><mod>for “neither” substitute <quotedText>“not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-32-4-a-ii"><num>(ii)</num><content><p>omit paragraph (b) and the “nor” before it;</p></content></level></level><level class="para1" eId="section-32-4-b"><num>(b)</num><content><p>in regulation 3AF (information provided by member to QROPS: inward and outward transfers), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-4-c"><num>(c)</num><content><p>in regulation 3AG (provision of information about liability for overseas transfer charge), in paragraph (2)(d) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-4-d"><num>(d)</num><content><p>in regulation 3AH (accounting for overseas transfer charge where change of circumstances), in paragraph (1)(a)(ii) omit “or 244C(3)”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-4-a"><num>(a)</num><intro><p>in regulation 3 (information to be provided to QROPS) in paragraph (2C)—</p></intro><level class="para2" eId="section-32-4-a-i"><num>(i)</num><content><p><mod>for “neither” substitute <quotedText>“not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-32-4-a-ii"><num>(ii)</num><content><p>omit paragraph (b) and the “nor” before it;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-32-4-a-i"><num>(i)</num><content><p><mod>for “neither” substitute <quotedText>“not”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-32-4-a-ii"><num>(ii)</num><content><p>omit paragraph (b) and the “nor” before it;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-4-b"><num>(b)</num><content><p>in regulation 3AF (information provided by member to QROPS: inward and outward transfers), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-4-c"><num>(c)</num><content><p>in regulation 3AG (provision of information about liability for overseas transfer charge), in paragraph (2)(d) omit “or 244C”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-4-d"><num>(d)</num><content><p>in regulation 3AH (accounting for overseas transfer charge where change of circumstances), in paragraph (1)(a)(ii) omit “or 244C(3)”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-5"><num>(5)</num><intro><p>In the <ref eId="c00024" href="https://www.legislation.gov.uk/uksi/2006/567">Registered Pension Schemes (Provision of Information) Regulations 2006</ref> (<ref eId="c00025" href="http://www.legislation.gov.uk/id/uksi/2006/567">S.I. 2006/567</ref>)—</p></intro><level class="para1" eId="section-32-5-a"><num>(a)</num><content><p>in regulation 11BB (information provided by members to scheme administrators), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level><level class="para1" eId="section-32-5-b"><num>(b)</num><content><p>in regulation 12A (information provided by scheme administrators to members), in paragraph (2)(d) omit “or 244C”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-5-a"><num>(a)</num><content><p>in regulation 11BB (information provided by members to scheme administrators), in paragraph (1)(b)(ii) omit “or 244C”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-5-b"><num>(b)</num><content><p>in regulation 12A (information provided by scheme administrators to members), in paragraph (2)(d) omit “or 244C”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-6"><num>(6)</num><content><p>Subject to <ref href="#section-32-7">subsections (7)</ref> and <ref href="#section-32-8">(8)</ref>, the amendments made by this section have effect in relation to transfers made on or after 30 October 2024.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-7"><num>(7)</num><intro><p>The amendments do not have effect in relation to a transfer that is made—</p></intro><level class="para1" eId="section-32-7-a"><num>(a)</num><content><p>in execution of a request made before 30 October 2024, and</p></content></level><level class="para1" eId="section-32-7-b"><num>(b)</num><content><p>before 30 April 2025.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-7-a"><num>(a)</num><content><p>in execution of a request made before 30 October 2024, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-7-b"><num>(b)</num><content><p>before 30 April 2025.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-32-8-a"><num>(a)</num><content><p>the repeal made by <ref href="#section-32-1">subsection (1)</ref> does not have effect in relation to a transfer, but</p></content></level><level class="para1" eId="section-32-8-b"><num>(b)</num><content><p>the tax consequences of that transfer depend on the tax consequences of a later transfer in relation to which the repeal does have effect,</p></content></level><wrapUp><p>the tax consequences of the earlier transfer are to be determined as if the repeal did not have effect in relation to the later transfer.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-8-a"><num>(a)</num><content><p>the repeal made by <ref href="#section-32-1">subsection (1)</ref> does not have effect in relation to a transfer, but</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-8-b"><num>(b)</num><content><p>the tax consequences of that transfer depend on the tax consequences of a later transfer in relation to which the repeal does have effect,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33"><num>33</num><heading>Overseas pension schemes established in EEA states</heading><subsection eId="section-33-1"><num>(1)</num><content><p>The <ref eId="c00026" href="https://www.legislation.gov.uk/uksi/2006/206">Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006</ref> (<ref eId="c00027" href="http://www.legislation.gov.uk/id/uksi/2006/206">S.I. 2006/206</ref>) are amended as follows.</p></content></subsection><subsection eId="section-33-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">regulation 2</a> (requirements of an overseas pension scheme), in <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">paragraph (2)</a>, for <span><a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">sub-paragraphs (a)</a> to <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">(d)</a></span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><intro><p>the scheme is an occupational pension scheme and—</p></intro><level class="para2"><num>(i)</num><content><p>the scheme is regulated by a body in the country or territory in which the scheme is established that regulates occupational pension schemes, or</p></content></level><level class="para2"><num>(ii)</num><content><p>there is no body in that country or territory that regulates occupational pension schemes;</p></content></level></level><level class="para1"><num>(b)</num><content><p>the scheme is not an occupational pension scheme and the scheme is regulated by a body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes; or</p></content></level><level class="para1"><num>(c)</num><intro><p>the scheme is not an occupational pension scheme and—</p></intro><level class="para2"><num>(i)</num><content><p>there is no body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the establishment of the scheme was regulated, and the provision of the scheme is regulated, by a body in that country or territory that regulates providers of pension schemes.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">regulation 3</a> (recognised overseas pension schemes: prescribed countries or territories and prescribed requirements), in <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">paragraph (2)</a> (prescribed countries) omit <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">sub-paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">(b)</a>.</p></content></subsection><subsection eId="section-33-4"><num>(4)</num><content><p><span><ref href="#section-33-1">Subsections (1)</ref> to <ref href="#section-33-3">(3)</ref></span> come into force on 6 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-1"><num>(1)</num><content><p>The <ref eId="c00026" href="https://www.legislation.gov.uk/uksi/2006/206">Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006</ref> (<ref eId="c00027" href="http://www.legislation.gov.uk/id/uksi/2006/206">S.I. 2006/206</ref>) are amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">regulation 2</a> (requirements of an overseas pension scheme), in <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">paragraph (2)</a>, for <span><a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">sub-paragraphs (a)</a> to <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/2">(d)</a></span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><intro><p>the scheme is an occupational pension scheme and—</p></intro><level class="para2"><num>(i)</num><content><p>the scheme is regulated by a body in the country or territory in which the scheme is established that regulates occupational pension schemes, or</p></content></level><level class="para2"><num>(ii)</num><content><p>there is no body in that country or territory that regulates occupational pension schemes;</p></content></level></level><level class="para1"><num>(b)</num><content><p>the scheme is not an occupational pension scheme and the scheme is regulated by a body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes; or</p></content></level><level class="para1"><num>(c)</num><intro><p>the scheme is not an occupational pension scheme and—</p></intro><level class="para2"><num>(i)</num><content><p>there is no body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the establishment of the scheme was regulated, and the provision of the scheme is regulated, by a body in that country or territory that regulates providers of pension schemes.</p></content></level></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">regulation 3</a> (recognised overseas pension schemes: prescribed countries or territories and prescribed requirements), in <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">paragraph (2)</a> (prescribed countries) omit <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">sub-paragraphs (a)</a> and <a href="https://www.legislation.gov.uk/uksi/2006/206/regulation/3">(b)</a>.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-4"><num>(4)</num><content><p><span><ref href="#section-33-1">Subsections (1)</ref> to <ref href="#section-33-3">(3)</ref></span> come into force on 6 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34"><num>34</num><heading>Pension scheme administrators required to be resident in United Kingdom</heading><subsection eId="section-34-1"><num>(1)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00028" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions), <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/270">section 270</a> (meaning of “<term refersTo="#term-scheme-administrator" eId="term-scheme-administrator">scheme administrator</term>”) is amended as follows.</p></content></subsection><subsection eId="section-34-2"><num>(2)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-34-2-a"><num>(a)</num><intro><p>in the opening words—</p></intro><level class="para2" eId="section-34-2-a-i"><num>(i)</num><content><p><mod>for “cannot be” substitute <quotedText>“is not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-34-2-a-ii"><num>(ii)</num><content><p><mod>for “unless” substitute <quotedText>“at any time unless, at that time,”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content><p>in paragraph (a) omit the words from “or another” to the end.</p></content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content><p>In subsection (3)(b) omit the words from “, whether resident” to the end;</p></content></subsection><subsection eId="section-34-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subsection><subsection eId="section-34-5"><num>(5)</num><content><p><span>Subsections (1) to (4)</span> come into force on 6 April 2026.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-1"><num>(1)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00028" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions), <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/270">section 270</a> (meaning of “<term refersTo="#term-scheme-administrator" eId="term-scheme-administrator">scheme administrator</term>”) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-2"><num>(2)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-34-2-a"><num>(a)</num><intro><p>in the opening words—</p></intro><level class="para2" eId="section-34-2-a-i"><num>(i)</num><content><p><mod>for “cannot be” substitute <quotedText>“is not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-34-2-a-ii"><num>(ii)</num><content><p><mod>for “unless” substitute <quotedText>“at any time unless, at that time,”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content><p>in paragraph (a) omit the words from “or another” to the end.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-34-2-a"><num>(a)</num><intro><p>in the opening words—</p></intro><level class="para2" eId="section-34-2-a-i"><num>(i)</num><content><p><mod>for “cannot be” substitute <quotedText>“is not”</quotedText>;</mod></p></content></level><level class="para2" eId="section-34-2-a-ii"><num>(ii)</num><content><p><mod>for “unless” substitute <quotedText>“at any time unless, at that time,”</quotedText>;</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-34-2-a-i"><num>(i)</num><content><p><mod>for “cannot be” substitute <quotedText>“is not”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-34-2-a-ii"><num>(ii)</num><content><p><mod>for “unless” substitute <quotedText>“at any time unless, at that time,”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-34-2-b"><num>(b)</num><content><p>in paragraph (a) omit the words from “or another” to the end.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-3"><num>(3)</num><content><p>In subsection (3)(b) omit the words from “, whether resident” to the end;</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-5"><num>(5)</num><content><p><span>Subsections (1) to (4)</span> come into force on 6 April 2026.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35"><num>35</num><heading>Alternative finance: diminishing shared ownership refinancing arrangements</heading><content><p>Schedule <ref href="#schedule-7">7</ref> makes provision about diminishing shared ownership refinancing arrangements.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-36"><num>36</num><heading>Statutory neonatal care pay</heading><subsection eId="section-36-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subsection><subsection eId="section-36-2"><num>(2)</num><intro><p>In section 660 (taxable UK benefits)—</p></intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content><p><mod>in Table A in subsection (1), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Statutory neonatal care pay</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">SSCBA 1992</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 171ZZ16</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content><p><mod>in subsection (2), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>statutory neonatal care pay;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-36-3"><num>(3)</num><content><p><mod>In paragraph 48 of Schedule 2 (notice of possible effect of deductions under SIP partnership share agreement on employee’s benefit entitlement), in sub-paragraph (2) after “statutory sick pay” insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></subsection><subsection eId="section-36-4"><num>(4)</num><intro><p>In regulation 2 of the Employee Share Ownership Plans (Partnership Shares—Notice of Effects on Benefits, Statutory Sick Pay and Statutory Maternity Pay) Regulations 2000 (<ref eId="c00029" href="http://www.legislation.gov.uk/id/uksi/2000/2090">S.I. 2000/2090</ref>)—</p></intro><level class="para1" eId="section-36-4-a"><num>(a)</num><content><p><mod>after “<term refersTo="#term-statutory-maternity-pay" eId="term-statutory-maternity-pay">statutory maternity pay</term>” (in the first place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>;</mod></p></content></level><level class="para1" eId="section-36-4-b"><num>(b)</num><content><p><mod>after “<term refersTo="#term-statutory-sick-pay" eId="term-statutory-sick-pay">statutory sick pay</term>” (in the second place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-36-5"><num>(5)</num><content><p><ref href="#section-36-4">Subsection (4)</ref> comes into force on 6 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-36-2"><num>(2)</num><intro><p>In section 660 (taxable UK benefits)—</p></intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content><p><mod>in Table A in subsection (1), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Statutory neonatal care pay</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">SSCBA 1992</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 171ZZ16</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content><p><mod>in subsection (2), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>statutory neonatal care pay;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" class="para1" eId="section-36-2-a"><num>(a)</num><content><p><mod>in Table A in subsection (1), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Statutory neonatal care pay</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">SSCBA 1992</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 171ZZ16</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-36-2-b"><num>(b)</num><content><p><mod>in subsection (2), after the entry relating to statutory parental bereavement pay insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>statutory neonatal care pay;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-3"><num>(3)</num><content><p><mod>In paragraph 48 of Schedule 2 (notice of possible effect of deductions under SIP partnership share agreement on employee’s benefit entitlement), in sub-paragraph (2) after “statutory sick pay” insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-4"><num>(4)</num><intro><p>In regulation 2 of the Employee Share Ownership Plans (Partnership Shares—Notice of Effects on Benefits, Statutory Sick Pay and Statutory Maternity Pay) Regulations 2000 (<ref eId="c00029" href="http://www.legislation.gov.uk/id/uksi/2000/2090">S.I. 2000/2090</ref>)—</p></intro><level class="para1" eId="section-36-4-a"><num>(a)</num><content><p><mod>after “<term refersTo="#term-statutory-maternity-pay" eId="term-statutory-maternity-pay">statutory maternity pay</term>” (in the first place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>;</mod></p></content></level><level class="para1" eId="section-36-4-b"><num>(b)</num><content><p><mod>after “<term refersTo="#term-statutory-sick-pay" eId="term-statutory-sick-pay">statutory sick pay</term>” (in the second place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-36-4-a"><num>(a)</num><content><p><mod>after “<term refersTo="#term-statutory-maternity-pay" eId="term-statutory-maternity-pay">statutory maternity pay</term>” (in the first place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-36-4-b"><num>(b)</num><content><p><mod>after “<term refersTo="#term-statutory-sick-pay" eId="term-statutory-sick-pay">statutory sick pay</term>” (in the second place it appears) insert <quotedText>“, statutory neonatal care pay”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-5"><num>(5)</num><content><p><ref href="#section-36-4">Subsection (4)</ref> comes into force on 6 April 2025.</p></content></subsection>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-2"><num>Part 2</num><heading>Replacement of special rules relating to domicile</heading><chapter eId="part-2-chapter-1"><num>Chapter 1</num><heading>New rules for foreign income and gains of individuals becoming UK resident</heading><section eId="section-37"><num>37</num><heading>Claim for relief on foreign income</heading><subsection eId="section-37-1"><num>(1)</num><content><p><mod>In Part 8 of ITTOIA 2005 (foreign income: special rules), after Chapter 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter><num>Chapter 5</num><heading>Relief for new residents on foreign income</heading><section eId="d25e4161"><num>845A</num><heading>Claim for relief for qualifying new residents</heading><subsection><num>(1)</num><content><p>An individual may make a claim for relief for a tax year under this section (a “foreign income claim”) if the individual is a qualifying new resident for that year (see section <ref href="#d25e4289">845B</ref>).</p></content></subsection><subsection><num>(2)</num><intro><p>Where an individual makes a foreign income claim for a tax year, the individual is entitled to relief for the tax year that is equal to so much of the total income of the individual for that year as—</p></intro><level class="para1"><num>(a)</num><content><p>reflects qualifying foreign income (see section <ref href="#d25e4624">845H</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>is identified as such in the claim.</p></content></level></subsection><subsection><num>(3)</num><content><p>The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year (see Step 2 of the calculation in section 23 of ITA 2007).</p></content></subsection><subsection><num>(4)</num><content><p>A foreign income claim must be made in a return.</p></content></subsection><subsection><num>(5)</num><content><p>A foreign income claim in relation to a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subsection><subsection><num>(6)</num><content><p>A foreign income claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(7)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e5222">Chapter 5C</ref> of Part 2 of ITEPA 2003 which provides for a claim for relief that may be made in respect of foreign employment income where a foreign employment election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 which provides for a claim for relief that may be made in respect of foreign gains (a foreign gain claim).</p></content></level></subsection><subsection><num>(8)</num><content><p>Sections <ref href="#d25e4407">845C</ref> to <ref href="#d25e4505">845E</ref> set out some income tax consequences of a foreign income claim, a foreign employment election or a foreign gain claim.</p></content></subsection><subsection><num>(9)</num><content><p>See also section 1K of TCGA 1992, which provides for the loss of an individual’s annual exempt amount for capital gains tax where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of TMA 1970 (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim being included in a return include a claim being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply for the purposes of this section as they apply for the purposes of that Act.</p></content></level></subsection></section><section eId="d25e4289"><num>845B</num><heading>Qualifying new residents</heading><subsection eId="d25e4293"><num>(1)</num><intro><p>For the purposes of this Chapter, an individual is a qualifying new resident for a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual is UK resident for that tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is not disqualified for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>for each of the 10 tax years before that tax year, the individual was not UK resident.</p></content></level></subsection><subsection><num>(2)</num><intro><p>An individual is also a qualifying new resident for a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual is UK resident for that tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is not disqualified for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>that tax year is one of the next three tax years after a qualifying tax year in relation to the individual.</p></content></level></subsection><subsection eId="d25e4341"><num>(3)</num><intro><p>A tax year is a qualifying tax year in relation to an individual if—</p></intro><level class="para1" eId="d25e4347"><num>(a)</num><content><p>the individual was a qualifying new resident for that tax year as a result of subsection <ref href="#d25e4293">(1)</ref>,</p></content></level><level class="para1" eId="d25e4356"><num>(b)</num><content><p>the individual would have been a qualifying new resident for that tax year as a result of that subsection, but was not only as a result of the individual being disqualified for that tax year, or</p></content></level><level class="para1"><num>(c)</num><intro><p>the tax year—</p></intro><level class="para2"><num>(i)</num><content><p>is the tax year 2022-23, 2023-24 or 2024-25, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a tax year to which paragraph <ref href="#d25e4347">(a)</ref> or <ref href="#d25e4356">(b)</ref> would have applied in relation to the individual had this section had effect for that tax year.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>An individual is disqualified for a tax year if the individual would, for the purposes of section 41 of the Constitutional Reform and Governance Act 2010, be regarded as—</p></intro><level class="para1"><num>(a)</num><content><p>a member of the House of Commons for any part of that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of the House of Lords for any part of that tax year.</p></content></level></subsection></section><section eId="d25e4407"><num>845C</num><heading>Effect of claim, foreign employment election or foreign gain claim on losses</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e4438">(2)</ref> applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who carries on a relevant business wholly outside the United Kingdom makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual has a loss for that tax year from the relevant business, and</p></content></level><level class="para1"><num>(c)</num><content><p>the profits (if there were any) of the business would be qualifying foreign income for that year.</p></content></level></subsection><subsection eId="d25e4438"><num>(2)</num><content><p>No relief for that loss is available in the tax year for which the claim or election is made or in any other tax year.</p></content></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-relevant-business">relevant business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a trade, profession or vocation, or</p></content></level><level class="para1"><num>(b)</num><content><p>a property business.</p></content></level></subsection></section><section><num>845D</num><heading>Effect of claim, foreign employment election or foreign gain claim: costs of dwelling-related loan</heading><subsection><num>(1)</num><intro><p>This section applies where an individual—</p></intro><level class="para1"><num>(a)</num><content><p>has a relievable amount for a tax year in respect of an overseas property business for the purposes of section 274A (reduction for individuals: entitlement), and</p></content></level><level class="para1"><num>(b)</num><content><p>makes a foreign income claim, a foreign employment election or a foreign gain claim for the tax year.</p></content></level></subsection><subsection><num>(2)</num><content><p>The individual is not entitled to relief under section 274A for that tax year in respect of that relievable amount.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of section 274A, the individual’s brought-forward amount for the following tax year in respect of the overseas property business is nil.</p></content></subsection></section><section eId="d25e4505"><num>845E</num><heading>Effect of claim, foreign employment election or foreign gain claim on personal allowance etc</heading><intro><p>Where an individual makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year, the individual is not entitled, for that year, to—</p></intro><level class="para1"><num>(a)</num><content><p>any allowance under Chapter 2 of Part 3 of ITA 2007 (personal allowance and blind person's allowance),</p></content></level><level class="para1"><num>(b)</num><content><p>any tax reduction under Chapter 3 of that Part (tax reductions for married couples and civil partners),</p></content></level><level class="para1"><num>(c)</num><content><p>any tax reduction under Chapter 3A of that Part (transferable tax allowance for married couples and civil partners), or</p></content></level><level class="para1"><num>(d)</num><content><p>any relief under section 457 or 458 of ITA 2007 (payments for life insurance etc).</p></content></level></section><section><num>845F</num><heading>Effect of claim on relief for contributions to registered pension schemes</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e4569">(2)</ref> applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual makes a foreign income claim for a tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is entitled to relief under section 188 of FA 2004 (relief for contributions) for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>the maximum amount of relief to which the individual is entitled under that section for that tax year is greater than the basic amount within the meaning of section 190(4) of that Act.</p></content></level></subsection><subsection eId="d25e4569"><num>(2)</num><intro><p>The maximum amount of relief to which the individual is entitled under section 188 of that Act for that tax year is to be reduced by the lesser of—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount that would reduce the maximum amount of relief to the basic amount.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “relevant amount” is the amount of the relief to which the individual is entitled under section 845A(2) of this Act as a result of making the foreign income claim, so far as that amount reflects relevant qualifying foreign income.</p></content></subsection><subsection><num>(4)</num><content><p>An amount of qualifying foreign income is “relevant qualifying foreign income” if the income is relevant UK earnings within the meaning of section 189(2) of FA 2004.</p></content></subsection></section><section><num>845G</num><heading>Foreign income relief ignored for purposes of determining adjusted net income</heading><subsection><num>(1)</num><content><p>Subsection <ref href="#d25e4615">(2)</ref> applies for the purpose of determining the adjusted net income under section 58 of ITA 2007 of an individual for a tax year for which the individual has made a foreign income claim.</p></content></subsection><subsection eId="d25e4615"><num>(2)</num><content><p>The adjusted net income is to be determined as if the relief allowed by the claim had not been deducted in calculating the individual's net income for the tax year.</p></content></subsection></section><section eId="d25e4624"><num>845H</num><heading>Qualifying foreign income</heading><intro><p>Income is qualifying foreign income if it—</p></intro><level class="para1"><num>(a)</num><content><p>falls within a description set out in the following table, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not disqualified income (see section <ref href="#d25e4782">845I</ref>).</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>No.</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Description</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Profits of a trade carried on wholly outside the United Kingdom (see Chapter 2 of Part 2).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A UK resident partner’s share of the profits of a trade carried on by the firm wholly outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Profits of an overseas property business.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Adjustment income (within the meaning of Chapter 17 of Part 2) in respect of a trade carried on wholly outside the United Kingdom (see that Chapter).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 2 of Part 4 (interest) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 4 of Part 4 (dividends from non-UK resident companies).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 7 of Part 4 (purchase life annuity payments) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 8 of Part 4 (profits from deeply discounted securities) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under section 579 (royalties and other incored.me from intellectual property) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 3 of Part 5 (films and sound recordings: non-trading businesses) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 4 of Part 5 (certain telecommunication rights: non-trading income) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income that arises from a source outside the United Kingdom and that is treated as arising to an individual under section 624 or 629 (income arising under settlement attributed to settlor).</p></default:td></default:tr><default:tr><default:td rowspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">13</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much of any amount of income treated as arising to an individual under section 633 (capital sums paid to settlor by trustees of settlement) for the tax year as falls within the foreign amount of income available up to the end of the tax year.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The foreign amount of income available up to the end of a tax year is the amount that would be determined, in accordance with sections 635 to 637 (amount of available income), as the amount of income available up to the end of the tax year if all income arising under the settlement from a source in the United Kingdom were ignored.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income treated as arising to an individual under section 643A (benefits paid out of protected income).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under section 649 (estate income) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">16</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 7 of Part 5 (annual payments not otherwise charged) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 8 of Part 5 (income not otherwise charged) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Accrued income profits (within the meaning of Part 12 of ITA 2007) made by an individual as a result of a transfer of securities if income from the securities would be qualifying foreign income.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income treated as arising under regulation 17 of the Offshore Funds (Tax) Regulations 2009 (offshore income gains).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income that is treated as arising to an individual under section 721, 728 or 732 of ITA 2007 (transfer of assets abroad: deemed income) and that is “<term refersTo="#term-foreign">foreign</term>” for the purposes of (respectively) section 726, 730 or 735 of that Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Pension income that arises from a source outside the United Kingdom (see Part 9 of ITEPA 2003).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A benefit to which section 678 of ITEPA 2003 applies (foreign social security benefits).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The foreign proportion (see paragraph 46 of Schedule 2 to FA 2022) of income arising as a result of the payment of interest, or the making of a distribution or qualified distribution (within the meaning of paragraph 45(5) of that Schedule), by a QAHC (within the meaning of that Schedule).</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></level></section><section eId="d25e4782"><num>845I</num><heading>Disqualified income</heading><intro><p>Income is disqualified income if—</p></intro><level class="para1"><num>(a)</num><content><p>it is income of a settlement (within the meaning of Chapter 5 of Part 5) arising in the tax year 2024-25 or an earlier tax year that is treated as arising in tax year 2025-26 or a later year as a result of section 648(3) to (5),</p></content></level><level class="para1"><num>(b)</num><content><p>it is income arising from a security treated as situated in the United Kingdom as a result of section 138ZB of TCGA 1992 (share exchanges involving non-UK incorporated close companies),</p></content></level><level class="para1"><num>(c)</num><content><p>it is income chargeable to income tax as a result of section 809AZB of ITA 2007 (transferred income streams),</p></content></level><level class="para1"><num>(d)</num><content><p>it is performance income (see <ref href="#d25e4845">section 845J</ref>),</p></content></level><level class="para1"><num>(e)</num><content><p>it is income from a pension to which section 629 of ITEPA 2003 applies (pre-1973 pensions paid under the Overseas Pensions Act 1973), or</p></content></level><level class="para1"><num>(f)</num><intro><p>it is a payment made to or in respect of—</p></intro><level class="para2"><num>(i)</num><content><p>a relieved member of a relevant non-UK scheme (within the meaning of Schedule 34 to FA 2004), or</p></content></level><level class="para2"><num>(ii)</num><content><p>a transfer member of such a scheme,</p></content></level><wrapUp><p>to which the member payment provisions (within the meaning of that Schedule) apply.</p></wrapUp></level></section><section eId="d25e4845"><num>845J</num><heading>Performance income</heading><subsection><num>(1)</num><content><p>Performance income is any income chargeable to income tax (however that charge arises) that results, directly or indirectly, from the performance of a relevant activity by a performer (whether performed in the United Kingdom or not).</p></content></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-performer">Performer</term>” means any individual who gives performances of entertainment or sport.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section “<term refersTo="#term-performances-of-entertainment-or-sport">performances of entertainment or sport</term>” includes any activity of a physical kind performed by an individual (alone or with others) which is or may be made available to the public or any section of the public, whether for payment or not.</p></content></subsection><subsection><num>(4)</num><intro><p>The following are “relevant activities”—</p></intro><level class="para1"><num>(a)</num><content><p>the giving of a performance of entertainment or sport;</p></content></level><level class="para1"><num>(b)</num><content><p>the participation of the performer in any sound or video recording;</p></content></level><level class="para1"><num>(c)</num><content><p>any activity in connection with a commercial occasion or event (including the appearance of the performer in connection with the occasion or event).</p></content></level></subsection><subsection><num>(5)</num><intro><p>The reference to a commercial occasion or event includes any description of occasion or event—</p></intro><level class="para1"><num>(a)</num><content><p>for which any person might receive or become entitled, as a result of anything done by the performer, to receive anything by way of cash or any other form of property; or</p></content></level><level class="para1"><num>(b)</num><content><p>which is designed to promote commercial sales or activity by advertising, the endorsement of goods or services, sponsorship, or other promotional means of any kind.</p></content></level></subsection></section></chapter></quotedStructure></mod></p></content></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>In <ref eId="c00030" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><intro><p>in section 24 (reliefs deductible at Step 2), in subsection (1)(a)—</p></intro><level class="para2" eId="section-37-2-a-i"><num>(i)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section <ref href="#d25e4161">845A</ref> of ITTOIA 2005 (claim for relief for qualifying new residents), and</p></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-a-ii"><num>(ii)</num><content><p>at the end of the entry for <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">section 193</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">(4)</a> of <ref eId="c00031" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>, omit the “and”,</p></content></level></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p><mod>in section 34 (personal allowance and blind person’s allowance) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any allowance under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-c"><num>(c)</num><content><p><mod>in section 55A (transferable tax allowance for married couples and civil partners) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any tax reduction under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-d"><num>(d)</num><content><p><mod>in section 460 (residence of claimants for relief under section 457 or 458) for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTOIA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any relief under section 457 or 458 for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-e"><num>(e)</num><intro><p>in section 809EZA (disguised investment management fees: charge to income tax)—</p></intro><level class="para2" eId="section-37-2-e-i"><num>(i)</num><content><p><mod>in subsection (2A), for paragraphs (d) and (e) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual makes a foreign income claim for the relevant tax year.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-e-ii"><num>(ii)</num><content><p><mod>in subsection (2C), for “before the end of the period of non-residence” substitute <quotedText startQuote="“">in any period—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>ending immediately before a qualifying tax year in relation to the individual (within the meaning of <ref href="#d25e4289">section 845B</ref><ref href="#d25e4341">(3)</ref> of ITTOIA (qualifying new residents)), and</p></content></level><level class="para1"><num>(b)</num><content><p>that consists only of tax years for which the individual is not UK resident.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="section-37-2-f"><num>(f)</num><content><p><mod>in section 989 (the definitions), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning it has in Chapter 5 of Part 8 of ITTOIA 2005 (see section <ref href="#d25e4289">845B</ref> of that Act).</p></content></hcontainer></quotedStructure></mod></p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><intro><p>In paragraph 46 of Schedule 2 to FA 2022 (qualifying asset holding companies)—</p></intro><level class="para1" eId="section-37-3-a"><num>(a)</num><content><p><mod>in the heading for “applies” substitute <quotedText>“applied or who makes a foreign income claim”</quotedText>,</mod></p></content></level><level class="para1" eId="section-37-3-b"><num>(b)</num><intro><p>in sub-paragraph (1)—</p></intro><level class="para2" eId="section-37-3-b-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “This paragraph applies” substitute <quotedText>“Sub-paragraphs (2) and (3) apply”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-37-3-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="section-37-3-c"><num>(c)</num><content><p><mod>after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e5184"><num>(6A)</num><content><p>Sub-paragraphs (4) to (6) also apply for the purposes of item 22 in the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (qualifying foreign income for the purposes of foreign income claim).</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-37-4"><num>(4)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection></section><section eId="section-38"><num>38</num><heading>Claim for relief on foreign employment income</heading><subsection eId="section-38-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/part/2">Part 2</a> of <ref eId="c00032" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax), after <a href="https://www.legislation.gov.uk/ukpga/2003/1/part/2/chapter/5B">Chapter 5B</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e5222"><num>Chapter 5C</num><heading>Relief for new residents on foreign employment income</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Foreign employment election</heading><section eId="d25e5233"><num>41M</num><heading>Foreign employment election for qualifying new residents</heading><subsection><num>(1)</num><content><p>This Chapter applies if an individual is a qualifying new resident for a tax year (the “qualifying year”).</p></content></subsection><subsection><num>(2)</num><content><p>An individual is a qualifying new resident for a tax year for the purposes of this Chapter if the individual is a qualifying new resident for the tax year for the purposes of Chapter 5 of Part 8 of ITTOIA 2005 (see <ref href="#d25e4289">section 845B</ref> of that Act).</p></content></subsection><subsection><num>(3)</num><content><p>The individual may make an election for the qualifying year under this section (“a foreign employment election”).</p></content></subsection><subsection><num>(4)</num><intro><p>Section <ref href="#d25e5493">41P</ref> makes provision about a claim for relief—</p></intro><level class="para1"><num>(a)</num><content><p>which an individual can make for the qualifying year or any subsequent tax year, where the individual has made a foreign employment election, and</p></content></level><level class="para1"><num>(b)</num><content><p>which entitles the individual to relief in that year calculated by reference to employment income that is in respect of the qualifying year.</p></content></level></subsection><subsection><num>(5)</num><content><p>Sections <ref href="#d25e5572">41Q</ref> (amount of relief available) and <ref href="#d25e5700">41R</ref> (limit on relief) set out how to determine the amount of relief to which the individual is entitled.</p></content></subsection><subsection><num>(6)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>sections 845C to 845E of ITTOIA 2005, which set out some income tax consequences of a foreign employment election, and</p></content></level><level class="para1"><num>(b)</num><content><p>section 1K of TCGA 1992, which provides for the loss of the individual’s annual exempt amount for capital gains tax where a foreign employment election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>A foreign employment election must be made in a return.</p></content></subsection><subsection><num>(8)</num><content><p>A foreign employment election for the qualifying year must be made before the end of the period of 12 months beginning with 31 January after the end of the qualifying year.</p></content></subsection><subsection><num>(9)</num><content><p>A foreign employment election may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(10)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of TMA 1970 (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim or election being included in a return include a claim or election being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Key definitions</heading><section><num>41N</num><heading>Key definitions</heading><subsection><num>(1)</num><content><p>This section sets out some definitions that apply for the purposes of this Chapter.</p></content></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-qualifying-employment-income">Qualifying employment income</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying general earnings,</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying third party income, and</p></content></level><level class="para1"><num>(c)</num><content><p>qualifying securities income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-qualifying-foreign-employment-income">Qualifying foreign employment income</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying foreign general earnings,</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying foreign third party income, and</p></content></level><level class="para1"><num>(c)</num><content><p>qualifying foreign securities income.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Section <ref href="#d25e5826">41T</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for general earnings to be “qualifying general earnings”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying general earnings to be “qualifying foreign general earnings”.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Section <ref href="#d25e5853">41U</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for third party income to be “qualifying third party income”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying third party income to be “qualifying foreign third party income”.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Section <ref href="#d25e5922">41V</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for securities income to be “qualifying securities income”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying securities income to be “qualifying foreign securities income”.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Claim for relief</heading><section eId="d25e5493"><num>41P</num><heading>Claim for relief for qualifying new residents</heading><subsection><num>(1)</num><content><p>Where an individual has made a foreign employment election, the individual may make a claim for relief for the qualifying year or any subsequent tax year (“a foreign employment relief claim”).</p></content></subsection><subsection eId="d25e5503"><num>(2)</num><intro><p>Where an individual makes a foreign employment relief claim for a tax year, the individual is entitled to relief that is equal to so much of the net taxable employment income for that year as—</p></intro><level class="para1"><num>(a)</num><content><p>reflects qualifying foreign employment income (see section <ref href="#d25e5572">41Q</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>is identified as such in the claim.</p></content></level></subsection><subsection eId="d25e5524"><num>(3)</num><content><p>But <ref href="#d25e5503">subsection (2)</ref> only applies to the extent the total amount of the relief given does not exceed the limit (see <ref href="#d25e5700">section 41R</ref>).</p></content></subsection><subsection><num>(4)</num><content><p>The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year for which the claim is made (see Step 2 of the calculation in section 23 of ITA 2007).</p></content></subsection><subsection><num>(5)</num><content><p>A foreign employment relief claim must be made in a return.</p></content></subsection><subsection><num>(6)</num><content><p>A foreign employment relief claim for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subsection><subsection><num>(7)</num><content><p>A foreign employment relief claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-net-taxable-employment-income">net taxable employment income</term>”, in relation to a tax year, means the employment income on which the individual is charged to tax for the tax year (see section 9(1)).</p></content></subsection></section><section eId="d25e5572"><num>41Q</num><heading>Amount of relief available</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e5493">section 41P</ref><ref href="#d25e5503">(2)</ref>, the amount of net taxable employment income for a tax year that “reflects” qualifying foreign employment income is the total of—</p></intro><level class="para1"><num>(a)</num><content><p>the total of the amount of the net taxable earnings from each employment in the tax year that reflects qualifying foreign general earnings (see subsections <ref href="#d25e5608">(2)</ref> to <ref href="#d25e5981">(5)</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>the total of the amount of the net taxable specific income from each employment for the tax year that reflects qualifying foreign third party income or qualifying foreign securities income (see <ref href="#d25e6051">subsection (6)</ref>).</p></content></level></subsection><subsection eId="d25e5608"><num>(2)</num><intro><p>The amount of the net taxable earnings from an employment in a tax year that “reflects” qualifying foreign general earnings is—</p></intro><level class="para1"><num>(a)</num><content><p>the amount of the taxable earnings from the employment in the tax year that are qualifying foreign general earnings, minus</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the qualifying deductions.</p></content></level></subsection><subsection><num>(3)</num><content><p>If the amount calculated under <ref href="#d25e5608">subsection (2)</ref> is nil or a negative amount, then none of the net taxable earnings from the employment in the tax year reflect qualifying foreign general earnings.</p></content></subsection><subsection><num>(4)</num><content><p>If the foreign employment relief claim is for the qualifying year, the amount of the qualifying deductions is the proportion of the total deductions that is the same as the proportion of the claim year taxable earnings that are qualifying foreign general earnings.</p></content></subsection><subsection><num>(5)</num><content><p>If the foreign employment relief claim is for a subsequent tax year, the amount of the qualifying deductions is the amount resulting from the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Deduct the claim year taxable earnings from the total deductions.</p><p>If the result is nil or a negative amount, there are no qualifying deductions.</p></item><item><p><i>Step 2</i></p><p>Deduct any other taxable earnings that are not qualifying foreign general earnings.</p><p>If the result is nil or a negative amount, there are no qualifying deductions.</p></item></blockList></content></subsection><subsection><num>(6)</num><content><p>The proportion of the net taxable specific income from an employment for a tax year that “reflects” qualifying foreign third party income or qualifying foreign securities income is the same as the proportion of the taxable specific income for the employment in that year that is qualifying foreign third party income or qualifying foreign securities income.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-claim-year-taxable-earnings">claim year taxable earnings</term>” means the taxable earnings from the employment in the tax year that are “for” the year for which the claim is made determined in accordance with section 16 and 17;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-total-deductions">total deductions</term>” means the total amount of any deductions allowed from the taxable earnings from the employment in the tax year under provisions listed in section 327(3) to (5) (see section 11(1)).</p></content></hcontainer></subsection></section><section eId="d25e5700"><num>41R</num><heading>Limit on relief</heading><subsection><num>(1)</num><content><p>This section sets out how to determine the limit on the amount of relief the individual is entitled to when making a foreign employment relief claim for a year for the purposes of <ref href="#d25e5493">section 41P</ref><ref href="#d25e5524">(3)</ref>.</p></content></subsection><subsection><num>(2)</num><intro><p>The limit is the lesser of—</p></intro><level class="para1"><num>(a)</num><content><p>30% of the relevant qualifying employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>£300,000.</p></content></level></subsection><subsection eId="d25e5733"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-relevant-qualifying-employment-income">relevant qualifying employment income</term>” means—</p></intro><level class="para1" eId="d25e5742"><num>(a)</num><content><p>so much of the net taxable employment income for the tax year for which the claim is made as reflects qualifying employment income, and</p></content></level><level class="para1" eId="d25e5748"><num>(b)</num><content><p>if the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, so much of any net taxable employment income for any earlier tax year (but not any tax year before the qualifying year) as would reflect qualifying employment income if that earlier year was the year for which the claim was made.</p></content></level></subsection><subsection><num>(4)</num><content><p>If the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, the limit is reduced by the total of any amounts reflecting qualifying foreign employment income that have previously been relieved under <ref href="#d25e5493">section 41P</ref>.</p></content></subsection><subsection><num>(5)</num><intro><p>To determine the amounts mentioned in <ref href="#d25e5733">subsection (3)</ref><ref href="#d25e5742">(a)</ref> and <ref href="#d25e5748">(b)</ref>, apply <ref href="#d25e5572">section 41Q</ref>, but as if—</p></intro><level class="para1"><num>(a)</num><content><p>the references in that section to qualifying foreign employment income were to qualifying employment income,</p></content></level><level class="para1"><num>(b)</num><content><p>the references in that section to qualifying foreign general earnings were to qualifying general earnings, and</p></content></level><level class="para1"><num>(c)</num><content><p>the references in that section to qualifying foreign third party income and qualifying foreign securities income were references to qualifying third party income and qualifying securities income.</p></content></level></subsection></section><section><num>41S</num><heading>Effect of claim on relief for contributions to registered pension schemes</heading><subsection><num>(1)</num><content><p>This section applies where an individual who is an active member of a registered pension scheme for the purposes of section 188 of FA 2004 (relief for contributions) makes a foreign employment relief claim for a tax year.</p></content></subsection><subsection eId="d25e5811"><num>(2)</num><content><p>For the purposes of sections 189(1)(a) and 190 of that Act, references to the amount of the individual’s relevant UK earnings chargeable to income tax for that year are to be read as references to that amount minus the relieved amount.</p></content></subsection><subsection><num>(3)</num><content><p>The “relieved amount” is the amount of the relief to which the individual is entitled under section 41P(2) of this Act as a result of making the foreign employment relief claim.</p></content></subsection></section><section eId="d25e5826"><num>41T</num><heading>Foreign employment relief ignored for purposes of determining adjusted net income</heading><subsection eId="d25e5830"><num>(1)</num><content><p><ref href="#d25e5811">Subsection (2)</ref> applies for the purpose of determining the adjusted net income under section 58 of ITA 2007 of an individual for a tax year for which the individual is entitled to relief under <ref href="#d25e5493">section 41P</ref>.</p></content></subsection><subsection eId="d25e5841"><num>(2)</num><content><p>The adjusted net income is to be determined as if the relief had not been deducted in calculating the individual’s net income for the tax year.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Qualifying foreign employment income</heading><section eId="d25e5853"><num>41U</num><heading>Qualifying foreign general earnings</heading><subsection eId="d25e5857"><num>(1)</num><intro><p>General earnings are “qualifying general earnings” if they are—</p></intro><level class="para1"><num>(a)</num><content><p>“for” the qualifying year determined in accordance with sections 16 and 17,</p></content></level><level class="para1" eId="d25e5869"><num>(b)</num><content><p>if the qualifying year is a split year as respects the individual, attributable to the UK part of the year, and</p></content></level><level class="para1"><num>(c)</num><content><p>from an employment the duties of which are performed wholly or partly outside the UK during the qualifying year.</p></content></level></subsection><subsection eId="d25e5881"><num>(2)</num><content><p>Any attribution required for the purposes of <ref href="#d25e5830">subsection (1)</ref><ref href="#d25e5869">(b)</ref> is to be done on a just and reasonable basis.</p></content></subsection><subsection eId="d25e5892"><num>(3)</num><intro><p>Qualifying general earnings are “qualifying foreign general earnings” if they are neither—</p></intro><level class="para1"><num>(a)</num><content><p>in respect of duties performed in the United Kingdom, nor</p></content></level><level class="para1" eId="d25e5904"><num>(b)</num><content><p>from overseas Crown employment subject to United Kingdom tax (see <ref href="#d25e5990">section 41W</ref>).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of subsection (3), the extent to which qualifying general earnings are in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.</p></content></subsection></section><section eId="d25e5922"><num>41V</num><heading>Qualifying foreign third party income</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, “third party income” is an amount that counts under Chapter 2 of Part 7A (treatment of relevant step for income tax purposes) as employment income in respect of an employment.</p></content></subsection><subsection eId="d25e5932"><num>(2)</num><intro><p>Third party income is “qualifying third party income”—</p></intro><level class="para1"><num>(a)</num><content><p>if it is in respect of an employment the duties of which are performed wholly or partly outside the UK during the qualifying year, and</p></content></level><level class="para1" eId="d25e5944"><num>(b)</num><intro><p>to the extent that the value of the relevant step that counts as employment income (see section 554Z3) is—</p></intro><level class="para2"><num>(i)</num><content><p>“for” the qualifying year determined in accordance with section 554Z4(2), and</p></content></level><level class="para2" eId="d25e5956"><num>(ii)</num><content><p>if the qualifying year is a split year as respects the individual, attributable to the UK part of the year.</p></content></level></level></subsection><subsection eId="d25e5962"><num>(3)</num><content><p>Any attribution required for the purposes of <ref href="#d25e5881">subsection (2)</ref><ref href="#d25e5944">(b)</ref><ref href="#d25e5956">(ii)</ref> is to be done on a just and reasonable basis.</p></content></subsection><subsection><num>(4)</num><content><p>Qualifying third party income is “qualifying foreign third party income” to the extent that it is not in respect of duties performed in the United Kingdom.</p></content></subsection><subsection eId="d25e5981"><num>(5)</num><content><p>The extent to which qualifying third party income is not in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.</p></content></subsection></section><section eId="d25e5990"><num>41W</num><heading>Qualifying foreign securities income</heading><subsection><num>(1)</num><content><p>For the purpose of this Chapter, “securities income” is an amount that counts under Chapters 2 to 5 of Part 7 (employment-related securities etc) as employment income in respect of an employment (the “relevant employment”).</p></content></subsection><subsection><num>(2)</num><intro><p>Securities income is “qualifying securities income”—</p></intro><level class="para1"><num>(a)</num><content><p>if the duties of the relevant employment are performed wholly or partly outside the UK during the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><intro><p>to the extent that it—</p></intro><level class="para2"><num>(i)</num><content><p>accrues during the qualifying year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the qualifying year is a split year as respects the individual, accrues during the UK part of the year.</p></content></level></level></subsection><subsection eId="d25e6030"><num>(3)</num><content><p>To determine when securities income accrues treat an equal amount of the securities income as accruing on each day of the relevant period determined in accordance with section 41G.</p></content></subsection><subsection><num>(4)</num><content><p>But if the proportion of the securities income that would be regarded as qualifying securities income by virtue of <ref href="#d25e5962">subsection (3)</ref> is not, having regard to all the circumstances, just and reasonable, the amount of the securities income that is qualifying securities income is such amount as is just and reasonable.</p></content></subsection><subsection eId="d25e6045"><num>(5)</num><content><p>Qualifying securities income is wholly “qualifying foreign securities income” if the duties of the relevant employment are performed wholly outside the United Kingdom.</p></content></subsection><subsection eId="d25e6051"><num>(6)</num><intro><p>If some, but not all, of the duties of the relevant employment are performed outside the United Kingdom—</p></intro><level class="para1"><num>(a)</num><content><p>the qualifying securities income is to be apportioned (on a just and reasonable basis) between duties performed in the United Kingdom and duties performed outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the income apportioned in respect of duties performed outside the United Kingdom is qualifying foreign securities income.</p></content></level></subsection><subsection eId="d25e6069"><num>(7)</num><content><p>But qualifying securities income from overseas Crown employment subject to United Kingdom tax is not qualifying foreign securities income.</p></content></subsection></section><section eId="d25e6078"><num>41X</num><heading>Meaning of “overseas Crown employment subject to UK tax”</heading><subsection><num>(1)</num><intro><p>This section explains what is meant by —</p></intro><level class="para1"><num>(a)</num><content><p>qualifying general earnings “<term refersTo="#term-from-overseas-crown-employment-subject-to-united-kingdom-tax">from overseas Crown employment subject to United Kingdom tax</term>” for the purposes of <ref href="#d25e5826">section 41T</ref><ref href="#d25e5892">(3)</ref><ref href="#d25e5904">(b)</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying securities income “<term refersTo="#term-from-overseas-crown-employment-subject-to-united-kingdom-tax">from overseas Crown employment subject to United Kingdom tax</term>” for the purposes of <ref href="#d25e5922">section 41V</ref><ref href="#d25e6069">(7)</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>Qualifying general earnings and qualifying securities income are “from overseas Crown employment” if the earnings or income is from Crown employment (within the meaning of section 28(2)) in respect of duties performed outside the United Kingdom.</p></content></subsection><subsection eId="d25e6124"><num>(3)</num><content><p>Such earnings or income are to be taken as being “subject to United Kingdom tax” unless they fall within any exception contained in an order made under section 28(5) for the purposes of section 27(2).</p></content></subsection><subsection><num>(4)</num><intro><p>An order made under section 28(5) may also—</p></intro><level class="para1"><num>(a)</num><content><p>provide for any exceptions mentioned in <ref href="#d25e6030">subsection (3)</ref> to not apply for the purposes of this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>make exceptions for the purposes of this section.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of this section, if securities income is partly from overseas Crown employment subject to United Kingdom tax, a just and reasonable proportion of the securities income is to be taken to be from such employment.</p></content></subsection></section><section><num>41Y</num><heading>Location of employment duties</heading><subsection><num>(1)</num><content><p>Section 38 (period of absence from employment) applies for the purposes of this Chapter as if references to general earnings were to general earnings or third party income.</p></content></subsection><subsection eId="d25e6170"><num>(2)</num><content><p>Section 40(1) and (2) (place of performance of duties on board vessel or aircraft) applies for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e6176"><num>(3)</num><content><p>Duties of an employment performed in the UK sector of the continental shelf in connection with exploration of exploitation activities are to be treated for the purposes of this Chapter as being performed in the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>In <ref href="#d25e6124">subsection (3)</ref> “<term refersTo="#term-the-uk-sector-of-the-continental-shelf">the UK sector of the continental shelf</term>” and “<term refersTo="#term-exploration-or-exploitation-activities">exploration or exploitation activities</term>” have the same meaning as in section 41 (treatment of general earnings from employment in the UK sector of the continental shelf).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Other rules for determining amounts of qualifying foreign employment income</heading><section><num>41Z</num><heading>Artificial arrangements to be disregarded</heading><subsection><num>(1)</num><intro><p>Any arrangements falling within <ref href="#d25e6170">subsection (2)</ref> are to be disregarded for the purposes of determining the extent to which—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings are qualifying general earnings;</p></content></level><level class="para1"><num>(b)</num><content><p>third party income is qualifying third party income;</p></content></level><level class="para1"><num>(c)</num><content><p>securities income is qualifying securities income;</p></content></level></subsection><subsection eId="d25e6234"><num>(2)</num><intro><p>Arrangements fall within this subsection if the main purpose, or one of the main purposes of the arrangements is to enable an individual to obtain—</p></intro><level class="para1"><num>(a)</num><content><p>relief under this Chapter to which they would not otherwise be entitled, or</p></content></level><level class="para1"><num>(b)</num><content><p>relief under this Chapter of a greater amount than that to which they would otherwise be entitled.</p></content></level></subsection><subsection><num>(3)</num><content><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section><num>41Z1</num><heading>Limit on qualifying foreign employment income from associated employments</heading><subsection><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual has associated employments from or in respect of which there is qualifying employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>the duties of the associated employments are not performed wholly outside the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><content><p>There is a limit on how much of the qualifying employment income from or in respect of the associated employments is qualifying foreign employment income.</p></content></subsection><subsection><num>(3)</num><intro><p>The limit is the proportion of the qualifying employment income that is reasonable having regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the nature of, and time devoted to, the duties performed outside the United Kingdom, and those performed in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>all other relevant circumstances.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “<term refersTo="#term-associated-employments">associated employments</term>” means employments with the same employer or with associated employers; and section 24(5) and (6) applies for the purposes of this section.</p></content></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></subsection><subsection eId="section-38-2"><num>(2)</num><intro><p>In <ref href="#schedule-8">Schedule 8</ref>—</p></intro><level class="para1" eId="section-38-2-a"><num>(a)</num><content><p>Part 1 makes general consequential amendments;</p></content></level><level class="para1" eId="section-38-2-b"><num>(b)</num><content><p>Part 2 makes consequential amendments relating to the operation of PAYE;</p></content></level><level class="para1" eId="section-38-2-c"><num>(c)</num><content><p>Part 3 contains transitional provision.</p></content></level></subsection><subsection eId="section-38-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-38">this section</ref> and the provision made by <ref href="#schedule-8">Schedule 8</ref> have effect for the tax year 2025-2026 and subsequent tax years.</p></content></subsection></section><section eId="section-39"><num>39</num><heading>Claim for relief on foreign gains</heading><subsection eId="section-39-1"><num>(1)</num><content><p>TCGA 1992 is amended as follows.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p><mod>Before Schedule 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule" eId="d25e6378"><num>Schedule D1<authorialNote class="referenceNote"><p>Section 1A(2)(za)</p></authorialNote></num><heading>Relief for new residents on foreign gains</heading><hcontainer name="crossheading" class="schGroup7"><heading>Claim for relief for qualifying new residents</heading><paragraph eId="d25e6390" class="schProv1"><num>1</num><subparagraph><num>(1)</num><content><p>An individual may make a claim for relief for a tax year under this paragraph (a “foreign gain claim”) if the individual is a qualifying new resident for that tax year.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>Paragraphs <ref href="#d25e6463">2</ref>, <ref href="#d25e6482">3</ref> and <ref href="#d25e6539">4</ref> set out the reliefs that may be obtained by making a foreign gain claim.</p></content></subparagraph><subparagraph><num>(3)</num><content><p>A foreign gain claim must be made in a return.</p></content></subparagraph><subparagraph><num>(4)</num><content><p>A foreign gain claim in relation to a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>A foreign gain claim may not be made as a consequential claim (within the meaning of section 43C(5) of the Management Act) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of the Management Act (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim being included in a return include a claim being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of the Management Act (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief for qualifying foreign gains</heading><paragraph eId="d25e6463" class="schProv1"><num>2</num><subparagraph><num>(1)</num><content><p>Where an individual makes a foreign gain claim for a tax year, the individual is entitled to relief for each qualifying foreign gain accruing to the individual in that year that is identified in the claim.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The relief is given by deducting an amount equal to the sum of those gains from the total amount of chargeable gains accruing to the individual.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief in respect of deemed gains under section 86</heading><paragraph eId="d25e6482" class="schProv1"><num>3</num><subparagraph eId="d25e6486"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable gains would (but for this paragraph) be treated as accruing to an individual in a tax year under section 86(4) (attribution of gains to settlors of non-resident settlements),</p></content></level><level class="para1" eId="d25e6498"><num>(b)</num><content><p>a qualifying foreign gain accrued in that tax year to the trustees of the settlement concerned (or would have done on the assumption in section 86(3)), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual identifies the gain mentioned in <ref href="#d25e6498">paragraph (b)</ref> in a foreign gain claim for that tax year.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of section 86(1)(e) as it applies to the individual, the following are to be disregarded (in that tax year and in later tax years)—</p></intro><level class="para1"><num>(a)</num><content><p>the gain mentioned in <ref href="#d25e6486">sub-paragraph (1)</ref><ref href="#d25e6498">(b)</ref>;</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying foreign loss that accrued to the trustees in that tax year (or that would have so accrued on the assumption in section 86(3)).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief in respect of deemed gains under sections 87 and 89(2) and Schedule 4C</heading><paragraph eId="d25e6539" class="schProv1"><num>4</num><subparagraph><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a settlement is for a tax year—</p></intro><level class="para2"><num>(i)</num><content><p>one to which section 87 or 89(2) applies (attribution of gains to beneficiaries of settlements), or</p></content></level><level class="para2"><num>(ii)</num><content><p>a relevant settlement in relation to a Schedule 4C pool, within the meaning of paragraph 8A of Schedule 4C (transfers of value: attribution of gains etc),</p></content></level></level><level class="para1"><num>(b)</num><content><p>a beneficiary of the settlement receives a capital payment from the trustees in that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual identifies the capital payment in a foreign gain claim for that tax year.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The capital payment is to be disregarded (in that tax year and in later tax years) for the purposes of sections 87, 87A and 89(2) and paragraph 8 of Schedule 4C.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The following apply for the purposes of this paragraph as they apply for the purposes of section 87—</p></intro><level class="para1"><num>(a)</num><content><p>section 87G (which provides for capital payments made to a close member of the settlor’s family to be treated in certain cases as received by the settlor);</p></content></level><level class="para1"><num>(b)</num><content><p>section 97 (which makes provision about the construction of “capital payment”, “settlement”, “trustees” and “beneficiary”).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Other effects of claim</heading><paragraph eId="d25e6606" class="schProv1"><num>5</num><intro><p>For other effects of making a foreign gain claim, see—</p></intro><level class="para1"><num>(a)</num><content><p>section 1K(6)(b) (annual exempt amount), which provides that where a foreign gain claim has effect in relation to an individual for a tax year, the individual has no entitlement to an annual exempt amount for that year,</p></content></level><level class="para1"><num>(b)</num><content><p>section 16<ref href="#d25e6772">(4)</ref> (computation of losses), which provides that where a foreign gain claim has effect in relation to an individual for a tax year, qualifying foreign losses accruing to the individual in that year are not allowable losses, and</p></content></level><level class="para1"><num>(c)</num><content><p>sections <ref href="#d25e4407">845C</ref> to <ref href="#d25e4505">845E</ref> of ITTOIA 2005, which set out some income tax consequences of making a foreign gain claim.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of Schedule</heading><paragraph eId="d25e6642" class="schProv1"><num>6</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-qualifying-foreign-asset">qualifying foreign asset</term>” means an asset that—</p></intro><level class="para1"><num>(a)</num><content><p>is situated outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>does not derive at least 75% of its value from UK land (see Schedule 1A);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-qualifying-foreign-gain">qualifying foreign gain</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a chargeable gain accruing on the disposal of a qualifying foreign asset,</p></content></level><level class="para1"><num>(b)</num><content><p>a chargeable gain treated as accruing as a result of section 3 (gains of non-UK resident close companies attributed to UK residents) where the gain accruing to the non-UK resident close company to which the deemed gain relates accrued on the disposal of a qualifying foreign asset, or</p></content></level><level class="para1"><num>(c)</num><content><p>a qualifying QAHC gain,</p></content></level><wrapUp><p>but a chargeable gain falling within paragraph <ref href="#d25e6673">(a)</ref> or <ref href="#d25e6677">(b)</ref> is not a qualifying foreign gain if it is a gain to which paragraph 1(2) of Schedule 1 applies (pre-2025-26 gains subject to the remittance basis);</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-foreign-loss">qualifying foreign loss</term>” means a loss accruing on the disposal of an asset that is a qualifying foreign asset;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-qahc-gain">qualifying QAHC gain</term>” means the foreign proportion (see paragraph 46(4) to (6) of Schedule 2 to FA 2022) of a chargeable gain accruing on the disposal of shares in a QAHC (within the meaning of that Schedule) other than a chargeable gain to which paragraph 46(3) of that Schedule applies.</p></content></hcontainer></paragraph></hcontainer></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><p><mod>In section 1A (territorial scope), in subsection (2), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p><ref href="#d25e6378">Schedule D1</ref> (relief for new residents on foreign gains),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-39-4"><num>(4)</num><content><p><mod>In section 1E (losses deductible only when within scope of tax), in subsection (6), for “Schedule 1 (UK resident individuals not domiciled in the UK)” substitute <quotedText>“<ref href="#d25e6606">paragraph 5</ref> of <ref href="#d25e6378">Schedule D1</ref> (relief for new residents on foreign gains).”</quotedText></mod></p></content></subsection><subsection eId="section-39-5"><num>(5)</num><intro><p>In section 1K (annual exempt amount), in subsection (6)—</p></intro><level class="para1" eId="section-39-5-a"><num>(a)</num><content><p>the words from “section” to the end become paragraph (a) of that subsection, and</p></content></level><level class="para1" eId="section-39-5-b"><num>(b)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the individual makes a foreign gain claim, a foreign income claim or a foreign employment election for that tax year.</p></content></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-39-6"><num>(6)</num><content><p><mod>In section 16 (computation of losses), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e6772"><num>(4)</num><content><p>A qualifying foreign loss accruing to an individual in a tax year is not an allowable loss if a foreign gain claim, a foreign income claim or a foreign employment election has effect in relation to the individual for that tax year.</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (4), “<term refersTo="#term-qualifying-foreign-loss">qualifying foreign loss</term>” has the same meaning as in Schedule D1 (see paragraph <ref href="#d25e6642">6</ref> of that Schedule).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-39-7"><num>(7)</num><content><p><mod>In section 288 (interpretation), in subsection (1) at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means a claim under section <ref href="#d25e5233">41M</ref> of ITEPA 2003;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-gain-claim">foreign gain claim</term>” means a claim under paragraph <ref href="#d25e6390">1</ref> of <ref href="#d25e6378">Schedule D1</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning given by section <ref href="#d25e4289">845B</ref> of ITTOIA 2005 (which sets out the circumstances in which an individual will be a qualifying new resident following a period of 10 years of non-residence);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-39-8"><num>(8)</num><content><p><mod>In Schedule 1A, in paragraph 1, after “2B(4)(b)” insert <quotedText>“or <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref>”</quotedText>.</mod></p></content></subsection><subsection eId="section-39-9"><num>(9)</num><content><p><mod>In Schedule 1C (annual exempt amount in cases involving settled property), in paragraph 1(4), for the words from “who” to the end substitute <quotedText>“to whom subsection (6) of that section does not apply.”</quotedText></mod></p></content></subsection><subsection eId="section-39-10"><num>(10)</num><intro><p>In Schedule 2 to FA 2022 (qualifying asset holding companies), in paragraph 46—</p></intro><level class="para1" eId="section-39-10-a"><num>(a)</num><content><p><mod>in the heading (as amended by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-a">(a)</ref>), after “income” insert <quotedText>“or gain”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-39-10-b"><num>(b)</num><content><p><mod>in <ref href="#d25e5184">sub-paragraph (6A)</ref> (as inserted by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-c">(c)</ref>), after “claim)” insert <quotedText>“and paragraph <ref href="#d25e6681">(c)</ref> of the definition of “qualifying foreign gain” in <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 (foreign gain claims)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-39-11"><num>(11)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection></section></chapter><chapter eId="part-2-chapter-2"><num>Chapter 2</num><heading>Ending the special treatment of individuals not domiciled in United Kingdom</heading><section eId="section-40"><num>40</num><heading>Remittance basis not available after tax year 2024-25</heading><subsection eId="section-40-1"><num>(1)</num><content><p>Amendments made by <ref href="#schedule-9-paragraph-1">paragraph 1</ref> of <ref href="#schedule-9">Schedule 9</ref> have the effect that the remittance basis is not available for tax year 2025-26, or for subsequent tax years.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><content><p>But provisions relating to the remittance of income and gains will continue to have effect in relation to income and gains subject to the remittance basis in previous tax years.</p></content></subsection><subsection eId="section-40-3"><num>(3)</num><intro><p>Other provision is made by <ref href="#schedule-9">that Schedule</ref> (including provision amending the Income Tax Acts and TCGA 1992)—</p></intro><level class="para1" eId="section-40-3-a"><num>(a)</num><content><p>in consequence of ending the availability of the remittance basis,</p></content></level><level class="para1" eId="section-40-3-b"><num>(b)</num><content><p>clarifying the circumstances in which amounts are remitted (see <ref href="#schedule-9-paragraph-5">paragraph 5</ref>), and</p></content></level><level class="para1" eId="section-40-3-c"><num>(c)</num><content><p>in connection with otherwise ending the relevance of domicile to income tax and capital gains tax.</p></content></level></subsection><subsection eId="section-40-4"><num>(4)</num><content><p>Subject to subsections <ref href="#section-40-5">(5)</ref> and <ref href="#section-40-6">(6)</ref>, the provision made by <ref href="#schedule-9">that Schedule</ref> has effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection><subsection eId="section-40-5"><num>(5)</num><content><p>Paragraph <ref href="#schedule-9-paragraph-6">6</ref> of <ref href="#schedule-9">Schedule 9</ref> (relief for amounts remitted again on becoming UK resident) is to be treated as having always had effect.</p></content></subsection><subsection eId="section-40-6"><num>(6)</num><content><p>The amendments made by paragraphs <ref href="#schedule-9-paragraph-9">9</ref> and <ref href="#schedule-9-paragraph-10">10</ref> of <ref href="#schedule-9">Schedule 9</ref> (residence of personal representatives) have effect where the deceased person died on or after 6 April 2025.</p></content></subsection></section><section eId="section-41"><num>41</num><heading>Temporary repatriation facility</heading><content><p><ref href="#schedule-10">Schedule 10</ref> makes provision for a “temporary repatriation facility” for individuals who have been subject to the remittance basis.</p></content></section><section eId="section-42"><num>42</num><heading>Rebasing of assets</heading><content><p><ref href="#schedule-11">Schedule 11</ref> makes provision about the rebasing of assets for individuals who have been subject to the remittance basis.</p></content></section></chapter><chapter eId="part-2-chapter-3"><num>Chapter 3</num><heading>Trusts etc</heading><section eId="section-43"><num>43</num><heading>Trusts: connected amendments, transitional provision etc</heading><subsection eId="section-43-1"><num>(1)</num><intro><p>Schedule <ref href="#schedule-12">12</ref> amends legislation relating to the taxation of income and gains arising within trusts and similar structures, and in particular—</p></intro><level class="para1" eId="section-43-1-a"><num>(a)</num><content><p>contains amendments connected with the introduction of relief for qualifying new residents and the abolition of the remittance basis of taxation (see Chapters <ref href="#part-2-chapter-1">1</ref> and <ref href="#part-2-chapter-2">2</ref>), and</p></content></level><level class="para1" eId="section-43-1-b"><num>(b)</num><content><p>removes certain protections for foreign-source income and gains that have been available since the tax year 2017-18 while making transitional provision in respect of income that arose in past tax years.</p></content></level></subsection><subsection eId="section-43-2"><num>(2)</num><content><p>In that Schedule—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#schedule-12-part-1">Part 1</ref> amends Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family);</p></item><item><p><ref href="#schedule-12-part-2">Part 2</ref> amends Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad);</p></item><item><p><ref href="#schedule-12-part-3">Part 3</ref> amends Chapter 2 of Part 3 of TCGA 1992 (settlements: chargeable gains) and other provisions of TCGA 1992 relating to trusts and similar structures;</p></item><item><p><ref href="#schedule-12-part-4">Part 4</ref> contains provision about commencement and transitional provision.</p></item></blockList></content></subsection></section></chapter><chapter eId="part-2-chapter-4"><num>Chapter 4</num><heading>Inheritance tax</heading><section eId="section-44"><num>44</num><heading>Excluded property: domicile test replaced with long-term residence test</heading><subsection eId="section-44-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><content><p><mod>In section 6 (excluded property), in subsections (1) and (1A), for “domiciled outside the United Kingdom” substitute <quotedText>“who is not a long-term UK resident”</quotedText>.</mod></p></content></subsection><subsection eId="section-44-3"><num>(3)</num><content><p><mod>After section 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e7165"><num>6A</num><heading>“Long-term UK resident”: individuals</heading><subsection eId="d25e7169"><num>(1)</num><content><p>For the purposes of this Act, an individual is a “long-term UK resident” at all times in a tax year if they were UK resident for at least 10 of the previous 20 tax years.</p></content></subsection><subsection eId="d25e7175"><num>(2)</num><intro><p>But an individual is not a long-term UK resident at any time in a tax year (“the current tax year”) if they were non-UK resident—</p></intro><level class="para1"><num>(a)</num><content><p>for any 10 consecutive tax years during the 19 tax years before the current tax year, or</p></content></level><level class="para1" eId="d25e7187"><num>(b)</num><content><p>for at least the required number of consecutive tax years ending with the tax year before the current tax year.</p></content></level></subsection><subsection><num>(3)</num><content><p>To determine “<term refersTo="#term-the-required-number">the required number</term>” for the purposes of <ref href="#d25e7175">subsection (2)</ref><ref href="#d25e7187">(b)</ref>, take the 20 tax years ending with the last tax year for which the individual was UK resident and find the number of those tax years for which the individual was UK resident (“the number of resident years”).</p><p>The required number is the number in the second column of the following table corresponding to the number of resident years.</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Number of resident years</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Required number</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">13 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">16</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-uk-resident">UK resident</term>” means resident in the United Kingdom and “<term refersTo="#term-non-uk-resident">non-UK resident</term>” means not resident in the United Kingdom.</p></content></subsection><subsection><num>(5)</num><content><p>For the purposes of this section, a question as to whether the individual was UK resident for the tax year 2012-13 or an earlier tax year is to be determined as it would have been determined for income tax purposes for that tax year (and as to later tax years see Schedule 45 to the Finance Act 2013 (statutory residence test)).</p></content></subsection><subsection><num>(6)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7307">6B</ref> (which modifies this section in its application to young persons);</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e43858">sections 267ZC</ref> to <ref href="#d25e44152">267ZE</ref> (under which a person may be treated as a long-term UK resident as the result of an election).</p></content></level></subsection></section><section eId="d25e7307"><num>6B</num><heading>“Long-term UK resident”: young persons</heading><subsection eId="d25e7311"><num>(1)</num><intro><p>In the application of section <ref href="#d25e7165">6A</ref><ref href="#d25e7169">(1)</ref> for the purpose of determining whether a young person is a long-term UK resident at any time in a tax year (“the current tax year”), that subsection has effect as if—</p></intro><level class="para1" eId="d25e7322"><num>(a)</num><content><p>for “20” there were substituted the number of whole tax years for which the person was alive before the current tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>for “10” there were substituted half the number mentioned in <ref href="#d25e7322">paragraph (a)</ref> (rounded up, if not a whole number, to the next whole number).</p></content></level></subsection><subsection><num>(2)</num><content><p>In <ref href="#d25e7311">subsection (1)</ref>, “<term refersTo="#term-young-person">young person</term>” means an individual who was under the age of 20 immediately before the current tax year.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this Act, an individual is not a long-term UK resident at any time in a tax year if they were under the age of 1 (or were not yet born) immediately before the tax year.</p></content></subsection></section><section eId="d25e7358"><num>6C</num><heading>“Long-term UK resident”: bodies corporate</heading><intro><p>For the purposes of this Act, a body corporate is a “long-term UK resident” at all times in a tax year if the body—</p></intro><level class="para1"><num>(a)</num><content><p>is incorporated in the United Kingdom, or</p></content></level><level class="para1"><num>(b)</num><content><p>was (if in existence before the beginning of the tax year) within the charge to corporation tax on income at any time during the previous tax year by virtue of section 5(1) of the Corporation Tax Act 2009 (UK resident companies).</p></content></level></section></quotedStructure></mod></p></content></subsection><subsection eId="section-44-4"><num>(4)</num><content><p>This section comes into force on 6 April 2025.</p></content></subsection></section><section eId="section-45"><num>45</num><heading>Corresponding change for settled property</heading><subsection eId="section-45-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>In section 48 (excluded property)—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p><mod>in the heading, at the end insert <quotedText>“: reversionary interests and Treasury securities”</quotedText>;</mod></p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>omit subsections (3) to (3F).</p></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><content><p><mod>After section 48 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e7426"><num>48ZA</num><heading>Excluded property: property situated outside the UK etc</heading><subsection eId="d25e7430"><num>(1)</num><intro><p>If property comprised in a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>is situated outside the United Kingdom, or</p></content></level><level class="para1"><num>(b)</num><content><p>is a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level><wrapUp><p>this section applies to the property and section 6(1) and (1A) (general excluded property rule) does not.</p></wrapUp></subsection><subsection eId="d25e7450"><num>(2)</num><content><p>If the settlor is alive, the property is excluded property at any time when the settlor is not a long-term UK resident.</p></content></subsection><subsection eId="d25e7456"><num>(3)</num><content><p>If the settlor died on or after 6 April 2025, the property is excluded property if the settlor was not a long-term UK resident immediately before they died.</p></content></subsection><subsection eId="d25e7462"><num>(4)</num><content><p>If the settlor died before 6 April 2025, the property is excluded property if the settlor was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></subsection><subsection><num>(5)</num><content><p>Subsections <ref href="#d25e7450">(2)</ref> and <ref href="#d25e7456">(3)</ref> do not apply at any time to property to which section 49(1) (certain interests in possession) applies if, at that time, the person beneficially entitled to the interest is a long-term UK resident.</p></content></subsection><subsection eId="d25e7480"><num>(6)</num><intro><p>Subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> do not apply to property if—</p></intro><level class="para1"><num>(a)</num><intro><p>an individual has been beneficially entitled to an interest in possession in the property—</p></intro><level class="para2"><num>(i)</num><content><p>at any time on or after 6 April 2025 while a long-term UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before that date while domiciled in the United Kingdom, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the entitlement arose directly or indirectly as a result of a disposition made on or after 5 December 2005 for a consideration in money or money's worth.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of <ref href="#d25e7480">subsection (6)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>it is immaterial whether the consideration was given by the individual or by anyone else, and</p></content></level><level class="para1"><num>(b)</num><content><p>the cases in which an entitlement arose indirectly as a result of a disposition include any case where the entitlement arose under a will or the law relating to intestacy.</p></content></level></subsection><subsection eId="d25e7537"><num>(8)</num><content><p>Where the conditions in paragraphs (a) to (d) of section 74A(1) (arrangements involving acquisition of interest in settled property etc) are satisfied, none of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> applies at the time when the conditions are first satisfied or at any later time to make the relevant settled property (within the meaning of section 74A) excluded property.</p></content></subsection><subsection eId="d25e7549"><num>(9)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an amount is payable in respect of property (“the existing property”) comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement,</p></content></level><wrapUp><p>subsection <ref href="#d25e7462">(4)</ref> has effect in the case of the amount as if the reference to the time when it became comprised in the settlement were to the time when the existing property became comprised in the settlement.</p></wrapUp></subsection><subsection><num>(10)</num><content><p>Subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> are subject to Schedule A1 (overseas property with value attributable to UK residential property).</p></content></subsection><subsection><num>(11)</num><content><p>The reference in <ref href="#d25e7430">subsection (1)</ref> to property comprised in a settlement does not include a reversionary interest in the property (and accordingly this section does not apply to such an interest and section 6(1) does).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-45-4"><num>(4)</num><content><p>This section comes into force on 6 April 2025.</p></content></subsection></section><section eId="section-46"><num>46</num><heading>Consequential, connected and transitional provision</heading><content><p>In Schedule <ref href="#schedule-13">13</ref>—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#schedule-13-part-1">Part 1</ref> contains amendments to IHTA 1984 and related legislation that are consequential on, connected with or incidental to the new excluded property tests introduced by sections <ref href="#section-44">44</ref> and <ref href="#section-45">45</ref>;</p></item><item><p><ref href="#schedule-13-part-2">Part 2</ref> contains provision about commencement and transitional provision.</p></item></blockList></content></section></chapter></part>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-2-chapter-1"><num>Chapter 1</num><heading>New rules for foreign income and gains of individuals becoming UK resident</heading><section eId="section-37"><num>37</num><heading>Claim for relief on foreign income</heading><subsection eId="section-37-1"><num>(1)</num><content><p><mod>In Part 8 of ITTOIA 2005 (foreign income: special rules), after Chapter 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter><num>Chapter 5</num><heading>Relief for new residents on foreign income</heading><section eId="d25e4161"><num>845A</num><heading>Claim for relief for qualifying new residents</heading><subsection><num>(1)</num><content><p>An individual may make a claim for relief for a tax year under this section (a “foreign income claim”) if the individual is a qualifying new resident for that year (see section <ref href="#d25e4289">845B</ref>).</p></content></subsection><subsection><num>(2)</num><intro><p>Where an individual makes a foreign income claim for a tax year, the individual is entitled to relief for the tax year that is equal to so much of the total income of the individual for that year as—</p></intro><level class="para1"><num>(a)</num><content><p>reflects qualifying foreign income (see section <ref href="#d25e4624">845H</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>is identified as such in the claim.</p></content></level></subsection><subsection><num>(3)</num><content><p>The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year (see Step 2 of the calculation in section 23 of ITA 2007).</p></content></subsection><subsection><num>(4)</num><content><p>A foreign income claim must be made in a return.</p></content></subsection><subsection><num>(5)</num><content><p>A foreign income claim in relation to a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subsection><subsection><num>(6)</num><content><p>A foreign income claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(7)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e5222">Chapter 5C</ref> of Part 2 of ITEPA 2003 which provides for a claim for relief that may be made in respect of foreign employment income where a foreign employment election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 which provides for a claim for relief that may be made in respect of foreign gains (a foreign gain claim).</p></content></level></subsection><subsection><num>(8)</num><content><p>Sections <ref href="#d25e4407">845C</ref> to <ref href="#d25e4505">845E</ref> set out some income tax consequences of a foreign income claim, a foreign employment election or a foreign gain claim.</p></content></subsection><subsection><num>(9)</num><content><p>See also section 1K of TCGA 1992, which provides for the loss of an individual’s annual exempt amount for capital gains tax where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of TMA 1970 (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim being included in a return include a claim being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply for the purposes of this section as they apply for the purposes of that Act.</p></content></level></subsection></section><section eId="d25e4289"><num>845B</num><heading>Qualifying new residents</heading><subsection eId="d25e4293"><num>(1)</num><intro><p>For the purposes of this Chapter, an individual is a qualifying new resident for a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual is UK resident for that tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is not disqualified for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>for each of the 10 tax years before that tax year, the individual was not UK resident.</p></content></level></subsection><subsection><num>(2)</num><intro><p>An individual is also a qualifying new resident for a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual is UK resident for that tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is not disqualified for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>that tax year is one of the next three tax years after a qualifying tax year in relation to the individual.</p></content></level></subsection><subsection eId="d25e4341"><num>(3)</num><intro><p>A tax year is a qualifying tax year in relation to an individual if—</p></intro><level class="para1" eId="d25e4347"><num>(a)</num><content><p>the individual was a qualifying new resident for that tax year as a result of subsection <ref href="#d25e4293">(1)</ref>,</p></content></level><level class="para1" eId="d25e4356"><num>(b)</num><content><p>the individual would have been a qualifying new resident for that tax year as a result of that subsection, but was not only as a result of the individual being disqualified for that tax year, or</p></content></level><level class="para1"><num>(c)</num><intro><p>the tax year—</p></intro><level class="para2"><num>(i)</num><content><p>is the tax year 2022-23, 2023-24 or 2024-25, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a tax year to which paragraph <ref href="#d25e4347">(a)</ref> or <ref href="#d25e4356">(b)</ref> would have applied in relation to the individual had this section had effect for that tax year.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>An individual is disqualified for a tax year if the individual would, for the purposes of section 41 of the Constitutional Reform and Governance Act 2010, be regarded as—</p></intro><level class="para1"><num>(a)</num><content><p>a member of the House of Commons for any part of that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of the House of Lords for any part of that tax year.</p></content></level></subsection></section><section eId="d25e4407"><num>845C</num><heading>Effect of claim, foreign employment election or foreign gain claim on losses</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e4438">(2)</ref> applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who carries on a relevant business wholly outside the United Kingdom makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual has a loss for that tax year from the relevant business, and</p></content></level><level class="para1"><num>(c)</num><content><p>the profits (if there were any) of the business would be qualifying foreign income for that year.</p></content></level></subsection><subsection eId="d25e4438"><num>(2)</num><content><p>No relief for that loss is available in the tax year for which the claim or election is made or in any other tax year.</p></content></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-relevant-business">relevant business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a trade, profession or vocation, or</p></content></level><level class="para1"><num>(b)</num><content><p>a property business.</p></content></level></subsection></section><section><num>845D</num><heading>Effect of claim, foreign employment election or foreign gain claim: costs of dwelling-related loan</heading><subsection><num>(1)</num><intro><p>This section applies where an individual—</p></intro><level class="para1"><num>(a)</num><content><p>has a relievable amount for a tax year in respect of an overseas property business for the purposes of section 274A (reduction for individuals: entitlement), and</p></content></level><level class="para1"><num>(b)</num><content><p>makes a foreign income claim, a foreign employment election or a foreign gain claim for the tax year.</p></content></level></subsection><subsection><num>(2)</num><content><p>The individual is not entitled to relief under section 274A for that tax year in respect of that relievable amount.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of section 274A, the individual’s brought-forward amount for the following tax year in respect of the overseas property business is nil.</p></content></subsection></section><section eId="d25e4505"><num>845E</num><heading>Effect of claim, foreign employment election or foreign gain claim on personal allowance etc</heading><intro><p>Where an individual makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year, the individual is not entitled, for that year, to—</p></intro><level class="para1"><num>(a)</num><content><p>any allowance under Chapter 2 of Part 3 of ITA 2007 (personal allowance and blind person's allowance),</p></content></level><level class="para1"><num>(b)</num><content><p>any tax reduction under Chapter 3 of that Part (tax reductions for married couples and civil partners),</p></content></level><level class="para1"><num>(c)</num><content><p>any tax reduction under Chapter 3A of that Part (transferable tax allowance for married couples and civil partners), or</p></content></level><level class="para1"><num>(d)</num><content><p>any relief under section 457 or 458 of ITA 2007 (payments for life insurance etc).</p></content></level></section><section><num>845F</num><heading>Effect of claim on relief for contributions to registered pension schemes</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e4569">(2)</ref> applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual makes a foreign income claim for a tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is entitled to relief under section 188 of FA 2004 (relief for contributions) for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>the maximum amount of relief to which the individual is entitled under that section for that tax year is greater than the basic amount within the meaning of section 190(4) of that Act.</p></content></level></subsection><subsection eId="d25e4569"><num>(2)</num><intro><p>The maximum amount of relief to which the individual is entitled under section 188 of that Act for that tax year is to be reduced by the lesser of—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount that would reduce the maximum amount of relief to the basic amount.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “relevant amount” is the amount of the relief to which the individual is entitled under section 845A(2) of this Act as a result of making the foreign income claim, so far as that amount reflects relevant qualifying foreign income.</p></content></subsection><subsection><num>(4)</num><content><p>An amount of qualifying foreign income is “relevant qualifying foreign income” if the income is relevant UK earnings within the meaning of section 189(2) of FA 2004.</p></content></subsection></section><section><num>845G</num><heading>Foreign income relief ignored for purposes of determining adjusted net income</heading><subsection><num>(1)</num><content><p>Subsection <ref href="#d25e4615">(2)</ref> applies for the purpose of determining the adjusted net income under section 58 of ITA 2007 of an individual for a tax year for which the individual has made a foreign income claim.</p></content></subsection><subsection eId="d25e4615"><num>(2)</num><content><p>The adjusted net income is to be determined as if the relief allowed by the claim had not been deducted in calculating the individual's net income for the tax year.</p></content></subsection></section><section eId="d25e4624"><num>845H</num><heading>Qualifying foreign income</heading><intro><p>Income is qualifying foreign income if it—</p></intro><level class="para1"><num>(a)</num><content><p>falls within a description set out in the following table, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not disqualified income (see section <ref href="#d25e4782">845I</ref>).</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>No.</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Description</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Profits of a trade carried on wholly outside the United Kingdom (see Chapter 2 of Part 2).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A UK resident partner’s share of the profits of a trade carried on by the firm wholly outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Profits of an overseas property business.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Adjustment income (within the meaning of Chapter 17 of Part 2) in respect of a trade carried on wholly outside the United Kingdom (see that Chapter).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 2 of Part 4 (interest) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 4 of Part 4 (dividends from non-UK resident companies).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 7 of Part 4 (purchase life annuity payments) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 8 of Part 4 (profits from deeply discounted securities) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under section 579 (royalties and other incored.me from intellectual property) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 3 of Part 5 (films and sound recordings: non-trading businesses) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 4 of Part 5 (certain telecommunication rights: non-trading income) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income that arises from a source outside the United Kingdom and that is treated as arising to an individual under section 624 or 629 (income arising under settlement attributed to settlor).</p></default:td></default:tr><default:tr><default:td rowspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">13</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much of any amount of income treated as arising to an individual under section 633 (capital sums paid to settlor by trustees of settlement) for the tax year as falls within the foreign amount of income available up to the end of the tax year.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The foreign amount of income available up to the end of a tax year is the amount that would be determined, in accordance with sections 635 to 637 (amount of available income), as the amount of income available up to the end of the tax year if all income arising under the settlement from a source in the United Kingdom were ignored.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income treated as arising to an individual under section 643A (benefits paid out of protected income).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under section 649 (estate income) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">16</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 7 of Part 5 (annual payments not otherwise charged) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 8 of Part 5 (income not otherwise charged) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Accrued income profits (within the meaning of Part 12 of ITA 2007) made by an individual as a result of a transfer of securities if income from the securities would be qualifying foreign income.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income treated as arising under regulation 17 of the Offshore Funds (Tax) Regulations 2009 (offshore income gains).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income that is treated as arising to an individual under section 721, 728 or 732 of ITA 2007 (transfer of assets abroad: deemed income) and that is “<term refersTo="#term-foreign">foreign</term>” for the purposes of (respectively) section 726, 730 or 735 of that Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Pension income that arises from a source outside the United Kingdom (see Part 9 of ITEPA 2003).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A benefit to which section 678 of ITEPA 2003 applies (foreign social security benefits).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The foreign proportion (see paragraph 46 of Schedule 2 to FA 2022) of income arising as a result of the payment of interest, or the making of a distribution or qualified distribution (within the meaning of paragraph 45(5) of that Schedule), by a QAHC (within the meaning of that Schedule).</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></level></section><section eId="d25e4782"><num>845I</num><heading>Disqualified income</heading><intro><p>Income is disqualified income if—</p></intro><level class="para1"><num>(a)</num><content><p>it is income of a settlement (within the meaning of Chapter 5 of Part 5) arising in the tax year 2024-25 or an earlier tax year that is treated as arising in tax year 2025-26 or a later year as a result of section 648(3) to (5),</p></content></level><level class="para1"><num>(b)</num><content><p>it is income arising from a security treated as situated in the United Kingdom as a result of section 138ZB of TCGA 1992 (share exchanges involving non-UK incorporated close companies),</p></content></level><level class="para1"><num>(c)</num><content><p>it is income chargeable to income tax as a result of section 809AZB of ITA 2007 (transferred income streams),</p></content></level><level class="para1"><num>(d)</num><content><p>it is performance income (see <ref href="#d25e4845">section 845J</ref>),</p></content></level><level class="para1"><num>(e)</num><content><p>it is income from a pension to which section 629 of ITEPA 2003 applies (pre-1973 pensions paid under the Overseas Pensions Act 1973), or</p></content></level><level class="para1"><num>(f)</num><intro><p>it is a payment made to or in respect of—</p></intro><level class="para2"><num>(i)</num><content><p>a relieved member of a relevant non-UK scheme (within the meaning of Schedule 34 to FA 2004), or</p></content></level><level class="para2"><num>(ii)</num><content><p>a transfer member of such a scheme,</p></content></level><wrapUp><p>to which the member payment provisions (within the meaning of that Schedule) apply.</p></wrapUp></level></section><section eId="d25e4845"><num>845J</num><heading>Performance income</heading><subsection><num>(1)</num><content><p>Performance income is any income chargeable to income tax (however that charge arises) that results, directly or indirectly, from the performance of a relevant activity by a performer (whether performed in the United Kingdom or not).</p></content></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-performer">Performer</term>” means any individual who gives performances of entertainment or sport.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section “<term refersTo="#term-performances-of-entertainment-or-sport">performances of entertainment or sport</term>” includes any activity of a physical kind performed by an individual (alone or with others) which is or may be made available to the public or any section of the public, whether for payment or not.</p></content></subsection><subsection><num>(4)</num><intro><p>The following are “relevant activities”—</p></intro><level class="para1"><num>(a)</num><content><p>the giving of a performance of entertainment or sport;</p></content></level><level class="para1"><num>(b)</num><content><p>the participation of the performer in any sound or video recording;</p></content></level><level class="para1"><num>(c)</num><content><p>any activity in connection with a commercial occasion or event (including the appearance of the performer in connection with the occasion or event).</p></content></level></subsection><subsection><num>(5)</num><intro><p>The reference to a commercial occasion or event includes any description of occasion or event—</p></intro><level class="para1"><num>(a)</num><content><p>for which any person might receive or become entitled, as a result of anything done by the performer, to receive anything by way of cash or any other form of property; or</p></content></level><level class="para1"><num>(b)</num><content><p>which is designed to promote commercial sales or activity by advertising, the endorsement of goods or services, sponsorship, or other promotional means of any kind.</p></content></level></subsection></section></chapter></quotedStructure></mod></p></content></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>In <ref eId="c00030" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><intro><p>in section 24 (reliefs deductible at Step 2), in subsection (1)(a)—</p></intro><level class="para2" eId="section-37-2-a-i"><num>(i)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section <ref href="#d25e4161">845A</ref> of ITTOIA 2005 (claim for relief for qualifying new residents), and</p></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-a-ii"><num>(ii)</num><content><p>at the end of the entry for <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">section 193</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">(4)</a> of <ref eId="c00031" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>, omit the “and”,</p></content></level></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p><mod>in section 34 (personal allowance and blind person’s allowance) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any allowance under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-c"><num>(c)</num><content><p><mod>in section 55A (transferable tax allowance for married couples and civil partners) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any tax reduction under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-d"><num>(d)</num><content><p><mod>in section 460 (residence of claimants for relief under section 457 or 458) for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTOIA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any relief under section 457 or 458 for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-e"><num>(e)</num><intro><p>in section 809EZA (disguised investment management fees: charge to income tax)—</p></intro><level class="para2" eId="section-37-2-e-i"><num>(i)</num><content><p><mod>in subsection (2A), for paragraphs (d) and (e) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual makes a foreign income claim for the relevant tax year.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-e-ii"><num>(ii)</num><content><p><mod>in subsection (2C), for “before the end of the period of non-residence” substitute <quotedText startQuote="“">in any period—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>ending immediately before a qualifying tax year in relation to the individual (within the meaning of <ref href="#d25e4289">section 845B</ref><ref href="#d25e4341">(3)</ref> of ITTOIA (qualifying new residents)), and</p></content></level><level class="para1"><num>(b)</num><content><p>that consists only of tax years for which the individual is not UK resident.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="section-37-2-f"><num>(f)</num><content><p><mod>in section 989 (the definitions), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning it has in Chapter 5 of Part 8 of ITTOIA 2005 (see section <ref href="#d25e4289">845B</ref> of that Act).</p></content></hcontainer></quotedStructure></mod></p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><intro><p>In paragraph 46 of Schedule 2 to FA 2022 (qualifying asset holding companies)—</p></intro><level class="para1" eId="section-37-3-a"><num>(a)</num><content><p><mod>in the heading for “applies” substitute <quotedText>“applied or who makes a foreign income claim”</quotedText>,</mod></p></content></level><level class="para1" eId="section-37-3-b"><num>(b)</num><intro><p>in sub-paragraph (1)—</p></intro><level class="para2" eId="section-37-3-b-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “This paragraph applies” substitute <quotedText>“Sub-paragraphs (2) and (3) apply”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-37-3-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="section-37-3-c"><num>(c)</num><content><p><mod>after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e5184"><num>(6A)</num><content><p>Sub-paragraphs (4) to (6) also apply for the purposes of item 22 in the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (qualifying foreign income for the purposes of foreign income claim).</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-37-4"><num>(4)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection></section><section eId="section-38"><num>38</num><heading>Claim for relief on foreign employment income</heading><subsection eId="section-38-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/part/2">Part 2</a> of <ref eId="c00032" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax), after <a href="https://www.legislation.gov.uk/ukpga/2003/1/part/2/chapter/5B">Chapter 5B</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e5222"><num>Chapter 5C</num><heading>Relief for new residents on foreign employment income</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Foreign employment election</heading><section eId="d25e5233"><num>41M</num><heading>Foreign employment election for qualifying new residents</heading><subsection><num>(1)</num><content><p>This Chapter applies if an individual is a qualifying new resident for a tax year (the “qualifying year”).</p></content></subsection><subsection><num>(2)</num><content><p>An individual is a qualifying new resident for a tax year for the purposes of this Chapter if the individual is a qualifying new resident for the tax year for the purposes of Chapter 5 of Part 8 of ITTOIA 2005 (see <ref href="#d25e4289">section 845B</ref> of that Act).</p></content></subsection><subsection><num>(3)</num><content><p>The individual may make an election for the qualifying year under this section (“a foreign employment election”).</p></content></subsection><subsection><num>(4)</num><intro><p>Section <ref href="#d25e5493">41P</ref> makes provision about a claim for relief—</p></intro><level class="para1"><num>(a)</num><content><p>which an individual can make for the qualifying year or any subsequent tax year, where the individual has made a foreign employment election, and</p></content></level><level class="para1"><num>(b)</num><content><p>which entitles the individual to relief in that year calculated by reference to employment income that is in respect of the qualifying year.</p></content></level></subsection><subsection><num>(5)</num><content><p>Sections <ref href="#d25e5572">41Q</ref> (amount of relief available) and <ref href="#d25e5700">41R</ref> (limit on relief) set out how to determine the amount of relief to which the individual is entitled.</p></content></subsection><subsection><num>(6)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>sections 845C to 845E of ITTOIA 2005, which set out some income tax consequences of a foreign employment election, and</p></content></level><level class="para1"><num>(b)</num><content><p>section 1K of TCGA 1992, which provides for the loss of the individual’s annual exempt amount for capital gains tax where a foreign employment election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>A foreign employment election must be made in a return.</p></content></subsection><subsection><num>(8)</num><content><p>A foreign employment election for the qualifying year must be made before the end of the period of 12 months beginning with 31 January after the end of the qualifying year.</p></content></subsection><subsection><num>(9)</num><content><p>A foreign employment election may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(10)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of TMA 1970 (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim or election being included in a return include a claim or election being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Key definitions</heading><section><num>41N</num><heading>Key definitions</heading><subsection><num>(1)</num><content><p>This section sets out some definitions that apply for the purposes of this Chapter.</p></content></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-qualifying-employment-income">Qualifying employment income</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying general earnings,</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying third party income, and</p></content></level><level class="para1"><num>(c)</num><content><p>qualifying securities income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-qualifying-foreign-employment-income">Qualifying foreign employment income</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying foreign general earnings,</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying foreign third party income, and</p></content></level><level class="para1"><num>(c)</num><content><p>qualifying foreign securities income.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Section <ref href="#d25e5826">41T</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for general earnings to be “qualifying general earnings”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying general earnings to be “qualifying foreign general earnings”.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Section <ref href="#d25e5853">41U</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for third party income to be “qualifying third party income”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying third party income to be “qualifying foreign third party income”.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Section <ref href="#d25e5922">41V</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for securities income to be “qualifying securities income”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying securities income to be “qualifying foreign securities income”.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Claim for relief</heading><section eId="d25e5493"><num>41P</num><heading>Claim for relief for qualifying new residents</heading><subsection><num>(1)</num><content><p>Where an individual has made a foreign employment election, the individual may make a claim for relief for the qualifying year or any subsequent tax year (“a foreign employment relief claim”).</p></content></subsection><subsection eId="d25e5503"><num>(2)</num><intro><p>Where an individual makes a foreign employment relief claim for a tax year, the individual is entitled to relief that is equal to so much of the net taxable employment income for that year as—</p></intro><level class="para1"><num>(a)</num><content><p>reflects qualifying foreign employment income (see section <ref href="#d25e5572">41Q</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>is identified as such in the claim.</p></content></level></subsection><subsection eId="d25e5524"><num>(3)</num><content><p>But <ref href="#d25e5503">subsection (2)</ref> only applies to the extent the total amount of the relief given does not exceed the limit (see <ref href="#d25e5700">section 41R</ref>).</p></content></subsection><subsection><num>(4)</num><content><p>The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year for which the claim is made (see Step 2 of the calculation in section 23 of ITA 2007).</p></content></subsection><subsection><num>(5)</num><content><p>A foreign employment relief claim must be made in a return.</p></content></subsection><subsection><num>(6)</num><content><p>A foreign employment relief claim for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subsection><subsection><num>(7)</num><content><p>A foreign employment relief claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-net-taxable-employment-income">net taxable employment income</term>”, in relation to a tax year, means the employment income on which the individual is charged to tax for the tax year (see section 9(1)).</p></content></subsection></section><section eId="d25e5572"><num>41Q</num><heading>Amount of relief available</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e5493">section 41P</ref><ref href="#d25e5503">(2)</ref>, the amount of net taxable employment income for a tax year that “reflects” qualifying foreign employment income is the total of—</p></intro><level class="para1"><num>(a)</num><content><p>the total of the amount of the net taxable earnings from each employment in the tax year that reflects qualifying foreign general earnings (see subsections <ref href="#d25e5608">(2)</ref> to <ref href="#d25e5981">(5)</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>the total of the amount of the net taxable specific income from each employment for the tax year that reflects qualifying foreign third party income or qualifying foreign securities income (see <ref href="#d25e6051">subsection (6)</ref>).</p></content></level></subsection><subsection eId="d25e5608"><num>(2)</num><intro><p>The amount of the net taxable earnings from an employment in a tax year that “reflects” qualifying foreign general earnings is—</p></intro><level class="para1"><num>(a)</num><content><p>the amount of the taxable earnings from the employment in the tax year that are qualifying foreign general earnings, minus</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the qualifying deductions.</p></content></level></subsection><subsection><num>(3)</num><content><p>If the amount calculated under <ref href="#d25e5608">subsection (2)</ref> is nil or a negative amount, then none of the net taxable earnings from the employment in the tax year reflect qualifying foreign general earnings.</p></content></subsection><subsection><num>(4)</num><content><p>If the foreign employment relief claim is for the qualifying year, the amount of the qualifying deductions is the proportion of the total deductions that is the same as the proportion of the claim year taxable earnings that are qualifying foreign general earnings.</p></content></subsection><subsection><num>(5)</num><content><p>If the foreign employment relief claim is for a subsequent tax year, the amount of the qualifying deductions is the amount resulting from the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Deduct the claim year taxable earnings from the total deductions.</p><p>If the result is nil or a negative amount, there are no qualifying deductions.</p></item><item><p><i>Step 2</i></p><p>Deduct any other taxable earnings that are not qualifying foreign general earnings.</p><p>If the result is nil or a negative amount, there are no qualifying deductions.</p></item></blockList></content></subsection><subsection><num>(6)</num><content><p>The proportion of the net taxable specific income from an employment for a tax year that “reflects” qualifying foreign third party income or qualifying foreign securities income is the same as the proportion of the taxable specific income for the employment in that year that is qualifying foreign third party income or qualifying foreign securities income.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-claim-year-taxable-earnings">claim year taxable earnings</term>” means the taxable earnings from the employment in the tax year that are “for” the year for which the claim is made determined in accordance with section 16 and 17;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-total-deductions">total deductions</term>” means the total amount of any deductions allowed from the taxable earnings from the employment in the tax year under provisions listed in section 327(3) to (5) (see section 11(1)).</p></content></hcontainer></subsection></section><section eId="d25e5700"><num>41R</num><heading>Limit on relief</heading><subsection><num>(1)</num><content><p>This section sets out how to determine the limit on the amount of relief the individual is entitled to when making a foreign employment relief claim for a year for the purposes of <ref href="#d25e5493">section 41P</ref><ref href="#d25e5524">(3)</ref>.</p></content></subsection><subsection><num>(2)</num><intro><p>The limit is the lesser of—</p></intro><level class="para1"><num>(a)</num><content><p>30% of the relevant qualifying employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>£300,000.</p></content></level></subsection><subsection eId="d25e5733"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-relevant-qualifying-employment-income">relevant qualifying employment income</term>” means—</p></intro><level class="para1" eId="d25e5742"><num>(a)</num><content><p>so much of the net taxable employment income for the tax year for which the claim is made as reflects qualifying employment income, and</p></content></level><level class="para1" eId="d25e5748"><num>(b)</num><content><p>if the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, so much of any net taxable employment income for any earlier tax year (but not any tax year before the qualifying year) as would reflect qualifying employment income if that earlier year was the year for which the claim was made.</p></content></level></subsection><subsection><num>(4)</num><content><p>If the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, the limit is reduced by the total of any amounts reflecting qualifying foreign employment income that have previously been relieved under <ref href="#d25e5493">section 41P</ref>.</p></content></subsection><subsection><num>(5)</num><intro><p>To determine the amounts mentioned in <ref href="#d25e5733">subsection (3)</ref><ref href="#d25e5742">(a)</ref> and <ref href="#d25e5748">(b)</ref>, apply <ref href="#d25e5572">section 41Q</ref>, but as if—</p></intro><level class="para1"><num>(a)</num><content><p>the references in that section to qualifying foreign employment income were to qualifying employment income,</p></content></level><level class="para1"><num>(b)</num><content><p>the references in that section to qualifying foreign general earnings were to qualifying general earnings, and</p></content></level><level class="para1"><num>(c)</num><content><p>the references in that section to qualifying foreign third party income and qualifying foreign securities income were references to qualifying third party income and qualifying securities income.</p></content></level></subsection></section><section><num>41S</num><heading>Effect of claim on relief for contributions to registered pension schemes</heading><subsection><num>(1)</num><content><p>This section applies where an individual who is an active member of a registered pension scheme for the purposes of section 188 of FA 2004 (relief for contributions) makes a foreign employment relief claim for a tax year.</p></content></subsection><subsection eId="d25e5811"><num>(2)</num><content><p>For the purposes of sections 189(1)(a) and 190 of that Act, references to the amount of the individual’s relevant UK earnings chargeable to income tax for that year are to be read as references to that amount minus the relieved amount.</p></content></subsection><subsection><num>(3)</num><content><p>The “relieved amount” is the amount of the relief to which the individual is entitled under section 41P(2) of this Act as a result of making the foreign employment relief claim.</p></content></subsection></section><section eId="d25e5826"><num>41T</num><heading>Foreign employment relief ignored for purposes of determining adjusted net income</heading><subsection eId="d25e5830"><num>(1)</num><content><p><ref href="#d25e5811">Subsection (2)</ref> applies for the purpose of determining the adjusted net income under section 58 of ITA 2007 of an individual for a tax year for which the individual is entitled to relief under <ref href="#d25e5493">section 41P</ref>.</p></content></subsection><subsection eId="d25e5841"><num>(2)</num><content><p>The adjusted net income is to be determined as if the relief had not been deducted in calculating the individual’s net income for the tax year.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Qualifying foreign employment income</heading><section eId="d25e5853"><num>41U</num><heading>Qualifying foreign general earnings</heading><subsection eId="d25e5857"><num>(1)</num><intro><p>General earnings are “qualifying general earnings” if they are—</p></intro><level class="para1"><num>(a)</num><content><p>“for” the qualifying year determined in accordance with sections 16 and 17,</p></content></level><level class="para1" eId="d25e5869"><num>(b)</num><content><p>if the qualifying year is a split year as respects the individual, attributable to the UK part of the year, and</p></content></level><level class="para1"><num>(c)</num><content><p>from an employment the duties of which are performed wholly or partly outside the UK during the qualifying year.</p></content></level></subsection><subsection eId="d25e5881"><num>(2)</num><content><p>Any attribution required for the purposes of <ref href="#d25e5830">subsection (1)</ref><ref href="#d25e5869">(b)</ref> is to be done on a just and reasonable basis.</p></content></subsection><subsection eId="d25e5892"><num>(3)</num><intro><p>Qualifying general earnings are “qualifying foreign general earnings” if they are neither—</p></intro><level class="para1"><num>(a)</num><content><p>in respect of duties performed in the United Kingdom, nor</p></content></level><level class="para1" eId="d25e5904"><num>(b)</num><content><p>from overseas Crown employment subject to United Kingdom tax (see <ref href="#d25e5990">section 41W</ref>).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of subsection (3), the extent to which qualifying general earnings are in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.</p></content></subsection></section><section eId="d25e5922"><num>41V</num><heading>Qualifying foreign third party income</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, “third party income” is an amount that counts under Chapter 2 of Part 7A (treatment of relevant step for income tax purposes) as employment income in respect of an employment.</p></content></subsection><subsection eId="d25e5932"><num>(2)</num><intro><p>Third party income is “qualifying third party income”—</p></intro><level class="para1"><num>(a)</num><content><p>if it is in respect of an employment the duties of which are performed wholly or partly outside the UK during the qualifying year, and</p></content></level><level class="para1" eId="d25e5944"><num>(b)</num><intro><p>to the extent that the value of the relevant step that counts as employment income (see section 554Z3) is—</p></intro><level class="para2"><num>(i)</num><content><p>“for” the qualifying year determined in accordance with section 554Z4(2), and</p></content></level><level class="para2" eId="d25e5956"><num>(ii)</num><content><p>if the qualifying year is a split year as respects the individual, attributable to the UK part of the year.</p></content></level></level></subsection><subsection eId="d25e5962"><num>(3)</num><content><p>Any attribution required for the purposes of <ref href="#d25e5881">subsection (2)</ref><ref href="#d25e5944">(b)</ref><ref href="#d25e5956">(ii)</ref> is to be done on a just and reasonable basis.</p></content></subsection><subsection><num>(4)</num><content><p>Qualifying third party income is “qualifying foreign third party income” to the extent that it is not in respect of duties performed in the United Kingdom.</p></content></subsection><subsection eId="d25e5981"><num>(5)</num><content><p>The extent to which qualifying third party income is not in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.</p></content></subsection></section><section eId="d25e5990"><num>41W</num><heading>Qualifying foreign securities income</heading><subsection><num>(1)</num><content><p>For the purpose of this Chapter, “securities income” is an amount that counts under Chapters 2 to 5 of Part 7 (employment-related securities etc) as employment income in respect of an employment (the “relevant employment”).</p></content></subsection><subsection><num>(2)</num><intro><p>Securities income is “qualifying securities income”—</p></intro><level class="para1"><num>(a)</num><content><p>if the duties of the relevant employment are performed wholly or partly outside the UK during the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><intro><p>to the extent that it—</p></intro><level class="para2"><num>(i)</num><content><p>accrues during the qualifying year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the qualifying year is a split year as respects the individual, accrues during the UK part of the year.</p></content></level></level></subsection><subsection eId="d25e6030"><num>(3)</num><content><p>To determine when securities income accrues treat an equal amount of the securities income as accruing on each day of the relevant period determined in accordance with section 41G.</p></content></subsection><subsection><num>(4)</num><content><p>But if the proportion of the securities income that would be regarded as qualifying securities income by virtue of <ref href="#d25e5962">subsection (3)</ref> is not, having regard to all the circumstances, just and reasonable, the amount of the securities income that is qualifying securities income is such amount as is just and reasonable.</p></content></subsection><subsection eId="d25e6045"><num>(5)</num><content><p>Qualifying securities income is wholly “qualifying foreign securities income” if the duties of the relevant employment are performed wholly outside the United Kingdom.</p></content></subsection><subsection eId="d25e6051"><num>(6)</num><intro><p>If some, but not all, of the duties of the relevant employment are performed outside the United Kingdom—</p></intro><level class="para1"><num>(a)</num><content><p>the qualifying securities income is to be apportioned (on a just and reasonable basis) between duties performed in the United Kingdom and duties performed outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the income apportioned in respect of duties performed outside the United Kingdom is qualifying foreign securities income.</p></content></level></subsection><subsection eId="d25e6069"><num>(7)</num><content><p>But qualifying securities income from overseas Crown employment subject to United Kingdom tax is not qualifying foreign securities income.</p></content></subsection></section><section eId="d25e6078"><num>41X</num><heading>Meaning of “overseas Crown employment subject to UK tax”</heading><subsection><num>(1)</num><intro><p>This section explains what is meant by —</p></intro><level class="para1"><num>(a)</num><content><p>qualifying general earnings “<term refersTo="#term-from-overseas-crown-employment-subject-to-united-kingdom-tax">from overseas Crown employment subject to United Kingdom tax</term>” for the purposes of <ref href="#d25e5826">section 41T</ref><ref href="#d25e5892">(3)</ref><ref href="#d25e5904">(b)</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying securities income “<term refersTo="#term-from-overseas-crown-employment-subject-to-united-kingdom-tax">from overseas Crown employment subject to United Kingdom tax</term>” for the purposes of <ref href="#d25e5922">section 41V</ref><ref href="#d25e6069">(7)</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>Qualifying general earnings and qualifying securities income are “from overseas Crown employment” if the earnings or income is from Crown employment (within the meaning of section 28(2)) in respect of duties performed outside the United Kingdom.</p></content></subsection><subsection eId="d25e6124"><num>(3)</num><content><p>Such earnings or income are to be taken as being “subject to United Kingdom tax” unless they fall within any exception contained in an order made under section 28(5) for the purposes of section 27(2).</p></content></subsection><subsection><num>(4)</num><intro><p>An order made under section 28(5) may also—</p></intro><level class="para1"><num>(a)</num><content><p>provide for any exceptions mentioned in <ref href="#d25e6030">subsection (3)</ref> to not apply for the purposes of this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>make exceptions for the purposes of this section.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of this section, if securities income is partly from overseas Crown employment subject to United Kingdom tax, a just and reasonable proportion of the securities income is to be taken to be from such employment.</p></content></subsection></section><section><num>41Y</num><heading>Location of employment duties</heading><subsection><num>(1)</num><content><p>Section 38 (period of absence from employment) applies for the purposes of this Chapter as if references to general earnings were to general earnings or third party income.</p></content></subsection><subsection eId="d25e6170"><num>(2)</num><content><p>Section 40(1) and (2) (place of performance of duties on board vessel or aircraft) applies for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e6176"><num>(3)</num><content><p>Duties of an employment performed in the UK sector of the continental shelf in connection with exploration of exploitation activities are to be treated for the purposes of this Chapter as being performed in the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>In <ref href="#d25e6124">subsection (3)</ref> “<term refersTo="#term-the-uk-sector-of-the-continental-shelf">the UK sector of the continental shelf</term>” and “<term refersTo="#term-exploration-or-exploitation-activities">exploration or exploitation activities</term>” have the same meaning as in section 41 (treatment of general earnings from employment in the UK sector of the continental shelf).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Other rules for determining amounts of qualifying foreign employment income</heading><section><num>41Z</num><heading>Artificial arrangements to be disregarded</heading><subsection><num>(1)</num><intro><p>Any arrangements falling within <ref href="#d25e6170">subsection (2)</ref> are to be disregarded for the purposes of determining the extent to which—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings are qualifying general earnings;</p></content></level><level class="para1"><num>(b)</num><content><p>third party income is qualifying third party income;</p></content></level><level class="para1"><num>(c)</num><content><p>securities income is qualifying securities income;</p></content></level></subsection><subsection eId="d25e6234"><num>(2)</num><intro><p>Arrangements fall within this subsection if the main purpose, or one of the main purposes of the arrangements is to enable an individual to obtain—</p></intro><level class="para1"><num>(a)</num><content><p>relief under this Chapter to which they would not otherwise be entitled, or</p></content></level><level class="para1"><num>(b)</num><content><p>relief under this Chapter of a greater amount than that to which they would otherwise be entitled.</p></content></level></subsection><subsection><num>(3)</num><content><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section><num>41Z1</num><heading>Limit on qualifying foreign employment income from associated employments</heading><subsection><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual has associated employments from or in respect of which there is qualifying employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>the duties of the associated employments are not performed wholly outside the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><content><p>There is a limit on how much of the qualifying employment income from or in respect of the associated employments is qualifying foreign employment income.</p></content></subsection><subsection><num>(3)</num><intro><p>The limit is the proportion of the qualifying employment income that is reasonable having regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the nature of, and time devoted to, the duties performed outside the United Kingdom, and those performed in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>all other relevant circumstances.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “<term refersTo="#term-associated-employments">associated employments</term>” means employments with the same employer or with associated employers; and section 24(5) and (6) applies for the purposes of this section.</p></content></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></subsection><subsection eId="section-38-2"><num>(2)</num><intro><p>In <ref href="#schedule-8">Schedule 8</ref>—</p></intro><level class="para1" eId="section-38-2-a"><num>(a)</num><content><p>Part 1 makes general consequential amendments;</p></content></level><level class="para1" eId="section-38-2-b"><num>(b)</num><content><p>Part 2 makes consequential amendments relating to the operation of PAYE;</p></content></level><level class="para1" eId="section-38-2-c"><num>(c)</num><content><p>Part 3 contains transitional provision.</p></content></level></subsection><subsection eId="section-38-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-38">this section</ref> and the provision made by <ref href="#schedule-8">Schedule 8</ref> have effect for the tax year 2025-2026 and subsequent tax years.</p></content></subsection></section><section eId="section-39"><num>39</num><heading>Claim for relief on foreign gains</heading><subsection eId="section-39-1"><num>(1)</num><content><p>TCGA 1992 is amended as follows.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p><mod>Before Schedule 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule" eId="d25e6378"><num>Schedule D1<authorialNote class="referenceNote"><p>Section 1A(2)(za)</p></authorialNote></num><heading>Relief for new residents on foreign gains</heading><hcontainer name="crossheading" class="schGroup7"><heading>Claim for relief for qualifying new residents</heading><paragraph eId="d25e6390" class="schProv1"><num>1</num><subparagraph><num>(1)</num><content><p>An individual may make a claim for relief for a tax year under this paragraph (a “foreign gain claim”) if the individual is a qualifying new resident for that tax year.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>Paragraphs <ref href="#d25e6463">2</ref>, <ref href="#d25e6482">3</ref> and <ref href="#d25e6539">4</ref> set out the reliefs that may be obtained by making a foreign gain claim.</p></content></subparagraph><subparagraph><num>(3)</num><content><p>A foreign gain claim must be made in a return.</p></content></subparagraph><subparagraph><num>(4)</num><content><p>A foreign gain claim in relation to a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>A foreign gain claim may not be made as a consequential claim (within the meaning of section 43C(5) of the Management Act) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of the Management Act (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim being included in a return include a claim being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of the Management Act (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief for qualifying foreign gains</heading><paragraph eId="d25e6463" class="schProv1"><num>2</num><subparagraph><num>(1)</num><content><p>Where an individual makes a foreign gain claim for a tax year, the individual is entitled to relief for each qualifying foreign gain accruing to the individual in that year that is identified in the claim.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The relief is given by deducting an amount equal to the sum of those gains from the total amount of chargeable gains accruing to the individual.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief in respect of deemed gains under section 86</heading><paragraph eId="d25e6482" class="schProv1"><num>3</num><subparagraph eId="d25e6486"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable gains would (but for this paragraph) be treated as accruing to an individual in a tax year under section 86(4) (attribution of gains to settlors of non-resident settlements),</p></content></level><level class="para1" eId="d25e6498"><num>(b)</num><content><p>a qualifying foreign gain accrued in that tax year to the trustees of the settlement concerned (or would have done on the assumption in section 86(3)), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual identifies the gain mentioned in <ref href="#d25e6498">paragraph (b)</ref> in a foreign gain claim for that tax year.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of section 86(1)(e) as it applies to the individual, the following are to be disregarded (in that tax year and in later tax years)—</p></intro><level class="para1"><num>(a)</num><content><p>the gain mentioned in <ref href="#d25e6486">sub-paragraph (1)</ref><ref href="#d25e6498">(b)</ref>;</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying foreign loss that accrued to the trustees in that tax year (or that would have so accrued on the assumption in section 86(3)).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief in respect of deemed gains under sections 87 and 89(2) and Schedule 4C</heading><paragraph eId="d25e6539" class="schProv1"><num>4</num><subparagraph><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a settlement is for a tax year—</p></intro><level class="para2"><num>(i)</num><content><p>one to which section 87 or 89(2) applies (attribution of gains to beneficiaries of settlements), or</p></content></level><level class="para2"><num>(ii)</num><content><p>a relevant settlement in relation to a Schedule 4C pool, within the meaning of paragraph 8A of Schedule 4C (transfers of value: attribution of gains etc),</p></content></level></level><level class="para1"><num>(b)</num><content><p>a beneficiary of the settlement receives a capital payment from the trustees in that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual identifies the capital payment in a foreign gain claim for that tax year.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The capital payment is to be disregarded (in that tax year and in later tax years) for the purposes of sections 87, 87A and 89(2) and paragraph 8 of Schedule 4C.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The following apply for the purposes of this paragraph as they apply for the purposes of section 87—</p></intro><level class="para1"><num>(a)</num><content><p>section 87G (which provides for capital payments made to a close member of the settlor’s family to be treated in certain cases as received by the settlor);</p></content></level><level class="para1"><num>(b)</num><content><p>section 97 (which makes provision about the construction of “capital payment”, “settlement”, “trustees” and “beneficiary”).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Other effects of claim</heading><paragraph eId="d25e6606" class="schProv1"><num>5</num><intro><p>For other effects of making a foreign gain claim, see—</p></intro><level class="para1"><num>(a)</num><content><p>section 1K(6)(b) (annual exempt amount), which provides that where a foreign gain claim has effect in relation to an individual for a tax year, the individual has no entitlement to an annual exempt amount for that year,</p></content></level><level class="para1"><num>(b)</num><content><p>section 16<ref href="#d25e6772">(4)</ref> (computation of losses), which provides that where a foreign gain claim has effect in relation to an individual for a tax year, qualifying foreign losses accruing to the individual in that year are not allowable losses, and</p></content></level><level class="para1"><num>(c)</num><content><p>sections <ref href="#d25e4407">845C</ref> to <ref href="#d25e4505">845E</ref> of ITTOIA 2005, which set out some income tax consequences of making a foreign gain claim.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of Schedule</heading><paragraph eId="d25e6642" class="schProv1"><num>6</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-qualifying-foreign-asset">qualifying foreign asset</term>” means an asset that—</p></intro><level class="para1"><num>(a)</num><content><p>is situated outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>does not derive at least 75% of its value from UK land (see Schedule 1A);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-qualifying-foreign-gain">qualifying foreign gain</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a chargeable gain accruing on the disposal of a qualifying foreign asset,</p></content></level><level class="para1"><num>(b)</num><content><p>a chargeable gain treated as accruing as a result of section 3 (gains of non-UK resident close companies attributed to UK residents) where the gain accruing to the non-UK resident close company to which the deemed gain relates accrued on the disposal of a qualifying foreign asset, or</p></content></level><level class="para1"><num>(c)</num><content><p>a qualifying QAHC gain,</p></content></level><wrapUp><p>but a chargeable gain falling within paragraph <ref href="#d25e6673">(a)</ref> or <ref href="#d25e6677">(b)</ref> is not a qualifying foreign gain if it is a gain to which paragraph 1(2) of Schedule 1 applies (pre-2025-26 gains subject to the remittance basis);</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-foreign-loss">qualifying foreign loss</term>” means a loss accruing on the disposal of an asset that is a qualifying foreign asset;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-qahc-gain">qualifying QAHC gain</term>” means the foreign proportion (see paragraph 46(4) to (6) of Schedule 2 to FA 2022) of a chargeable gain accruing on the disposal of shares in a QAHC (within the meaning of that Schedule) other than a chargeable gain to which paragraph 46(3) of that Schedule applies.</p></content></hcontainer></paragraph></hcontainer></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><p><mod>In section 1A (territorial scope), in subsection (2), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p><ref href="#d25e6378">Schedule D1</ref> (relief for new residents on foreign gains),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-39-4"><num>(4)</num><content><p><mod>In section 1E (losses deductible only when within scope of tax), in subsection (6), for “Schedule 1 (UK resident individuals not domiciled in the UK)” substitute <quotedText>“<ref href="#d25e6606">paragraph 5</ref> of <ref href="#d25e6378">Schedule D1</ref> (relief for new residents on foreign gains).”</quotedText></mod></p></content></subsection><subsection eId="section-39-5"><num>(5)</num><intro><p>In section 1K (annual exempt amount), in subsection (6)—</p></intro><level class="para1" eId="section-39-5-a"><num>(a)</num><content><p>the words from “section” to the end become paragraph (a) of that subsection, and</p></content></level><level class="para1" eId="section-39-5-b"><num>(b)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the individual makes a foreign gain claim, a foreign income claim or a foreign employment election for that tax year.</p></content></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-39-6"><num>(6)</num><content><p><mod>In section 16 (computation of losses), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e6772"><num>(4)</num><content><p>A qualifying foreign loss accruing to an individual in a tax year is not an allowable loss if a foreign gain claim, a foreign income claim or a foreign employment election has effect in relation to the individual for that tax year.</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (4), “<term refersTo="#term-qualifying-foreign-loss">qualifying foreign loss</term>” has the same meaning as in Schedule D1 (see paragraph <ref href="#d25e6642">6</ref> of that Schedule).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-39-7"><num>(7)</num><content><p><mod>In section 288 (interpretation), in subsection (1) at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means a claim under section <ref href="#d25e5233">41M</ref> of ITEPA 2003;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-gain-claim">foreign gain claim</term>” means a claim under paragraph <ref href="#d25e6390">1</ref> of <ref href="#d25e6378">Schedule D1</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning given by section <ref href="#d25e4289">845B</ref> of ITTOIA 2005 (which sets out the circumstances in which an individual will be a qualifying new resident following a period of 10 years of non-residence);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-39-8"><num>(8)</num><content><p><mod>In Schedule 1A, in paragraph 1, after “2B(4)(b)” insert <quotedText>“or <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref>”</quotedText>.</mod></p></content></subsection><subsection eId="section-39-9"><num>(9)</num><content><p><mod>In Schedule 1C (annual exempt amount in cases involving settled property), in paragraph 1(4), for the words from “who” to the end substitute <quotedText>“to whom subsection (6) of that section does not apply.”</quotedText></mod></p></content></subsection><subsection eId="section-39-10"><num>(10)</num><intro><p>In Schedule 2 to FA 2022 (qualifying asset holding companies), in paragraph 46—</p></intro><level class="para1" eId="section-39-10-a"><num>(a)</num><content><p><mod>in the heading (as amended by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-a">(a)</ref>), after “income” insert <quotedText>“or gain”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-39-10-b"><num>(b)</num><content><p><mod>in <ref href="#d25e5184">sub-paragraph (6A)</ref> (as inserted by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-c">(c)</ref>), after “claim)” insert <quotedText>“and paragraph <ref href="#d25e6681">(c)</ref> of the definition of “qualifying foreign gain” in <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 (foreign gain claims)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-39-11"><num>(11)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection></section></chapter>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-37"><num>37</num><heading>Claim for relief on foreign income</heading><subsection eId="section-37-1"><num>(1)</num><content><p><mod>In Part 8 of ITTOIA 2005 (foreign income: special rules), after Chapter 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter><num>Chapter 5</num><heading>Relief for new residents on foreign income</heading><section eId="d25e4161"><num>845A</num><heading>Claim for relief for qualifying new residents</heading><subsection><num>(1)</num><content><p>An individual may make a claim for relief for a tax year under this section (a “foreign income claim”) if the individual is a qualifying new resident for that year (see section <ref href="#d25e4289">845B</ref>).</p></content></subsection><subsection><num>(2)</num><intro><p>Where an individual makes a foreign income claim for a tax year, the individual is entitled to relief for the tax year that is equal to so much of the total income of the individual for that year as—</p></intro><level class="para1"><num>(a)</num><content><p>reflects qualifying foreign income (see section <ref href="#d25e4624">845H</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>is identified as such in the claim.</p></content></level></subsection><subsection><num>(3)</num><content><p>The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year (see Step 2 of the calculation in section 23 of ITA 2007).</p></content></subsection><subsection><num>(4)</num><content><p>A foreign income claim must be made in a return.</p></content></subsection><subsection><num>(5)</num><content><p>A foreign income claim in relation to a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subsection><subsection><num>(6)</num><content><p>A foreign income claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(7)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e5222">Chapter 5C</ref> of Part 2 of ITEPA 2003 which provides for a claim for relief that may be made in respect of foreign employment income where a foreign employment election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 which provides for a claim for relief that may be made in respect of foreign gains (a foreign gain claim).</p></content></level></subsection><subsection><num>(8)</num><content><p>Sections <ref href="#d25e4407">845C</ref> to <ref href="#d25e4505">845E</ref> set out some income tax consequences of a foreign income claim, a foreign employment election or a foreign gain claim.</p></content></subsection><subsection><num>(9)</num><content><p>See also section 1K of TCGA 1992, which provides for the loss of an individual’s annual exempt amount for capital gains tax where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of TMA 1970 (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim being included in a return include a claim being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply for the purposes of this section as they apply for the purposes of that Act.</p></content></level></subsection></section><section eId="d25e4289"><num>845B</num><heading>Qualifying new residents</heading><subsection eId="d25e4293"><num>(1)</num><intro><p>For the purposes of this Chapter, an individual is a qualifying new resident for a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual is UK resident for that tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is not disqualified for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>for each of the 10 tax years before that tax year, the individual was not UK resident.</p></content></level></subsection><subsection><num>(2)</num><intro><p>An individual is also a qualifying new resident for a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual is UK resident for that tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is not disqualified for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>that tax year is one of the next three tax years after a qualifying tax year in relation to the individual.</p></content></level></subsection><subsection eId="d25e4341"><num>(3)</num><intro><p>A tax year is a qualifying tax year in relation to an individual if—</p></intro><level class="para1" eId="d25e4347"><num>(a)</num><content><p>the individual was a qualifying new resident for that tax year as a result of subsection <ref href="#d25e4293">(1)</ref>,</p></content></level><level class="para1" eId="d25e4356"><num>(b)</num><content><p>the individual would have been a qualifying new resident for that tax year as a result of that subsection, but was not only as a result of the individual being disqualified for that tax year, or</p></content></level><level class="para1"><num>(c)</num><intro><p>the tax year—</p></intro><level class="para2"><num>(i)</num><content><p>is the tax year 2022-23, 2023-24 or 2024-25, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a tax year to which paragraph <ref href="#d25e4347">(a)</ref> or <ref href="#d25e4356">(b)</ref> would have applied in relation to the individual had this section had effect for that tax year.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>An individual is disqualified for a tax year if the individual would, for the purposes of section 41 of the Constitutional Reform and Governance Act 2010, be regarded as—</p></intro><level class="para1"><num>(a)</num><content><p>a member of the House of Commons for any part of that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of the House of Lords for any part of that tax year.</p></content></level></subsection></section><section eId="d25e4407"><num>845C</num><heading>Effect of claim, foreign employment election or foreign gain claim on losses</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e4438">(2)</ref> applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who carries on a relevant business wholly outside the United Kingdom makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual has a loss for that tax year from the relevant business, and</p></content></level><level class="para1"><num>(c)</num><content><p>the profits (if there were any) of the business would be qualifying foreign income for that year.</p></content></level></subsection><subsection eId="d25e4438"><num>(2)</num><content><p>No relief for that loss is available in the tax year for which the claim or election is made or in any other tax year.</p></content></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-relevant-business">relevant business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a trade, profession or vocation, or</p></content></level><level class="para1"><num>(b)</num><content><p>a property business.</p></content></level></subsection></section><section><num>845D</num><heading>Effect of claim, foreign employment election or foreign gain claim: costs of dwelling-related loan</heading><subsection><num>(1)</num><intro><p>This section applies where an individual—</p></intro><level class="para1"><num>(a)</num><content><p>has a relievable amount for a tax year in respect of an overseas property business for the purposes of section 274A (reduction for individuals: entitlement), and</p></content></level><level class="para1"><num>(b)</num><content><p>makes a foreign income claim, a foreign employment election or a foreign gain claim for the tax year.</p></content></level></subsection><subsection><num>(2)</num><content><p>The individual is not entitled to relief under section 274A for that tax year in respect of that relievable amount.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of section 274A, the individual’s brought-forward amount for the following tax year in respect of the overseas property business is nil.</p></content></subsection></section><section eId="d25e4505"><num>845E</num><heading>Effect of claim, foreign employment election or foreign gain claim on personal allowance etc</heading><intro><p>Where an individual makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year, the individual is not entitled, for that year, to—</p></intro><level class="para1"><num>(a)</num><content><p>any allowance under Chapter 2 of Part 3 of ITA 2007 (personal allowance and blind person's allowance),</p></content></level><level class="para1"><num>(b)</num><content><p>any tax reduction under Chapter 3 of that Part (tax reductions for married couples and civil partners),</p></content></level><level class="para1"><num>(c)</num><content><p>any tax reduction under Chapter 3A of that Part (transferable tax allowance for married couples and civil partners), or</p></content></level><level class="para1"><num>(d)</num><content><p>any relief under section 457 or 458 of ITA 2007 (payments for life insurance etc).</p></content></level></section><section><num>845F</num><heading>Effect of claim on relief for contributions to registered pension schemes</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e4569">(2)</ref> applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual makes a foreign income claim for a tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is entitled to relief under section 188 of FA 2004 (relief for contributions) for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>the maximum amount of relief to which the individual is entitled under that section for that tax year is greater than the basic amount within the meaning of section 190(4) of that Act.</p></content></level></subsection><subsection eId="d25e4569"><num>(2)</num><intro><p>The maximum amount of relief to which the individual is entitled under section 188 of that Act for that tax year is to be reduced by the lesser of—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount that would reduce the maximum amount of relief to the basic amount.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “relevant amount” is the amount of the relief to which the individual is entitled under section 845A(2) of this Act as a result of making the foreign income claim, so far as that amount reflects relevant qualifying foreign income.</p></content></subsection><subsection><num>(4)</num><content><p>An amount of qualifying foreign income is “relevant qualifying foreign income” if the income is relevant UK earnings within the meaning of section 189(2) of FA 2004.</p></content></subsection></section><section><num>845G</num><heading>Foreign income relief ignored for purposes of determining adjusted net income</heading><subsection><num>(1)</num><content><p>Subsection <ref href="#d25e4615">(2)</ref> applies for the purpose of determining the adjusted net income under section 58 of ITA 2007 of an individual for a tax year for which the individual has made a foreign income claim.</p></content></subsection><subsection eId="d25e4615"><num>(2)</num><content><p>The adjusted net income is to be determined as if the relief allowed by the claim had not been deducted in calculating the individual's net income for the tax year.</p></content></subsection></section><section eId="d25e4624"><num>845H</num><heading>Qualifying foreign income</heading><intro><p>Income is qualifying foreign income if it—</p></intro><level class="para1"><num>(a)</num><content><p>falls within a description set out in the following table, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not disqualified income (see section <ref href="#d25e4782">845I</ref>).</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>No.</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Description</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Profits of a trade carried on wholly outside the United Kingdom (see Chapter 2 of Part 2).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A UK resident partner’s share of the profits of a trade carried on by the firm wholly outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Profits of an overseas property business.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Adjustment income (within the meaning of Chapter 17 of Part 2) in respect of a trade carried on wholly outside the United Kingdom (see that Chapter).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 2 of Part 4 (interest) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 4 of Part 4 (dividends from non-UK resident companies).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 7 of Part 4 (purchase life annuity payments) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 8 of Part 4 (profits from deeply discounted securities) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under section 579 (royalties and other incored.me from intellectual property) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 3 of Part 5 (films and sound recordings: non-trading businesses) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 4 of Part 5 (certain telecommunication rights: non-trading income) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income that arises from a source outside the United Kingdom and that is treated as arising to an individual under section 624 or 629 (income arising under settlement attributed to settlor).</p></default:td></default:tr><default:tr><default:td rowspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">13</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much of any amount of income treated as arising to an individual under section 633 (capital sums paid to settlor by trustees of settlement) for the tax year as falls within the foreign amount of income available up to the end of the tax year.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The foreign amount of income available up to the end of a tax year is the amount that would be determined, in accordance with sections 635 to 637 (amount of available income), as the amount of income available up to the end of the tax year if all income arising under the settlement from a source in the United Kingdom were ignored.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income treated as arising to an individual under section 643A (benefits paid out of protected income).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under section 649 (estate income) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">16</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 7 of Part 5 (annual payments not otherwise charged) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 8 of Part 5 (income not otherwise charged) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Accrued income profits (within the meaning of Part 12 of ITA 2007) made by an individual as a result of a transfer of securities if income from the securities would be qualifying foreign income.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income treated as arising under regulation 17 of the Offshore Funds (Tax) Regulations 2009 (offshore income gains).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income that is treated as arising to an individual under section 721, 728 or 732 of ITA 2007 (transfer of assets abroad: deemed income) and that is “<term refersTo="#term-foreign">foreign</term>” for the purposes of (respectively) section 726, 730 or 735 of that Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Pension income that arises from a source outside the United Kingdom (see Part 9 of ITEPA 2003).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A benefit to which section 678 of ITEPA 2003 applies (foreign social security benefits).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The foreign proportion (see paragraph 46 of Schedule 2 to FA 2022) of income arising as a result of the payment of interest, or the making of a distribution or qualified distribution (within the meaning of paragraph 45(5) of that Schedule), by a QAHC (within the meaning of that Schedule).</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></level></section><section eId="d25e4782"><num>845I</num><heading>Disqualified income</heading><intro><p>Income is disqualified income if—</p></intro><level class="para1"><num>(a)</num><content><p>it is income of a settlement (within the meaning of Chapter 5 of Part 5) arising in the tax year 2024-25 or an earlier tax year that is treated as arising in tax year 2025-26 or a later year as a result of section 648(3) to (5),</p></content></level><level class="para1"><num>(b)</num><content><p>it is income arising from a security treated as situated in the United Kingdom as a result of section 138ZB of TCGA 1992 (share exchanges involving non-UK incorporated close companies),</p></content></level><level class="para1"><num>(c)</num><content><p>it is income chargeable to income tax as a result of section 809AZB of ITA 2007 (transferred income streams),</p></content></level><level class="para1"><num>(d)</num><content><p>it is performance income (see <ref href="#d25e4845">section 845J</ref>),</p></content></level><level class="para1"><num>(e)</num><content><p>it is income from a pension to which section 629 of ITEPA 2003 applies (pre-1973 pensions paid under the Overseas Pensions Act 1973), or</p></content></level><level class="para1"><num>(f)</num><intro><p>it is a payment made to or in respect of—</p></intro><level class="para2"><num>(i)</num><content><p>a relieved member of a relevant non-UK scheme (within the meaning of Schedule 34 to FA 2004), or</p></content></level><level class="para2"><num>(ii)</num><content><p>a transfer member of such a scheme,</p></content></level><wrapUp><p>to which the member payment provisions (within the meaning of that Schedule) apply.</p></wrapUp></level></section><section eId="d25e4845"><num>845J</num><heading>Performance income</heading><subsection><num>(1)</num><content><p>Performance income is any income chargeable to income tax (however that charge arises) that results, directly or indirectly, from the performance of a relevant activity by a performer (whether performed in the United Kingdom or not).</p></content></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-performer">Performer</term>” means any individual who gives performances of entertainment or sport.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section “<term refersTo="#term-performances-of-entertainment-or-sport">performances of entertainment or sport</term>” includes any activity of a physical kind performed by an individual (alone or with others) which is or may be made available to the public or any section of the public, whether for payment or not.</p></content></subsection><subsection><num>(4)</num><intro><p>The following are “relevant activities”—</p></intro><level class="para1"><num>(a)</num><content><p>the giving of a performance of entertainment or sport;</p></content></level><level class="para1"><num>(b)</num><content><p>the participation of the performer in any sound or video recording;</p></content></level><level class="para1"><num>(c)</num><content><p>any activity in connection with a commercial occasion or event (including the appearance of the performer in connection with the occasion or event).</p></content></level></subsection><subsection><num>(5)</num><intro><p>The reference to a commercial occasion or event includes any description of occasion or event—</p></intro><level class="para1"><num>(a)</num><content><p>for which any person might receive or become entitled, as a result of anything done by the performer, to receive anything by way of cash or any other form of property; or</p></content></level><level class="para1"><num>(b)</num><content><p>which is designed to promote commercial sales or activity by advertising, the endorsement of goods or services, sponsorship, or other promotional means of any kind.</p></content></level></subsection></section></chapter></quotedStructure></mod></p></content></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>In <ref eId="c00030" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><intro><p>in section 24 (reliefs deductible at Step 2), in subsection (1)(a)—</p></intro><level class="para2" eId="section-37-2-a-i"><num>(i)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section <ref href="#d25e4161">845A</ref> of ITTOIA 2005 (claim for relief for qualifying new residents), and</p></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-a-ii"><num>(ii)</num><content><p>at the end of the entry for <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">section 193</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">(4)</a> of <ref eId="c00031" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>, omit the “and”,</p></content></level></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p><mod>in section 34 (personal allowance and blind person’s allowance) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any allowance under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-c"><num>(c)</num><content><p><mod>in section 55A (transferable tax allowance for married couples and civil partners) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any tax reduction under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-d"><num>(d)</num><content><p><mod>in section 460 (residence of claimants for relief under section 457 or 458) for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTOIA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any relief under section 457 or 458 for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-e"><num>(e)</num><intro><p>in section 809EZA (disguised investment management fees: charge to income tax)—</p></intro><level class="para2" eId="section-37-2-e-i"><num>(i)</num><content><p><mod>in subsection (2A), for paragraphs (d) and (e) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual makes a foreign income claim for the relevant tax year.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-e-ii"><num>(ii)</num><content><p><mod>in subsection (2C), for “before the end of the period of non-residence” substitute <quotedText startQuote="“">in any period—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>ending immediately before a qualifying tax year in relation to the individual (within the meaning of <ref href="#d25e4289">section 845B</ref><ref href="#d25e4341">(3)</ref> of ITTOIA (qualifying new residents)), and</p></content></level><level class="para1"><num>(b)</num><content><p>that consists only of tax years for which the individual is not UK resident.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="section-37-2-f"><num>(f)</num><content><p><mod>in section 989 (the definitions), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning it has in Chapter 5 of Part 8 of ITTOIA 2005 (see section <ref href="#d25e4289">845B</ref> of that Act).</p></content></hcontainer></quotedStructure></mod></p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><intro><p>In paragraph 46 of Schedule 2 to FA 2022 (qualifying asset holding companies)—</p></intro><level class="para1" eId="section-37-3-a"><num>(a)</num><content><p><mod>in the heading for “applies” substitute <quotedText>“applied or who makes a foreign income claim”</quotedText>,</mod></p></content></level><level class="para1" eId="section-37-3-b"><num>(b)</num><intro><p>in sub-paragraph (1)—</p></intro><level class="para2" eId="section-37-3-b-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “This paragraph applies” substitute <quotedText>“Sub-paragraphs (2) and (3) apply”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-37-3-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="section-37-3-c"><num>(c)</num><content><p><mod>after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e5184"><num>(6A)</num><content><p>Sub-paragraphs (4) to (6) also apply for the purposes of item 22 in the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (qualifying foreign income for the purposes of foreign income claim).</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-37-4"><num>(4)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-37-1"><num>(1)</num><content><p><mod>In Part 8 of ITTOIA 2005 (foreign income: special rules), after Chapter 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter><num>Chapter 5</num><heading>Relief for new residents on foreign income</heading><section eId="d25e4161"><num>845A</num><heading>Claim for relief for qualifying new residents</heading><subsection><num>(1)</num><content><p>An individual may make a claim for relief for a tax year under this section (a “foreign income claim”) if the individual is a qualifying new resident for that year (see section <ref href="#d25e4289">845B</ref>).</p></content></subsection><subsection><num>(2)</num><intro><p>Where an individual makes a foreign income claim for a tax year, the individual is entitled to relief for the tax year that is equal to so much of the total income of the individual for that year as—</p></intro><level class="para1"><num>(a)</num><content><p>reflects qualifying foreign income (see section <ref href="#d25e4624">845H</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>is identified as such in the claim.</p></content></level></subsection><subsection><num>(3)</num><content><p>The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year (see Step 2 of the calculation in section 23 of ITA 2007).</p></content></subsection><subsection><num>(4)</num><content><p>A foreign income claim must be made in a return.</p></content></subsection><subsection><num>(5)</num><content><p>A foreign income claim in relation to a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subsection><subsection><num>(6)</num><content><p>A foreign income claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(7)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e5222">Chapter 5C</ref> of Part 2 of ITEPA 2003 which provides for a claim for relief that may be made in respect of foreign employment income where a foreign employment election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 which provides for a claim for relief that may be made in respect of foreign gains (a foreign gain claim).</p></content></level></subsection><subsection><num>(8)</num><content><p>Sections <ref href="#d25e4407">845C</ref> to <ref href="#d25e4505">845E</ref> set out some income tax consequences of a foreign income claim, a foreign employment election or a foreign gain claim.</p></content></subsection><subsection><num>(9)</num><content><p>See also section 1K of TCGA 1992, which provides for the loss of an individual’s annual exempt amount for capital gains tax where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of TMA 1970 (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim being included in a return include a claim being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply for the purposes of this section as they apply for the purposes of that Act.</p></content></level></subsection></section><section eId="d25e4289"><num>845B</num><heading>Qualifying new residents</heading><subsection eId="d25e4293"><num>(1)</num><intro><p>For the purposes of this Chapter, an individual is a qualifying new resident for a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual is UK resident for that tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is not disqualified for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>for each of the 10 tax years before that tax year, the individual was not UK resident.</p></content></level></subsection><subsection><num>(2)</num><intro><p>An individual is also a qualifying new resident for a tax year if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual is UK resident for that tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is not disqualified for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>that tax year is one of the next three tax years after a qualifying tax year in relation to the individual.</p></content></level></subsection><subsection eId="d25e4341"><num>(3)</num><intro><p>A tax year is a qualifying tax year in relation to an individual if—</p></intro><level class="para1" eId="d25e4347"><num>(a)</num><content><p>the individual was a qualifying new resident for that tax year as a result of subsection <ref href="#d25e4293">(1)</ref>,</p></content></level><level class="para1" eId="d25e4356"><num>(b)</num><content><p>the individual would have been a qualifying new resident for that tax year as a result of that subsection, but was not only as a result of the individual being disqualified for that tax year, or</p></content></level><level class="para1"><num>(c)</num><intro><p>the tax year—</p></intro><level class="para2"><num>(i)</num><content><p>is the tax year 2022-23, 2023-24 or 2024-25, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a tax year to which paragraph <ref href="#d25e4347">(a)</ref> or <ref href="#d25e4356">(b)</ref> would have applied in relation to the individual had this section had effect for that tax year.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>An individual is disqualified for a tax year if the individual would, for the purposes of section 41 of the Constitutional Reform and Governance Act 2010, be regarded as—</p></intro><level class="para1"><num>(a)</num><content><p>a member of the House of Commons for any part of that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of the House of Lords for any part of that tax year.</p></content></level></subsection></section><section eId="d25e4407"><num>845C</num><heading>Effect of claim, foreign employment election or foreign gain claim on losses</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e4438">(2)</ref> applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who carries on a relevant business wholly outside the United Kingdom makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual has a loss for that tax year from the relevant business, and</p></content></level><level class="para1"><num>(c)</num><content><p>the profits (if there were any) of the business would be qualifying foreign income for that year.</p></content></level></subsection><subsection eId="d25e4438"><num>(2)</num><content><p>No relief for that loss is available in the tax year for which the claim or election is made or in any other tax year.</p></content></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-relevant-business">relevant business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a trade, profession or vocation, or</p></content></level><level class="para1"><num>(b)</num><content><p>a property business.</p></content></level></subsection></section><section><num>845D</num><heading>Effect of claim, foreign employment election or foreign gain claim: costs of dwelling-related loan</heading><subsection><num>(1)</num><intro><p>This section applies where an individual—</p></intro><level class="para1"><num>(a)</num><content><p>has a relievable amount for a tax year in respect of an overseas property business for the purposes of section 274A (reduction for individuals: entitlement), and</p></content></level><level class="para1"><num>(b)</num><content><p>makes a foreign income claim, a foreign employment election or a foreign gain claim for the tax year.</p></content></level></subsection><subsection><num>(2)</num><content><p>The individual is not entitled to relief under section 274A for that tax year in respect of that relievable amount.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of section 274A, the individual’s brought-forward amount for the following tax year in respect of the overseas property business is nil.</p></content></subsection></section><section eId="d25e4505"><num>845E</num><heading>Effect of claim, foreign employment election or foreign gain claim on personal allowance etc</heading><intro><p>Where an individual makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year, the individual is not entitled, for that year, to—</p></intro><level class="para1"><num>(a)</num><content><p>any allowance under Chapter 2 of Part 3 of ITA 2007 (personal allowance and blind person's allowance),</p></content></level><level class="para1"><num>(b)</num><content><p>any tax reduction under Chapter 3 of that Part (tax reductions for married couples and civil partners),</p></content></level><level class="para1"><num>(c)</num><content><p>any tax reduction under Chapter 3A of that Part (transferable tax allowance for married couples and civil partners), or</p></content></level><level class="para1"><num>(d)</num><content><p>any relief under section 457 or 458 of ITA 2007 (payments for life insurance etc).</p></content></level></section><section><num>845F</num><heading>Effect of claim on relief for contributions to registered pension schemes</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e4569">(2)</ref> applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual makes a foreign income claim for a tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is entitled to relief under section 188 of FA 2004 (relief for contributions) for that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>the maximum amount of relief to which the individual is entitled under that section for that tax year is greater than the basic amount within the meaning of section 190(4) of that Act.</p></content></level></subsection><subsection eId="d25e4569"><num>(2)</num><intro><p>The maximum amount of relief to which the individual is entitled under section 188 of that Act for that tax year is to be reduced by the lesser of—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount that would reduce the maximum amount of relief to the basic amount.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “relevant amount” is the amount of the relief to which the individual is entitled under section 845A(2) of this Act as a result of making the foreign income claim, so far as that amount reflects relevant qualifying foreign income.</p></content></subsection><subsection><num>(4)</num><content><p>An amount of qualifying foreign income is “relevant qualifying foreign income” if the income is relevant UK earnings within the meaning of section 189(2) of FA 2004.</p></content></subsection></section><section><num>845G</num><heading>Foreign income relief ignored for purposes of determining adjusted net income</heading><subsection><num>(1)</num><content><p>Subsection <ref href="#d25e4615">(2)</ref> applies for the purpose of determining the adjusted net income under section 58 of ITA 2007 of an individual for a tax year for which the individual has made a foreign income claim.</p></content></subsection><subsection eId="d25e4615"><num>(2)</num><content><p>The adjusted net income is to be determined as if the relief allowed by the claim had not been deducted in calculating the individual's net income for the tax year.</p></content></subsection></section><section eId="d25e4624"><num>845H</num><heading>Qualifying foreign income</heading><intro><p>Income is qualifying foreign income if it—</p></intro><level class="para1"><num>(a)</num><content><p>falls within a description set out in the following table, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not disqualified income (see section <ref href="#d25e4782">845I</ref>).</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>No.</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Description</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Profits of a trade carried on wholly outside the United Kingdom (see Chapter 2 of Part 2).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A UK resident partner’s share of the profits of a trade carried on by the firm wholly outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Profits of an overseas property business.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Adjustment income (within the meaning of Chapter 17 of Part 2) in respect of a trade carried on wholly outside the United Kingdom (see that Chapter).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 2 of Part 4 (interest) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 4 of Part 4 (dividends from non-UK resident companies).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 7 of Part 4 (purchase life annuity payments) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 8 of Part 4 (profits from deeply discounted securities) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under section 579 (royalties and other incored.me from intellectual property) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 3 of Part 5 (films and sound recordings: non-trading businesses) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 4 of Part 5 (certain telecommunication rights: non-trading income) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income that arises from a source outside the United Kingdom and that is treated as arising to an individual under section 624 or 629 (income arising under settlement attributed to settlor).</p></default:td></default:tr><default:tr><default:td rowspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">13</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much of any amount of income treated as arising to an individual under section 633 (capital sums paid to settlor by trustees of settlement) for the tax year as falls within the foreign amount of income available up to the end of the tax year.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The foreign amount of income available up to the end of a tax year is the amount that would be determined, in accordance with sections 635 to 637 (amount of available income), as the amount of income available up to the end of the tax year if all income arising under the settlement from a source in the United Kingdom were ignored.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income treated as arising to an individual under section 643A (benefits paid out of protected income).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under section 649 (estate income) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">16</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 7 of Part 5 (annual payments not otherwise charged) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income chargeable under Chapter 8 of Part 5 (income not otherwise charged) that arises from a source outside the United Kingdom.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Accrued income profits (within the meaning of Part 12 of ITA 2007) made by an individual as a result of a transfer of securities if income from the securities would be qualifying foreign income.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income treated as arising under regulation 17 of the Offshore Funds (Tax) Regulations 2009 (offshore income gains).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income that is treated as arising to an individual under section 721, 728 or 732 of ITA 2007 (transfer of assets abroad: deemed income) and that is “<term refersTo="#term-foreign">foreign</term>” for the purposes of (respectively) section 726, 730 or 735 of that Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Pension income that arises from a source outside the United Kingdom (see Part 9 of ITEPA 2003).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A benefit to which section 678 of ITEPA 2003 applies (foreign social security benefits).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The foreign proportion (see paragraph 46 of Schedule 2 to FA 2022) of income arising as a result of the payment of interest, or the making of a distribution or qualified distribution (within the meaning of paragraph 45(5) of that Schedule), by a QAHC (within the meaning of that Schedule).</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></level></section><section eId="d25e4782"><num>845I</num><heading>Disqualified income</heading><intro><p>Income is disqualified income if—</p></intro><level class="para1"><num>(a)</num><content><p>it is income of a settlement (within the meaning of Chapter 5 of Part 5) arising in the tax year 2024-25 or an earlier tax year that is treated as arising in tax year 2025-26 or a later year as a result of section 648(3) to (5),</p></content></level><level class="para1"><num>(b)</num><content><p>it is income arising from a security treated as situated in the United Kingdom as a result of section 138ZB of TCGA 1992 (share exchanges involving non-UK incorporated close companies),</p></content></level><level class="para1"><num>(c)</num><content><p>it is income chargeable to income tax as a result of section 809AZB of ITA 2007 (transferred income streams),</p></content></level><level class="para1"><num>(d)</num><content><p>it is performance income (see <ref href="#d25e4845">section 845J</ref>),</p></content></level><level class="para1"><num>(e)</num><content><p>it is income from a pension to which section 629 of ITEPA 2003 applies (pre-1973 pensions paid under the Overseas Pensions Act 1973), or</p></content></level><level class="para1"><num>(f)</num><intro><p>it is a payment made to or in respect of—</p></intro><level class="para2"><num>(i)</num><content><p>a relieved member of a relevant non-UK scheme (within the meaning of Schedule 34 to FA 2004), or</p></content></level><level class="para2"><num>(ii)</num><content><p>a transfer member of such a scheme,</p></content></level><wrapUp><p>to which the member payment provisions (within the meaning of that Schedule) apply.</p></wrapUp></level></section><section eId="d25e4845"><num>845J</num><heading>Performance income</heading><subsection><num>(1)</num><content><p>Performance income is any income chargeable to income tax (however that charge arises) that results, directly or indirectly, from the performance of a relevant activity by a performer (whether performed in the United Kingdom or not).</p></content></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-performer">Performer</term>” means any individual who gives performances of entertainment or sport.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section “<term refersTo="#term-performances-of-entertainment-or-sport">performances of entertainment or sport</term>” includes any activity of a physical kind performed by an individual (alone or with others) which is or may be made available to the public or any section of the public, whether for payment or not.</p></content></subsection><subsection><num>(4)</num><intro><p>The following are “relevant activities”—</p></intro><level class="para1"><num>(a)</num><content><p>the giving of a performance of entertainment or sport;</p></content></level><level class="para1"><num>(b)</num><content><p>the participation of the performer in any sound or video recording;</p></content></level><level class="para1"><num>(c)</num><content><p>any activity in connection with a commercial occasion or event (including the appearance of the performer in connection with the occasion or event).</p></content></level></subsection><subsection><num>(5)</num><intro><p>The reference to a commercial occasion or event includes any description of occasion or event—</p></intro><level class="para1"><num>(a)</num><content><p>for which any person might receive or become entitled, as a result of anything done by the performer, to receive anything by way of cash or any other form of property; or</p></content></level><level class="para1"><num>(b)</num><content><p>which is designed to promote commercial sales or activity by advertising, the endorsement of goods or services, sponsorship, or other promotional means of any kind.</p></content></level></subsection></section></chapter></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-37-2"><num>(2)</num><intro><p>In <ref eId="c00030" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><intro><p>in section 24 (reliefs deductible at Step 2), in subsection (1)(a)—</p></intro><level class="para2" eId="section-37-2-a-i"><num>(i)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section <ref href="#d25e4161">845A</ref> of ITTOIA 2005 (claim for relief for qualifying new residents), and</p></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-a-ii"><num>(ii)</num><content><p>at the end of the entry for <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">section 193</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">(4)</a> of <ref eId="c00031" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>, omit the “and”,</p></content></level></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p><mod>in section 34 (personal allowance and blind person’s allowance) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any allowance under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-c"><num>(c)</num><content><p><mod>in section 55A (transferable tax allowance for married couples and civil partners) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any tax reduction under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-d"><num>(d)</num><content><p><mod>in section 460 (residence of claimants for relief under section 457 or 458) for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTOIA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any relief under section 457 or 458 for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-37-2-e"><num>(e)</num><intro><p>in section 809EZA (disguised investment management fees: charge to income tax)—</p></intro><level class="para2" eId="section-37-2-e-i"><num>(i)</num><content><p><mod>in subsection (2A), for paragraphs (d) and (e) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual makes a foreign income claim for the relevant tax year.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-e-ii"><num>(ii)</num><content><p><mod>in subsection (2C), for “before the end of the period of non-residence” substitute <quotedText startQuote="“">in any period—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>ending immediately before a qualifying tax year in relation to the individual (within the meaning of <ref href="#d25e4289">section 845B</ref><ref href="#d25e4341">(3)</ref> of ITTOIA (qualifying new residents)), and</p></content></level><level class="para1"><num>(b)</num><content><p>that consists only of tax years for which the individual is not UK resident.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="section-37-2-f"><num>(f)</num><content><p><mod>in section 989 (the definitions), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning it has in Chapter 5 of Part 8 of ITTOIA 2005 (see section <ref href="#d25e4289">845B</ref> of that Act).</p></content></hcontainer></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-2-a"><num>(a)</num><intro><p>in section 24 (reliefs deductible at Step 2), in subsection (1)(a)—</p></intro><level class="para2" eId="section-37-2-a-i"><num>(i)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section <ref href="#d25e4161">845A</ref> of ITTOIA 2005 (claim for relief for qualifying new residents), and</p></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-a-ii"><num>(ii)</num><content><p>at the end of the entry for <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">section 193</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">(4)</a> of <ref eId="c00031" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>, omit the “and”,</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-37-2-a-i"><num>(i)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section <ref href="#d25e4161">845A</ref> of ITTOIA 2005 (claim for relief for qualifying new residents), and</p></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-37-2-a-ii"><num>(ii)</num><content><p>at the end of the entry for <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">section 193</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/193">(4)</a> of <ref eId="c00031" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref>, omit the “and”,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-2-b"><num>(b)</num><content><p><mod>in section 34 (personal allowance and blind person’s allowance) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any allowance under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-2-c"><num>(c)</num><content><p><mod>in section 55A (transferable tax allowance for married couples and civil partners) for subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any tax reduction under this Chapter for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-2-d"><num>(d)</num><content><p><mod>in section 460 (residence of claimants for relief under section 457 or 458) for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e4505">section 845E</ref> of ITTOIA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made.</p></content></level><wrapUp><p>Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any relief under section 457 or 458 for that tax year.</p></wrapUp></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-2-e"><num>(e)</num><intro><p>in section 809EZA (disguised investment management fees: charge to income tax)—</p></intro><level class="para2" eId="section-37-2-e-i"><num>(i)</num><content><p><mod>in subsection (2A), for paragraphs (d) and (e) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual makes a foreign income claim for the relevant tax year.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-37-2-e-ii"><num>(ii)</num><content><p><mod>in subsection (2C), for “before the end of the period of non-residence” substitute <quotedText startQuote="“">in any period—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>ending immediately before a qualifying tax year in relation to the individual (within the meaning of <ref href="#d25e4289">section 845B</ref><ref href="#d25e4341">(3)</ref> of ITTOIA (qualifying new residents)), and</p></content></level><level class="para1"><num>(b)</num><content><p>that consists only of tax years for which the individual is not UK resident.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-37-2-e-i"><num>(i)</num><content><p><mod>in subsection (2A), for paragraphs (d) and (e) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual makes a foreign income claim for the relevant tax year.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-37-2-e-ii"><num>(ii)</num><content><p><mod>in subsection (2C), for “before the end of the period of non-residence” substitute <quotedText startQuote="“">in any period—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>ending immediately before a qualifying tax year in relation to the individual (within the meaning of <ref href="#d25e4289">section 845B</ref><ref href="#d25e4341">(3)</ref> of ITTOIA (qualifying new residents)), and</p></content></level><level class="para1"><num>(b)</num><content><p>that consists only of tax years for which the individual is not UK resident.</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-2-f"><num>(f)</num><content><p><mod>in section 989 (the definitions), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning it has in Chapter 5 of Part 8 of ITTOIA 2005 (see section <ref href="#d25e4289">845B</ref> of that Act).</p></content></hcontainer></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-37-3"><num>(3)</num><intro><p>In paragraph 46 of Schedule 2 to FA 2022 (qualifying asset holding companies)—</p></intro><level class="para1" eId="section-37-3-a"><num>(a)</num><content><p><mod>in the heading for “applies” substitute <quotedText>“applied or who makes a foreign income claim”</quotedText>,</mod></p></content></level><level class="para1" eId="section-37-3-b"><num>(b)</num><intro><p>in sub-paragraph (1)—</p></intro><level class="para2" eId="section-37-3-b-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “This paragraph applies” substitute <quotedText>“Sub-paragraphs (2) and (3) apply”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-37-3-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="section-37-3-c"><num>(c)</num><content><p><mod>after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e5184"><num>(6A)</num><content><p>Sub-paragraphs (4) to (6) also apply for the purposes of item 22 in the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (qualifying foreign income for the purposes of foreign income claim).</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-3-a"><num>(a)</num><content><p><mod>in the heading for “applies” substitute <quotedText>“applied or who makes a foreign income claim”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-3-b"><num>(b)</num><intro><p>in sub-paragraph (1)—</p></intro><level class="para2" eId="section-37-3-b-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “This paragraph applies” substitute <quotedText>“Sub-paragraphs (2) and (3) apply”</quotedText>, and</mod></p></content></level><level class="para2" eId="section-37-3-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>, and</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-37-3-b-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “This paragraph applies” substitute <quotedText>“Sub-paragraphs (2) and (3) apply”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-37-3-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-3-c"><num>(c)</num><content><p><mod>after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e5184"><num>(6A)</num><content><p>Sub-paragraphs (4) to (6) also apply for the purposes of item 22 in the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (qualifying foreign income for the purposes of foreign income claim).</p></content></subparagraph></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-4"><num>(4)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-38"><num>38</num><heading>Claim for relief on foreign employment income</heading><subsection eId="section-38-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/part/2">Part 2</a> of <ref eId="c00032" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax), after <a href="https://www.legislation.gov.uk/ukpga/2003/1/part/2/chapter/5B">Chapter 5B</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e5222"><num>Chapter 5C</num><heading>Relief for new residents on foreign employment income</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Foreign employment election</heading><section eId="d25e5233"><num>41M</num><heading>Foreign employment election for qualifying new residents</heading><subsection><num>(1)</num><content><p>This Chapter applies if an individual is a qualifying new resident for a tax year (the “qualifying year”).</p></content></subsection><subsection><num>(2)</num><content><p>An individual is a qualifying new resident for a tax year for the purposes of this Chapter if the individual is a qualifying new resident for the tax year for the purposes of Chapter 5 of Part 8 of ITTOIA 2005 (see <ref href="#d25e4289">section 845B</ref> of that Act).</p></content></subsection><subsection><num>(3)</num><content><p>The individual may make an election for the qualifying year under this section (“a foreign employment election”).</p></content></subsection><subsection><num>(4)</num><intro><p>Section <ref href="#d25e5493">41P</ref> makes provision about a claim for relief—</p></intro><level class="para1"><num>(a)</num><content><p>which an individual can make for the qualifying year or any subsequent tax year, where the individual has made a foreign employment election, and</p></content></level><level class="para1"><num>(b)</num><content><p>which entitles the individual to relief in that year calculated by reference to employment income that is in respect of the qualifying year.</p></content></level></subsection><subsection><num>(5)</num><content><p>Sections <ref href="#d25e5572">41Q</ref> (amount of relief available) and <ref href="#d25e5700">41R</ref> (limit on relief) set out how to determine the amount of relief to which the individual is entitled.</p></content></subsection><subsection><num>(6)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>sections 845C to 845E of ITTOIA 2005, which set out some income tax consequences of a foreign employment election, and</p></content></level><level class="para1"><num>(b)</num><content><p>section 1K of TCGA 1992, which provides for the loss of the individual’s annual exempt amount for capital gains tax where a foreign employment election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>A foreign employment election must be made in a return.</p></content></subsection><subsection><num>(8)</num><content><p>A foreign employment election for the qualifying year must be made before the end of the period of 12 months beginning with 31 January after the end of the qualifying year.</p></content></subsection><subsection><num>(9)</num><content><p>A foreign employment election may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(10)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of TMA 1970 (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim or election being included in a return include a claim or election being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Key definitions</heading><section><num>41N</num><heading>Key definitions</heading><subsection><num>(1)</num><content><p>This section sets out some definitions that apply for the purposes of this Chapter.</p></content></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-qualifying-employment-income">Qualifying employment income</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying general earnings,</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying third party income, and</p></content></level><level class="para1"><num>(c)</num><content><p>qualifying securities income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-qualifying-foreign-employment-income">Qualifying foreign employment income</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying foreign general earnings,</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying foreign third party income, and</p></content></level><level class="para1"><num>(c)</num><content><p>qualifying foreign securities income.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Section <ref href="#d25e5826">41T</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for general earnings to be “qualifying general earnings”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying general earnings to be “qualifying foreign general earnings”.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Section <ref href="#d25e5853">41U</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for third party income to be “qualifying third party income”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying third party income to be “qualifying foreign third party income”.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Section <ref href="#d25e5922">41V</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for securities income to be “qualifying securities income”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying securities income to be “qualifying foreign securities income”.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Claim for relief</heading><section eId="d25e5493"><num>41P</num><heading>Claim for relief for qualifying new residents</heading><subsection><num>(1)</num><content><p>Where an individual has made a foreign employment election, the individual may make a claim for relief for the qualifying year or any subsequent tax year (“a foreign employment relief claim”).</p></content></subsection><subsection eId="d25e5503"><num>(2)</num><intro><p>Where an individual makes a foreign employment relief claim for a tax year, the individual is entitled to relief that is equal to so much of the net taxable employment income for that year as—</p></intro><level class="para1"><num>(a)</num><content><p>reflects qualifying foreign employment income (see section <ref href="#d25e5572">41Q</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>is identified as such in the claim.</p></content></level></subsection><subsection eId="d25e5524"><num>(3)</num><content><p>But <ref href="#d25e5503">subsection (2)</ref> only applies to the extent the total amount of the relief given does not exceed the limit (see <ref href="#d25e5700">section 41R</ref>).</p></content></subsection><subsection><num>(4)</num><content><p>The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year for which the claim is made (see Step 2 of the calculation in section 23 of ITA 2007).</p></content></subsection><subsection><num>(5)</num><content><p>A foreign employment relief claim must be made in a return.</p></content></subsection><subsection><num>(6)</num><content><p>A foreign employment relief claim for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subsection><subsection><num>(7)</num><content><p>A foreign employment relief claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-net-taxable-employment-income">net taxable employment income</term>”, in relation to a tax year, means the employment income on which the individual is charged to tax for the tax year (see section 9(1)).</p></content></subsection></section><section eId="d25e5572"><num>41Q</num><heading>Amount of relief available</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e5493">section 41P</ref><ref href="#d25e5503">(2)</ref>, the amount of net taxable employment income for a tax year that “reflects” qualifying foreign employment income is the total of—</p></intro><level class="para1"><num>(a)</num><content><p>the total of the amount of the net taxable earnings from each employment in the tax year that reflects qualifying foreign general earnings (see subsections <ref href="#d25e5608">(2)</ref> to <ref href="#d25e5981">(5)</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>the total of the amount of the net taxable specific income from each employment for the tax year that reflects qualifying foreign third party income or qualifying foreign securities income (see <ref href="#d25e6051">subsection (6)</ref>).</p></content></level></subsection><subsection eId="d25e5608"><num>(2)</num><intro><p>The amount of the net taxable earnings from an employment in a tax year that “reflects” qualifying foreign general earnings is—</p></intro><level class="para1"><num>(a)</num><content><p>the amount of the taxable earnings from the employment in the tax year that are qualifying foreign general earnings, minus</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the qualifying deductions.</p></content></level></subsection><subsection><num>(3)</num><content><p>If the amount calculated under <ref href="#d25e5608">subsection (2)</ref> is nil or a negative amount, then none of the net taxable earnings from the employment in the tax year reflect qualifying foreign general earnings.</p></content></subsection><subsection><num>(4)</num><content><p>If the foreign employment relief claim is for the qualifying year, the amount of the qualifying deductions is the proportion of the total deductions that is the same as the proportion of the claim year taxable earnings that are qualifying foreign general earnings.</p></content></subsection><subsection><num>(5)</num><content><p>If the foreign employment relief claim is for a subsequent tax year, the amount of the qualifying deductions is the amount resulting from the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Deduct the claim year taxable earnings from the total deductions.</p><p>If the result is nil or a negative amount, there are no qualifying deductions.</p></item><item><p><i>Step 2</i></p><p>Deduct any other taxable earnings that are not qualifying foreign general earnings.</p><p>If the result is nil or a negative amount, there are no qualifying deductions.</p></item></blockList></content></subsection><subsection><num>(6)</num><content><p>The proportion of the net taxable specific income from an employment for a tax year that “reflects” qualifying foreign third party income or qualifying foreign securities income is the same as the proportion of the taxable specific income for the employment in that year that is qualifying foreign third party income or qualifying foreign securities income.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-claim-year-taxable-earnings">claim year taxable earnings</term>” means the taxable earnings from the employment in the tax year that are “for” the year for which the claim is made determined in accordance with section 16 and 17;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-total-deductions">total deductions</term>” means the total amount of any deductions allowed from the taxable earnings from the employment in the tax year under provisions listed in section 327(3) to (5) (see section 11(1)).</p></content></hcontainer></subsection></section><section eId="d25e5700"><num>41R</num><heading>Limit on relief</heading><subsection><num>(1)</num><content><p>This section sets out how to determine the limit on the amount of relief the individual is entitled to when making a foreign employment relief claim for a year for the purposes of <ref href="#d25e5493">section 41P</ref><ref href="#d25e5524">(3)</ref>.</p></content></subsection><subsection><num>(2)</num><intro><p>The limit is the lesser of—</p></intro><level class="para1"><num>(a)</num><content><p>30% of the relevant qualifying employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>£300,000.</p></content></level></subsection><subsection eId="d25e5733"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-relevant-qualifying-employment-income">relevant qualifying employment income</term>” means—</p></intro><level class="para1" eId="d25e5742"><num>(a)</num><content><p>so much of the net taxable employment income for the tax year for which the claim is made as reflects qualifying employment income, and</p></content></level><level class="para1" eId="d25e5748"><num>(b)</num><content><p>if the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, so much of any net taxable employment income for any earlier tax year (but not any tax year before the qualifying year) as would reflect qualifying employment income if that earlier year was the year for which the claim was made.</p></content></level></subsection><subsection><num>(4)</num><content><p>If the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, the limit is reduced by the total of any amounts reflecting qualifying foreign employment income that have previously been relieved under <ref href="#d25e5493">section 41P</ref>.</p></content></subsection><subsection><num>(5)</num><intro><p>To determine the amounts mentioned in <ref href="#d25e5733">subsection (3)</ref><ref href="#d25e5742">(a)</ref> and <ref href="#d25e5748">(b)</ref>, apply <ref href="#d25e5572">section 41Q</ref>, but as if—</p></intro><level class="para1"><num>(a)</num><content><p>the references in that section to qualifying foreign employment income were to qualifying employment income,</p></content></level><level class="para1"><num>(b)</num><content><p>the references in that section to qualifying foreign general earnings were to qualifying general earnings, and</p></content></level><level class="para1"><num>(c)</num><content><p>the references in that section to qualifying foreign third party income and qualifying foreign securities income were references to qualifying third party income and qualifying securities income.</p></content></level></subsection></section><section><num>41S</num><heading>Effect of claim on relief for contributions to registered pension schemes</heading><subsection><num>(1)</num><content><p>This section applies where an individual who is an active member of a registered pension scheme for the purposes of section 188 of FA 2004 (relief for contributions) makes a foreign employment relief claim for a tax year.</p></content></subsection><subsection eId="d25e5811"><num>(2)</num><content><p>For the purposes of sections 189(1)(a) and 190 of that Act, references to the amount of the individual’s relevant UK earnings chargeable to income tax for that year are to be read as references to that amount minus the relieved amount.</p></content></subsection><subsection><num>(3)</num><content><p>The “relieved amount” is the amount of the relief to which the individual is entitled under section 41P(2) of this Act as a result of making the foreign employment relief claim.</p></content></subsection></section><section eId="d25e5826"><num>41T</num><heading>Foreign employment relief ignored for purposes of determining adjusted net income</heading><subsection eId="d25e5830"><num>(1)</num><content><p><ref href="#d25e5811">Subsection (2)</ref> applies for the purpose of determining the adjusted net income under section 58 of ITA 2007 of an individual for a tax year for which the individual is entitled to relief under <ref href="#d25e5493">section 41P</ref>.</p></content></subsection><subsection eId="d25e5841"><num>(2)</num><content><p>The adjusted net income is to be determined as if the relief had not been deducted in calculating the individual’s net income for the tax year.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Qualifying foreign employment income</heading><section eId="d25e5853"><num>41U</num><heading>Qualifying foreign general earnings</heading><subsection eId="d25e5857"><num>(1)</num><intro><p>General earnings are “qualifying general earnings” if they are—</p></intro><level class="para1"><num>(a)</num><content><p>“for” the qualifying year determined in accordance with sections 16 and 17,</p></content></level><level class="para1" eId="d25e5869"><num>(b)</num><content><p>if the qualifying year is a split year as respects the individual, attributable to the UK part of the year, and</p></content></level><level class="para1"><num>(c)</num><content><p>from an employment the duties of which are performed wholly or partly outside the UK during the qualifying year.</p></content></level></subsection><subsection eId="d25e5881"><num>(2)</num><content><p>Any attribution required for the purposes of <ref href="#d25e5830">subsection (1)</ref><ref href="#d25e5869">(b)</ref> is to be done on a just and reasonable basis.</p></content></subsection><subsection eId="d25e5892"><num>(3)</num><intro><p>Qualifying general earnings are “qualifying foreign general earnings” if they are neither—</p></intro><level class="para1"><num>(a)</num><content><p>in respect of duties performed in the United Kingdom, nor</p></content></level><level class="para1" eId="d25e5904"><num>(b)</num><content><p>from overseas Crown employment subject to United Kingdom tax (see <ref href="#d25e5990">section 41W</ref>).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of subsection (3), the extent to which qualifying general earnings are in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.</p></content></subsection></section><section eId="d25e5922"><num>41V</num><heading>Qualifying foreign third party income</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, “third party income” is an amount that counts under Chapter 2 of Part 7A (treatment of relevant step for income tax purposes) as employment income in respect of an employment.</p></content></subsection><subsection eId="d25e5932"><num>(2)</num><intro><p>Third party income is “qualifying third party income”—</p></intro><level class="para1"><num>(a)</num><content><p>if it is in respect of an employment the duties of which are performed wholly or partly outside the UK during the qualifying year, and</p></content></level><level class="para1" eId="d25e5944"><num>(b)</num><intro><p>to the extent that the value of the relevant step that counts as employment income (see section 554Z3) is—</p></intro><level class="para2"><num>(i)</num><content><p>“for” the qualifying year determined in accordance with section 554Z4(2), and</p></content></level><level class="para2" eId="d25e5956"><num>(ii)</num><content><p>if the qualifying year is a split year as respects the individual, attributable to the UK part of the year.</p></content></level></level></subsection><subsection eId="d25e5962"><num>(3)</num><content><p>Any attribution required for the purposes of <ref href="#d25e5881">subsection (2)</ref><ref href="#d25e5944">(b)</ref><ref href="#d25e5956">(ii)</ref> is to be done on a just and reasonable basis.</p></content></subsection><subsection><num>(4)</num><content><p>Qualifying third party income is “qualifying foreign third party income” to the extent that it is not in respect of duties performed in the United Kingdom.</p></content></subsection><subsection eId="d25e5981"><num>(5)</num><content><p>The extent to which qualifying third party income is not in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.</p></content></subsection></section><section eId="d25e5990"><num>41W</num><heading>Qualifying foreign securities income</heading><subsection><num>(1)</num><content><p>For the purpose of this Chapter, “securities income” is an amount that counts under Chapters 2 to 5 of Part 7 (employment-related securities etc) as employment income in respect of an employment (the “relevant employment”).</p></content></subsection><subsection><num>(2)</num><intro><p>Securities income is “qualifying securities income”—</p></intro><level class="para1"><num>(a)</num><content><p>if the duties of the relevant employment are performed wholly or partly outside the UK during the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><intro><p>to the extent that it—</p></intro><level class="para2"><num>(i)</num><content><p>accrues during the qualifying year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the qualifying year is a split year as respects the individual, accrues during the UK part of the year.</p></content></level></level></subsection><subsection eId="d25e6030"><num>(3)</num><content><p>To determine when securities income accrues treat an equal amount of the securities income as accruing on each day of the relevant period determined in accordance with section 41G.</p></content></subsection><subsection><num>(4)</num><content><p>But if the proportion of the securities income that would be regarded as qualifying securities income by virtue of <ref href="#d25e5962">subsection (3)</ref> is not, having regard to all the circumstances, just and reasonable, the amount of the securities income that is qualifying securities income is such amount as is just and reasonable.</p></content></subsection><subsection eId="d25e6045"><num>(5)</num><content><p>Qualifying securities income is wholly “qualifying foreign securities income” if the duties of the relevant employment are performed wholly outside the United Kingdom.</p></content></subsection><subsection eId="d25e6051"><num>(6)</num><intro><p>If some, but not all, of the duties of the relevant employment are performed outside the United Kingdom—</p></intro><level class="para1"><num>(a)</num><content><p>the qualifying securities income is to be apportioned (on a just and reasonable basis) between duties performed in the United Kingdom and duties performed outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the income apportioned in respect of duties performed outside the United Kingdom is qualifying foreign securities income.</p></content></level></subsection><subsection eId="d25e6069"><num>(7)</num><content><p>But qualifying securities income from overseas Crown employment subject to United Kingdom tax is not qualifying foreign securities income.</p></content></subsection></section><section eId="d25e6078"><num>41X</num><heading>Meaning of “overseas Crown employment subject to UK tax”</heading><subsection><num>(1)</num><intro><p>This section explains what is meant by —</p></intro><level class="para1"><num>(a)</num><content><p>qualifying general earnings “<term refersTo="#term-from-overseas-crown-employment-subject-to-united-kingdom-tax">from overseas Crown employment subject to United Kingdom tax</term>” for the purposes of <ref href="#d25e5826">section 41T</ref><ref href="#d25e5892">(3)</ref><ref href="#d25e5904">(b)</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying securities income “<term refersTo="#term-from-overseas-crown-employment-subject-to-united-kingdom-tax">from overseas Crown employment subject to United Kingdom tax</term>” for the purposes of <ref href="#d25e5922">section 41V</ref><ref href="#d25e6069">(7)</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>Qualifying general earnings and qualifying securities income are “from overseas Crown employment” if the earnings or income is from Crown employment (within the meaning of section 28(2)) in respect of duties performed outside the United Kingdom.</p></content></subsection><subsection eId="d25e6124"><num>(3)</num><content><p>Such earnings or income are to be taken as being “subject to United Kingdom tax” unless they fall within any exception contained in an order made under section 28(5) for the purposes of section 27(2).</p></content></subsection><subsection><num>(4)</num><intro><p>An order made under section 28(5) may also—</p></intro><level class="para1"><num>(a)</num><content><p>provide for any exceptions mentioned in <ref href="#d25e6030">subsection (3)</ref> to not apply for the purposes of this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>make exceptions for the purposes of this section.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of this section, if securities income is partly from overseas Crown employment subject to United Kingdom tax, a just and reasonable proportion of the securities income is to be taken to be from such employment.</p></content></subsection></section><section><num>41Y</num><heading>Location of employment duties</heading><subsection><num>(1)</num><content><p>Section 38 (period of absence from employment) applies for the purposes of this Chapter as if references to general earnings were to general earnings or third party income.</p></content></subsection><subsection eId="d25e6170"><num>(2)</num><content><p>Section 40(1) and (2) (place of performance of duties on board vessel or aircraft) applies for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e6176"><num>(3)</num><content><p>Duties of an employment performed in the UK sector of the continental shelf in connection with exploration of exploitation activities are to be treated for the purposes of this Chapter as being performed in the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>In <ref href="#d25e6124">subsection (3)</ref> “<term refersTo="#term-the-uk-sector-of-the-continental-shelf">the UK sector of the continental shelf</term>” and “<term refersTo="#term-exploration-or-exploitation-activities">exploration or exploitation activities</term>” have the same meaning as in section 41 (treatment of general earnings from employment in the UK sector of the continental shelf).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Other rules for determining amounts of qualifying foreign employment income</heading><section><num>41Z</num><heading>Artificial arrangements to be disregarded</heading><subsection><num>(1)</num><intro><p>Any arrangements falling within <ref href="#d25e6170">subsection (2)</ref> are to be disregarded for the purposes of determining the extent to which—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings are qualifying general earnings;</p></content></level><level class="para1"><num>(b)</num><content><p>third party income is qualifying third party income;</p></content></level><level class="para1"><num>(c)</num><content><p>securities income is qualifying securities income;</p></content></level></subsection><subsection eId="d25e6234"><num>(2)</num><intro><p>Arrangements fall within this subsection if the main purpose, or one of the main purposes of the arrangements is to enable an individual to obtain—</p></intro><level class="para1"><num>(a)</num><content><p>relief under this Chapter to which they would not otherwise be entitled, or</p></content></level><level class="para1"><num>(b)</num><content><p>relief under this Chapter of a greater amount than that to which they would otherwise be entitled.</p></content></level></subsection><subsection><num>(3)</num><content><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section><num>41Z1</num><heading>Limit on qualifying foreign employment income from associated employments</heading><subsection><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual has associated employments from or in respect of which there is qualifying employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>the duties of the associated employments are not performed wholly outside the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><content><p>There is a limit on how much of the qualifying employment income from or in respect of the associated employments is qualifying foreign employment income.</p></content></subsection><subsection><num>(3)</num><intro><p>The limit is the proportion of the qualifying employment income that is reasonable having regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the nature of, and time devoted to, the duties performed outside the United Kingdom, and those performed in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>all other relevant circumstances.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “<term refersTo="#term-associated-employments">associated employments</term>” means employments with the same employer or with associated employers; and section 24(5) and (6) applies for the purposes of this section.</p></content></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></subsection><subsection eId="section-38-2"><num>(2)</num><intro><p>In <ref href="#schedule-8">Schedule 8</ref>—</p></intro><level class="para1" eId="section-38-2-a"><num>(a)</num><content><p>Part 1 makes general consequential amendments;</p></content></level><level class="para1" eId="section-38-2-b"><num>(b)</num><content><p>Part 2 makes consequential amendments relating to the operation of PAYE;</p></content></level><level class="para1" eId="section-38-2-c"><num>(c)</num><content><p>Part 3 contains transitional provision.</p></content></level></subsection><subsection eId="section-38-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-38">this section</ref> and the provision made by <ref href="#schedule-8">Schedule 8</ref> have effect for the tax year 2025-2026 and subsequent tax years.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-38-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/part/2">Part 2</a> of <ref eId="c00032" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax), after <a href="https://www.legislation.gov.uk/ukpga/2003/1/part/2/chapter/5B">Chapter 5B</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e5222"><num>Chapter 5C</num><heading>Relief for new residents on foreign employment income</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Foreign employment election</heading><section eId="d25e5233"><num>41M</num><heading>Foreign employment election for qualifying new residents</heading><subsection><num>(1)</num><content><p>This Chapter applies if an individual is a qualifying new resident for a tax year (the “qualifying year”).</p></content></subsection><subsection><num>(2)</num><content><p>An individual is a qualifying new resident for a tax year for the purposes of this Chapter if the individual is a qualifying new resident for the tax year for the purposes of Chapter 5 of Part 8 of ITTOIA 2005 (see <ref href="#d25e4289">section 845B</ref> of that Act).</p></content></subsection><subsection><num>(3)</num><content><p>The individual may make an election for the qualifying year under this section (“a foreign employment election”).</p></content></subsection><subsection><num>(4)</num><intro><p>Section <ref href="#d25e5493">41P</ref> makes provision about a claim for relief—</p></intro><level class="para1"><num>(a)</num><content><p>which an individual can make for the qualifying year or any subsequent tax year, where the individual has made a foreign employment election, and</p></content></level><level class="para1"><num>(b)</num><content><p>which entitles the individual to relief in that year calculated by reference to employment income that is in respect of the qualifying year.</p></content></level></subsection><subsection><num>(5)</num><content><p>Sections <ref href="#d25e5572">41Q</ref> (amount of relief available) and <ref href="#d25e5700">41R</ref> (limit on relief) set out how to determine the amount of relief to which the individual is entitled.</p></content></subsection><subsection><num>(6)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>sections 845C to 845E of ITTOIA 2005, which set out some income tax consequences of a foreign employment election, and</p></content></level><level class="para1"><num>(b)</num><content><p>section 1K of TCGA 1992, which provides for the loss of the individual’s annual exempt amount for capital gains tax where a foreign employment election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>A foreign employment election must be made in a return.</p></content></subsection><subsection><num>(8)</num><content><p>A foreign employment election for the qualifying year must be made before the end of the period of 12 months beginning with 31 January after the end of the qualifying year.</p></content></subsection><subsection><num>(9)</num><content><p>A foreign employment election may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(10)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of TMA 1970 (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim or election being included in a return include a claim or election being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Key definitions</heading><section><num>41N</num><heading>Key definitions</heading><subsection><num>(1)</num><content><p>This section sets out some definitions that apply for the purposes of this Chapter.</p></content></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-qualifying-employment-income">Qualifying employment income</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying general earnings,</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying third party income, and</p></content></level><level class="para1"><num>(c)</num><content><p>qualifying securities income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-qualifying-foreign-employment-income">Qualifying foreign employment income</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying foreign general earnings,</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying foreign third party income, and</p></content></level><level class="para1"><num>(c)</num><content><p>qualifying foreign securities income.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Section <ref href="#d25e5826">41T</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for general earnings to be “qualifying general earnings”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying general earnings to be “qualifying foreign general earnings”.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Section <ref href="#d25e5853">41U</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for third party income to be “qualifying third party income”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying third party income to be “qualifying foreign third party income”.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Section <ref href="#d25e5922">41V</ref> defines what it means—</p></intro><level class="para1"><num>(a)</num><content><p>for securities income to be “qualifying securities income”, and</p></content></level><level class="para1"><num>(b)</num><content><p>for qualifying securities income to be “qualifying foreign securities income”.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Claim for relief</heading><section eId="d25e5493"><num>41P</num><heading>Claim for relief for qualifying new residents</heading><subsection><num>(1)</num><content><p>Where an individual has made a foreign employment election, the individual may make a claim for relief for the qualifying year or any subsequent tax year (“a foreign employment relief claim”).</p></content></subsection><subsection eId="d25e5503"><num>(2)</num><intro><p>Where an individual makes a foreign employment relief claim for a tax year, the individual is entitled to relief that is equal to so much of the net taxable employment income for that year as—</p></intro><level class="para1"><num>(a)</num><content><p>reflects qualifying foreign employment income (see section <ref href="#d25e5572">41Q</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>is identified as such in the claim.</p></content></level></subsection><subsection eId="d25e5524"><num>(3)</num><content><p>But <ref href="#d25e5503">subsection (2)</ref> only applies to the extent the total amount of the relief given does not exceed the limit (see <ref href="#d25e5700">section 41R</ref>).</p></content></subsection><subsection><num>(4)</num><content><p>The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year for which the claim is made (see Step 2 of the calculation in section 23 of ITA 2007).</p></content></subsection><subsection><num>(5)</num><content><p>A foreign employment relief claim must be made in a return.</p></content></subsection><subsection><num>(6)</num><content><p>A foreign employment relief claim for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subsection><subsection><num>(7)</num><content><p>A foreign employment relief claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subsection><subsection><num>(8)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-net-taxable-employment-income">net taxable employment income</term>”, in relation to a tax year, means the employment income on which the individual is charged to tax for the tax year (see section 9(1)).</p></content></subsection></section><section eId="d25e5572"><num>41Q</num><heading>Amount of relief available</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e5493">section 41P</ref><ref href="#d25e5503">(2)</ref>, the amount of net taxable employment income for a tax year that “reflects” qualifying foreign employment income is the total of—</p></intro><level class="para1"><num>(a)</num><content><p>the total of the amount of the net taxable earnings from each employment in the tax year that reflects qualifying foreign general earnings (see subsections <ref href="#d25e5608">(2)</ref> to <ref href="#d25e5981">(5)</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>the total of the amount of the net taxable specific income from each employment for the tax year that reflects qualifying foreign third party income or qualifying foreign securities income (see <ref href="#d25e6051">subsection (6)</ref>).</p></content></level></subsection><subsection eId="d25e5608"><num>(2)</num><intro><p>The amount of the net taxable earnings from an employment in a tax year that “reflects” qualifying foreign general earnings is—</p></intro><level class="para1"><num>(a)</num><content><p>the amount of the taxable earnings from the employment in the tax year that are qualifying foreign general earnings, minus</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the qualifying deductions.</p></content></level></subsection><subsection><num>(3)</num><content><p>If the amount calculated under <ref href="#d25e5608">subsection (2)</ref> is nil or a negative amount, then none of the net taxable earnings from the employment in the tax year reflect qualifying foreign general earnings.</p></content></subsection><subsection><num>(4)</num><content><p>If the foreign employment relief claim is for the qualifying year, the amount of the qualifying deductions is the proportion of the total deductions that is the same as the proportion of the claim year taxable earnings that are qualifying foreign general earnings.</p></content></subsection><subsection><num>(5)</num><content><p>If the foreign employment relief claim is for a subsequent tax year, the amount of the qualifying deductions is the amount resulting from the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Deduct the claim year taxable earnings from the total deductions.</p><p>If the result is nil or a negative amount, there are no qualifying deductions.</p></item><item><p><i>Step 2</i></p><p>Deduct any other taxable earnings that are not qualifying foreign general earnings.</p><p>If the result is nil or a negative amount, there are no qualifying deductions.</p></item></blockList></content></subsection><subsection><num>(6)</num><content><p>The proportion of the net taxable specific income from an employment for a tax year that “reflects” qualifying foreign third party income or qualifying foreign securities income is the same as the proportion of the taxable specific income for the employment in that year that is qualifying foreign third party income or qualifying foreign securities income.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-claim-year-taxable-earnings">claim year taxable earnings</term>” means the taxable earnings from the employment in the tax year that are “for” the year for which the claim is made determined in accordance with section 16 and 17;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-total-deductions">total deductions</term>” means the total amount of any deductions allowed from the taxable earnings from the employment in the tax year under provisions listed in section 327(3) to (5) (see section 11(1)).</p></content></hcontainer></subsection></section><section eId="d25e5700"><num>41R</num><heading>Limit on relief</heading><subsection><num>(1)</num><content><p>This section sets out how to determine the limit on the amount of relief the individual is entitled to when making a foreign employment relief claim for a year for the purposes of <ref href="#d25e5493">section 41P</ref><ref href="#d25e5524">(3)</ref>.</p></content></subsection><subsection><num>(2)</num><intro><p>The limit is the lesser of—</p></intro><level class="para1"><num>(a)</num><content><p>30% of the relevant qualifying employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>£300,000.</p></content></level></subsection><subsection eId="d25e5733"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-relevant-qualifying-employment-income">relevant qualifying employment income</term>” means—</p></intro><level class="para1" eId="d25e5742"><num>(a)</num><content><p>so much of the net taxable employment income for the tax year for which the claim is made as reflects qualifying employment income, and</p></content></level><level class="para1" eId="d25e5748"><num>(b)</num><content><p>if the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, so much of any net taxable employment income for any earlier tax year (but not any tax year before the qualifying year) as would reflect qualifying employment income if that earlier year was the year for which the claim was made.</p></content></level></subsection><subsection><num>(4)</num><content><p>If the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, the limit is reduced by the total of any amounts reflecting qualifying foreign employment income that have previously been relieved under <ref href="#d25e5493">section 41P</ref>.</p></content></subsection><subsection><num>(5)</num><intro><p>To determine the amounts mentioned in <ref href="#d25e5733">subsection (3)</ref><ref href="#d25e5742">(a)</ref> and <ref href="#d25e5748">(b)</ref>, apply <ref href="#d25e5572">section 41Q</ref>, but as if—</p></intro><level class="para1"><num>(a)</num><content><p>the references in that section to qualifying foreign employment income were to qualifying employment income,</p></content></level><level class="para1"><num>(b)</num><content><p>the references in that section to qualifying foreign general earnings were to qualifying general earnings, and</p></content></level><level class="para1"><num>(c)</num><content><p>the references in that section to qualifying foreign third party income and qualifying foreign securities income were references to qualifying third party income and qualifying securities income.</p></content></level></subsection></section><section><num>41S</num><heading>Effect of claim on relief for contributions to registered pension schemes</heading><subsection><num>(1)</num><content><p>This section applies where an individual who is an active member of a registered pension scheme for the purposes of section 188 of FA 2004 (relief for contributions) makes a foreign employment relief claim for a tax year.</p></content></subsection><subsection eId="d25e5811"><num>(2)</num><content><p>For the purposes of sections 189(1)(a) and 190 of that Act, references to the amount of the individual’s relevant UK earnings chargeable to income tax for that year are to be read as references to that amount minus the relieved amount.</p></content></subsection><subsection><num>(3)</num><content><p>The “relieved amount” is the amount of the relief to which the individual is entitled under section 41P(2) of this Act as a result of making the foreign employment relief claim.</p></content></subsection></section><section eId="d25e5826"><num>41T</num><heading>Foreign employment relief ignored for purposes of determining adjusted net income</heading><subsection eId="d25e5830"><num>(1)</num><content><p><ref href="#d25e5811">Subsection (2)</ref> applies for the purpose of determining the adjusted net income under section 58 of ITA 2007 of an individual for a tax year for which the individual is entitled to relief under <ref href="#d25e5493">section 41P</ref>.</p></content></subsection><subsection eId="d25e5841"><num>(2)</num><content><p>The adjusted net income is to be determined as if the relief had not been deducted in calculating the individual’s net income for the tax year.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Qualifying foreign employment income</heading><section eId="d25e5853"><num>41U</num><heading>Qualifying foreign general earnings</heading><subsection eId="d25e5857"><num>(1)</num><intro><p>General earnings are “qualifying general earnings” if they are—</p></intro><level class="para1"><num>(a)</num><content><p>“for” the qualifying year determined in accordance with sections 16 and 17,</p></content></level><level class="para1" eId="d25e5869"><num>(b)</num><content><p>if the qualifying year is a split year as respects the individual, attributable to the UK part of the year, and</p></content></level><level class="para1"><num>(c)</num><content><p>from an employment the duties of which are performed wholly or partly outside the UK during the qualifying year.</p></content></level></subsection><subsection eId="d25e5881"><num>(2)</num><content><p>Any attribution required for the purposes of <ref href="#d25e5830">subsection (1)</ref><ref href="#d25e5869">(b)</ref> is to be done on a just and reasonable basis.</p></content></subsection><subsection eId="d25e5892"><num>(3)</num><intro><p>Qualifying general earnings are “qualifying foreign general earnings” if they are neither—</p></intro><level class="para1"><num>(a)</num><content><p>in respect of duties performed in the United Kingdom, nor</p></content></level><level class="para1" eId="d25e5904"><num>(b)</num><content><p>from overseas Crown employment subject to United Kingdom tax (see <ref href="#d25e5990">section 41W</ref>).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of subsection (3), the extent to which qualifying general earnings are in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.</p></content></subsection></section><section eId="d25e5922"><num>41V</num><heading>Qualifying foreign third party income</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, “third party income” is an amount that counts under Chapter 2 of Part 7A (treatment of relevant step for income tax purposes) as employment income in respect of an employment.</p></content></subsection><subsection eId="d25e5932"><num>(2)</num><intro><p>Third party income is “qualifying third party income”—</p></intro><level class="para1"><num>(a)</num><content><p>if it is in respect of an employment the duties of which are performed wholly or partly outside the UK during the qualifying year, and</p></content></level><level class="para1" eId="d25e5944"><num>(b)</num><intro><p>to the extent that the value of the relevant step that counts as employment income (see section 554Z3) is—</p></intro><level class="para2"><num>(i)</num><content><p>“for” the qualifying year determined in accordance with section 554Z4(2), and</p></content></level><level class="para2" eId="d25e5956"><num>(ii)</num><content><p>if the qualifying year is a split year as respects the individual, attributable to the UK part of the year.</p></content></level></level></subsection><subsection eId="d25e5962"><num>(3)</num><content><p>Any attribution required for the purposes of <ref href="#d25e5881">subsection (2)</ref><ref href="#d25e5944">(b)</ref><ref href="#d25e5956">(ii)</ref> is to be done on a just and reasonable basis.</p></content></subsection><subsection><num>(4)</num><content><p>Qualifying third party income is “qualifying foreign third party income” to the extent that it is not in respect of duties performed in the United Kingdom.</p></content></subsection><subsection eId="d25e5981"><num>(5)</num><content><p>The extent to which qualifying third party income is not in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.</p></content></subsection></section><section eId="d25e5990"><num>41W</num><heading>Qualifying foreign securities income</heading><subsection><num>(1)</num><content><p>For the purpose of this Chapter, “securities income” is an amount that counts under Chapters 2 to 5 of Part 7 (employment-related securities etc) as employment income in respect of an employment (the “relevant employment”).</p></content></subsection><subsection><num>(2)</num><intro><p>Securities income is “qualifying securities income”—</p></intro><level class="para1"><num>(a)</num><content><p>if the duties of the relevant employment are performed wholly or partly outside the UK during the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><intro><p>to the extent that it—</p></intro><level class="para2"><num>(i)</num><content><p>accrues during the qualifying year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the qualifying year is a split year as respects the individual, accrues during the UK part of the year.</p></content></level></level></subsection><subsection eId="d25e6030"><num>(3)</num><content><p>To determine when securities income accrues treat an equal amount of the securities income as accruing on each day of the relevant period determined in accordance with section 41G.</p></content></subsection><subsection><num>(4)</num><content><p>But if the proportion of the securities income that would be regarded as qualifying securities income by virtue of <ref href="#d25e5962">subsection (3)</ref> is not, having regard to all the circumstances, just and reasonable, the amount of the securities income that is qualifying securities income is such amount as is just and reasonable.</p></content></subsection><subsection eId="d25e6045"><num>(5)</num><content><p>Qualifying securities income is wholly “qualifying foreign securities income” if the duties of the relevant employment are performed wholly outside the United Kingdom.</p></content></subsection><subsection eId="d25e6051"><num>(6)</num><intro><p>If some, but not all, of the duties of the relevant employment are performed outside the United Kingdom—</p></intro><level class="para1"><num>(a)</num><content><p>the qualifying securities income is to be apportioned (on a just and reasonable basis) between duties performed in the United Kingdom and duties performed outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the income apportioned in respect of duties performed outside the United Kingdom is qualifying foreign securities income.</p></content></level></subsection><subsection eId="d25e6069"><num>(7)</num><content><p>But qualifying securities income from overseas Crown employment subject to United Kingdom tax is not qualifying foreign securities income.</p></content></subsection></section><section eId="d25e6078"><num>41X</num><heading>Meaning of “overseas Crown employment subject to UK tax”</heading><subsection><num>(1)</num><intro><p>This section explains what is meant by —</p></intro><level class="para1"><num>(a)</num><content><p>qualifying general earnings “<term refersTo="#term-from-overseas-crown-employment-subject-to-united-kingdom-tax">from overseas Crown employment subject to United Kingdom tax</term>” for the purposes of <ref href="#d25e5826">section 41T</ref><ref href="#d25e5892">(3)</ref><ref href="#d25e5904">(b)</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>qualifying securities income “<term refersTo="#term-from-overseas-crown-employment-subject-to-united-kingdom-tax">from overseas Crown employment subject to United Kingdom tax</term>” for the purposes of <ref href="#d25e5922">section 41V</ref><ref href="#d25e6069">(7)</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>Qualifying general earnings and qualifying securities income are “from overseas Crown employment” if the earnings or income is from Crown employment (within the meaning of section 28(2)) in respect of duties performed outside the United Kingdom.</p></content></subsection><subsection eId="d25e6124"><num>(3)</num><content><p>Such earnings or income are to be taken as being “subject to United Kingdom tax” unless they fall within any exception contained in an order made under section 28(5) for the purposes of section 27(2).</p></content></subsection><subsection><num>(4)</num><intro><p>An order made under section 28(5) may also—</p></intro><level class="para1"><num>(a)</num><content><p>provide for any exceptions mentioned in <ref href="#d25e6030">subsection (3)</ref> to not apply for the purposes of this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>make exceptions for the purposes of this section.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of this section, if securities income is partly from overseas Crown employment subject to United Kingdom tax, a just and reasonable proportion of the securities income is to be taken to be from such employment.</p></content></subsection></section><section><num>41Y</num><heading>Location of employment duties</heading><subsection><num>(1)</num><content><p>Section 38 (period of absence from employment) applies for the purposes of this Chapter as if references to general earnings were to general earnings or third party income.</p></content></subsection><subsection eId="d25e6170"><num>(2)</num><content><p>Section 40(1) and (2) (place of performance of duties on board vessel or aircraft) applies for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e6176"><num>(3)</num><content><p>Duties of an employment performed in the UK sector of the continental shelf in connection with exploration of exploitation activities are to be treated for the purposes of this Chapter as being performed in the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>In <ref href="#d25e6124">subsection (3)</ref> “<term refersTo="#term-the-uk-sector-of-the-continental-shelf">the UK sector of the continental shelf</term>” and “<term refersTo="#term-exploration-or-exploitation-activities">exploration or exploitation activities</term>” have the same meaning as in section 41 (treatment of general earnings from employment in the UK sector of the continental shelf).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Other rules for determining amounts of qualifying foreign employment income</heading><section><num>41Z</num><heading>Artificial arrangements to be disregarded</heading><subsection><num>(1)</num><intro><p>Any arrangements falling within <ref href="#d25e6170">subsection (2)</ref> are to be disregarded for the purposes of determining the extent to which—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings are qualifying general earnings;</p></content></level><level class="para1"><num>(b)</num><content><p>third party income is qualifying third party income;</p></content></level><level class="para1"><num>(c)</num><content><p>securities income is qualifying securities income;</p></content></level></subsection><subsection eId="d25e6234"><num>(2)</num><intro><p>Arrangements fall within this subsection if the main purpose, or one of the main purposes of the arrangements is to enable an individual to obtain—</p></intro><level class="para1"><num>(a)</num><content><p>relief under this Chapter to which they would not otherwise be entitled, or</p></content></level><level class="para1"><num>(b)</num><content><p>relief under this Chapter of a greater amount than that to which they would otherwise be entitled.</p></content></level></subsection><subsection><num>(3)</num><content><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section><num>41Z1</num><heading>Limit on qualifying foreign employment income from associated employments</heading><subsection><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the individual has associated employments from or in respect of which there is qualifying employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>the duties of the associated employments are not performed wholly outside the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><content><p>There is a limit on how much of the qualifying employment income from or in respect of the associated employments is qualifying foreign employment income.</p></content></subsection><subsection><num>(3)</num><intro><p>The limit is the proportion of the qualifying employment income that is reasonable having regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the nature of, and time devoted to, the duties performed outside the United Kingdom, and those performed in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>all other relevant circumstances.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “<term refersTo="#term-associated-employments">associated employments</term>” means employments with the same employer or with associated employers; and section 24(5) and (6) applies for the purposes of this section.</p></content></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-2"><num>(2)</num><intro><p>In <ref href="#schedule-8">Schedule 8</ref>—</p></intro><level class="para1" eId="section-38-2-a"><num>(a)</num><content><p>Part 1 makes general consequential amendments;</p></content></level><level class="para1" eId="section-38-2-b"><num>(b)</num><content><p>Part 2 makes consequential amendments relating to the operation of PAYE;</p></content></level><level class="para1" eId="section-38-2-c"><num>(c)</num><content><p>Part 3 contains transitional provision.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-2-a"><num>(a)</num><content><p>Part 1 makes general consequential amendments;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-2-b"><num>(b)</num><content><p>Part 2 makes consequential amendments relating to the operation of PAYE;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-2-c"><num>(c)</num><content><p>Part 3 contains transitional provision.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-3"><num>(3)</num><content><p>The amendments made by <ref href="#section-38">this section</ref> and the provision made by <ref href="#schedule-8">Schedule 8</ref> have effect for the tax year 2025-2026 and subsequent tax years.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-39"><num>39</num><heading>Claim for relief on foreign gains</heading><subsection eId="section-39-1"><num>(1)</num><content><p>TCGA 1992 is amended as follows.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p><mod>Before Schedule 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule" eId="d25e6378"><num>Schedule D1<authorialNote class="referenceNote"><p>Section 1A(2)(za)</p></authorialNote></num><heading>Relief for new residents on foreign gains</heading><hcontainer name="crossheading" class="schGroup7"><heading>Claim for relief for qualifying new residents</heading><paragraph eId="d25e6390" class="schProv1"><num>1</num><subparagraph><num>(1)</num><content><p>An individual may make a claim for relief for a tax year under this paragraph (a “foreign gain claim”) if the individual is a qualifying new resident for that tax year.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>Paragraphs <ref href="#d25e6463">2</ref>, <ref href="#d25e6482">3</ref> and <ref href="#d25e6539">4</ref> set out the reliefs that may be obtained by making a foreign gain claim.</p></content></subparagraph><subparagraph><num>(3)</num><content><p>A foreign gain claim must be made in a return.</p></content></subparagraph><subparagraph><num>(4)</num><content><p>A foreign gain claim in relation to a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>A foreign gain claim may not be made as a consequential claim (within the meaning of section 43C(5) of the Management Act) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of the Management Act (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim being included in a return include a claim being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of the Management Act (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief for qualifying foreign gains</heading><paragraph eId="d25e6463" class="schProv1"><num>2</num><subparagraph><num>(1)</num><content><p>Where an individual makes a foreign gain claim for a tax year, the individual is entitled to relief for each qualifying foreign gain accruing to the individual in that year that is identified in the claim.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The relief is given by deducting an amount equal to the sum of those gains from the total amount of chargeable gains accruing to the individual.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief in respect of deemed gains under section 86</heading><paragraph eId="d25e6482" class="schProv1"><num>3</num><subparagraph eId="d25e6486"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable gains would (but for this paragraph) be treated as accruing to an individual in a tax year under section 86(4) (attribution of gains to settlors of non-resident settlements),</p></content></level><level class="para1" eId="d25e6498"><num>(b)</num><content><p>a qualifying foreign gain accrued in that tax year to the trustees of the settlement concerned (or would have done on the assumption in section 86(3)), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual identifies the gain mentioned in <ref href="#d25e6498">paragraph (b)</ref> in a foreign gain claim for that tax year.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of section 86(1)(e) as it applies to the individual, the following are to be disregarded (in that tax year and in later tax years)—</p></intro><level class="para1"><num>(a)</num><content><p>the gain mentioned in <ref href="#d25e6486">sub-paragraph (1)</ref><ref href="#d25e6498">(b)</ref>;</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying foreign loss that accrued to the trustees in that tax year (or that would have so accrued on the assumption in section 86(3)).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief in respect of deemed gains under sections 87 and 89(2) and Schedule 4C</heading><paragraph eId="d25e6539" class="schProv1"><num>4</num><subparagraph><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a settlement is for a tax year—</p></intro><level class="para2"><num>(i)</num><content><p>one to which section 87 or 89(2) applies (attribution of gains to beneficiaries of settlements), or</p></content></level><level class="para2"><num>(ii)</num><content><p>a relevant settlement in relation to a Schedule 4C pool, within the meaning of paragraph 8A of Schedule 4C (transfers of value: attribution of gains etc),</p></content></level></level><level class="para1"><num>(b)</num><content><p>a beneficiary of the settlement receives a capital payment from the trustees in that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual identifies the capital payment in a foreign gain claim for that tax year.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The capital payment is to be disregarded (in that tax year and in later tax years) for the purposes of sections 87, 87A and 89(2) and paragraph 8 of Schedule 4C.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The following apply for the purposes of this paragraph as they apply for the purposes of section 87—</p></intro><level class="para1"><num>(a)</num><content><p>section 87G (which provides for capital payments made to a close member of the settlor’s family to be treated in certain cases as received by the settlor);</p></content></level><level class="para1"><num>(b)</num><content><p>section 97 (which makes provision about the construction of “capital payment”, “settlement”, “trustees” and “beneficiary”).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Other effects of claim</heading><paragraph eId="d25e6606" class="schProv1"><num>5</num><intro><p>For other effects of making a foreign gain claim, see—</p></intro><level class="para1"><num>(a)</num><content><p>section 1K(6)(b) (annual exempt amount), which provides that where a foreign gain claim has effect in relation to an individual for a tax year, the individual has no entitlement to an annual exempt amount for that year,</p></content></level><level class="para1"><num>(b)</num><content><p>section 16<ref href="#d25e6772">(4)</ref> (computation of losses), which provides that where a foreign gain claim has effect in relation to an individual for a tax year, qualifying foreign losses accruing to the individual in that year are not allowable losses, and</p></content></level><level class="para1"><num>(c)</num><content><p>sections <ref href="#d25e4407">845C</ref> to <ref href="#d25e4505">845E</ref> of ITTOIA 2005, which set out some income tax consequences of making a foreign gain claim.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of Schedule</heading><paragraph eId="d25e6642" class="schProv1"><num>6</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-qualifying-foreign-asset">qualifying foreign asset</term>” means an asset that—</p></intro><level class="para1"><num>(a)</num><content><p>is situated outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>does not derive at least 75% of its value from UK land (see Schedule 1A);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-qualifying-foreign-gain">qualifying foreign gain</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a chargeable gain accruing on the disposal of a qualifying foreign asset,</p></content></level><level class="para1"><num>(b)</num><content><p>a chargeable gain treated as accruing as a result of section 3 (gains of non-UK resident close companies attributed to UK residents) where the gain accruing to the non-UK resident close company to which the deemed gain relates accrued on the disposal of a qualifying foreign asset, or</p></content></level><level class="para1"><num>(c)</num><content><p>a qualifying QAHC gain,</p></content></level><wrapUp><p>but a chargeable gain falling within paragraph <ref href="#d25e6673">(a)</ref> or <ref href="#d25e6677">(b)</ref> is not a qualifying foreign gain if it is a gain to which paragraph 1(2) of Schedule 1 applies (pre-2025-26 gains subject to the remittance basis);</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-foreign-loss">qualifying foreign loss</term>” means a loss accruing on the disposal of an asset that is a qualifying foreign asset;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-qahc-gain">qualifying QAHC gain</term>” means the foreign proportion (see paragraph 46(4) to (6) of Schedule 2 to FA 2022) of a chargeable gain accruing on the disposal of shares in a QAHC (within the meaning of that Schedule) other than a chargeable gain to which paragraph 46(3) of that Schedule applies.</p></content></hcontainer></paragraph></hcontainer></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><p><mod>In section 1A (territorial scope), in subsection (2), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p><ref href="#d25e6378">Schedule D1</ref> (relief for new residents on foreign gains),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-39-4"><num>(4)</num><content><p><mod>In section 1E (losses deductible only when within scope of tax), in subsection (6), for “Schedule 1 (UK resident individuals not domiciled in the UK)” substitute <quotedText>“<ref href="#d25e6606">paragraph 5</ref> of <ref href="#d25e6378">Schedule D1</ref> (relief for new residents on foreign gains).”</quotedText></mod></p></content></subsection><subsection eId="section-39-5"><num>(5)</num><intro><p>In section 1K (annual exempt amount), in subsection (6)—</p></intro><level class="para1" eId="section-39-5-a"><num>(a)</num><content><p>the words from “section” to the end become paragraph (a) of that subsection, and</p></content></level><level class="para1" eId="section-39-5-b"><num>(b)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the individual makes a foreign gain claim, a foreign income claim or a foreign employment election for that tax year.</p></content></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-39-6"><num>(6)</num><content><p><mod>In section 16 (computation of losses), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e6772"><num>(4)</num><content><p>A qualifying foreign loss accruing to an individual in a tax year is not an allowable loss if a foreign gain claim, a foreign income claim or a foreign employment election has effect in relation to the individual for that tax year.</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (4), “<term refersTo="#term-qualifying-foreign-loss">qualifying foreign loss</term>” has the same meaning as in Schedule D1 (see paragraph <ref href="#d25e6642">6</ref> of that Schedule).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-39-7"><num>(7)</num><content><p><mod>In section 288 (interpretation), in subsection (1) at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means a claim under section <ref href="#d25e5233">41M</ref> of ITEPA 2003;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-gain-claim">foreign gain claim</term>” means a claim under paragraph <ref href="#d25e6390">1</ref> of <ref href="#d25e6378">Schedule D1</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning given by section <ref href="#d25e4289">845B</ref> of ITTOIA 2005 (which sets out the circumstances in which an individual will be a qualifying new resident following a period of 10 years of non-residence);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-39-8"><num>(8)</num><content><p><mod>In Schedule 1A, in paragraph 1, after “2B(4)(b)” insert <quotedText>“or <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref>”</quotedText>.</mod></p></content></subsection><subsection eId="section-39-9"><num>(9)</num><content><p><mod>In Schedule 1C (annual exempt amount in cases involving settled property), in paragraph 1(4), for the words from “who” to the end substitute <quotedText>“to whom subsection (6) of that section does not apply.”</quotedText></mod></p></content></subsection><subsection eId="section-39-10"><num>(10)</num><intro><p>In Schedule 2 to FA 2022 (qualifying asset holding companies), in paragraph 46—</p></intro><level class="para1" eId="section-39-10-a"><num>(a)</num><content><p><mod>in the heading (as amended by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-a">(a)</ref>), after “income” insert <quotedText>“or gain”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-39-10-b"><num>(b)</num><content><p><mod>in <ref href="#d25e5184">sub-paragraph (6A)</ref> (as inserted by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-c">(c)</ref>), after “claim)” insert <quotedText>“and paragraph <ref href="#d25e6681">(c)</ref> of the definition of “qualifying foreign gain” in <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 (foreign gain claims)”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-39-11"><num>(11)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-1"><num>(1)</num><content><p>TCGA 1992 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-39-2"><num>(2)</num><content><p><mod>Before Schedule 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule" eId="d25e6378"><num>Schedule D1<authorialNote class="referenceNote"><p>Section 1A(2)(za)</p></authorialNote></num><heading>Relief for new residents on foreign gains</heading><hcontainer name="crossheading" class="schGroup7"><heading>Claim for relief for qualifying new residents</heading><paragraph eId="d25e6390" class="schProv1"><num>1</num><subparagraph><num>(1)</num><content><p>An individual may make a claim for relief for a tax year under this paragraph (a “foreign gain claim”) if the individual is a qualifying new resident for that tax year.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>Paragraphs <ref href="#d25e6463">2</ref>, <ref href="#d25e6482">3</ref> and <ref href="#d25e6539">4</ref> set out the reliefs that may be obtained by making a foreign gain claim.</p></content></subparagraph><subparagraph><num>(3)</num><content><p>A foreign gain claim must be made in a return.</p></content></subparagraph><subparagraph><num>(4)</num><content><p>A foreign gain claim in relation to a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>A foreign gain claim may not be made as a consequential claim (within the meaning of section 43C(5) of the Management Act) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.</p></content></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-return">return</term>” means a return under section 8 of the Management Act (personal return),</p></content></level><level class="para1"><num>(b)</num><content><p>references to a claim being included in a return include a claim being so included as a result of an amendment of the return, and</p></content></level><level class="para1"><num>(c)</num><content><p>subsections (5) to (7) of section 118 of the Management Act (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief for qualifying foreign gains</heading><paragraph eId="d25e6463" class="schProv1"><num>2</num><subparagraph><num>(1)</num><content><p>Where an individual makes a foreign gain claim for a tax year, the individual is entitled to relief for each qualifying foreign gain accruing to the individual in that year that is identified in the claim.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The relief is given by deducting an amount equal to the sum of those gains from the total amount of chargeable gains accruing to the individual.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief in respect of deemed gains under section 86</heading><paragraph eId="d25e6482" class="schProv1"><num>3</num><subparagraph eId="d25e6486"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable gains would (but for this paragraph) be treated as accruing to an individual in a tax year under section 86(4) (attribution of gains to settlors of non-resident settlements),</p></content></level><level class="para1" eId="d25e6498"><num>(b)</num><content><p>a qualifying foreign gain accrued in that tax year to the trustees of the settlement concerned (or would have done on the assumption in section 86(3)), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual identifies the gain mentioned in <ref href="#d25e6498">paragraph (b)</ref> in a foreign gain claim for that tax year.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of section 86(1)(e) as it applies to the individual, the following are to be disregarded (in that tax year and in later tax years)—</p></intro><level class="para1"><num>(a)</num><content><p>the gain mentioned in <ref href="#d25e6486">sub-paragraph (1)</ref><ref href="#d25e6498">(b)</ref>;</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying foreign loss that accrued to the trustees in that tax year (or that would have so accrued on the assumption in section 86(3)).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief in respect of deemed gains under sections 87 and 89(2) and Schedule 4C</heading><paragraph eId="d25e6539" class="schProv1"><num>4</num><subparagraph><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a settlement is for a tax year—</p></intro><level class="para2"><num>(i)</num><content><p>one to which section 87 or 89(2) applies (attribution of gains to beneficiaries of settlements), or</p></content></level><level class="para2"><num>(ii)</num><content><p>a relevant settlement in relation to a Schedule 4C pool, within the meaning of paragraph 8A of Schedule 4C (transfers of value: attribution of gains etc),</p></content></level></level><level class="para1"><num>(b)</num><content><p>a beneficiary of the settlement receives a capital payment from the trustees in that tax year, and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual identifies the capital payment in a foreign gain claim for that tax year.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The capital payment is to be disregarded (in that tax year and in later tax years) for the purposes of sections 87, 87A and 89(2) and paragraph 8 of Schedule 4C.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The following apply for the purposes of this paragraph as they apply for the purposes of section 87—</p></intro><level class="para1"><num>(a)</num><content><p>section 87G (which provides for capital payments made to a close member of the settlor’s family to be treated in certain cases as received by the settlor);</p></content></level><level class="para1"><num>(b)</num><content><p>section 97 (which makes provision about the construction of “capital payment”, “settlement”, “trustees” and “beneficiary”).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Other effects of claim</heading><paragraph eId="d25e6606" class="schProv1"><num>5</num><intro><p>For other effects of making a foreign gain claim, see—</p></intro><level class="para1"><num>(a)</num><content><p>section 1K(6)(b) (annual exempt amount), which provides that where a foreign gain claim has effect in relation to an individual for a tax year, the individual has no entitlement to an annual exempt amount for that year,</p></content></level><level class="para1"><num>(b)</num><content><p>section 16<ref href="#d25e6772">(4)</ref> (computation of losses), which provides that where a foreign gain claim has effect in relation to an individual for a tax year, qualifying foreign losses accruing to the individual in that year are not allowable losses, and</p></content></level><level class="para1"><num>(c)</num><content><p>sections <ref href="#d25e4407">845C</ref> to <ref href="#d25e4505">845E</ref> of ITTOIA 2005, which set out some income tax consequences of making a foreign gain claim.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of Schedule</heading><paragraph eId="d25e6642" class="schProv1"><num>6</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-qualifying-foreign-asset">qualifying foreign asset</term>” means an asset that—</p></intro><level class="para1"><num>(a)</num><content><p>is situated outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>does not derive at least 75% of its value from UK land (see Schedule 1A);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-qualifying-foreign-gain">qualifying foreign gain</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a chargeable gain accruing on the disposal of a qualifying foreign asset,</p></content></level><level class="para1"><num>(b)</num><content><p>a chargeable gain treated as accruing as a result of section 3 (gains of non-UK resident close companies attributed to UK residents) where the gain accruing to the non-UK resident close company to which the deemed gain relates accrued on the disposal of a qualifying foreign asset, or</p></content></level><level class="para1"><num>(c)</num><content><p>a qualifying QAHC gain,</p></content></level><wrapUp><p>but a chargeable gain falling within paragraph <ref href="#d25e6673">(a)</ref> or <ref href="#d25e6677">(b)</ref> is not a qualifying foreign gain if it is a gain to which paragraph 1(2) of Schedule 1 applies (pre-2025-26 gains subject to the remittance basis);</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-foreign-loss">qualifying foreign loss</term>” means a loss accruing on the disposal of an asset that is a qualifying foreign asset;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-qahc-gain">qualifying QAHC gain</term>” means the foreign proportion (see paragraph 46(4) to (6) of Schedule 2 to FA 2022) of a chargeable gain accruing on the disposal of shares in a QAHC (within the meaning of that Schedule) other than a chargeable gain to which paragraph 46(3) of that Schedule applies.</p></content></hcontainer></paragraph></hcontainer></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-39-3"><num>(3)</num><content><p><mod>In section 1A (territorial scope), in subsection (2), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p><ref href="#d25e6378">Schedule D1</ref> (relief for new residents on foreign gains),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-4"><num>(4)</num><content><p><mod>In section 1E (losses deductible only when within scope of tax), in subsection (6), for “Schedule 1 (UK resident individuals not domiciled in the UK)” substitute <quotedText>“<ref href="#d25e6606">paragraph 5</ref> of <ref href="#d25e6378">Schedule D1</ref> (relief for new residents on foreign gains).”</quotedText></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-39-5"><num>(5)</num><intro><p>In section 1K (annual exempt amount), in subsection (6)—</p></intro><level class="para1" eId="section-39-5-a"><num>(a)</num><content><p>the words from “section” to the end become paragraph (a) of that subsection, and</p></content></level><level class="para1" eId="section-39-5-b"><num>(b)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the individual makes a foreign gain claim, a foreign income claim or a foreign employment election for that tax year.</p></content></level></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-5-a"><num>(a)</num><content><p>the words from “section” to the end become paragraph (a) of that subsection, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-39-5-b"><num>(b)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>the individual makes a foreign gain claim, a foreign income claim or a foreign employment election for that tax year.</p></content></level></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-39-6"><num>(6)</num><content><p><mod>In section 16 (computation of losses), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e6772"><num>(4)</num><content><p>A qualifying foreign loss accruing to an individual in a tax year is not an allowable loss if a foreign gain claim, a foreign income claim or a foreign employment election has effect in relation to the individual for that tax year.</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (4), “<term refersTo="#term-qualifying-foreign-loss">qualifying foreign loss</term>” has the same meaning as in Schedule D1 (see paragraph <ref href="#d25e6642">6</ref> of that Schedule).</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-39-7"><num>(7)</num><content><p><mod>In section 288 (interpretation), in subsection (1) at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means a claim under section <ref href="#d25e5233">41M</ref> of ITEPA 2003;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-gain-claim">foreign gain claim</term>” means a claim under paragraph <ref href="#d25e6390">1</ref> of <ref href="#d25e6378">Schedule D1</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-income-claim">foreign income claim</term>” means a claim under section <ref href="#d25e4161">845A</ref> of ITTOIA 2005;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>” has the meaning given by section <ref href="#d25e4289">845B</ref> of ITTOIA 2005 (which sets out the circumstances in which an individual will be a qualifying new resident following a period of 10 years of non-residence);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-8"><num>(8)</num><content><p><mod>In Schedule 1A, in paragraph 1, after “2B(4)(b)” insert <quotedText>“or <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref>”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-9"><num>(9)</num><content><p><mod>In Schedule 1C (annual exempt amount in cases involving settled property), in paragraph 1(4), for the words from “who” to the end substitute <quotedText>“to whom subsection (6) of that section does not apply.”</quotedText></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-10"><num>(10)</num><intro><p>In Schedule 2 to FA 2022 (qualifying asset holding companies), in paragraph 46—</p></intro><level class="para1" eId="section-39-10-a"><num>(a)</num><content><p><mod>in the heading (as amended by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-a">(a)</ref>), after “income” insert <quotedText>“or gain”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-39-10-b"><num>(b)</num><content><p><mod>in <ref href="#d25e5184">sub-paragraph (6A)</ref> (as inserted by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-c">(c)</ref>), after “claim)” insert <quotedText>“and paragraph <ref href="#d25e6681">(c)</ref> of the definition of “qualifying foreign gain” in <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 (foreign gain claims)”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-10-a"><num>(a)</num><content><p><mod>in the heading (as amended by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-a">(a)</ref>), after “income” insert <quotedText>“or gain”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-10-b"><num>(b)</num><content><p><mod>in <ref href="#d25e5184">sub-paragraph (6A)</ref> (as inserted by <ref href="#section-37">section 37</ref><ref href="#section-37-3">(3)</ref><ref href="#section-37-3-c">(c)</ref>), after “claim)” insert <quotedText>“and paragraph <ref href="#d25e6681">(c)</ref> of the definition of “qualifying foreign gain” in <ref href="#d25e6642">paragraph 6</ref> of <ref href="#d25e6378">Schedule D1</ref> to TCGA 1992 (foreign gain claims)”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-11"><num>(11)</num><content><p>The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-2-chapter-2"><num>Chapter 2</num><heading>Ending the special treatment of individuals not domiciled in United Kingdom</heading><section eId="section-40"><num>40</num><heading>Remittance basis not available after tax year 2024-25</heading><subsection eId="section-40-1"><num>(1)</num><content><p>Amendments made by <ref href="#schedule-9-paragraph-1">paragraph 1</ref> of <ref href="#schedule-9">Schedule 9</ref> have the effect that the remittance basis is not available for tax year 2025-26, or for subsequent tax years.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><content><p>But provisions relating to the remittance of income and gains will continue to have effect in relation to income and gains subject to the remittance basis in previous tax years.</p></content></subsection><subsection eId="section-40-3"><num>(3)</num><intro><p>Other provision is made by <ref href="#schedule-9">that Schedule</ref> (including provision amending the Income Tax Acts and TCGA 1992)—</p></intro><level class="para1" eId="section-40-3-a"><num>(a)</num><content><p>in consequence of ending the availability of the remittance basis,</p></content></level><level class="para1" eId="section-40-3-b"><num>(b)</num><content><p>clarifying the circumstances in which amounts are remitted (see <ref href="#schedule-9-paragraph-5">paragraph 5</ref>), and</p></content></level><level class="para1" eId="section-40-3-c"><num>(c)</num><content><p>in connection with otherwise ending the relevance of domicile to income tax and capital gains tax.</p></content></level></subsection><subsection eId="section-40-4"><num>(4)</num><content><p>Subject to subsections <ref href="#section-40-5">(5)</ref> and <ref href="#section-40-6">(6)</ref>, the provision made by <ref href="#schedule-9">that Schedule</ref> has effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection><subsection eId="section-40-5"><num>(5)</num><content><p>Paragraph <ref href="#schedule-9-paragraph-6">6</ref> of <ref href="#schedule-9">Schedule 9</ref> (relief for amounts remitted again on becoming UK resident) is to be treated as having always had effect.</p></content></subsection><subsection eId="section-40-6"><num>(6)</num><content><p>The amendments made by paragraphs <ref href="#schedule-9-paragraph-9">9</ref> and <ref href="#schedule-9-paragraph-10">10</ref> of <ref href="#schedule-9">Schedule 9</ref> (residence of personal representatives) have effect where the deceased person died on or after 6 April 2025.</p></content></subsection></section><section eId="section-41"><num>41</num><heading>Temporary repatriation facility</heading><content><p><ref href="#schedule-10">Schedule 10</ref> makes provision for a “temporary repatriation facility” for individuals who have been subject to the remittance basis.</p></content></section><section eId="section-42"><num>42</num><heading>Rebasing of assets</heading><content><p><ref href="#schedule-11">Schedule 11</ref> makes provision about the rebasing of assets for individuals who have been subject to the remittance basis.</p></content></section></chapter>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40"><num>40</num><heading>Remittance basis not available after tax year 2024-25</heading><subsection eId="section-40-1"><num>(1)</num><content><p>Amendments made by <ref href="#schedule-9-paragraph-1">paragraph 1</ref> of <ref href="#schedule-9">Schedule 9</ref> have the effect that the remittance basis is not available for tax year 2025-26, or for subsequent tax years.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><content><p>But provisions relating to the remittance of income and gains will continue to have effect in relation to income and gains subject to the remittance basis in previous tax years.</p></content></subsection><subsection eId="section-40-3"><num>(3)</num><intro><p>Other provision is made by <ref href="#schedule-9">that Schedule</ref> (including provision amending the Income Tax Acts and TCGA 1992)—</p></intro><level class="para1" eId="section-40-3-a"><num>(a)</num><content><p>in consequence of ending the availability of the remittance basis,</p></content></level><level class="para1" eId="section-40-3-b"><num>(b)</num><content><p>clarifying the circumstances in which amounts are remitted (see <ref href="#schedule-9-paragraph-5">paragraph 5</ref>), and</p></content></level><level class="para1" eId="section-40-3-c"><num>(c)</num><content><p>in connection with otherwise ending the relevance of domicile to income tax and capital gains tax.</p></content></level></subsection><subsection eId="section-40-4"><num>(4)</num><content><p>Subject to subsections <ref href="#section-40-5">(5)</ref> and <ref href="#section-40-6">(6)</ref>, the provision made by <ref href="#schedule-9">that Schedule</ref> has effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection><subsection eId="section-40-5"><num>(5)</num><content><p>Paragraph <ref href="#schedule-9-paragraph-6">6</ref> of <ref href="#schedule-9">Schedule 9</ref> (relief for amounts remitted again on becoming UK resident) is to be treated as having always had effect.</p></content></subsection><subsection eId="section-40-6"><num>(6)</num><content><p>The amendments made by paragraphs <ref href="#schedule-9-paragraph-9">9</ref> and <ref href="#schedule-9-paragraph-10">10</ref> of <ref href="#schedule-9">Schedule 9</ref> (residence of personal representatives) have effect where the deceased person died on or after 6 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-1"><num>(1)</num><content><p>Amendments made by <ref href="#schedule-9-paragraph-1">paragraph 1</ref> of <ref href="#schedule-9">Schedule 9</ref> have the effect that the remittance basis is not available for tax year 2025-26, or for subsequent tax years.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-2"><num>(2)</num><content><p>But provisions relating to the remittance of income and gains will continue to have effect in relation to income and gains subject to the remittance basis in previous tax years.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-3"><num>(3)</num><intro><p>Other provision is made by <ref href="#schedule-9">that Schedule</ref> (including provision amending the Income Tax Acts and TCGA 1992)—</p></intro><level class="para1" eId="section-40-3-a"><num>(a)</num><content><p>in consequence of ending the availability of the remittance basis,</p></content></level><level class="para1" eId="section-40-3-b"><num>(b)</num><content><p>clarifying the circumstances in which amounts are remitted (see <ref href="#schedule-9-paragraph-5">paragraph 5</ref>), and</p></content></level><level class="para1" eId="section-40-3-c"><num>(c)</num><content><p>in connection with otherwise ending the relevance of domicile to income tax and capital gains tax.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-3-a"><num>(a)</num><content><p>in consequence of ending the availability of the remittance basis,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-3-b"><num>(b)</num><content><p>clarifying the circumstances in which amounts are remitted (see <ref href="#schedule-9-paragraph-5">paragraph 5</ref>), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-3-c"><num>(c)</num><content><p>in connection with otherwise ending the relevance of domicile to income tax and capital gains tax.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-4"><num>(4)</num><content><p>Subject to subsections <ref href="#section-40-5">(5)</ref> and <ref href="#section-40-6">(6)</ref>, the provision made by <ref href="#schedule-9">that Schedule</ref> has effect for the tax year 2025-26 and subsequent tax years.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-5"><num>(5)</num><content><p>Paragraph <ref href="#schedule-9-paragraph-6">6</ref> of <ref href="#schedule-9">Schedule 9</ref> (relief for amounts remitted again on becoming UK resident) is to be treated as having always had effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-6"><num>(6)</num><content><p>The amendments made by paragraphs <ref href="#schedule-9-paragraph-9">9</ref> and <ref href="#schedule-9-paragraph-10">10</ref> of <ref href="#schedule-9">Schedule 9</ref> (residence of personal representatives) have effect where the deceased person died on or after 6 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41"><num>41</num><heading>Temporary repatriation facility</heading><content><p><ref href="#schedule-10">Schedule 10</ref> makes provision for a “temporary repatriation facility” for individuals who have been subject to the remittance basis.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42"><num>42</num><heading>Rebasing of assets</heading><content><p><ref href="#schedule-11">Schedule 11</ref> makes provision about the rebasing of assets for individuals who have been subject to the remittance basis.</p></content></section>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-2-chapter-3"><num>Chapter 3</num><heading>Trusts etc</heading><section eId="section-43"><num>43</num><heading>Trusts: connected amendments, transitional provision etc</heading><subsection eId="section-43-1"><num>(1)</num><intro><p>Schedule <ref href="#schedule-12">12</ref> amends legislation relating to the taxation of income and gains arising within trusts and similar structures, and in particular—</p></intro><level class="para1" eId="section-43-1-a"><num>(a)</num><content><p>contains amendments connected with the introduction of relief for qualifying new residents and the abolition of the remittance basis of taxation (see Chapters <ref href="#part-2-chapter-1">1</ref> and <ref href="#part-2-chapter-2">2</ref>), and</p></content></level><level class="para1" eId="section-43-1-b"><num>(b)</num><content><p>removes certain protections for foreign-source income and gains that have been available since the tax year 2017-18 while making transitional provision in respect of income that arose in past tax years.</p></content></level></subsection><subsection eId="section-43-2"><num>(2)</num><content><p>In that Schedule—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#schedule-12-part-1">Part 1</ref> amends Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family);</p></item><item><p><ref href="#schedule-12-part-2">Part 2</ref> amends Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad);</p></item><item><p><ref href="#schedule-12-part-3">Part 3</ref> amends Chapter 2 of Part 3 of TCGA 1992 (settlements: chargeable gains) and other provisions of TCGA 1992 relating to trusts and similar structures;</p></item><item><p><ref href="#schedule-12-part-4">Part 4</ref> contains provision about commencement and transitional provision.</p></item></blockList></content></subsection></section></chapter>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-43"><num>43</num><heading>Trusts: connected amendments, transitional provision etc</heading><subsection eId="section-43-1"><num>(1)</num><intro><p>Schedule <ref href="#schedule-12">12</ref> amends legislation relating to the taxation of income and gains arising within trusts and similar structures, and in particular—</p></intro><level class="para1" eId="section-43-1-a"><num>(a)</num><content><p>contains amendments connected with the introduction of relief for qualifying new residents and the abolition of the remittance basis of taxation (see Chapters <ref href="#part-2-chapter-1">1</ref> and <ref href="#part-2-chapter-2">2</ref>), and</p></content></level><level class="para1" eId="section-43-1-b"><num>(b)</num><content><p>removes certain protections for foreign-source income and gains that have been available since the tax year 2017-18 while making transitional provision in respect of income that arose in past tax years.</p></content></level></subsection><subsection eId="section-43-2"><num>(2)</num><content><p>In that Schedule—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#schedule-12-part-1">Part 1</ref> amends Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family);</p></item><item><p><ref href="#schedule-12-part-2">Part 2</ref> amends Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad);</p></item><item><p><ref href="#schedule-12-part-3">Part 3</ref> amends Chapter 2 of Part 3 of TCGA 1992 (settlements: chargeable gains) and other provisions of TCGA 1992 relating to trusts and similar structures;</p></item><item><p><ref href="#schedule-12-part-4">Part 4</ref> contains provision about commencement and transitional provision.</p></item></blockList></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-1"><num>(1)</num><intro><p>Schedule <ref href="#schedule-12">12</ref> amends legislation relating to the taxation of income and gains arising within trusts and similar structures, and in particular—</p></intro><level class="para1" eId="section-43-1-a"><num>(a)</num><content><p>contains amendments connected with the introduction of relief for qualifying new residents and the abolition of the remittance basis of taxation (see Chapters <ref href="#part-2-chapter-1">1</ref> and <ref href="#part-2-chapter-2">2</ref>), and</p></content></level><level class="para1" eId="section-43-1-b"><num>(b)</num><content><p>removes certain protections for foreign-source income and gains that have been available since the tax year 2017-18 while making transitional provision in respect of income that arose in past tax years.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-1-a"><num>(a)</num><content><p>contains amendments connected with the introduction of relief for qualifying new residents and the abolition of the remittance basis of taxation (see Chapters <ref href="#part-2-chapter-1">1</ref> and <ref href="#part-2-chapter-2">2</ref>), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-1-b"><num>(b)</num><content><p>removes certain protections for foreign-source income and gains that have been available since the tax year 2017-18 while making transitional provision in respect of income that arose in past tax years.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-43-2"><num>(2)</num><content><p>In that Schedule—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#schedule-12-part-1">Part 1</ref> amends Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family);</p></item><item><p><ref href="#schedule-12-part-2">Part 2</ref> amends Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad);</p></item><item><p><ref href="#schedule-12-part-3">Part 3</ref> amends Chapter 2 of Part 3 of TCGA 1992 (settlements: chargeable gains) and other provisions of TCGA 1992 relating to trusts and similar structures;</p></item><item><p><ref href="#schedule-12-part-4">Part 4</ref> contains provision about commencement and transitional provision.</p></item></blockList></content></subsection>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-2-chapter-4"><num>Chapter 4</num><heading>Inheritance tax</heading><section eId="section-44"><num>44</num><heading>Excluded property: domicile test replaced with long-term residence test</heading><subsection eId="section-44-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><content><p><mod>In section 6 (excluded property), in subsections (1) and (1A), for “domiciled outside the United Kingdom” substitute <quotedText>“who is not a long-term UK resident”</quotedText>.</mod></p></content></subsection><subsection eId="section-44-3"><num>(3)</num><content><p><mod>After section 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e7165"><num>6A</num><heading>“Long-term UK resident”: individuals</heading><subsection eId="d25e7169"><num>(1)</num><content><p>For the purposes of this Act, an individual is a “long-term UK resident” at all times in a tax year if they were UK resident for at least 10 of the previous 20 tax years.</p></content></subsection><subsection eId="d25e7175"><num>(2)</num><intro><p>But an individual is not a long-term UK resident at any time in a tax year (“the current tax year”) if they were non-UK resident—</p></intro><level class="para1"><num>(a)</num><content><p>for any 10 consecutive tax years during the 19 tax years before the current tax year, or</p></content></level><level class="para1" eId="d25e7187"><num>(b)</num><content><p>for at least the required number of consecutive tax years ending with the tax year before the current tax year.</p></content></level></subsection><subsection><num>(3)</num><content><p>To determine “<term refersTo="#term-the-required-number">the required number</term>” for the purposes of <ref href="#d25e7175">subsection (2)</ref><ref href="#d25e7187">(b)</ref>, take the 20 tax years ending with the last tax year for which the individual was UK resident and find the number of those tax years for which the individual was UK resident (“the number of resident years”).</p><p>The required number is the number in the second column of the following table corresponding to the number of resident years.</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Number of resident years</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Required number</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">13 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">16</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-uk-resident">UK resident</term>” means resident in the United Kingdom and “<term refersTo="#term-non-uk-resident">non-UK resident</term>” means not resident in the United Kingdom.</p></content></subsection><subsection><num>(5)</num><content><p>For the purposes of this section, a question as to whether the individual was UK resident for the tax year 2012-13 or an earlier tax year is to be determined as it would have been determined for income tax purposes for that tax year (and as to later tax years see Schedule 45 to the Finance Act 2013 (statutory residence test)).</p></content></subsection><subsection><num>(6)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7307">6B</ref> (which modifies this section in its application to young persons);</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e43858">sections 267ZC</ref> to <ref href="#d25e44152">267ZE</ref> (under which a person may be treated as a long-term UK resident as the result of an election).</p></content></level></subsection></section><section eId="d25e7307"><num>6B</num><heading>“Long-term UK resident”: young persons</heading><subsection eId="d25e7311"><num>(1)</num><intro><p>In the application of section <ref href="#d25e7165">6A</ref><ref href="#d25e7169">(1)</ref> for the purpose of determining whether a young person is a long-term UK resident at any time in a tax year (“the current tax year”), that subsection has effect as if—</p></intro><level class="para1" eId="d25e7322"><num>(a)</num><content><p>for “20” there were substituted the number of whole tax years for which the person was alive before the current tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>for “10” there were substituted half the number mentioned in <ref href="#d25e7322">paragraph (a)</ref> (rounded up, if not a whole number, to the next whole number).</p></content></level></subsection><subsection><num>(2)</num><content><p>In <ref href="#d25e7311">subsection (1)</ref>, “<term refersTo="#term-young-person">young person</term>” means an individual who was under the age of 20 immediately before the current tax year.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this Act, an individual is not a long-term UK resident at any time in a tax year if they were under the age of 1 (or were not yet born) immediately before the tax year.</p></content></subsection></section><section eId="d25e7358"><num>6C</num><heading>“Long-term UK resident”: bodies corporate</heading><intro><p>For the purposes of this Act, a body corporate is a “long-term UK resident” at all times in a tax year if the body—</p></intro><level class="para1"><num>(a)</num><content><p>is incorporated in the United Kingdom, or</p></content></level><level class="para1"><num>(b)</num><content><p>was (if in existence before the beginning of the tax year) within the charge to corporation tax on income at any time during the previous tax year by virtue of section 5(1) of the Corporation Tax Act 2009 (UK resident companies).</p></content></level></section></quotedStructure></mod></p></content></subsection><subsection eId="section-44-4"><num>(4)</num><content><p>This section comes into force on 6 April 2025.</p></content></subsection></section><section eId="section-45"><num>45</num><heading>Corresponding change for settled property</heading><subsection eId="section-45-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>In section 48 (excluded property)—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p><mod>in the heading, at the end insert <quotedText>“: reversionary interests and Treasury securities”</quotedText>;</mod></p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>omit subsections (3) to (3F).</p></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><content><p><mod>After section 48 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e7426"><num>48ZA</num><heading>Excluded property: property situated outside the UK etc</heading><subsection eId="d25e7430"><num>(1)</num><intro><p>If property comprised in a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>is situated outside the United Kingdom, or</p></content></level><level class="para1"><num>(b)</num><content><p>is a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level><wrapUp><p>this section applies to the property and section 6(1) and (1A) (general excluded property rule) does not.</p></wrapUp></subsection><subsection eId="d25e7450"><num>(2)</num><content><p>If the settlor is alive, the property is excluded property at any time when the settlor is not a long-term UK resident.</p></content></subsection><subsection eId="d25e7456"><num>(3)</num><content><p>If the settlor died on or after 6 April 2025, the property is excluded property if the settlor was not a long-term UK resident immediately before they died.</p></content></subsection><subsection eId="d25e7462"><num>(4)</num><content><p>If the settlor died before 6 April 2025, the property is excluded property if the settlor was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></subsection><subsection><num>(5)</num><content><p>Subsections <ref href="#d25e7450">(2)</ref> and <ref href="#d25e7456">(3)</ref> do not apply at any time to property to which section 49(1) (certain interests in possession) applies if, at that time, the person beneficially entitled to the interest is a long-term UK resident.</p></content></subsection><subsection eId="d25e7480"><num>(6)</num><intro><p>Subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> do not apply to property if—</p></intro><level class="para1"><num>(a)</num><intro><p>an individual has been beneficially entitled to an interest in possession in the property—</p></intro><level class="para2"><num>(i)</num><content><p>at any time on or after 6 April 2025 while a long-term UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before that date while domiciled in the United Kingdom, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the entitlement arose directly or indirectly as a result of a disposition made on or after 5 December 2005 for a consideration in money or money's worth.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of <ref href="#d25e7480">subsection (6)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>it is immaterial whether the consideration was given by the individual or by anyone else, and</p></content></level><level class="para1"><num>(b)</num><content><p>the cases in which an entitlement arose indirectly as a result of a disposition include any case where the entitlement arose under a will or the law relating to intestacy.</p></content></level></subsection><subsection eId="d25e7537"><num>(8)</num><content><p>Where the conditions in paragraphs (a) to (d) of section 74A(1) (arrangements involving acquisition of interest in settled property etc) are satisfied, none of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> applies at the time when the conditions are first satisfied or at any later time to make the relevant settled property (within the meaning of section 74A) excluded property.</p></content></subsection><subsection eId="d25e7549"><num>(9)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an amount is payable in respect of property (“the existing property”) comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement,</p></content></level><wrapUp><p>subsection <ref href="#d25e7462">(4)</ref> has effect in the case of the amount as if the reference to the time when it became comprised in the settlement were to the time when the existing property became comprised in the settlement.</p></wrapUp></subsection><subsection><num>(10)</num><content><p>Subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> are subject to Schedule A1 (overseas property with value attributable to UK residential property).</p></content></subsection><subsection><num>(11)</num><content><p>The reference in <ref href="#d25e7430">subsection (1)</ref> to property comprised in a settlement does not include a reversionary interest in the property (and accordingly this section does not apply to such an interest and section 6(1) does).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-45-4"><num>(4)</num><content><p>This section comes into force on 6 April 2025.</p></content></subsection></section><section eId="section-46"><num>46</num><heading>Consequential, connected and transitional provision</heading><content><p>In Schedule <ref href="#schedule-13">13</ref>—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#schedule-13-part-1">Part 1</ref> contains amendments to IHTA 1984 and related legislation that are consequential on, connected with or incidental to the new excluded property tests introduced by sections <ref href="#section-44">44</ref> and <ref href="#section-45">45</ref>;</p></item><item><p><ref href="#schedule-13-part-2">Part 2</ref> contains provision about commencement and transitional provision.</p></item></blockList></content></section></chapter>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-44"><num>44</num><heading>Excluded property: domicile test replaced with long-term residence test</heading><subsection eId="section-44-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><content><p><mod>In section 6 (excluded property), in subsections (1) and (1A), for “domiciled outside the United Kingdom” substitute <quotedText>“who is not a long-term UK resident”</quotedText>.</mod></p></content></subsection><subsection eId="section-44-3"><num>(3)</num><content><p><mod>After section 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e7165"><num>6A</num><heading>“Long-term UK resident”: individuals</heading><subsection eId="d25e7169"><num>(1)</num><content><p>For the purposes of this Act, an individual is a “long-term UK resident” at all times in a tax year if they were UK resident for at least 10 of the previous 20 tax years.</p></content></subsection><subsection eId="d25e7175"><num>(2)</num><intro><p>But an individual is not a long-term UK resident at any time in a tax year (“the current tax year”) if they were non-UK resident—</p></intro><level class="para1"><num>(a)</num><content><p>for any 10 consecutive tax years during the 19 tax years before the current tax year, or</p></content></level><level class="para1" eId="d25e7187"><num>(b)</num><content><p>for at least the required number of consecutive tax years ending with the tax year before the current tax year.</p></content></level></subsection><subsection><num>(3)</num><content><p>To determine “<term refersTo="#term-the-required-number">the required number</term>” for the purposes of <ref href="#d25e7175">subsection (2)</ref><ref href="#d25e7187">(b)</ref>, take the 20 tax years ending with the last tax year for which the individual was UK resident and find the number of those tax years for which the individual was UK resident (“the number of resident years”).</p><p>The required number is the number in the second column of the following table corresponding to the number of resident years.</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Number of resident years</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Required number</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">13 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">16</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-uk-resident">UK resident</term>” means resident in the United Kingdom and “<term refersTo="#term-non-uk-resident">non-UK resident</term>” means not resident in the United Kingdom.</p></content></subsection><subsection><num>(5)</num><content><p>For the purposes of this section, a question as to whether the individual was UK resident for the tax year 2012-13 or an earlier tax year is to be determined as it would have been determined for income tax purposes for that tax year (and as to later tax years see Schedule 45 to the Finance Act 2013 (statutory residence test)).</p></content></subsection><subsection><num>(6)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7307">6B</ref> (which modifies this section in its application to young persons);</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e43858">sections 267ZC</ref> to <ref href="#d25e44152">267ZE</ref> (under which a person may be treated as a long-term UK resident as the result of an election).</p></content></level></subsection></section><section eId="d25e7307"><num>6B</num><heading>“Long-term UK resident”: young persons</heading><subsection eId="d25e7311"><num>(1)</num><intro><p>In the application of section <ref href="#d25e7165">6A</ref><ref href="#d25e7169">(1)</ref> for the purpose of determining whether a young person is a long-term UK resident at any time in a tax year (“the current tax year”), that subsection has effect as if—</p></intro><level class="para1" eId="d25e7322"><num>(a)</num><content><p>for “20” there were substituted the number of whole tax years for which the person was alive before the current tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>for “10” there were substituted half the number mentioned in <ref href="#d25e7322">paragraph (a)</ref> (rounded up, if not a whole number, to the next whole number).</p></content></level></subsection><subsection><num>(2)</num><content><p>In <ref href="#d25e7311">subsection (1)</ref>, “<term refersTo="#term-young-person">young person</term>” means an individual who was under the age of 20 immediately before the current tax year.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this Act, an individual is not a long-term UK resident at any time in a tax year if they were under the age of 1 (or were not yet born) immediately before the tax year.</p></content></subsection></section><section eId="d25e7358"><num>6C</num><heading>“Long-term UK resident”: bodies corporate</heading><intro><p>For the purposes of this Act, a body corporate is a “long-term UK resident” at all times in a tax year if the body—</p></intro><level class="para1"><num>(a)</num><content><p>is incorporated in the United Kingdom, or</p></content></level><level class="para1"><num>(b)</num><content><p>was (if in existence before the beginning of the tax year) within the charge to corporation tax on income at any time during the previous tax year by virtue of section 5(1) of the Corporation Tax Act 2009 (UK resident companies).</p></content></level></section></quotedStructure></mod></p></content></subsection><subsection eId="section-44-4"><num>(4)</num><content><p>This section comes into force on 6 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-2"><num>(2)</num><content><p><mod>In section 6 (excluded property), in subsections (1) and (1A), for “domiciled outside the United Kingdom” substitute <quotedText>“who is not a long-term UK resident”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-44-3"><num>(3)</num><content><p><mod>After section 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e7165"><num>6A</num><heading>“Long-term UK resident”: individuals</heading><subsection eId="d25e7169"><num>(1)</num><content><p>For the purposes of this Act, an individual is a “long-term UK resident” at all times in a tax year if they were UK resident for at least 10 of the previous 20 tax years.</p></content></subsection><subsection eId="d25e7175"><num>(2)</num><intro><p>But an individual is not a long-term UK resident at any time in a tax year (“the current tax year”) if they were non-UK resident—</p></intro><level class="para1"><num>(a)</num><content><p>for any 10 consecutive tax years during the 19 tax years before the current tax year, or</p></content></level><level class="para1" eId="d25e7187"><num>(b)</num><content><p>for at least the required number of consecutive tax years ending with the tax year before the current tax year.</p></content></level></subsection><subsection><num>(3)</num><content><p>To determine “<term refersTo="#term-the-required-number">the required number</term>” for the purposes of <ref href="#d25e7175">subsection (2)</ref><ref href="#d25e7187">(b)</ref>, take the 20 tax years ending with the last tax year for which the individual was UK resident and find the number of those tax years for which the individual was UK resident (“the number of resident years”).</p><p>The required number is the number in the second column of the following table corresponding to the number of resident years.</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Number of resident years</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Required number</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">13 or less</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">16</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-uk-resident">UK resident</term>” means resident in the United Kingdom and “<term refersTo="#term-non-uk-resident">non-UK resident</term>” means not resident in the United Kingdom.</p></content></subsection><subsection><num>(5)</num><content><p>For the purposes of this section, a question as to whether the individual was UK resident for the tax year 2012-13 or an earlier tax year is to be determined as it would have been determined for income tax purposes for that tax year (and as to later tax years see Schedule 45 to the Finance Act 2013 (statutory residence test)).</p></content></subsection><subsection><num>(6)</num><intro><p>See also—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7307">6B</ref> (which modifies this section in its application to young persons);</p></content></level><level class="para1"><num>(b)</num><content><p><ref href="#d25e43858">sections 267ZC</ref> to <ref href="#d25e44152">267ZE</ref> (under which a person may be treated as a long-term UK resident as the result of an election).</p></content></level></subsection></section><section eId="d25e7307"><num>6B</num><heading>“Long-term UK resident”: young persons</heading><subsection eId="d25e7311"><num>(1)</num><intro><p>In the application of section <ref href="#d25e7165">6A</ref><ref href="#d25e7169">(1)</ref> for the purpose of determining whether a young person is a long-term UK resident at any time in a tax year (“the current tax year”), that subsection has effect as if—</p></intro><level class="para1" eId="d25e7322"><num>(a)</num><content><p>for “20” there were substituted the number of whole tax years for which the person was alive before the current tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>for “10” there were substituted half the number mentioned in <ref href="#d25e7322">paragraph (a)</ref> (rounded up, if not a whole number, to the next whole number).</p></content></level></subsection><subsection><num>(2)</num><content><p>In <ref href="#d25e7311">subsection (1)</ref>, “<term refersTo="#term-young-person">young person</term>” means an individual who was under the age of 20 immediately before the current tax year.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this Act, an individual is not a long-term UK resident at any time in a tax year if they were under the age of 1 (or were not yet born) immediately before the tax year.</p></content></subsection></section><section eId="d25e7358"><num>6C</num><heading>“Long-term UK resident”: bodies corporate</heading><intro><p>For the purposes of this Act, a body corporate is a “long-term UK resident” at all times in a tax year if the body—</p></intro><level class="para1"><num>(a)</num><content><p>is incorporated in the United Kingdom, or</p></content></level><level class="para1"><num>(b)</num><content><p>was (if in existence before the beginning of the tax year) within the charge to corporation tax on income at any time during the previous tax year by virtue of section 5(1) of the Corporation Tax Act 2009 (UK resident companies).</p></content></level></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-4"><num>(4)</num><content><p>This section comes into force on 6 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-45"><num>45</num><heading>Corresponding change for settled property</heading><subsection eId="section-45-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>In section 48 (excluded property)—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p><mod>in the heading, at the end insert <quotedText>“: reversionary interests and Treasury securities”</quotedText>;</mod></p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>omit subsections (3) to (3F).</p></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><content><p><mod>After section 48 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e7426"><num>48ZA</num><heading>Excluded property: property situated outside the UK etc</heading><subsection eId="d25e7430"><num>(1)</num><intro><p>If property comprised in a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>is situated outside the United Kingdom, or</p></content></level><level class="para1"><num>(b)</num><content><p>is a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level><wrapUp><p>this section applies to the property and section 6(1) and (1A) (general excluded property rule) does not.</p></wrapUp></subsection><subsection eId="d25e7450"><num>(2)</num><content><p>If the settlor is alive, the property is excluded property at any time when the settlor is not a long-term UK resident.</p></content></subsection><subsection eId="d25e7456"><num>(3)</num><content><p>If the settlor died on or after 6 April 2025, the property is excluded property if the settlor was not a long-term UK resident immediately before they died.</p></content></subsection><subsection eId="d25e7462"><num>(4)</num><content><p>If the settlor died before 6 April 2025, the property is excluded property if the settlor was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></subsection><subsection><num>(5)</num><content><p>Subsections <ref href="#d25e7450">(2)</ref> and <ref href="#d25e7456">(3)</ref> do not apply at any time to property to which section 49(1) (certain interests in possession) applies if, at that time, the person beneficially entitled to the interest is a long-term UK resident.</p></content></subsection><subsection eId="d25e7480"><num>(6)</num><intro><p>Subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> do not apply to property if—</p></intro><level class="para1"><num>(a)</num><intro><p>an individual has been beneficially entitled to an interest in possession in the property—</p></intro><level class="para2"><num>(i)</num><content><p>at any time on or after 6 April 2025 while a long-term UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before that date while domiciled in the United Kingdom, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the entitlement arose directly or indirectly as a result of a disposition made on or after 5 December 2005 for a consideration in money or money's worth.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of <ref href="#d25e7480">subsection (6)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>it is immaterial whether the consideration was given by the individual or by anyone else, and</p></content></level><level class="para1"><num>(b)</num><content><p>the cases in which an entitlement arose indirectly as a result of a disposition include any case where the entitlement arose under a will or the law relating to intestacy.</p></content></level></subsection><subsection eId="d25e7537"><num>(8)</num><content><p>Where the conditions in paragraphs (a) to (d) of section 74A(1) (arrangements involving acquisition of interest in settled property etc) are satisfied, none of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> applies at the time when the conditions are first satisfied or at any later time to make the relevant settled property (within the meaning of section 74A) excluded property.</p></content></subsection><subsection eId="d25e7549"><num>(9)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an amount is payable in respect of property (“the existing property”) comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement,</p></content></level><wrapUp><p>subsection <ref href="#d25e7462">(4)</ref> has effect in the case of the amount as if the reference to the time when it became comprised in the settlement were to the time when the existing property became comprised in the settlement.</p></wrapUp></subsection><subsection><num>(10)</num><content><p>Subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> are subject to Schedule A1 (overseas property with value attributable to UK residential property).</p></content></subsection><subsection><num>(11)</num><content><p>The reference in <ref href="#d25e7430">subsection (1)</ref> to property comprised in a settlement does not include a reversionary interest in the property (and accordingly this section does not apply to such an interest and section 6(1) does).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-45-4"><num>(4)</num><content><p>This section comes into force on 6 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-2"><num>(2)</num><intro><p>In section 48 (excluded property)—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p><mod>in the heading, at the end insert <quotedText>“: reversionary interests and Treasury securities”</quotedText>;</mod></p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>omit subsections (3) to (3F).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-2-a"><num>(a)</num><content><p><mod>in the heading, at the end insert <quotedText>“: reversionary interests and Treasury securities”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-2-b"><num>(b)</num><content><p>omit subsections (3) to (3F).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-45-3"><num>(3)</num><content><p><mod>After section 48 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e7426"><num>48ZA</num><heading>Excluded property: property situated outside the UK etc</heading><subsection eId="d25e7430"><num>(1)</num><intro><p>If property comprised in a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>is situated outside the United Kingdom, or</p></content></level><level class="para1"><num>(b)</num><content><p>is a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level><wrapUp><p>this section applies to the property and section 6(1) and (1A) (general excluded property rule) does not.</p></wrapUp></subsection><subsection eId="d25e7450"><num>(2)</num><content><p>If the settlor is alive, the property is excluded property at any time when the settlor is not a long-term UK resident.</p></content></subsection><subsection eId="d25e7456"><num>(3)</num><content><p>If the settlor died on or after 6 April 2025, the property is excluded property if the settlor was not a long-term UK resident immediately before they died.</p></content></subsection><subsection eId="d25e7462"><num>(4)</num><content><p>If the settlor died before 6 April 2025, the property is excluded property if the settlor was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></subsection><subsection><num>(5)</num><content><p>Subsections <ref href="#d25e7450">(2)</ref> and <ref href="#d25e7456">(3)</ref> do not apply at any time to property to which section 49(1) (certain interests in possession) applies if, at that time, the person beneficially entitled to the interest is a long-term UK resident.</p></content></subsection><subsection eId="d25e7480"><num>(6)</num><intro><p>Subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> do not apply to property if—</p></intro><level class="para1"><num>(a)</num><intro><p>an individual has been beneficially entitled to an interest in possession in the property—</p></intro><level class="para2"><num>(i)</num><content><p>at any time on or after 6 April 2025 while a long-term UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before that date while domiciled in the United Kingdom, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the entitlement arose directly or indirectly as a result of a disposition made on or after 5 December 2005 for a consideration in money or money's worth.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of <ref href="#d25e7480">subsection (6)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>it is immaterial whether the consideration was given by the individual or by anyone else, and</p></content></level><level class="para1"><num>(b)</num><content><p>the cases in which an entitlement arose indirectly as a result of a disposition include any case where the entitlement arose under a will or the law relating to intestacy.</p></content></level></subsection><subsection eId="d25e7537"><num>(8)</num><content><p>Where the conditions in paragraphs (a) to (d) of section 74A(1) (arrangements involving acquisition of interest in settled property etc) are satisfied, none of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> applies at the time when the conditions are first satisfied or at any later time to make the relevant settled property (within the meaning of section 74A) excluded property.</p></content></subsection><subsection eId="d25e7549"><num>(9)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an amount is payable in respect of property (“the existing property”) comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement,</p></content></level><wrapUp><p>subsection <ref href="#d25e7462">(4)</ref> has effect in the case of the amount as if the reference to the time when it became comprised in the settlement were to the time when the existing property became comprised in the settlement.</p></wrapUp></subsection><subsection><num>(10)</num><content><p>Subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> are subject to Schedule A1 (overseas property with value attributable to UK residential property).</p></content></subsection><subsection><num>(11)</num><content><p>The reference in <ref href="#d25e7430">subsection (1)</ref> to property comprised in a settlement does not include a reversionary interest in the property (and accordingly this section does not apply to such an interest and section 6(1) does).</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-4"><num>(4)</num><content><p>This section comes into force on 6 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-46"><num>46</num><heading>Consequential, connected and transitional provision</heading><content><p>In Schedule <ref href="#schedule-13">13</ref>—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#schedule-13-part-1">Part 1</ref> contains amendments to IHTA 1984 and related legislation that are consequential on, connected with or incidental to the new excluded property tests introduced by sections <ref href="#section-44">44</ref> and <ref href="#section-45">45</ref>;</p></item><item><p><ref href="#schedule-13-part-2">Part 2</ref> contains provision about commencement and transitional provision.</p></item></blockList></content></section>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-3"><num>Part 3</num><heading>Other taxes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-value-added-tax"><heading>Value added tax</heading><section eId="section-47"><num>47</num><heading>Removal of exemption for private school fees</heading><subsection eId="section-47-1"><num>(1)</num><content><p>VATA 1994 is amended as follows.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><intro><p>In Schedule 9 (exemptions)—</p></intro><level class="para1" eId="section-47-2-a"><num>(a)</num><intro><p>in Group 6 (education)—</p></intro><level class="para2" eId="section-47-2-a-i"><num>(i)</num><content><p><mod>in item 3(b)(i), after “5A” insert <quotedText>“(or would be so exempt but for item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level><level class="para2" eId="section-47-2-a-ii"><num>(ii)</num><content><p><mod>in item 4, after “item 1” insert <quotedText>“(whether or not that supply also falls within item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-47-2-b"><num>(b)</num><content><p><mod>after Part 2 (the groups) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 3</num><heading>Exceptions</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Item No.</p></default:th><default:th/></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of education by a private school, other than—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the provision of the teaching of English as a foreign language,</p></item><item><num>(b)</num><p>the provision of education in a nursery class, or</p></item><item><num>(c)</num><p>the provision of a higher education course.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of vocational training by a private school.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of board and lodging which is closely related to a supply of a description falling within item 1 or 2.</p></default:td></default:tr></default:tbody><default:tfoot><default:tr><default:td colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Notes:</i></p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered arabic parens" ukl:Name="OrderedList" ukl:Type="arabic" ukl:Decoration="parens"><item><num>(1)</num><p>A “<term refersTo="#term-private-school">private school</term>” means an institution which is either—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a school—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>at which full-time education is provided for pupils of compulsory school age or, in Scotland, school age (whether or not such education is also provided for pupils under or over that age),</p></item><item><num>(ii)</num><p>where fees or other consideration are payable for that provision of full-time education, and</p></item><item><num>(iii)</num><p>which is not a nursery school, or</p></item></blockList></item><item><num>(b)</num><p>an institution—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age (or, in Scotland, school age) but under 19,</p></item><item><num>(ii)</num><p>at which full-time education is provided for such persons,</p></item><item><num>(iii)</num><p>where the provision of full-time education falling within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and</p></item><item><num>(iv)</num><p>which is not an independent training or learning provider.</p></item></blockList></item></blockList></item><item><num>(2)</num><p>In Note (1)(b) an “<term refersTo="#term-independent-training-or-learning-provider">independent training or learning provider</term>” means an institution—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>at which education or training is provided for persons over compulsory school age (or, in Scotland, school age) but under 19 under a contract with a relevant contracting authority, and</p></item><item><num>(b)</num><p>where the consideration for the provision falling within paragraph (a) is payable by the relevant contracting authority under that contract.</p></item></blockList></item><item><num>(3)</num><p>For the purposes of Note (2), a “<term refersTo="#term-relevant-contracting-authority">relevant contracting authority</term>” means the Secretary of State, Medr (Commission for Tertiary Education and Research), the Department for the Economy in Northern Ireland or Skills Development Scotland.</p></item><item><num>(4)</num><p>For the purposes of items 1 and 2, the provision of education or vocational training at a private school by any eligible body other than a private school is to be treated as provision by a private school if—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the eligible body and that private school are connected within the meaning of section 1122 of the Corporation Tax Act 2010 (connected persons), or</p></item><item><num>(b)</num><p>the provision by the eligible body is a result of arrangements the main purpose, or one of the main purposes, of which is to secure that the provision is an exempt supply.</p></item></blockList></item><item><num>(5)</num><p>For the purposes of Note (4)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>“arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and</p></item><item><num>(b)</num><p>an “<term refersTo="#term-eligible-body">eligible body</term>” has the meaning given by Note (1) to Group 6.</p></item></blockList></item><item><num>(6)</num><p>For the purposes of item 1—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a “<term refersTo="#term-nursery-class">nursery class</term>” means a class that is composed wholly (or almost wholly) of children who—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>are under compulsory school age or, in Scotland, school age, and</p></item><item><num>(ii)</num><p>would not be expected to attain that age while in that class, and</p></item></blockList></item><item><num>(b)</num><p>a “higher education course”—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>in relation to England and Wales, has the meaning given by section 83(1) of the Higher Education and Research Act 2017;</p></item><item><num>(ii)</num><p>in relation to Scotland, means a course of any description mentioned in section 5(3) of the Further and Higher Education (Scotland) Act 2005;</p></item><item><num>(iii)</num><p>in relation to Northern Ireland, means a course of any description mentioned in paragraph 1 of Schedule 1 to the Further Education (Northern Ireland) Order 1997 (<ref eId="c00033" href="http://www.legislation.gov.uk/id/nisi/1997/1772">S.I. 1997/1772 (N.I. 15))</ref>.</p></item></blockList></item></blockList></item><item><num>(7)</num><p>For the purposes of item 2 “<term refersTo="#term-vocational-training">vocational training</term>” has the meaning given by Note (3) to Group 6.</p></item><item><num>(8)</num><p>In these Notes, “compulsory school age”, “<term refersTo="#term-pupil">pupil</term>”, “<term refersTo="#term-school">school</term>” and “<term refersTo="#term-school-age">school age</term>” have the meanings given by the Education Act 1996, the Education (Scotland) Act 1980 and the Education and Libraries (Northern Ireland) Order 1986 (<ref eId="c00034" href="http://www.legislation.gov.uk/id/nisi/1986/594">S.I. 1986/594 (N.I. 3))</ref> in relation to England and Wales, Scotland and Northern Ireland respectively.</p></item></blockList></default:td></default:tr></default:tfoot></default:table></foreign></tblock></content></part></quotedStructure></mod></p></content></level></subsection><subsection eId="section-47-3"><num>(3)</num><content><p><mod>In section 31 (exempt supplies), in subsection (1), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 and it is not of a description specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></subsection><subsection eId="section-47-4"><num>(4)</num><content><p><mod>In section 8 (reverse charge on supplies received from abroad), in subsection (4A), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 and not specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></subsection><subsection eId="section-47-5"><num>(5)</num><intro><p>In section 43 (groups of companies), in subsection (2A)—</p></intro><level class="para1" eId="section-47-5-a"><num>(a)</num><content><p><mod>in paragraph (b), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or are within any of the descriptions specified in Part 3 of that Schedule”</quotedText>;</mod></p></content></level><level class="para1" eId="section-47-5-b"><num>(b)</num><content><p><mod>in paragraph (c) for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or which do fall within any of the descriptions specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-48"><num>48</num><heading>Charge on pre-paid private school fees</heading><subsection eId="section-48-1"><num>(1)</num><content><p><ref href="#section-48-2">Subsection (2)</ref> applies to the provision of education services during a school term if a payment in respect of the services was received by the person providing the services on or after 29 July 2024 and before 30 October 2024.</p></content></subsection><subsection eId="section-48-2"><num>(2)</num><intro><p>That provision is treated for the purposes of the charge to VAT as a supply taking place on the later of—</p></intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><p>1 January 2025, and</p></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><p>the first day of that term.</p></content></level><wrapUp><p>Accordingly, that provision is not to be regarded (as a result of provision made by or under VATA 1994) as a supply taking place at any other time.</p></wrapUp></subsection><subsection eId="section-48-3"><num>(3)</num><content><p>But <ref href="#section-48-2">subsection (2)</ref> does not apply to the provision of education services by a school if the school is approved under section 342 of the Education Act 1996 (approval of non-maintained special schools).</p></content></subsection><subsection eId="section-48-4"><num>(4)</num><content><p>In this section “<term refersTo="#term-the-provision-of-education-services" eId="term-the-provision-of-education-services">the provision of education services</term>” means a provision of education, vocational training or board and lodging falling within Part 3 of Schedule 9 (exceptions).</p></content></subsection><subsection eId="section-48-5"><num>(5)</num><content><p>This section is to be read as if it were contained in VATA 1994.</p></content></subsection></section><section eId="section-49"><num>49</num><heading>Sections <ref href="#section-47">47</ref> and <ref href="#section-48">48</ref>: commencement</heading><subsection eId="section-49-1"><num>(1)</num><content><p>Sections <ref href="#section-47">47</ref> and <ref href="#section-48">48</ref> are to be treated as having come into force on 30 October 2024 and have effect in relation to any provision of education, vocational training or board and lodging on or after 1 January 2025 (whenever that supply is treated as taking place for the purposes of the charge to VAT).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-stamp-duty-land-tax"><heading>Stamp duty land tax</heading><section eId="section-50"><num>50</num><heading>Increased rates for additional dwellings: transactions before 1 April 2025</heading><subsection eId="section-50-1"><num>(1)</num><content><p>Section 1 of the Stamp Duty Land Tax (Temporary Relief) Act 2023 (which provides for reduced rates of stamp duty land tax for transactions before 1 April 2025) is amended as follows.</p></content></subsection><subsection eId="section-50-2"><num>(2)</num><content><p><mod>In subsection (3) (which deals with purchases of additional dwellings), for the Table A mentioned there substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE A: RESIDENTIAL</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Part of relevant consideration</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as does not exceed £250,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £250,000 but does not exceed £925,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £925,000 but does not exceed £1,500,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The remainder (if any)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-50-3"><num>(3)</num><content><p>The amendment made by this section has effect in relation to land transactions the effective date of which falls on or after 31 October 2024 but before 1 April 2025.</p></content></subsection><subsection eId="section-50-4"><num>(4)</num><intro><p>But the amendment made by this section does not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-50-4-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level><level class="para1" eId="section-50-4-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-50-5"><num>(5)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-50-5-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-50-6"><num>(6)</num><content><p>This section also needs to be read with section <ref href="#section-52">52</ref> (which deals with cases where a contract has been substantially performed before the change in rates made by this section etc).</p></content></subsection></section><section eId="section-51"><num>51</num><heading>Increased rates for additional dwellings: transactions on or after 1 April 2025</heading><subsection eId="section-51-1"><num>(1)</num><content><p><mod>In Schedule 4ZA to FA 2003 (higher rates of stamp duty land tax for additional dwellings etc), for the Table A in section 55(1B) mentioned in paragraph 1(2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE A: RESIDENTIAL</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Part of relevant consideration</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as does not exceed £125,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £125,000 but does not exceed £250,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £250,000 but does not exceed £925,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £925,000 but does not exceed £1,500,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The remainder (if any)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-51-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to land transactions the effective date of which falls on or after 1 April 2025.</p></content></subsection><subsection eId="section-51-3"><num>(3)</num><intro><p>But the amendment made by this section does not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-51-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level><level class="para1" eId="section-51-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-51-4"><num>(4)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-51-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-51-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-51-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-51-5"><num>(5)</num><content><p>This section also needs to be read with section <ref href="#section-52">52</ref> (which deals with cases where a contract has been substantially performed before the change in rates made by this section etc).</p></content></subsection></section><section eId="section-52"><num>52</num><heading>Contracts substantially performed before relevant rate change</heading><subsection eId="section-52-1"><num>(1)</num><content><p>The Stamp Duty Land Tax (Temporary Relief) Act 2020 is amended as follows.</p></content></subsection><subsection eId="section-52-2"><num>(2)</num><intro><p>In section 1 (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 8 July 2020 and ending with 30 June 2021)—</p></intro><level class="para1" eId="section-52-2-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 June 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-2-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-3"><num>(3)</num><intro><p>In section 1A (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 1 July 2021 and ending with 30 September 2021)—</p></intro><level class="para1" eId="section-52-3-a"><num>(a)</num><content><p><mod>in subsection (5) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 September 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (5A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-3-b"><num>(b)</num><content><p><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-4"><num>(4)</num><intro><p>In section 1 of the Stamp Duty Land Tax (Temporary Relief) Act 2023 (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 23 September 2022 and ending with 31 March 2025)—</p></intro><level class="para1" eId="section-52-4-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 31 March 2025), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-4-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by subsections (2) to (5) have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-5"><num>(5)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-52-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level><level class="para1" eId="section-52-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level><wrapUp><p>section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of this Act would have had effect in relation to that conveyance.</p></wrapUp></subsection><subsection eId="section-52-6"><num>(6)</num><content><p>Section 44(10) of FA 2003 applies for the purposes of subsection <ref href="#section-52-5">(5)</ref>.</p></content></subsection></section><section eId="section-53"><num>53</num><heading>Purchases by companies etc</heading><subsection eId="section-53-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content><p>paragraph 3(1)(a) of Schedule 4A to FA 2003 (higher rate of SDLT for purchases by companies etc), and</p></content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content><p>step 4 in section 74(1A) of FA 2003 (exercise of collective rights by tenants of flats where condition in paragraph 3(3) of that Schedule is met),</p></content></level><wrapUp><p><mod>for “15%” substitute <quotedText>“17%”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-53-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to land transactions the effective date of which falls on or after 31 October 2024.</p></content></subsection><subsection eId="section-53-3"><num>(3)</num><intro><p>But the amendments made by this section do not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before that date, and</p></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-53-5"><num>(5)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-53-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level><level class="para1" eId="section-53-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level><wrapUp><p>section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the increased rates provided for by this section would have had effect in relation to that conveyance.</p></wrapUp></subsection><subsection eId="section-53-6"><num>(6)</num><content><p>Section 44(10) of FA 2003 applies for the purposes of subsection <ref href="#section-53-5">(5)</ref>.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-annual-tax-on-enveloped-dwellings"><heading>Annual tax on enveloped dwellings</heading><section eId="section-54"><num>54</num><heading>Alternative finance: land in England, Scotland or Northern Ireland</heading><subsection eId="section-54-1"><num>(1)</num><intro><p>In section 157 of FA 2013 (land in England or Northern Ireland sold to financial institution and leased to person under alternative finance arrangements)—</p></intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content><p><mod>in subsection (2), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content><p><mod>in subsection (4), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content><p><mod>in subsection (9), after “subsections” insert <quotedText>“(2), (3),”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-54-2"><num>(2)</num><intro><p>In section 157A of FA 2013 (land in Scotland sold to financial institution and leased to person under alternative finance arrangements)—</p></intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content><p><mod>in subsection (4), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content><p><mod>in subsection (6), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-2-c"><num>(c)</num><content><p><mod>in subsection (11), after “subsections” insert <quotedText>“(4), (5),”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-54-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force on 30 October 2024.</p></content></subsection></section><section eId="section-55"><num>55</num><heading>Alternative finance: land in Wales</heading><subsection eId="section-55-1"><num>(1)</num><content><p>In section 157 of FA 2013, in the heading and subsection (1)(b), omit “, Wales”.</p></content></subsection><subsection eId="section-55-2"><num>(2)</num><content><p><mod>After section 157A of FA 2013 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>157B</num><heading>Land in Wales sold to financial institution and leased to person</heading><subsection eId="d25e8655"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1) (land in Wales sold to financial institution and leased to person) applies in relation to arrangements entered into between a financial institution and another person (“<term refersTo="#term-the-lessee">the lessee</term>”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the land in which the institution purchases a major interest under the first transaction is in Wales and consists of or includes one or more dwellings (or parts of a dwelling).</p></content></level></subsection><subsection eId="d25e8676"><num>(2)</num><intro><p>This Part has effect in relation to times when the arrangements are in operation as if—</p></intro><level class="para1" eId="d25e8682"><num>(a)</num><content><p>the interest held by the financial institution as mentioned in <ref href="#d25e8699">subsection (3)</ref><ref href="#d25e8714">(b)</ref> were held by the lessee (and not by the financial institution), and</p></content></level><level class="para1"><num>(b)</num><content><p>the lease or sub-lease granted under the second transaction had not been granted.</p></content></level></subsection><subsection eId="d25e8699"><num>(3)</num><intro><p>The reference in <ref href="#d25e8676">subsection (2)</ref> to times when the arrangements are in operation is to times when—</p></intro><level class="para1"><num>(a)</num><content><p>the lessee holds the leasehold interest granted to it under the second transaction, and</p></content></level><level class="para1" eId="d25e8714"><num>(b)</num><content><p>the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.</p></content></level></subsection><subsection><num>(4)</num><content><p>A company or individual treated under <ref href="#d25e8676">subsection (2)</ref><ref href="#d25e8682">(a)</ref> as holding an interest at a particular time is treated as holding it as a member of a partnership if at the time in question the company or individual holds the leasehold interest as a member of the partnership (and this Part has effect accordingly in relation to the other members of the partnership).</p></content></subsection><subsection eId="d25e8731"><num>(5)</num><intro><p>In relation to times when the arrangements operate for the benefit of a collective investment scheme, this Part has effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the interest held by the financial institution as mentioned in <ref href="#d25e8754">subsection (6)</ref><ref href="#d25e8769">(b)</ref> were held by the lessee for the purposes of a collective investment scheme (and were not held by the financial institution), and</p></content></level><level class="para1"><num>(b)</num><content><p>the lease or sub-lease granted under the second transaction had not been granted.</p></content></level></subsection><subsection eId="d25e8754"><num>(6)</num><intro><p>The reference in <ref href="#d25e8731">subsection (5)</ref> to times when the arrangements operate for the benefit of a collective investment scheme is to times when—</p></intro><level class="para1"><num>(a)</num><content><p>the lessee holds the leasehold interest for the purposes of a collective investment scheme, and</p></content></level><level class="para1" eId="d25e8769"><num>(b)</num><content><p>the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.</p></content></level></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-financial-institution">financial institution</term>” has the meaning given by paragraph 8 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-first-transaction">the first transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-further-transaction">further transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-leasehold-interest">the leasehold interest</term>” means the interest granted to the lessee under the second transaction;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-second-transaction">the second transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>The reference in <ref href="#d25e8655">subsection (1)</ref> to a major interest in land is to be read in accordance with section 68 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.</p></content></subsection><subsection><num>(9)</num><content><p>Where the lessee is an individual, references in subsections <ref href="#d25e8676">(2)</ref>, <ref href="#d25e8699">(3)</ref>, <ref href="#d25e8731">(5)</ref> and <ref href="#d25e8754">(6)</ref> to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee’s personal representatives.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-55-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force on 30 October 2024.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-stamp-duty-and-stamp-duty-reserve-tax"><heading>Stamp duty and stamp duty reserve tax</heading><section eId="section-56"><num>56</num><heading>Testing of FMI technologies or practices</heading><subsection eId="section-56-1"><num>(1)</num><content><p>The Treasury may by regulations make provision about stamp duty or stamp duty reserve tax in connection with regulations made under section 13 of the Financial Services and Markets Act 2023 (testing of FMI technologies or practices).</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><intro><p>Regulations under subsection (1) may—</p></intro><level class="para1" eId="section-56-2-a"><num>(a)</num><content><p>disapply, or modify the application of, an Act;</p></content></level><level class="para1" eId="section-56-2-b"><num>(b)</num><content><p>apply an Act with or without modifications,</p></content></level><wrapUp><p>but may not amend or repeal an Act.</p></wrapUp></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>Regulations under subsection (1) must be made by statutory instrument.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><content><p>A statutory instrument containing provision (whether alone or with other provision) that has the effect of increasing the amount of duty or tax that is chargeable in respect of any instrument, transfer or agreement to transfer above the amount that would have been chargeable in the absence of regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the House of Commons.</p></content></subsection><subsection eId="section-56-5"><num>(5)</num><content><p>A statutory instrument that does not contain such provision is subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-inheritance-tax"><heading>Inheritance tax</heading><section eId="section-57"><num>57</num><heading>Rate bands etc for tax years 2028-29 and 2029-30</heading><intro><p>In section 86 of FA 2021 (no indexation of rate bands, residential enhancement and taper threshold for tax years up to 2027-28)—</p></intro><level class="para1" eId="section-57-a"><num>(a)</num><content><p><mod>for “or 2026” substitute <quotedText>“, 2026, 2027 or 2028”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-57-b"><num>(b)</num><content><p><mod>in the heading, for “2027-28” substitute <quotedText>“2029-30”</quotedText>.</mod></p></content></level></section><section eId="section-58"><num>58</num><heading>EBTs: prohibition on applying property for benefit of participators etc</heading><subsection eId="section-58-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-58-2"><num>(2)</num><intro><p>In section 13 (dispositions by close companies for benefit of employees), in subsection (2)—</p></intro><level class="para1" eId="section-58-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-d"><num>(d)</num><content><p><mod>in paragraph (d), after “who is” insert <quotedText>“, at the time of the disposition or any later time,”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-58-3"><num>(3)</num><intro><p>In section 28 (employee trusts), in subsection (4)—</p></intro><level class="para1" eId="section-58-3-a"><num>(a)</num><content><p><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>a person who is, at the time of the transfer of value mentioned in subsection (1), a participator in the company mentioned in that subsection; or</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-58-3-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the transfer of value mentioned in subsection (1),”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-3-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-3-d"><num>(d)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>any person who is, at the time of the transfer of value mentioned in subsection (1) or any later time, connected with a person within paragraph (a), (b) or (c).</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section eId="section-59"><num>59</num><heading>EBTs: restriction on proportion of beneficiaries who may be participators etc</heading><subsection eId="section-59-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-59-2"><num>(2)</num><content><p><mod>In section 13 (dispositions by close companies for benefit of employees), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9063"><num>(4A)</num><content><p>Subsection (4)(a) does not apply if, immediately after the disposition of property mentioned in subsection (1), more than 25% of relevant beneficiaries are (disregarding subsection (4)(a)) persons falling within subsection (2)(a) to (d).</p></content></subsection><subsection><num>(4B)</num><intro><p>In subsection <ref href="#d25e9063">(4A)</ref> “<term refersTo="#term-relevant-beneficiary">relevant beneficiary</term>” means a person who—</p></intro><level class="para1"><num>(a)</num><content><p>is a person for whose benefit the trusts permit the property to be applied, and</p></content></level><level class="para1"><num>(b)</num><content><p>is a person employed by or holding office with the company mentioned in subsection (1).</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-59-3"><num>(3)</num><content><p><mod>In section 28 (employee trusts), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9102"><num>(6A)</num><content><p>Subsection (6) does not apply if, immediately after the transfer of value mentioned in subsection (1), more than 25% of relevant beneficiaries are (disregarding subsection (6)) persons falling within subsection (4)(a) to (d).</p></content></subsection><subsection><num>(6B)</num><intro><p>In subsection <ref href="#d25e9102">(6A)</ref> “<term refersTo="#term-relevant-beneficiary">relevant beneficiary</term>” means a person who—</p></intro><level class="para1"><num>(a)</num><content><p>is a person for whose benefit the trusts permit the settled property to be applied, and</p></content></level><level class="para1"><num>(b)</num><content><p>is a person employed by or holding office with the company mentioned in subsection (1).</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-59-4"><num>(4)</num><content><p><mod>In section 75 (exemption from charge under section 65 where property becomes subject to employee benefit trust), in subsection (3), in the opening words, after <quotedText>“section 28(4)”</quotedText> insert <quotedText>“and <ref href="#d25e9102">(6A)</ref>”</quotedText>.</mod></p></content></subsection><subsection eId="section-59-5"><num>(5)</num><content><p>This section is treated as having come into force on 30 October 2024.</p></content></subsection></section><section eId="section-60"><num>60</num><heading>EBTs: shares entering trust to have been held for two years</heading><subsection eId="section-60-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-60-2"><num>(2)</num><intro><p>In section 28 (employee trusts)—</p></intro><level class="para1" eId="section-60-2-a"><num>(a)</num><content><p><mod>in subsection (1), after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9183"><num>(c)</num><content><p>the individual has, throughout the period of two years ending with the date of the transfer, been beneficially entitled to the shares in or securities of the company that become comprised in the settlement.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-60-2-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9198"><num>(8)</num><content><p>A reference in subsection (1)<ref href="#d25e9183">(c)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(9)</num><intro><p>In subsection <ref href="#d25e9198">(8)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-60-3"><num>(3)</num><intro><p>In section 75 (exemption from charge under section 65 where property becomes subject to employee benefit trust)—</p></intro><level class="para1" eId="section-60-3-a"><num>(a)</num><content><p><mod>in subsection (2), after paragraph (c) insert <quotedText startQuote="“">; and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9248"><num>(d)</num><content><p>the shares in or securities of the company have been comprised in the settlement mentioned in section 65(1) throughout the period of two years ending with the date on which they cease to be relevant property.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-60-3-b"><num>(b)</num><content><p><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9263"><num>(4)</num><content><p>A reference in subsection (2)<ref href="#d25e9248">(d)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection <ref href="#d25e9263">(4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-60-4"><num>(4)</num><content><p>This section is treated as having come into force on 30 October 2024.</p></content></subsection></section><section eId="section-61"><num>61</num><heading>Agricultural property relief: environmental management agreements</heading><subsection eId="section-61-1"><num>(1)</num><content><p><mod>In Chapter 2 of Part 5 of IHTA 1984 (agricultural property relief), omit section 124C (application of agricultural property relief to land in habitat schemes) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>124C</num><heading>Environmental management agreements</heading><subsection><num>(1)</num><intro><p>For the purposes of this Chapter, land is to be treated as agricultural property occupied for the purposes of agriculture if—</p></intro><level class="para1"><num>(a)</num><content><p>the land was agricultural property throughout the period of two years ending with the day on which it became subject to an environmental management agreement, and</p></content></level><level class="para1"><num>(b)</num><content><p>since that day, it has been used and managed in accordance with the agreement (whether or not the agreement is still in place).</p></content></level></subsection><subsection><num>(2)</num><intro><p>A building occupied with land that is treated as agricultural property occupied for the purposes of agriculture under subsection (1) is to be treated in the same way if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used in connection with the use and management of the land in accordance with the environmental management agreement (whether or not the agreement is still in place) and is of a character appropriate to the land,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>it was built for the purpose of being used in connection with that use and management (whether or not the agreement was still in place), or</p></content></level><level class="para2"><num>(ii)</num><content><p>it was occupied with the land immediately before the land became subject to the environmental management agreement and was of a character appropriate to the land as it stood at that time, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>it is not otherwise agricultural property occupied for the purposes of agriculture.</p></content></level></subsection><subsection><num>(3)</num><content><p>For the purposes of subsection (2), where a building is occupied with land that is treated as agricultural property under subsection (1) and land that is otherwise agricultural property occupied for the purposes of agriculture, the question of whether the building is of a character appropriate to the land is to be considered by reference to all of that land.</p></content></subsection><subsection><num>(4)</num><content><p>The agricultural value of property that is agricultural property as a result of this section is to be taken to be the value that would be the value of the property if it were subject to a perpetual covenant prohibiting its use otherwise than in accordance with the environmental management agreement (whether or not the agreement is still in place) (and section 115(3) does not apply).</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (1)(a) the reference to agricultural property includes land treated as agricultural property under this section.</p></content></subsection><subsection><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-environmental-management-agreement">environmental management agreement</term>” means a legally enforceable agreement between an occupier or other person with a right in land and a public authority which—</p></intro><level class="para1"><num>(a)</num><content><p>is entered into for the purpose of protecting, restoring or enhancing the natural environment, or natural resources, of land or water, and</p></content></level><level class="para1"><num>(b)</num><content><p>in practice requires the land to be used and managed in a way that would (apart from this section) prevent it from being agricultural property occupied for the purposes of agriculture;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-land">land</term>” includes pasture and woodland;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-public-authority">public authority</term>” means a person that is in entering the environmental management agreement—</p></intro><level class="para1"><num>(a)</num><content><p>exercising public functions, or</p></content></level><level class="para1"><num>(b)</num><content><p>acting under arrangements with a public authority in relation to the exercise of the authority’s functions.</p></content></level></hcontainer></subsection><subsection><num>(7)</num><content><p>This section does not apply in respect of an environmental management agreement that ended before 6 March 2024.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-61-2"><num>(2)</num><intro><p>The amendments made by this section have effect—</p></intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content><p>in relation to transfers of value made on or after 6 April 2025, and</p></content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content><p>in relation to occasions on or after that date on which tax falls to be charged under Chapter 3 of Part 3 of IHTA 1984.</p></content></level></subsection></section><section eId="section-62"><num>62</num><heading>National Savings Bank: statements from HMRC no longer to be required</heading><subsection eId="section-62-1"><num>(1)</num><content><p>In the National Savings Regulations 2015 (<ref eId="c00035" href="http://www.legislation.gov.uk/id/uksi/2015/623">S.I. 2015/623</ref>), omit regulation 55 (inheritance tax chargeable on death of depositors).</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><content><p>In the National Savings (No. 2) Regulations 2015 (<ref eId="c00036" href="http://www.legislation.gov.uk/id/uksi/2015/624">S.I. 2015/624</ref>), omit regulation 90 (inheritance tax chargeable on death of holders of stock or certificates).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-alcohol-duty"><heading>Alcohol duty</heading><section eId="section-63"><num>63</num><heading>Rates of alcohol duty</heading><subsection eId="section-63-1"><num>(1)</num><content><p>Part 2 of F(No.2)A 2023 (alcohol duty) is amended as follows.</p></content></subsection><subsection eId="section-63-2"><num>(2)</num><content><p><mod>For Schedule 7 (main rates) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 7</num><heading>Rates of alcohol duty</heading><content><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic strength of alcoholic product</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate of duty per litre of alcohol in the product</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Less than 3.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.61</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">At least 3.5% but less than 8.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">See Table 2</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">At least 8.5% but not exceeding 22%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£29.54</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding 22%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£32.79</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>TABLE 2</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Description of alcoholic product (of an alcoholic strength of at least 3.5% but less than 8.5%) </i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate of duty per litre of alcohol in the product </i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Still cider</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength not exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.02</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Beer</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£21.78</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Spirits, wine and other fermented products</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£25.67</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-3"><num>(3)</num><content><p><mod>For Schedule 8 (reduced rates for qualifying draught products) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 8</num><heading>Qualifying draught products: reduced rates</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Description of alcoholic product</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate of duty per litre of alcohol in the product </i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Alcoholic products of an alcoholic strength of less than 3.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£8.28</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Still cider of an alcoholic strength of at least 3.5%</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£8.63</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Beer, spirits, wine and other fermented products of an alcoholic strength of at least 3.5% (but less than 8.5%)</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£18.76</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-4"><num>(4)</num><content><p><mod>For Schedule 9 (duty discount for small producer alcoholic products)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 9</num><heading>Small producer alcoholic products: duty discount</heading><part><num>Part 1</num><heading>Alcoholic products, other than qualifying draught products, of an alcoholic strength of less than 8.5%</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48.05</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">157.99</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">231.28</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6.35</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31.76</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">141.70</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">214.99</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10.02</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.55</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50.10</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.53</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">164.78</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.51</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.24</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Beer of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19.94</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">99.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.97</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1290.33</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5.54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2411.75</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3.32</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3657.77</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5153.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-1.64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5153.00</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25.67</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">128.35</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">245.84</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.31</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">376.37</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20.89</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104.43</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">221.92</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.31</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part><part><num>Part 2</num><heading>Qualifying draught products of an alcoholic strength of less than 8.5%</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.28</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">41.40</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">136.13</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">199.28</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.07</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27.37</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">122.09</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185.24</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.06</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.63</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">43.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.32</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">141.93</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207.78</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.07</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Beer of an alcoholic strength of at least 3.5% </i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17.17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">85.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1111.41</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4.77</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2077.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.86</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3150.59</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4438.49</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-1.41</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4438.49</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18.76</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">93.80</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">179.66</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.95</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275.06</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">76.32</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">162.18</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.95</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">257.58</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-5"><num>(5)</num><intro><p>In consequence of the amendments made by the preceding subsections of this section, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—</p></intro><level class="para1" eId="section-63-5-a"><num>(a)</num><content><p><mod>in the entry relating to beer, in the second column, for “£0.88” substitute <quotedText>“£0.91”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-b"><num>(b)</num><content><p><mod>in the entry relating to still wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-c"><num>(c)</num><content><p><mod>in the entry relating to sparkling wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-d"><num>(d)</num><content><p><mod>in the entry relating to cider, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-e"><num>(e)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength not exceeding 5.5% by volume, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-f"><num>(f)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength exceeding 5.5% but less than 8.5% by volume, in the second column, for “£1.73” substitute <quotedText>“£1.80”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-g"><num>(g)</num><content><p><mod>in the entry relating to other fermented products, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-63-5-h"><num>(h)</num><content><p><mod>in the entry relating to spirits, in the second column, for “£11.88” substitute <quotedText>“£12.30”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-63-6"><num>(6)</num><content><p>The amendments made by this section are treated as having come into force on 1 February 2025.</p></content></subsection></section><section eId="section-64"><num>64</num><heading>Abolition of duty stamps for alcoholic products</heading><subsection eId="section-64-1"><num>(1)</num><content><p>Section 112 of, and Schedule 12 to, F(No.2)A 2023 (which make provision about duty stamps for retail containers of alcoholic products) are repealed.</p></content></subsection><subsection eId="section-64-2"><num>(2)</num><intro><p>In consequence of the repeals made by <ref href="#section-64-1">subsection (1)</ref>—</p></intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">(2)</a> of <ref eId="c00037" href="https://www.legislation.gov.uk/ukpga/1994/9">FA 1994</ref>, omit paragraph (ca),</p></content></level><level class="para1" eId="section-64-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">(2)</a> of <ref eId="c00038" href="https://www.legislation.gov.uk/ukpga/1994/9">that Act</ref>—</p></intro><level class="para2" eId="section-64-2-b-i"><num>(i)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">paragraph (ea)</a>, omit sub-paragraph (ii) and the “or” before it, and</p></content></level><level class="para2" eId="section-64-2-b-ii"><num>(ii)</num><content><p>omit paragraphs (f) and (g),</p></content></level></level><level class="para1" eId="section-64-2-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41">Schedule 41</a> to <ref eId="c00039" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>, in the Table, omit the entry relating to alcohol duty and duty stamps,</p></content></level><level class="para1" eId="section-64-2-d"><num>(d)</num><intro><p>in section 119 of F(No.2)A 2023—</p></intro><level class="para2" eId="section-64-2-d-i"><num>(i)</num><content><p>omit subsection (4), and</p></content></level><level class="para2" eId="section-64-2-d-ii"><num>(ii)</num><content><p>in subsections (5) and (8)(a), omit “or subsection (4)”,</p></content></level></level><level class="para1" eId="section-64-2-e"><num>(e)</num><content><p>in Schedule 11 to that Act, omit paragraph 1(4),</p></content></level><level class="para1" eId="section-64-2-f"><num>(f)</num><content><p>in Schedule 13 to that Act, omit paragraph 9,</p></content></level><level class="para1" eId="section-64-2-g"><num>(g)</num><content><p>in the form of United Kingdom Internal Accompanying Document, set out in Schedule 4 to the Excise Warehousing (Etc.) Regulations 1988 (<ref eId="c00040" href="http://www.legislation.gov.uk/id/uksi/1988/809">S.I. 1988/809</ref>), in the explanatory note to Box 18a, omit the sentence beginning “If alcohol or alcoholic beverages are stamped”,</p></content></level><level class="para1" eId="section-64-2-h"><num>(h)</num><content><p>the <ref eId="c00041" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00042" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) are revoked.</p></content></level></subsection><subsection eId="section-64-3"><num>(3)</num><intro><p>In consequence of the revocation of the Duty Stamps Regulations 2006 the following are revoked—</p></intro><level class="para1" eId="section-64-3-a"><num>(a)</num><content><p>paragraphs 3 and 4 of <a href="https://www.legislation.gov.uk/uksi/2009/571/schedule/2">Schedule 2</a> to the <ref eId="c00043" href="https://www.legislation.gov.uk/uksi/2009/571">Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009</ref> (<ref eId="c00044" href="http://www.legislation.gov.uk/id/uksi/2009/571">S.I. 2009/571</ref>),</p></content></level><level class="para1" eId="section-64-3-b"><num>(b)</num><content><p>paragraphs 20 and 21 of <a href="https://www.legislation.gov.uk/uksi/2010/593/schedule/2">Schedule 2</a> to the <ref eId="c00045" href="https://www.legislation.gov.uk/uksi/2010/593">Excise Goods (Holding, Movement and Duty Point) Regulations 2010</ref> (<ref eId="c00046" href="http://www.legislation.gov.uk/id/uksi/2010/593">S.I. 2010/593</ref>),</p></content></level><level class="para1" eId="section-64-3-c"><num>(c)</num><content><p>paragraph 49 of Schedule 3 to the Tribunals, Courts and Enforcement Act 2007 (Consequential Amendments) Order 2012 (<ref eId="c00047" href="http://www.legislation.gov.uk/id/uksi/2012/2404">S.I. 2012/2404</ref>),</p></content></level><level class="para1" eId="section-64-3-d"><num>(d)</num><content><p>regulation 4 of the <ref eId="c00048" href="https://www.legislation.gov.uk/uksi/2013/1229">Spirits (Amendment) Regulations 2013</ref> (<ref eId="c00049" href="http://www.legislation.gov.uk/id/uksi/2013/1229">S.I. 2013/1229</ref>),</p></content></level><level class="para1" eId="section-64-3-e"><num>(e)</num><content><p>regulations 8 to 18 and 23 of the <ref eId="c00050" href="https://www.legislation.gov.uk/uksi/2019/15">Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2019</ref> (<ref eId="c00051" href="http://www.legislation.gov.uk/id/uksi/2019/15">S.I. 2019/15</ref>),</p></content></level><level class="para1" eId="section-64-3-f"><num>(f)</num><content><p>regulations 95 and 97 of the <ref eId="c00052" href="https://www.legislation.gov.uk/uksi/2020/1559">Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020</ref> (<ref eId="c00053" href="https://www.legislation.gov.uk/uksi/2020/1559">S.I. 2020/1559</ref>),</p></content></level><level class="para1" eId="section-64-3-g"><num>(g)</num><content><p>regulations 13, 17 and 26 of the <ref eId="c00054" href="https://www.legislation.gov.uk/uksi/2020/1412">Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020</ref> (<ref eId="c00055" href="https://www.legislation.gov.uk/uksi/2020/1412">S.I. 2020/1412</ref>),</p></content></level><level class="para1" eId="section-64-3-h"><num>(h)</num><content><p>regulation 7 of the <ref eId="c00056" href="https://www.legislation.gov.uk/uksi/2021/1282">Excise Duties (Removal of Alcoholic Liquor to Northern Ireland and Miscellaneous Amendments) Regulations 2021</ref> (<ref eId="c00057" href="http://www.legislation.gov.uk/id/uksi/2021/1282">S.I. 2021/1282</ref>),</p></content></level><level class="para1" eId="section-64-3-i"><num>(i)</num><content><p>Part 2 of Schedule 2 to the Excise Duties and Value Added Tax (Northern Ireland) (Miscellaneous Modifications and Amendments) Regulations 2023 (<ref eId="c00058" href="http://www.legislation.gov.uk/id/uksi/2023/64">S.I. 2023/64</ref>), and</p></content></level><level class="para1" eId="section-64-3-j"><num>(j)</num><content><p>paragraph 10 of the Schedule to the Finance (No. 2) Act 2023, Part 2 (Alcohol Duty) (Appointed Day, Savings, Consequential Amendments and Transitional Provisions) Regulations 2023 (<ref eId="c00059" href="http://www.legislation.gov.uk/id/uksi/2023/884">S.I. 2023/884</ref>).</p></content></level></subsection><subsection eId="section-64-4"><num>(4)</num><content><p>The amendments made by <ref href="#section-64">this section</ref> come into force on 1 May 2025.</p></content></subsection><subsection eId="section-64-5"><num>(5)</num><content><p>Where before that date a person incurs an obligation under the <ref eId="c00060" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00061" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) to take any steps, no requirement to take those steps continues on or after that date (despite <a href="https://www.legislation.gov.uk/ukpga/1978/30/section/16">section 16</a> of the <ref eId="c00062" href="https://www.legislation.gov.uk/ukpga/1978/30">Interpretation Act 1978</ref>).</p></content></subsection><subsection eId="section-64-6"><num>(6)</num><content><p>But <ref href="#section-64-5">subsection (5)</ref> does not apply to any obligation to preserve records made for the purposes of those regulations.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-tobacco-products-duty"><heading>Tobacco products duty</heading><section eId="section-65"><num>65</num><heading>Rates of tobacco products duty</heading><subsection eId="section-65-1"><num>(1)</num><content><p><mod>In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1 Cigarettes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An amount equal to the higher of—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>16.5% of the retail price plus £334.58 per thousand cigarettes, or</p></item><item><num>(b)</num><p>£446.67 per thousand cigarettes.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 Cigars</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£417.33 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 Hand-rolling tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£476.83 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4 Other smoking tobacco and chewing tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£183.49 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5 Tobacco for heating</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£343.91 per kilogram</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-65-2"><num>(2)</num><intro><p>In consequence of the provision made by <ref href="#section-65-1">subsection (1)</ref>, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—</p></intro><level class="para1" eId="section-65-2-a"><num>(a)</num><content><p><mod>in the entry relating to cigarettes, for “£422.80” substitute <quotedText>“£446.67”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-b"><num>(b)</num><content><p><mod>in the entry relating to hand rolling tobacco, for “£412.32” substitute <quotedText>“£476.83”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-c"><num>(c)</num><content><p><mod>in the entry relating to other smoking tobacco and chewing tobacco, for “£173.68” substitute <quotedText>“£183.49”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-d"><num>(d)</num><content><p><mod>in the entry relating to cigars, for “£395.03” substitute <quotedText>“£417.33”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-e"><num>(e)</num><content><p><mod>in the entry relating to cigarillos, for “£395.03” substitute <quotedText>“£417.33”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-65-2-f"><num>(f)</num><content><p><mod>in the entry relating to tobacco for heating, for “£97.66” substitute <quotedText>“£103.17”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-65-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force at 6pm on 30 October 2024.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-taxes-relating-to-vehicles"><heading>Taxes relating to vehicles</heading><section eId="section-66"><num>66</num><heading>Rates of vehicle excise duty for light passenger or light goods vehicles etc</heading><subsection eId="section-66-1"><num>(1)</num><content><p>Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.</p></content></subsection><subsection eId="section-66-2"><num>(2)</num><intro><p>In paragraph 1 (general rate)—</p></intro><level class="para1" eId="section-66-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£345” substitute <quotedText>“£360”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-66-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc etc), for “£210” substitute <quotedText>“£220”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-66-3"><num>(3)</num><content><p>In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), omit paragraph (b) together with the “and” before that paragraph.</p></content></subsection><subsection eId="section-66-4"><num>(4)</num><content><p><mod>In paragraph 1B, for the Table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th/></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to or exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">120</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">120</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">140</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">195</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">140</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">215</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">265</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">175</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">315</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">175</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">345</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">395</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">430</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">735</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">760</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-5"><num>(5)</num><content><p><mod>In the sentence immediately following the Table in that paragraph, for the words from “as if” to the end substitute <quotedText>“as if, in column (3), in the last two rows, “430” were substituted for “735” and “760”.”</quotedText></mod></p></content></subsection><subsection eId="section-66-6"><num>(6)</num><content><p>Omit paragraphs 1C to 1F together with the italic heading before paragraph 1C (which provide for a reduced rate).</p></content></subsection><subsection eId="section-66-7"><num>(7)</num><content><p>In paragraph 1GA (vehicles to which Part 1AA applies), in sub-paragraph (3), omit paragraph (c).</p></content></subsection><subsection eId="section-66-8"><num>(8)</num><content><p>In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), in sub-paragraph (2), omit paragraph (b) together with the “and” before that paragraph.</p></content></subsection><subsection eId="section-66-9"><num>(9)</num><content><p><mod>In paragraph 1GC, for Table 1 (vehicles other than higher rate diesel vehicles) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th/></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">270</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">350</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">390</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">440</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">540</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1360</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2190</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4680</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-10"><num>(10)</num><content><p><mod>In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Rate</i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to or exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">270</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">350</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">390</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">440</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">540</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1360</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2190</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4680</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-11"><num>(11)</num><content><p><mod>In paragraph 1GD(1)(rates for any other licence for light passenger vehicles registered on or after 1 April 2017), for the words from “applicable to the vehicle is—” to the end substitute <quotedText>“applicable to the vehicle is £195.”</quotedText></mod></p></content></subsection><subsection eId="section-66-12"><num>(12)</num><content><p><mod>In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), for the words from “applicable to the vehicle is—” to the end substitute <quotedText>“applicable to the vehicle is £620.”</quotedText></mod></p></content></subsection><subsection eId="section-66-13"><num>(13)</num><content><p><mod>In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007, post-2008 lower emission vans or pre-2011 electric vans), for “£335” substitute <quotedText>“£345”</quotedText>.</mod></p></content></subsection><subsection eId="section-66-14"><num>(14)</num><content><p><mod>In paragraph 1N (which defines “<term refersTo="#term-pre-electric-van" eId="term-pre-electric-van">pre-electric van</term>” for the purposes of paragraph 1J), for “2003 and” insert <quotedText>“2003 but before 1 January 2007 or on or after 1 January 2009 but”</quotedText>.</mod></p></content></subsection><subsection eId="section-66-15"><num>(15)</num><intro><p>In paragraph 2(1) (rates for motorcycles)—</p></intro><level class="para1" eId="section-66-15-a"><num>(a)</num><content><p><mod>in paragraph (a) (engine cylinder capacity not exceeding 150cc etc), for “£25” substitute <quotedText>“£26”</quotedText>,</mod></p></content></level><level class="para1" eId="section-66-15-b"><num>(b)</num><content><p><mod>in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£55” substitute <quotedText>“£57”</quotedText>,</mod></p></content></level><level class="para1" eId="section-66-15-c"><num>(c)</num><content><p><mod>in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£84” substitute <quotedText>“£87”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-66-15-d"><num>(d)</num><content><p><mod>in paragraph (d) (other cases), for “£117” substitute <quotedText>“£121”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-66-16"><num>(16)</num><content><p>In consequence of the amendments made by the preceding provisions of this section, in section 10 of FA 2023, omit subsection (5)(b) and (c).</p></content></subsection><subsection eId="section-66-17"><num>(17)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-67"><num>67</num><heading>Rates of vehicle excise duty for rigid goods vehicles without trailers etc</heading><subsection eId="section-67-1"><num>(1)</num><content><p>Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.</p></content></subsection><subsection eId="section-67-2"><num>(2)</num><content><p><mod>In paragraph 9 (rigid goods vehicles exceeding 3,500 kgs revenue weight), for the table in sub-paragraph (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Two axle vehicle</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Three axle vehicle</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Four or more axle vehicle</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">109</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-67-3"><num>(3)</num><content><p><mod>In paragraph 11(1) (tractive units), for Table 1 and Table 2 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>Table 1</num><heading>Tractive unit with two axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any no of semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 or more semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 or more semi-trailer axles</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">87</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">157</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">151</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 2</num><heading>Tractive unit with three or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any no of semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 or more semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 or more semi-trailer axles</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">151</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">300</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-67-4"><num>(4)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-68"><num>68</num><heading>Rates of vehicle excise duty for rigid goods vehicles with trailers</heading><subsection eId="section-68-1"><num>(1)</num><content><p><mod>In paragraph 10 of Schedule 1 to VERA 1994 (supplement to annual rate of duty for rigid goods vehicles with trailers), in sub-paragraph (6), for the Tables 1 to 6 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>Table 1</num><heading>Vehicles with road-friendly suspension and 2 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">331</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">30,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 2</num><heading>Vehicles with road-friendly suspension and 3 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 3</num><heading>Vehicles with road-friendly suspension and 4 or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">622</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 4</num><heading>Vehicles without road-friendly suspension with 2 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">30,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 5</num><heading>Vehicles without road-friendly suspension with 3 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 6</num><heading>Vehicles without road-friendly suspension with 4 or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-68-2"><num>(2)</num><content><p><mod>In that paragraph, in sub-paragraph (7), for “£609” substitute <quotedText>“£631”</quotedText>.</mod></p></content></subsection><subsection eId="section-68-3"><num>(3)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-69"><num>69</num><heading>Vehicle excise duty for vehicles with exceptional loads etc</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>paragraph 6(2A)(a) of Schedule 1 to VERA 1994 (vehicles with exceptional loads),</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>paragraph 9(3) of that Schedule (rigid goods vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle), and</p></content></level><level class="para1" eId="section-69-1-c"><num>(c)</num><content><p>paragraph 11(3) of that Schedule (tractive unit vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle),</p></content></level><wrapUp><p><mod>for “£1,585” substitute <quotedText>“£1,643”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-69-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-70"><num>70</num><heading>Rate of vehicle excise duty for haulage vehicles other than showman’s vehicles</heading><subsection eId="section-70-1"><num>(1)</num><content><p><mod>In paragraph 7(3A) of Schedule 1 to VERA 1994 (which specifies the rate of vehicle excise duty applicable to haulage vehicles other than showman’s vehicles), for “£350” substitute <quotedText>“£365”</quotedText>.</mod></p></content></subsection><subsection eId="section-70-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-71"><num>71</num><heading>Vehicle excise duty: zero-emission vehicles</heading><subsection eId="section-71-1"><num>(1)</num><content><p>VERA 1994 is amended as follows.</p></content></subsection><subsection eId="section-71-2"><num>(2)</num><content><p><mod>In section 62 (other definitions), after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1AA)</num><content><p>For the purposes of this Act, a vehicle is a “zero-emission vehicle” if the vehicle’s rate of CO₂ emissions measured in grams per kilometre driven, or grams per kilowatt hour, is zero.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-71-3"><num>(3)</num><intro><p>In Schedule 1 (annual rates of duty)—</p></intro><level class="para1" eId="section-71-3-a"><num>(a)</num><intro><p>in paragraph 1—</p></intro><level class="para2" eId="section-71-3-a-i"><num>(i)</num><content><p><mod>in sub-paragraph (2), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (2A), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-71-3-b"><num>(b)</num><content><p><mod>in paragraph 1A (vehicles to which Part 1A applies), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><intro><p>Sub-paragraph (1B) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph><num>(1B)</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level><level class="para1" eId="section-71-3-c"><num>(c)</num><content><p><mod>in paragraph 1GA (vehicles to which Part 1AA applies), after sub-paragraph (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1B)</num><intro><p>Sub-paragraph <ref href="#d25e14055">(1C)</ref> has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph eId="d25e14055"><num>(1C)</num><intro><p>For the purposes of this Part of this Schedule (and notwithstanding anything in sub-paragraph (5))—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level><level class="para1" eId="section-71-3-d"><num>(d)</num><content><p><mod>in paragraph 1N, in sub-paragraph (b), at the end insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para1" eId="section-71-3-e"><num>(e)</num><intro><p>in paragraph 2 (motorcycles)—</p></intro><level class="para2" eId="section-71-3-e-i"><num>(i)</num><content><p><mod>in sub-paragraph (1)(a), after “propelled” insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-e-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (3), in the definition of “motorcycle”, after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>.</mod></p></content></level></level></subsection><subsection eId="section-71-4"><num>(4)</num><intro><p>In Schedule 2 (exempt vehicles)—</p></intro><level class="para1" eId="section-71-4-a"><num>(a)</num><content><p><mod>in the italic heading before paragraph 20G, at the end insert <quotedText>“etc”</quotedText>;</mod></p></content></level><level class="para1" eId="section-71-4-b"><num>(b)</num><content><p><mod>in paragraph 20G (electrically propelled vehicles), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>A zero-emission vehicle is an exempt vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-71-5"><num>(5)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-72"><num>72</num><heading>Rates of HGV road user levy</heading><subsection eId="section-72-1"><num>(1)</num><content><p>Schedule 1 to the HGV Road User Levy Act 2013 (rates of the levy) is amended as follows.</p></content></subsection><subsection eId="section-72-2"><num>(2)</num><content><p><mod>In paragraph 5, for Table 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1: VEHICLES MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Band</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Daily rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Weekly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Monthly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Half-yearly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Yearly rate</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£3.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£7.75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£15.50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£93</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£155</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£7.46</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£18.65</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£37.30</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£223.80</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£373</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.33</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£29.85</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£59.70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£358.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£597</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-72-3"><num>(3)</num><content><p><mod>In paragraph 5, for Table 1A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1A: VEHICLES NOT MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Band</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Daily rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Weekly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Monthly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Half-yearly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Yearly rate</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£4.04</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£20.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£121.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£202</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£24.25</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£48.50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£291</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£485</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.36</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£38.80</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£77.60</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£465.60</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£776</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-72-4"><num><noteRef href="#key-82f27eca2272b26648ad414159b96a62" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-72-5"><num>(5)</num><content><p>The amendments made by this section come into force on 1 April 2025.</p></content></subsection></section><section eId="section-73"><num>73</num><heading>Rates of air passenger duty until 1 April 2026</heading><subsection eId="section-73-1"><num>(1)</num><content><p>Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.</p></content></subsection><subsection eId="section-73-2"><num>(2)</num><content><p><mod>In subsection (2) (short-haul journeys), in paragraph (b), for “£26” substitute <quotedText>“£28”</quotedText>.</mod></p></content></subsection><subsection eId="section-73-3"><num>(3)</num><intro><p>In subsection (2A) (long-haul journeys)—</p></intro><level class="para1" eId="section-73-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£88” substitute <quotedText>“£90”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£194” substitute <quotedText>“£216”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-4"><num>(4)</num><intro><p>In subsection (4A) (ultra-long haul journeys)—</p></intro><level class="para1" eId="section-73-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£92” substitute <quotedText>“£94”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£202” substitute <quotedText>“£224”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-5"><num>(5)</num><intro><p>In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—</p></intro><level class="para1" eId="section-73-5-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level><level class="para1" eId="section-73-5-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level><level class="para1" eId="section-73-5-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£581” substitute <quotedText>“£647”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-5-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£607” substitute <quotedText>“£673”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-6"><num>(6)</num><content><p>The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2025 but before 1 April 2026.</p></content></subsection></section><section eId="section-74"><num>74</num><heading>Rates of air passenger duty from 1 April 2026</heading><subsection eId="section-74-1"><num>(1)</num><content><p>Section 30 of FA 1994 (air passenger duty: rates), as amended by section <ref href="#section-73">73</ref> above, is amended as follows.</p></content></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In subsection (1B) (journeys ending in the United Kingdom)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£7” substitute <quotedText>“£8”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£14” substitute <quotedText>“£16”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-3"><num>(3)</num><intro><p>In subsection (2) (short-haul journeys)—</p></intro><level class="para1" eId="section-74-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£13” substitute <quotedText>“£15”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£28” substitute <quotedText>“£32”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-4"><num>(4)</num><intro><p>In subsection (2A) (long-haul journeys)—</p></intro><level class="para1" eId="section-74-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£90” substitute <quotedText>“£102”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£216” substitute <quotedText>“£244”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-5"><num>(5)</num><intro><p>In subsection (4A) (ultra-long haul journeys)—</p></intro><level class="para1" eId="section-74-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£94” substitute <quotedText>“£106”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£224” substitute <quotedText>“£253”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-6"><num>(6)</num><intro><p>In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—</p></intro><level class="para1" eId="section-74-6-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level><level class="para1" eId="section-74-6-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level><level class="para1" eId="section-74-6-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£647” substitute <quotedText>“£1,097”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-6-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£673” substitute <quotedText>“£1,141”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-7"><num>(7)</num><content><p>The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2026.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-environmental-taxes"><heading>Environmental taxes</heading><section eId="section-75"><num>75</num><heading>Rates of climate change levy</heading><subsection eId="section-75-1"><num>(1)</num><content><p><mod>In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxable commodity supplied</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rate at which levy payable if supply is not a reduced-rate supply</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Electricity</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.00801 per kilowatt hour</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.00801 per kilowatt hour</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.02175 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any other taxable commodity</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.06264 per kilogram</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-75-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2026.</p></content></subsection></section><section eId="section-76"><num>76</num><heading>Rates of landfill tax</heading><subsection eId="section-76-1"><num>(1)</num><content><p>Section 42 of FA 1996 (amount of landfill tax) is amended as follows.</p></content></subsection><subsection eId="section-76-2"><num>(2)</num><content><p><mod>In subsection (1)(a) (standard rate), for “£103.70” substitute <quotedText>“£126.15”</quotedText>.</mod></p></content></subsection><subsection eId="section-76-3"><num>(3)</num><intro><p>In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—</p></intro><level class="para1" eId="section-76-3-a"><num>(a)</num><content><p><mod>for “£103.70” substitute <quotedText>“£126.15”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-76-3-b"><num>(b)</num><content><p><mod>for “£3.30” substitute <quotedText>“£4.05”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-76-4"><num>(4)</num><content><p>The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2025.</p></content></subsection></section><section eId="section-77"><num>77</num><heading>Rate of aggregates levy</heading><subsection eId="section-77-1"><num>(1)</num><content><p><mod>In section 16(4) of FA 2001 (rate of aggregates levy), for “£2.03” substitute <quotedText>“£2.08”</quotedText>.</mod></p></content></subsection><subsection eId="section-77-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2025.</p></content></subsection></section><section eId="section-78"><num>78</num><heading>Rate of plastic packaging tax</heading><subsection eId="section-78-1"><num>(1)</num><content><p><mod>In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£217.85” substitute <quotedText>“£223.69”</quotedText>.</mod></p></content></subsection><subsection eId="section-78-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2025.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-soft-drinks-industry-levy"><heading>Soft drinks industry levy</heading><section eId="section-79"><num>79</num><heading>Rates of soft drinks industry levy</heading><subsection eId="section-79-1"><num>(1)</num><intro><p>In section 36(1) of FA 2017 (rates of soft drinks industry levy)—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p><mod>in paragraph (a) (soft drinks that meet higher sugar threshold), for “at the rate of £0.24 per litre” substitute <quotedText>“at the rate of £2.59 per 10 litres”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p><mod>in paragraph (b) (other soft drinks), for “at the rate of £0.18 per litre” substitute <quotedText>“at the rate of £1.94 per 10 litres”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to chargeable events occurring on or after 1 April 2025.</p></content></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-value-added-tax"><heading>Value added tax</heading><section eId="section-47"><num>47</num><heading>Removal of exemption for private school fees</heading><subsection eId="section-47-1"><num>(1)</num><content><p>VATA 1994 is amended as follows.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><intro><p>In Schedule 9 (exemptions)—</p></intro><level class="para1" eId="section-47-2-a"><num>(a)</num><intro><p>in Group 6 (education)—</p></intro><level class="para2" eId="section-47-2-a-i"><num>(i)</num><content><p><mod>in item 3(b)(i), after “5A” insert <quotedText>“(or would be so exempt but for item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level><level class="para2" eId="section-47-2-a-ii"><num>(ii)</num><content><p><mod>in item 4, after “item 1” insert <quotedText>“(whether or not that supply also falls within item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-47-2-b"><num>(b)</num><content><p><mod>after Part 2 (the groups) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 3</num><heading>Exceptions</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Item No.</p></default:th><default:th/></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of education by a private school, other than—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the provision of the teaching of English as a foreign language,</p></item><item><num>(b)</num><p>the provision of education in a nursery class, or</p></item><item><num>(c)</num><p>the provision of a higher education course.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of vocational training by a private school.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of board and lodging which is closely related to a supply of a description falling within item 1 or 2.</p></default:td></default:tr></default:tbody><default:tfoot><default:tr><default:td colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Notes:</i></p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered arabic parens" ukl:Name="OrderedList" ukl:Type="arabic" ukl:Decoration="parens"><item><num>(1)</num><p>A “<term refersTo="#term-private-school">private school</term>” means an institution which is either—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a school—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>at which full-time education is provided for pupils of compulsory school age or, in Scotland, school age (whether or not such education is also provided for pupils under or over that age),</p></item><item><num>(ii)</num><p>where fees or other consideration are payable for that provision of full-time education, and</p></item><item><num>(iii)</num><p>which is not a nursery school, or</p></item></blockList></item><item><num>(b)</num><p>an institution—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age (or, in Scotland, school age) but under 19,</p></item><item><num>(ii)</num><p>at which full-time education is provided for such persons,</p></item><item><num>(iii)</num><p>where the provision of full-time education falling within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and</p></item><item><num>(iv)</num><p>which is not an independent training or learning provider.</p></item></blockList></item></blockList></item><item><num>(2)</num><p>In Note (1)(b) an “<term refersTo="#term-independent-training-or-learning-provider">independent training or learning provider</term>” means an institution—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>at which education or training is provided for persons over compulsory school age (or, in Scotland, school age) but under 19 under a contract with a relevant contracting authority, and</p></item><item><num>(b)</num><p>where the consideration for the provision falling within paragraph (a) is payable by the relevant contracting authority under that contract.</p></item></blockList></item><item><num>(3)</num><p>For the purposes of Note (2), a “<term refersTo="#term-relevant-contracting-authority">relevant contracting authority</term>” means the Secretary of State, Medr (Commission for Tertiary Education and Research), the Department for the Economy in Northern Ireland or Skills Development Scotland.</p></item><item><num>(4)</num><p>For the purposes of items 1 and 2, the provision of education or vocational training at a private school by any eligible body other than a private school is to be treated as provision by a private school if—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the eligible body and that private school are connected within the meaning of section 1122 of the Corporation Tax Act 2010 (connected persons), or</p></item><item><num>(b)</num><p>the provision by the eligible body is a result of arrangements the main purpose, or one of the main purposes, of which is to secure that the provision is an exempt supply.</p></item></blockList></item><item><num>(5)</num><p>For the purposes of Note (4)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>“arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and</p></item><item><num>(b)</num><p>an “<term refersTo="#term-eligible-body">eligible body</term>” has the meaning given by Note (1) to Group 6.</p></item></blockList></item><item><num>(6)</num><p>For the purposes of item 1—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a “<term refersTo="#term-nursery-class">nursery class</term>” means a class that is composed wholly (or almost wholly) of children who—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>are under compulsory school age or, in Scotland, school age, and</p></item><item><num>(ii)</num><p>would not be expected to attain that age while in that class, and</p></item></blockList></item><item><num>(b)</num><p>a “higher education course”—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>in relation to England and Wales, has the meaning given by section 83(1) of the Higher Education and Research Act 2017;</p></item><item><num>(ii)</num><p>in relation to Scotland, means a course of any description mentioned in section 5(3) of the Further and Higher Education (Scotland) Act 2005;</p></item><item><num>(iii)</num><p>in relation to Northern Ireland, means a course of any description mentioned in paragraph 1 of Schedule 1 to the Further Education (Northern Ireland) Order 1997 (<ref eId="c00033" href="http://www.legislation.gov.uk/id/nisi/1997/1772">S.I. 1997/1772 (N.I. 15))</ref>.</p></item></blockList></item></blockList></item><item><num>(7)</num><p>For the purposes of item 2 “<term refersTo="#term-vocational-training">vocational training</term>” has the meaning given by Note (3) to Group 6.</p></item><item><num>(8)</num><p>In these Notes, “compulsory school age”, “<term refersTo="#term-pupil">pupil</term>”, “<term refersTo="#term-school">school</term>” and “<term refersTo="#term-school-age">school age</term>” have the meanings given by the Education Act 1996, the Education (Scotland) Act 1980 and the Education and Libraries (Northern Ireland) Order 1986 (<ref eId="c00034" href="http://www.legislation.gov.uk/id/nisi/1986/594">S.I. 1986/594 (N.I. 3))</ref> in relation to England and Wales, Scotland and Northern Ireland respectively.</p></item></blockList></default:td></default:tr></default:tfoot></default:table></foreign></tblock></content></part></quotedStructure></mod></p></content></level></subsection><subsection eId="section-47-3"><num>(3)</num><content><p><mod>In section 31 (exempt supplies), in subsection (1), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 and it is not of a description specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></subsection><subsection eId="section-47-4"><num>(4)</num><content><p><mod>In section 8 (reverse charge on supplies received from abroad), in subsection (4A), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 and not specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></subsection><subsection eId="section-47-5"><num>(5)</num><intro><p>In section 43 (groups of companies), in subsection (2A)—</p></intro><level class="para1" eId="section-47-5-a"><num>(a)</num><content><p><mod>in paragraph (b), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or are within any of the descriptions specified in Part 3 of that Schedule”</quotedText>;</mod></p></content></level><level class="para1" eId="section-47-5-b"><num>(b)</num><content><p><mod>in paragraph (c) for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or which do fall within any of the descriptions specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-48"><num>48</num><heading>Charge on pre-paid private school fees</heading><subsection eId="section-48-1"><num>(1)</num><content><p><ref href="#section-48-2">Subsection (2)</ref> applies to the provision of education services during a school term if a payment in respect of the services was received by the person providing the services on or after 29 July 2024 and before 30 October 2024.</p></content></subsection><subsection eId="section-48-2"><num>(2)</num><intro><p>That provision is treated for the purposes of the charge to VAT as a supply taking place on the later of—</p></intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><p>1 January 2025, and</p></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><p>the first day of that term.</p></content></level><wrapUp><p>Accordingly, that provision is not to be regarded (as a result of provision made by or under VATA 1994) as a supply taking place at any other time.</p></wrapUp></subsection><subsection eId="section-48-3"><num>(3)</num><content><p>But <ref href="#section-48-2">subsection (2)</ref> does not apply to the provision of education services by a school if the school is approved under section 342 of the Education Act 1996 (approval of non-maintained special schools).</p></content></subsection><subsection eId="section-48-4"><num>(4)</num><content><p>In this section “<term refersTo="#term-the-provision-of-education-services" eId="term-the-provision-of-education-services">the provision of education services</term>” means a provision of education, vocational training or board and lodging falling within Part 3 of Schedule 9 (exceptions).</p></content></subsection><subsection eId="section-48-5"><num>(5)</num><content><p>This section is to be read as if it were contained in VATA 1994.</p></content></subsection></section><section eId="section-49"><num>49</num><heading>Sections <ref href="#section-47">47</ref> and <ref href="#section-48">48</ref>: commencement</heading><subsection eId="section-49-1"><num>(1)</num><content><p>Sections <ref href="#section-47">47</ref> and <ref href="#section-48">48</ref> are to be treated as having come into force on 30 October 2024 and have effect in relation to any provision of education, vocational training or board and lodging on or after 1 January 2025 (whenever that supply is treated as taking place for the purposes of the charge to VAT).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-47"><num>47</num><heading>Removal of exemption for private school fees</heading><subsection eId="section-47-1"><num>(1)</num><content><p>VATA 1994 is amended as follows.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><intro><p>In Schedule 9 (exemptions)—</p></intro><level class="para1" eId="section-47-2-a"><num>(a)</num><intro><p>in Group 6 (education)—</p></intro><level class="para2" eId="section-47-2-a-i"><num>(i)</num><content><p><mod>in item 3(b)(i), after “5A” insert <quotedText>“(or would be so exempt but for item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level><level class="para2" eId="section-47-2-a-ii"><num>(ii)</num><content><p><mod>in item 4, after “item 1” insert <quotedText>“(whether or not that supply also falls within item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-47-2-b"><num>(b)</num><content><p><mod>after Part 2 (the groups) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 3</num><heading>Exceptions</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Item No.</p></default:th><default:th/></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of education by a private school, other than—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the provision of the teaching of English as a foreign language,</p></item><item><num>(b)</num><p>the provision of education in a nursery class, or</p></item><item><num>(c)</num><p>the provision of a higher education course.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of vocational training by a private school.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of board and lodging which is closely related to a supply of a description falling within item 1 or 2.</p></default:td></default:tr></default:tbody><default:tfoot><default:tr><default:td colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Notes:</i></p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered arabic parens" ukl:Name="OrderedList" ukl:Type="arabic" ukl:Decoration="parens"><item><num>(1)</num><p>A “<term refersTo="#term-private-school">private school</term>” means an institution which is either—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a school—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>at which full-time education is provided for pupils of compulsory school age or, in Scotland, school age (whether or not such education is also provided for pupils under or over that age),</p></item><item><num>(ii)</num><p>where fees or other consideration are payable for that provision of full-time education, and</p></item><item><num>(iii)</num><p>which is not a nursery school, or</p></item></blockList></item><item><num>(b)</num><p>an institution—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age (or, in Scotland, school age) but under 19,</p></item><item><num>(ii)</num><p>at which full-time education is provided for such persons,</p></item><item><num>(iii)</num><p>where the provision of full-time education falling within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and</p></item><item><num>(iv)</num><p>which is not an independent training or learning provider.</p></item></blockList></item></blockList></item><item><num>(2)</num><p>In Note (1)(b) an “<term refersTo="#term-independent-training-or-learning-provider">independent training or learning provider</term>” means an institution—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>at which education or training is provided for persons over compulsory school age (or, in Scotland, school age) but under 19 under a contract with a relevant contracting authority, and</p></item><item><num>(b)</num><p>where the consideration for the provision falling within paragraph (a) is payable by the relevant contracting authority under that contract.</p></item></blockList></item><item><num>(3)</num><p>For the purposes of Note (2), a “<term refersTo="#term-relevant-contracting-authority">relevant contracting authority</term>” means the Secretary of State, Medr (Commission for Tertiary Education and Research), the Department for the Economy in Northern Ireland or Skills Development Scotland.</p></item><item><num>(4)</num><p>For the purposes of items 1 and 2, the provision of education or vocational training at a private school by any eligible body other than a private school is to be treated as provision by a private school if—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the eligible body and that private school are connected within the meaning of section 1122 of the Corporation Tax Act 2010 (connected persons), or</p></item><item><num>(b)</num><p>the provision by the eligible body is a result of arrangements the main purpose, or one of the main purposes, of which is to secure that the provision is an exempt supply.</p></item></blockList></item><item><num>(5)</num><p>For the purposes of Note (4)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>“arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and</p></item><item><num>(b)</num><p>an “<term refersTo="#term-eligible-body">eligible body</term>” has the meaning given by Note (1) to Group 6.</p></item></blockList></item><item><num>(6)</num><p>For the purposes of item 1—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a “<term refersTo="#term-nursery-class">nursery class</term>” means a class that is composed wholly (or almost wholly) of children who—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>are under compulsory school age or, in Scotland, school age, and</p></item><item><num>(ii)</num><p>would not be expected to attain that age while in that class, and</p></item></blockList></item><item><num>(b)</num><p>a “higher education course”—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>in relation to England and Wales, has the meaning given by section 83(1) of the Higher Education and Research Act 2017;</p></item><item><num>(ii)</num><p>in relation to Scotland, means a course of any description mentioned in section 5(3) of the Further and Higher Education (Scotland) Act 2005;</p></item><item><num>(iii)</num><p>in relation to Northern Ireland, means a course of any description mentioned in paragraph 1 of Schedule 1 to the Further Education (Northern Ireland) Order 1997 (<ref eId="c00033" href="http://www.legislation.gov.uk/id/nisi/1997/1772">S.I. 1997/1772 (N.I. 15))</ref>.</p></item></blockList></item></blockList></item><item><num>(7)</num><p>For the purposes of item 2 “<term refersTo="#term-vocational-training">vocational training</term>” has the meaning given by Note (3) to Group 6.</p></item><item><num>(8)</num><p>In these Notes, “compulsory school age”, “<term refersTo="#term-pupil">pupil</term>”, “<term refersTo="#term-school">school</term>” and “<term refersTo="#term-school-age">school age</term>” have the meanings given by the Education Act 1996, the Education (Scotland) Act 1980 and the Education and Libraries (Northern Ireland) Order 1986 (<ref eId="c00034" href="http://www.legislation.gov.uk/id/nisi/1986/594">S.I. 1986/594 (N.I. 3))</ref> in relation to England and Wales, Scotland and Northern Ireland respectively.</p></item></blockList></default:td></default:tr></default:tfoot></default:table></foreign></tblock></content></part></quotedStructure></mod></p></content></level></subsection><subsection eId="section-47-3"><num>(3)</num><content><p><mod>In section 31 (exempt supplies), in subsection (1), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 and it is not of a description specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></subsection><subsection eId="section-47-4"><num>(4)</num><content><p><mod>In section 8 (reverse charge on supplies received from abroad), in subsection (4A), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 and not specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></subsection><subsection eId="section-47-5"><num>(5)</num><intro><p>In section 43 (groups of companies), in subsection (2A)—</p></intro><level class="para1" eId="section-47-5-a"><num>(a)</num><content><p><mod>in paragraph (b), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or are within any of the descriptions specified in Part 3 of that Schedule”</quotedText>;</mod></p></content></level><level class="para1" eId="section-47-5-b"><num>(b)</num><content><p><mod>in paragraph (c) for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or which do fall within any of the descriptions specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-1"><num>(1)</num><content><p>VATA 1994 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-47-2"><num>(2)</num><intro><p>In Schedule 9 (exemptions)—</p></intro><level class="para1" eId="section-47-2-a"><num>(a)</num><intro><p>in Group 6 (education)—</p></intro><level class="para2" eId="section-47-2-a-i"><num>(i)</num><content><p><mod>in item 3(b)(i), after “5A” insert <quotedText>“(or would be so exempt but for item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level><level class="para2" eId="section-47-2-a-ii"><num>(ii)</num><content><p><mod>in item 4, after “item 1” insert <quotedText>“(whether or not that supply also falls within item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-47-2-b"><num>(b)</num><content><p><mod>after Part 2 (the groups) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 3</num><heading>Exceptions</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Item No.</p></default:th><default:th/></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of education by a private school, other than—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the provision of the teaching of English as a foreign language,</p></item><item><num>(b)</num><p>the provision of education in a nursery class, or</p></item><item><num>(c)</num><p>the provision of a higher education course.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of vocational training by a private school.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of board and lodging which is closely related to a supply of a description falling within item 1 or 2.</p></default:td></default:tr></default:tbody><default:tfoot><default:tr><default:td colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Notes:</i></p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered arabic parens" ukl:Name="OrderedList" ukl:Type="arabic" ukl:Decoration="parens"><item><num>(1)</num><p>A “<term refersTo="#term-private-school">private school</term>” means an institution which is either—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a school—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>at which full-time education is provided for pupils of compulsory school age or, in Scotland, school age (whether or not such education is also provided for pupils under or over that age),</p></item><item><num>(ii)</num><p>where fees or other consideration are payable for that provision of full-time education, and</p></item><item><num>(iii)</num><p>which is not a nursery school, or</p></item></blockList></item><item><num>(b)</num><p>an institution—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age (or, in Scotland, school age) but under 19,</p></item><item><num>(ii)</num><p>at which full-time education is provided for such persons,</p></item><item><num>(iii)</num><p>where the provision of full-time education falling within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and</p></item><item><num>(iv)</num><p>which is not an independent training or learning provider.</p></item></blockList></item></blockList></item><item><num>(2)</num><p>In Note (1)(b) an “<term refersTo="#term-independent-training-or-learning-provider">independent training or learning provider</term>” means an institution—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>at which education or training is provided for persons over compulsory school age (or, in Scotland, school age) but under 19 under a contract with a relevant contracting authority, and</p></item><item><num>(b)</num><p>where the consideration for the provision falling within paragraph (a) is payable by the relevant contracting authority under that contract.</p></item></blockList></item><item><num>(3)</num><p>For the purposes of Note (2), a “<term refersTo="#term-relevant-contracting-authority">relevant contracting authority</term>” means the Secretary of State, Medr (Commission for Tertiary Education and Research), the Department for the Economy in Northern Ireland or Skills Development Scotland.</p></item><item><num>(4)</num><p>For the purposes of items 1 and 2, the provision of education or vocational training at a private school by any eligible body other than a private school is to be treated as provision by a private school if—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the eligible body and that private school are connected within the meaning of section 1122 of the Corporation Tax Act 2010 (connected persons), or</p></item><item><num>(b)</num><p>the provision by the eligible body is a result of arrangements the main purpose, or one of the main purposes, of which is to secure that the provision is an exempt supply.</p></item></blockList></item><item><num>(5)</num><p>For the purposes of Note (4)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>“arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and</p></item><item><num>(b)</num><p>an “<term refersTo="#term-eligible-body">eligible body</term>” has the meaning given by Note (1) to Group 6.</p></item></blockList></item><item><num>(6)</num><p>For the purposes of item 1—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a “<term refersTo="#term-nursery-class">nursery class</term>” means a class that is composed wholly (or almost wholly) of children who—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>are under compulsory school age or, in Scotland, school age, and</p></item><item><num>(ii)</num><p>would not be expected to attain that age while in that class, and</p></item></blockList></item><item><num>(b)</num><p>a “higher education course”—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>in relation to England and Wales, has the meaning given by section 83(1) of the Higher Education and Research Act 2017;</p></item><item><num>(ii)</num><p>in relation to Scotland, means a course of any description mentioned in section 5(3) of the Further and Higher Education (Scotland) Act 2005;</p></item><item><num>(iii)</num><p>in relation to Northern Ireland, means a course of any description mentioned in paragraph 1 of Schedule 1 to the Further Education (Northern Ireland) Order 1997 (<ref eId="c00033" href="http://www.legislation.gov.uk/id/nisi/1997/1772">S.I. 1997/1772 (N.I. 15))</ref>.</p></item></blockList></item></blockList></item><item><num>(7)</num><p>For the purposes of item 2 “<term refersTo="#term-vocational-training">vocational training</term>” has the meaning given by Note (3) to Group 6.</p></item><item><num>(8)</num><p>In these Notes, “compulsory school age”, “<term refersTo="#term-pupil">pupil</term>”, “<term refersTo="#term-school">school</term>” and “<term refersTo="#term-school-age">school age</term>” have the meanings given by the Education Act 1996, the Education (Scotland) Act 1980 and the Education and Libraries (Northern Ireland) Order 1986 (<ref eId="c00034" href="http://www.legislation.gov.uk/id/nisi/1986/594">S.I. 1986/594 (N.I. 3))</ref> in relation to England and Wales, Scotland and Northern Ireland respectively.</p></item></blockList></default:td></default:tr></default:tfoot></default:table></foreign></tblock></content></part></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-2-a"><num>(a)</num><intro><p>in Group 6 (education)—</p></intro><level class="para2" eId="section-47-2-a-i"><num>(i)</num><content><p><mod>in item 3(b)(i), after “5A” insert <quotedText>“(or would be so exempt but for item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level><level class="para2" eId="section-47-2-a-ii"><num>(ii)</num><content><p><mod>in item 4, after “item 1” insert <quotedText>“(whether or not that supply also falls within item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-47-2-a-i"><num>(i)</num><content><p><mod>in item 3(b)(i), after “5A” insert <quotedText>“(or would be so exempt but for item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-47-2-a-ii"><num>(ii)</num><content><p><mod>in item 4, after “item 1” insert <quotedText>“(whether or not that supply also falls within item 1 or 2 of Part 3)”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" class="para1" eId="section-47-2-b"><num>(b)</num><content><p><mod>after Part 2 (the groups) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 3</num><heading>Exceptions</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Item No.</p></default:th><default:th/></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of education by a private school, other than—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the provision of the teaching of English as a foreign language,</p></item><item><num>(b)</num><p>the provision of education in a nursery class, or</p></item><item><num>(c)</num><p>the provision of a higher education course.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of vocational training by a private school.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The provision of board and lodging which is closely related to a supply of a description falling within item 1 or 2.</p></default:td></default:tr></default:tbody><default:tfoot><default:tr><default:td colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Notes:</i></p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered arabic parens" ukl:Name="OrderedList" ukl:Type="arabic" ukl:Decoration="parens"><item><num>(1)</num><p>A “<term refersTo="#term-private-school">private school</term>” means an institution which is either—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a school—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>at which full-time education is provided for pupils of compulsory school age or, in Scotland, school age (whether or not such education is also provided for pupils under or over that age),</p></item><item><num>(ii)</num><p>where fees or other consideration are payable for that provision of full-time education, and</p></item><item><num>(iii)</num><p>which is not a nursery school, or</p></item></blockList></item><item><num>(b)</num><p>an institution—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age (or, in Scotland, school age) but under 19,</p></item><item><num>(ii)</num><p>at which full-time education is provided for such persons,</p></item><item><num>(iii)</num><p>where the provision of full-time education falling within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and</p></item><item><num>(iv)</num><p>which is not an independent training or learning provider.</p></item></blockList></item></blockList></item><item><num>(2)</num><p>In Note (1)(b) an “<term refersTo="#term-independent-training-or-learning-provider">independent training or learning provider</term>” means an institution—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>at which education or training is provided for persons over compulsory school age (or, in Scotland, school age) but under 19 under a contract with a relevant contracting authority, and</p></item><item><num>(b)</num><p>where the consideration for the provision falling within paragraph (a) is payable by the relevant contracting authority under that contract.</p></item></blockList></item><item><num>(3)</num><p>For the purposes of Note (2), a “<term refersTo="#term-relevant-contracting-authority">relevant contracting authority</term>” means the Secretary of State, Medr (Commission for Tertiary Education and Research), the Department for the Economy in Northern Ireland or Skills Development Scotland.</p></item><item><num>(4)</num><p>For the purposes of items 1 and 2, the provision of education or vocational training at a private school by any eligible body other than a private school is to be treated as provision by a private school if—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the eligible body and that private school are connected within the meaning of section 1122 of the Corporation Tax Act 2010 (connected persons), or</p></item><item><num>(b)</num><p>the provision by the eligible body is a result of arrangements the main purpose, or one of the main purposes, of which is to secure that the provision is an exempt supply.</p></item></blockList></item><item><num>(5)</num><p>For the purposes of Note (4)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>“arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and</p></item><item><num>(b)</num><p>an “<term refersTo="#term-eligible-body">eligible body</term>” has the meaning given by Note (1) to Group 6.</p></item></blockList></item><item><num>(6)</num><p>For the purposes of item 1—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>a “<term refersTo="#term-nursery-class">nursery class</term>” means a class that is composed wholly (or almost wholly) of children who—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>are under compulsory school age or, in Scotland, school age, and</p></item><item><num>(ii)</num><p>would not be expected to attain that age while in that class, and</p></item></blockList></item><item><num>(b)</num><p>a “higher education course”—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>in relation to England and Wales, has the meaning given by section 83(1) of the Higher Education and Research Act 2017;</p></item><item><num>(ii)</num><p>in relation to Scotland, means a course of any description mentioned in section 5(3) of the Further and Higher Education (Scotland) Act 2005;</p></item><item><num>(iii)</num><p>in relation to Northern Ireland, means a course of any description mentioned in paragraph 1 of Schedule 1 to the Further Education (Northern Ireland) Order 1997 (<ref eId="c00033" href="http://www.legislation.gov.uk/id/nisi/1997/1772">S.I. 1997/1772 (N.I. 15))</ref>.</p></item></blockList></item></blockList></item><item><num>(7)</num><p>For the purposes of item 2 “<term refersTo="#term-vocational-training">vocational training</term>” has the meaning given by Note (3) to Group 6.</p></item><item><num>(8)</num><p>In these Notes, “compulsory school age”, “<term refersTo="#term-pupil">pupil</term>”, “<term refersTo="#term-school">school</term>” and “<term refersTo="#term-school-age">school age</term>” have the meanings given by the Education Act 1996, the Education (Scotland) Act 1980 and the Education and Libraries (Northern Ireland) Order 1986 (<ref eId="c00034" href="http://www.legislation.gov.uk/id/nisi/1986/594">S.I. 1986/594 (N.I. 3))</ref> in relation to England and Wales, Scotland and Northern Ireland respectively.</p></item></blockList></default:td></default:tr></default:tfoot></default:table></foreign></tblock></content></part></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-3"><num>(3)</num><content><p><mod>In section 31 (exempt supplies), in subsection (1), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 and it is not of a description specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-4"><num>(4)</num><content><p><mod>In section 8 (reverse charge on supplies received from abroad), in subsection (4A), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 and not specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-5"><num>(5)</num><intro><p>In section 43 (groups of companies), in subsection (2A)—</p></intro><level class="para1" eId="section-47-5-a"><num>(a)</num><content><p><mod>in paragraph (b), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or are within any of the descriptions specified in Part 3 of that Schedule”</quotedText>;</mod></p></content></level><level class="para1" eId="section-47-5-b"><num>(b)</num><content><p><mod>in paragraph (c) for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or which do fall within any of the descriptions specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-5-a"><num>(a)</num><content><p><mod>in paragraph (b), for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or are within any of the descriptions specified in Part 3 of that Schedule”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-5-b"><num>(b)</num><content><p><mod>in paragraph (c) for “Schedule 9” substitute <quotedText>“Part 2 of Schedule 9 or which do fall within any of the descriptions specified in Part 3 of that Schedule”</quotedText>.</mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48"><num>48</num><heading>Charge on pre-paid private school fees</heading><subsection eId="section-48-1"><num>(1)</num><content><p><ref href="#section-48-2">Subsection (2)</ref> applies to the provision of education services during a school term if a payment in respect of the services was received by the person providing the services on or after 29 July 2024 and before 30 October 2024.</p></content></subsection><subsection eId="section-48-2"><num>(2)</num><intro><p>That provision is treated for the purposes of the charge to VAT as a supply taking place on the later of—</p></intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><p>1 January 2025, and</p></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><p>the first day of that term.</p></content></level><wrapUp><p>Accordingly, that provision is not to be regarded (as a result of provision made by or under VATA 1994) as a supply taking place at any other time.</p></wrapUp></subsection><subsection eId="section-48-3"><num>(3)</num><content><p>But <ref href="#section-48-2">subsection (2)</ref> does not apply to the provision of education services by a school if the school is approved under section 342 of the Education Act 1996 (approval of non-maintained special schools).</p></content></subsection><subsection eId="section-48-4"><num>(4)</num><content><p>In this section “<term refersTo="#term-the-provision-of-education-services" eId="term-the-provision-of-education-services">the provision of education services</term>” means a provision of education, vocational training or board and lodging falling within Part 3 of Schedule 9 (exceptions).</p></content></subsection><subsection eId="section-48-5"><num>(5)</num><content><p>This section is to be read as if it were contained in VATA 1994.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-1"><num>(1)</num><content><p><ref href="#section-48-2">Subsection (2)</ref> applies to the provision of education services during a school term if a payment in respect of the services was received by the person providing the services on or after 29 July 2024 and before 30 October 2024.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-2"><num>(2)</num><intro><p>That provision is treated for the purposes of the charge to VAT as a supply taking place on the later of—</p></intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><p>1 January 2025, and</p></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><p>the first day of that term.</p></content></level><wrapUp><p>Accordingly, that provision is not to be regarded (as a result of provision made by or under VATA 1994) as a supply taking place at any other time.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-2-a"><num>(a)</num><content><p>1 January 2025, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-2-b"><num>(b)</num><content><p>the first day of that term.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-3"><num>(3)</num><content><p>But <ref href="#section-48-2">subsection (2)</ref> does not apply to the provision of education services by a school if the school is approved under section 342 of the Education Act 1996 (approval of non-maintained special schools).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-4"><num>(4)</num><content><p>In this section “<term refersTo="#term-the-provision-of-education-services" eId="term-the-provision-of-education-services">the provision of education services</term>” means a provision of education, vocational training or board and lodging falling within Part 3 of Schedule 9 (exceptions).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-5"><num>(5)</num><content><p>This section is to be read as if it were contained in VATA 1994.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49"><num>49</num><heading>Sections <ref href="#section-47">47</ref> and <ref href="#section-48">48</ref>: commencement</heading><subsection eId="section-49-1"><num>(1)</num><content><p>Sections <ref href="#section-47">47</ref> and <ref href="#section-48">48</ref> are to be treated as having come into force on 30 October 2024 and have effect in relation to any provision of education, vocational training or board and lodging on or after 1 January 2025 (whenever that supply is treated as taking place for the purposes of the charge to VAT).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49-1"><num>(1)</num><content><p>Sections <ref href="#section-47">47</ref> and <ref href="#section-48">48</ref> are to be treated as having come into force on 30 October 2024 and have effect in relation to any provision of education, vocational training or board and lodging on or after 1 January 2025 (whenever that supply is treated as taking place for the purposes of the charge to VAT).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-stamp-duty-land-tax"><heading>Stamp duty land tax</heading><section eId="section-50"><num>50</num><heading>Increased rates for additional dwellings: transactions before 1 April 2025</heading><subsection eId="section-50-1"><num>(1)</num><content><p>Section 1 of the Stamp Duty Land Tax (Temporary Relief) Act 2023 (which provides for reduced rates of stamp duty land tax for transactions before 1 April 2025) is amended as follows.</p></content></subsection><subsection eId="section-50-2"><num>(2)</num><content><p><mod>In subsection (3) (which deals with purchases of additional dwellings), for the Table A mentioned there substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE A: RESIDENTIAL</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Part of relevant consideration</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as does not exceed £250,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £250,000 but does not exceed £925,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £925,000 but does not exceed £1,500,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The remainder (if any)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-50-3"><num>(3)</num><content><p>The amendment made by this section has effect in relation to land transactions the effective date of which falls on or after 31 October 2024 but before 1 April 2025.</p></content></subsection><subsection eId="section-50-4"><num>(4)</num><intro><p>But the amendment made by this section does not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-50-4-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level><level class="para1" eId="section-50-4-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-50-5"><num>(5)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-50-5-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-50-6"><num>(6)</num><content><p>This section also needs to be read with section <ref href="#section-52">52</ref> (which deals with cases where a contract has been substantially performed before the change in rates made by this section etc).</p></content></subsection></section><section eId="section-51"><num>51</num><heading>Increased rates for additional dwellings: transactions on or after 1 April 2025</heading><subsection eId="section-51-1"><num>(1)</num><content><p><mod>In Schedule 4ZA to FA 2003 (higher rates of stamp duty land tax for additional dwellings etc), for the Table A in section 55(1B) mentioned in paragraph 1(2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE A: RESIDENTIAL</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Part of relevant consideration</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as does not exceed £125,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £125,000 but does not exceed £250,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £250,000 but does not exceed £925,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £925,000 but does not exceed £1,500,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The remainder (if any)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-51-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to land transactions the effective date of which falls on or after 1 April 2025.</p></content></subsection><subsection eId="section-51-3"><num>(3)</num><intro><p>But the amendment made by this section does not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-51-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level><level class="para1" eId="section-51-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-51-4"><num>(4)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-51-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-51-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-51-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-51-5"><num>(5)</num><content><p>This section also needs to be read with section <ref href="#section-52">52</ref> (which deals with cases where a contract has been substantially performed before the change in rates made by this section etc).</p></content></subsection></section><section eId="section-52"><num>52</num><heading>Contracts substantially performed before relevant rate change</heading><subsection eId="section-52-1"><num>(1)</num><content><p>The Stamp Duty Land Tax (Temporary Relief) Act 2020 is amended as follows.</p></content></subsection><subsection eId="section-52-2"><num>(2)</num><intro><p>In section 1 (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 8 July 2020 and ending with 30 June 2021)—</p></intro><level class="para1" eId="section-52-2-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 June 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-2-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-3"><num>(3)</num><intro><p>In section 1A (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 1 July 2021 and ending with 30 September 2021)—</p></intro><level class="para1" eId="section-52-3-a"><num>(a)</num><content><p><mod>in subsection (5) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 September 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (5A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-3-b"><num>(b)</num><content><p><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-4"><num>(4)</num><intro><p>In section 1 of the Stamp Duty Land Tax (Temporary Relief) Act 2023 (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 23 September 2022 and ending with 31 March 2025)—</p></intro><level class="para1" eId="section-52-4-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 31 March 2025), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-4-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by subsections (2) to (5) have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-5"><num>(5)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-52-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level><level class="para1" eId="section-52-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level><wrapUp><p>section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of this Act would have had effect in relation to that conveyance.</p></wrapUp></subsection><subsection eId="section-52-6"><num>(6)</num><content><p>Section 44(10) of FA 2003 applies for the purposes of subsection <ref href="#section-52-5">(5)</ref>.</p></content></subsection></section><section eId="section-53"><num>53</num><heading>Purchases by companies etc</heading><subsection eId="section-53-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content><p>paragraph 3(1)(a) of Schedule 4A to FA 2003 (higher rate of SDLT for purchases by companies etc), and</p></content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content><p>step 4 in section 74(1A) of FA 2003 (exercise of collective rights by tenants of flats where condition in paragraph 3(3) of that Schedule is met),</p></content></level><wrapUp><p><mod>for “15%” substitute <quotedText>“17%”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-53-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to land transactions the effective date of which falls on or after 31 October 2024.</p></content></subsection><subsection eId="section-53-3"><num>(3)</num><intro><p>But the amendments made by this section do not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before that date, and</p></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-53-5"><num>(5)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-53-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level><level class="para1" eId="section-53-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level><wrapUp><p>section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the increased rates provided for by this section would have had effect in relation to that conveyance.</p></wrapUp></subsection><subsection eId="section-53-6"><num>(6)</num><content><p>Section 44(10) of FA 2003 applies for the purposes of subsection <ref href="#section-53-5">(5)</ref>.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-50"><num>50</num><heading>Increased rates for additional dwellings: transactions before 1 April 2025</heading><subsection eId="section-50-1"><num>(1)</num><content><p>Section 1 of the Stamp Duty Land Tax (Temporary Relief) Act 2023 (which provides for reduced rates of stamp duty land tax for transactions before 1 April 2025) is amended as follows.</p></content></subsection><subsection eId="section-50-2"><num>(2)</num><content><p><mod>In subsection (3) (which deals with purchases of additional dwellings), for the Table A mentioned there substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE A: RESIDENTIAL</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Part of relevant consideration</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as does not exceed £250,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £250,000 but does not exceed £925,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £925,000 but does not exceed £1,500,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The remainder (if any)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-50-3"><num>(3)</num><content><p>The amendment made by this section has effect in relation to land transactions the effective date of which falls on or after 31 October 2024 but before 1 April 2025.</p></content></subsection><subsection eId="section-50-4"><num>(4)</num><intro><p>But the amendment made by this section does not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-50-4-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level><level class="para1" eId="section-50-4-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-50-5"><num>(5)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-50-5-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-50-6"><num>(6)</num><content><p>This section also needs to be read with section <ref href="#section-52">52</ref> (which deals with cases where a contract has been substantially performed before the change in rates made by this section etc).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-1"><num>(1)</num><content><p>Section 1 of the Stamp Duty Land Tax (Temporary Relief) Act 2023 (which provides for reduced rates of stamp duty land tax for transactions before 1 April 2025) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-50-2"><num>(2)</num><content><p><mod>In subsection (3) (which deals with purchases of additional dwellings), for the Table A mentioned there substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE A: RESIDENTIAL</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Part of relevant consideration</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as does not exceed £250,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £250,000 but does not exceed £925,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £925,000 but does not exceed £1,500,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The remainder (if any)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-3"><num>(3)</num><content><p>The amendment made by this section has effect in relation to land transactions the effective date of which falls on or after 31 October 2024 but before 1 April 2025.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-4"><num>(4)</num><intro><p>But the amendment made by this section does not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-50-4-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level><level class="para1" eId="section-50-4-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-4-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-4-b"><num>(b)</num><content><p>is not excluded.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-5"><num>(5)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-50-5-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-5-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-5-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-5-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-6"><num>(6)</num><content><p>This section also needs to be read with section <ref href="#section-52">52</ref> (which deals with cases where a contract has been substantially performed before the change in rates made by this section etc).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-51"><num>51</num><heading>Increased rates for additional dwellings: transactions on or after 1 April 2025</heading><subsection eId="section-51-1"><num>(1)</num><content><p><mod>In Schedule 4ZA to FA 2003 (higher rates of stamp duty land tax for additional dwellings etc), for the Table A in section 55(1B) mentioned in paragraph 1(2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE A: RESIDENTIAL</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Part of relevant consideration</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as does not exceed £125,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £125,000 but does not exceed £250,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £250,000 but does not exceed £925,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £925,000 but does not exceed £1,500,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The remainder (if any)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-51-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to land transactions the effective date of which falls on or after 1 April 2025.</p></content></subsection><subsection eId="section-51-3"><num>(3)</num><intro><p>But the amendment made by this section does not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-51-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level><level class="para1" eId="section-51-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-51-4"><num>(4)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-51-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-51-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-51-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-51-5"><num>(5)</num><content><p>This section also needs to be read with section <ref href="#section-52">52</ref> (which deals with cases where a contract has been substantially performed before the change in rates made by this section etc).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-51-1"><num>(1)</num><content><p><mod>In Schedule 4ZA to FA 2003 (higher rates of stamp duty land tax for additional dwellings etc), for the Table A in section 55(1B) mentioned in paragraph 1(2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE A: RESIDENTIAL</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Part of relevant consideration</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Percentage</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as does not exceed £125,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £125,000 but does not exceed £250,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £250,000 but does not exceed £925,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">So much as exceeds £925,000 but does not exceed £1,500,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15%</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The remainder (if any)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17%</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to land transactions the effective date of which falls on or after 1 April 2025.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-3"><num>(3)</num><intro><p>But the amendment made by this section does not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-51-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level><level class="para1" eId="section-51-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before 31 October 2024, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-4"><num>(4)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-51-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-51-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-51-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-5"><num>(5)</num><content><p>This section also needs to be read with section <ref href="#section-52">52</ref> (which deals with cases where a contract has been substantially performed before the change in rates made by this section etc).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-52"><num>52</num><heading>Contracts substantially performed before relevant rate change</heading><subsection eId="section-52-1"><num>(1)</num><content><p>The Stamp Duty Land Tax (Temporary Relief) Act 2020 is amended as follows.</p></content></subsection><subsection eId="section-52-2"><num>(2)</num><intro><p>In section 1 (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 8 July 2020 and ending with 30 June 2021)—</p></intro><level class="para1" eId="section-52-2-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 June 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-2-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-3"><num>(3)</num><intro><p>In section 1A (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 1 July 2021 and ending with 30 September 2021)—</p></intro><level class="para1" eId="section-52-3-a"><num>(a)</num><content><p><mod>in subsection (5) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 September 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (5A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-3-b"><num>(b)</num><content><p><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-4"><num>(4)</num><intro><p>In section 1 of the Stamp Duty Land Tax (Temporary Relief) Act 2023 (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 23 September 2022 and ending with 31 March 2025)—</p></intro><level class="para1" eId="section-52-4-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 31 March 2025), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-4-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by subsections (2) to (5) have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-52-5"><num>(5)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-52-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level><level class="para1" eId="section-52-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level><wrapUp><p>section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of this Act would have had effect in relation to that conveyance.</p></wrapUp></subsection><subsection eId="section-52-6"><num>(6)</num><content><p>Section 44(10) of FA 2003 applies for the purposes of subsection <ref href="#section-52-5">(5)</ref>.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-1"><num>(1)</num><content><p>The Stamp Duty Land Tax (Temporary Relief) Act 2020 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-52-2"><num>(2)</num><intro><p>In section 1 (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 8 July 2020 and ending with 30 June 2021)—</p></intro><level class="para1" eId="section-52-2-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 June 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-2-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-2-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 June 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-52-2-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-52-3"><num>(3)</num><intro><p>In section 1A (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 1 July 2021 and ending with 30 September 2021)—</p></intro><level class="para1" eId="section-52-3-a"><num>(a)</num><content><p><mod>in subsection (5) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 September 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (5A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-3-b"><num>(b)</num><content><p><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-3-a"><num>(a)</num><content><p><mod>in subsection (5) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 30 September 2021), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (5A)”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-52-3-b"><num>(b)</num><content><p><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by this section have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-52-4"><num>(4)</num><intro><p>In section 1 of the Stamp Duty Land Tax (Temporary Relief) Act 2023 (reduced rates of SDLT in relation to land transactions the effective date of which falls in the period beginning with 23 September 2022 and ending with 31 March 2025)—</p></intro><level class="para1" eId="section-52-4-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 31 March 2025), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-52-4-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by subsections (2) to (5) have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-4-a"><num>(a)</num><content><p><mod>in subsection (6) (which provides an exception from section 44(8) of FA 2003 where the contract is completed after 31 March 2025), for the words from “that the modifications” to the end substitute <quotedText>“the reason given by subsection (6A)”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-52-4-b"><num>(b)</num><content><p><mod>after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>For this purpose, the sole reason is either—</p></intro><level class="para1"><num>(a)</num><content><p>that the modifications made by subsections (2) to (5) have no effect in relation to that conveyance, or</p></content></level><level class="para1"><num>(b)</num><content><p>that both paragraph (a) applies and the increased rates provided for by section <ref href="#section-51">51</ref> of the Finance Act 2025 would have had effect in relation to that conveyance.</p></content></level></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-5"><num>(5)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-52-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level><level class="para1" eId="section-52-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level><wrapUp><p>section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the increased rates provided for by section <ref href="#section-50">50</ref> or <ref href="#section-51">51</ref> of this Act would have had effect in relation to that conveyance.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-6"><num>(6)</num><content><p>Section 44(10) of FA 2003 applies for the purposes of subsection <ref href="#section-52-5">(5)</ref>.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53"><num>53</num><heading>Purchases by companies etc</heading><subsection eId="section-53-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content><p>paragraph 3(1)(a) of Schedule 4A to FA 2003 (higher rate of SDLT for purchases by companies etc), and</p></content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content><p>step 4 in section 74(1A) of FA 2003 (exercise of collective rights by tenants of flats where condition in paragraph 3(3) of that Schedule is met),</p></content></level><wrapUp><p><mod>for “15%” substitute <quotedText>“17%”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-53-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to land transactions the effective date of which falls on or after 31 October 2024.</p></content></subsection><subsection eId="section-53-3"><num>(3)</num><intro><p>But the amendments made by this section do not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before that date, and</p></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection><subsection eId="section-53-5"><num>(5)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-53-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level><level class="para1" eId="section-53-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level><wrapUp><p>section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the increased rates provided for by this section would have had effect in relation to that conveyance.</p></wrapUp></subsection><subsection eId="section-53-6"><num>(6)</num><content><p>Section 44(10) of FA 2003 applies for the purposes of subsection <ref href="#section-53-5">(5)</ref>.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content><p>paragraph 3(1)(a) of Schedule 4A to FA 2003 (higher rate of SDLT for purchases by companies etc), and</p></content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content><p>step 4 in section 74(1A) of FA 2003 (exercise of collective rights by tenants of flats where condition in paragraph 3(3) of that Schedule is met),</p></content></level><wrapUp><p><mod>for “15%” substitute <quotedText>“17%”</quotedText>.</mod></p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-1-a"><num>(a)</num><content><p>paragraph 3(1)(a) of Schedule 4A to FA 2003 (higher rate of SDLT for purchases by companies etc), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-1-b"><num>(b)</num><content><p>step 4 in section 74(1A) of FA 2003 (exercise of collective rights by tenants of flats where condition in paragraph 3(3) of that Schedule is met),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to land transactions the effective date of which falls on or after 31 October 2024.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-3"><num>(3)</num><intro><p>But the amendments made by this section do not have effect in relation to a land transaction which—</p></intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before that date, and</p></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-3-a"><num>(a)</num><content><p>is effected in pursuance of a contract entered into before that date, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-3-b"><num>(b)</num><content><p>is not excluded.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-4"><num>(4)</num><intro><p>For this purpose a land transaction is excluded if—</p></intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-a"><num>(a)</num><content><p>there is any variation of the contract, or assignment of rights under the contract, on or after 31 October 2024,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-b"><num>(b)</num><content><p>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-c"><num>(c)</num><content><p>on or after that date, there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-5"><num>(5)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-53-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level><level class="para1" eId="section-53-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level><wrapUp><p>section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the increased rates provided for by this section would have had effect in relation to that conveyance.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-5-a"><num>(a)</num><content><p>as a result of section 44(4) of FA 2003 the effective date of a land transaction is before 31 October 2024, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-5-b"><num>(b)</num><content><p>the contract concerned is completed by a conveyance on or after that date,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-6"><num>(6)</num><content><p>Section 44(10) of FA 2003 applies for the purposes of subsection <ref href="#section-53-5">(5)</ref>.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-annual-tax-on-enveloped-dwellings"><heading>Annual tax on enveloped dwellings</heading><section eId="section-54"><num>54</num><heading>Alternative finance: land in England, Scotland or Northern Ireland</heading><subsection eId="section-54-1"><num>(1)</num><intro><p>In section 157 of FA 2013 (land in England or Northern Ireland sold to financial institution and leased to person under alternative finance arrangements)—</p></intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content><p><mod>in subsection (2), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content><p><mod>in subsection (4), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content><p><mod>in subsection (9), after “subsections” insert <quotedText>“(2), (3),”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-54-2"><num>(2)</num><intro><p>In section 157A of FA 2013 (land in Scotland sold to financial institution and leased to person under alternative finance arrangements)—</p></intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content><p><mod>in subsection (4), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content><p><mod>in subsection (6), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-2-c"><num>(c)</num><content><p><mod>in subsection (11), after “subsections” insert <quotedText>“(4), (5),”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-54-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force on 30 October 2024.</p></content></subsection></section><section eId="section-55"><num>55</num><heading>Alternative finance: land in Wales</heading><subsection eId="section-55-1"><num>(1)</num><content><p>In section 157 of FA 2013, in the heading and subsection (1)(b), omit “, Wales”.</p></content></subsection><subsection eId="section-55-2"><num>(2)</num><content><p><mod>After section 157A of FA 2013 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>157B</num><heading>Land in Wales sold to financial institution and leased to person</heading><subsection eId="d25e8655"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1) (land in Wales sold to financial institution and leased to person) applies in relation to arrangements entered into between a financial institution and another person (“<term refersTo="#term-the-lessee">the lessee</term>”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the land in which the institution purchases a major interest under the first transaction is in Wales and consists of or includes one or more dwellings (or parts of a dwelling).</p></content></level></subsection><subsection eId="d25e8676"><num>(2)</num><intro><p>This Part has effect in relation to times when the arrangements are in operation as if—</p></intro><level class="para1" eId="d25e8682"><num>(a)</num><content><p>the interest held by the financial institution as mentioned in <ref href="#d25e8699">subsection (3)</ref><ref href="#d25e8714">(b)</ref> were held by the lessee (and not by the financial institution), and</p></content></level><level class="para1"><num>(b)</num><content><p>the lease or sub-lease granted under the second transaction had not been granted.</p></content></level></subsection><subsection eId="d25e8699"><num>(3)</num><intro><p>The reference in <ref href="#d25e8676">subsection (2)</ref> to times when the arrangements are in operation is to times when—</p></intro><level class="para1"><num>(a)</num><content><p>the lessee holds the leasehold interest granted to it under the second transaction, and</p></content></level><level class="para1" eId="d25e8714"><num>(b)</num><content><p>the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.</p></content></level></subsection><subsection><num>(4)</num><content><p>A company or individual treated under <ref href="#d25e8676">subsection (2)</ref><ref href="#d25e8682">(a)</ref> as holding an interest at a particular time is treated as holding it as a member of a partnership if at the time in question the company or individual holds the leasehold interest as a member of the partnership (and this Part has effect accordingly in relation to the other members of the partnership).</p></content></subsection><subsection eId="d25e8731"><num>(5)</num><intro><p>In relation to times when the arrangements operate for the benefit of a collective investment scheme, this Part has effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the interest held by the financial institution as mentioned in <ref href="#d25e8754">subsection (6)</ref><ref href="#d25e8769">(b)</ref> were held by the lessee for the purposes of a collective investment scheme (and were not held by the financial institution), and</p></content></level><level class="para1"><num>(b)</num><content><p>the lease or sub-lease granted under the second transaction had not been granted.</p></content></level></subsection><subsection eId="d25e8754"><num>(6)</num><intro><p>The reference in <ref href="#d25e8731">subsection (5)</ref> to times when the arrangements operate for the benefit of a collective investment scheme is to times when—</p></intro><level class="para1"><num>(a)</num><content><p>the lessee holds the leasehold interest for the purposes of a collective investment scheme, and</p></content></level><level class="para1" eId="d25e8769"><num>(b)</num><content><p>the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.</p></content></level></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-financial-institution">financial institution</term>” has the meaning given by paragraph 8 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-first-transaction">the first transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-further-transaction">further transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-leasehold-interest">the leasehold interest</term>” means the interest granted to the lessee under the second transaction;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-second-transaction">the second transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>The reference in <ref href="#d25e8655">subsection (1)</ref> to a major interest in land is to be read in accordance with section 68 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.</p></content></subsection><subsection><num>(9)</num><content><p>Where the lessee is an individual, references in subsections <ref href="#d25e8676">(2)</ref>, <ref href="#d25e8699">(3)</ref>, <ref href="#d25e8731">(5)</ref> and <ref href="#d25e8754">(6)</ref> to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee’s personal representatives.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-55-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force on 30 October 2024.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54"><num>54</num><heading>Alternative finance: land in England, Scotland or Northern Ireland</heading><subsection eId="section-54-1"><num>(1)</num><intro><p>In section 157 of FA 2013 (land in England or Northern Ireland sold to financial institution and leased to person under alternative finance arrangements)—</p></intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content><p><mod>in subsection (2), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content><p><mod>in subsection (4), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content><p><mod>in subsection (9), after “subsections” insert <quotedText>“(2), (3),”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-54-2"><num>(2)</num><intro><p>In section 157A of FA 2013 (land in Scotland sold to financial institution and leased to person under alternative finance arrangements)—</p></intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content><p><mod>in subsection (4), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content><p><mod>in subsection (6), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-2-c"><num>(c)</num><content><p><mod>in subsection (11), after “subsections” insert <quotedText>“(4), (5),”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-54-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force on 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-1"><num>(1)</num><intro><p>In section 157 of FA 2013 (land in England or Northern Ireland sold to financial institution and leased to person under alternative finance arrangements)—</p></intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content><p><mod>in subsection (2), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content><p><mod>in subsection (4), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content><p><mod>in subsection (9), after “subsections” insert <quotedText>“(2), (3),”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-a"><num>(a)</num><content><p><mod>in subsection (2), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-b"><num>(b)</num><content><p><mod>in subsection (4), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-c"><num>(c)</num><content><p><mod>in subsection (9), after “subsections” insert <quotedText>“(2), (3),”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-2"><num>(2)</num><intro><p>In section 157A of FA 2013 (land in Scotland sold to financial institution and leased to person under alternative finance arrangements)—</p></intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content><p><mod>in subsection (4), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content><p><mod>in subsection (6), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level><level class="para1" eId="section-54-2-c"><num>(c)</num><content><p><mod>in subsection (11), after “subsections” insert <quotedText>“(4), (5),”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-2-a"><num>(a)</num><content><p><mod>in subsection (4), for “If the lessee is a company, this Part” substitute <quotedText>“This Part”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-2-b"><num>(b)</num><content><p><mod>in subsection (6), after “<term refersTo="#term-company" eId="term-company">company</term>” (in each place it appears) insert <quotedText>“or individual”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-2-c"><num>(c)</num><content><p><mod>in subsection (11), after “subsections” insert <quotedText>“(4), (5),”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force on 30 October 2024.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-55"><num>55</num><heading>Alternative finance: land in Wales</heading><subsection eId="section-55-1"><num>(1)</num><content><p>In section 157 of FA 2013, in the heading and subsection (1)(b), omit “, Wales”.</p></content></subsection><subsection eId="section-55-2"><num>(2)</num><content><p><mod>After section 157A of FA 2013 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>157B</num><heading>Land in Wales sold to financial institution and leased to person</heading><subsection eId="d25e8655"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1) (land in Wales sold to financial institution and leased to person) applies in relation to arrangements entered into between a financial institution and another person (“<term refersTo="#term-the-lessee">the lessee</term>”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the land in which the institution purchases a major interest under the first transaction is in Wales and consists of or includes one or more dwellings (or parts of a dwelling).</p></content></level></subsection><subsection eId="d25e8676"><num>(2)</num><intro><p>This Part has effect in relation to times when the arrangements are in operation as if—</p></intro><level class="para1" eId="d25e8682"><num>(a)</num><content><p>the interest held by the financial institution as mentioned in <ref href="#d25e8699">subsection (3)</ref><ref href="#d25e8714">(b)</ref> were held by the lessee (and not by the financial institution), and</p></content></level><level class="para1"><num>(b)</num><content><p>the lease or sub-lease granted under the second transaction had not been granted.</p></content></level></subsection><subsection eId="d25e8699"><num>(3)</num><intro><p>The reference in <ref href="#d25e8676">subsection (2)</ref> to times when the arrangements are in operation is to times when—</p></intro><level class="para1"><num>(a)</num><content><p>the lessee holds the leasehold interest granted to it under the second transaction, and</p></content></level><level class="para1" eId="d25e8714"><num>(b)</num><content><p>the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.</p></content></level></subsection><subsection><num>(4)</num><content><p>A company or individual treated under <ref href="#d25e8676">subsection (2)</ref><ref href="#d25e8682">(a)</ref> as holding an interest at a particular time is treated as holding it as a member of a partnership if at the time in question the company or individual holds the leasehold interest as a member of the partnership (and this Part has effect accordingly in relation to the other members of the partnership).</p></content></subsection><subsection eId="d25e8731"><num>(5)</num><intro><p>In relation to times when the arrangements operate for the benefit of a collective investment scheme, this Part has effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the interest held by the financial institution as mentioned in <ref href="#d25e8754">subsection (6)</ref><ref href="#d25e8769">(b)</ref> were held by the lessee for the purposes of a collective investment scheme (and were not held by the financial institution), and</p></content></level><level class="para1"><num>(b)</num><content><p>the lease or sub-lease granted under the second transaction had not been granted.</p></content></level></subsection><subsection eId="d25e8754"><num>(6)</num><intro><p>The reference in <ref href="#d25e8731">subsection (5)</ref> to times when the arrangements operate for the benefit of a collective investment scheme is to times when—</p></intro><level class="para1"><num>(a)</num><content><p>the lessee holds the leasehold interest for the purposes of a collective investment scheme, and</p></content></level><level class="para1" eId="d25e8769"><num>(b)</num><content><p>the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.</p></content></level></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-financial-institution">financial institution</term>” has the meaning given by paragraph 8 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-first-transaction">the first transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-further-transaction">further transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-leasehold-interest">the leasehold interest</term>” means the interest granted to the lessee under the second transaction;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-second-transaction">the second transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>The reference in <ref href="#d25e8655">subsection (1)</ref> to a major interest in land is to be read in accordance with section 68 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.</p></content></subsection><subsection><num>(9)</num><content><p>Where the lessee is an individual, references in subsections <ref href="#d25e8676">(2)</ref>, <ref href="#d25e8699">(3)</ref>, <ref href="#d25e8731">(5)</ref> and <ref href="#d25e8754">(6)</ref> to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee’s personal representatives.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-55-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force on 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-1"><num>(1)</num><content><p>In section 157 of FA 2013, in the heading and subsection (1)(b), omit “, Wales”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-55-2"><num>(2)</num><content><p><mod>After section 157A of FA 2013 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>157B</num><heading>Land in Wales sold to financial institution and leased to person</heading><subsection eId="d25e8655"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1) (land in Wales sold to financial institution and leased to person) applies in relation to arrangements entered into between a financial institution and another person (“<term refersTo="#term-the-lessee">the lessee</term>”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the land in which the institution purchases a major interest under the first transaction is in Wales and consists of or includes one or more dwellings (or parts of a dwelling).</p></content></level></subsection><subsection eId="d25e8676"><num>(2)</num><intro><p>This Part has effect in relation to times when the arrangements are in operation as if—</p></intro><level class="para1" eId="d25e8682"><num>(a)</num><content><p>the interest held by the financial institution as mentioned in <ref href="#d25e8699">subsection (3)</ref><ref href="#d25e8714">(b)</ref> were held by the lessee (and not by the financial institution), and</p></content></level><level class="para1"><num>(b)</num><content><p>the lease or sub-lease granted under the second transaction had not been granted.</p></content></level></subsection><subsection eId="d25e8699"><num>(3)</num><intro><p>The reference in <ref href="#d25e8676">subsection (2)</ref> to times when the arrangements are in operation is to times when—</p></intro><level class="para1"><num>(a)</num><content><p>the lessee holds the leasehold interest granted to it under the second transaction, and</p></content></level><level class="para1" eId="d25e8714"><num>(b)</num><content><p>the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.</p></content></level></subsection><subsection><num>(4)</num><content><p>A company or individual treated under <ref href="#d25e8676">subsection (2)</ref><ref href="#d25e8682">(a)</ref> as holding an interest at a particular time is treated as holding it as a member of a partnership if at the time in question the company or individual holds the leasehold interest as a member of the partnership (and this Part has effect accordingly in relation to the other members of the partnership).</p></content></subsection><subsection eId="d25e8731"><num>(5)</num><intro><p>In relation to times when the arrangements operate for the benefit of a collective investment scheme, this Part has effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the interest held by the financial institution as mentioned in <ref href="#d25e8754">subsection (6)</ref><ref href="#d25e8769">(b)</ref> were held by the lessee for the purposes of a collective investment scheme (and were not held by the financial institution), and</p></content></level><level class="para1"><num>(b)</num><content><p>the lease or sub-lease granted under the second transaction had not been granted.</p></content></level></subsection><subsection eId="d25e8754"><num>(6)</num><intro><p>The reference in <ref href="#d25e8731">subsection (5)</ref> to times when the arrangements operate for the benefit of a collective investment scheme is to times when—</p></intro><level class="para1"><num>(a)</num><content><p>the lessee holds the leasehold interest for the purposes of a collective investment scheme, and</p></content></level><level class="para1" eId="d25e8769"><num>(b)</num><content><p>the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.</p></content></level></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-financial-institution">financial institution</term>” has the meaning given by paragraph 8 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-first-transaction">the first transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-further-transaction">further transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-leasehold-interest">the leasehold interest</term>” means the interest granted to the lessee under the second transaction;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-second-transaction">the second transaction</term>” has the same meaning as in paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>The reference in <ref href="#d25e8655">subsection (1)</ref> to a major interest in land is to be read in accordance with section 68 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.</p></content></subsection><subsection><num>(9)</num><content><p>Where the lessee is an individual, references in subsections <ref href="#d25e8676">(2)</ref>, <ref href="#d25e8699">(3)</ref>, <ref href="#d25e8731">(5)</ref> and <ref href="#d25e8754">(6)</ref> to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee’s personal representatives.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force on 30 October 2024.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-stamp-duty-and-stamp-duty-reserve-tax"><heading>Stamp duty and stamp duty reserve tax</heading><section eId="section-56"><num>56</num><heading>Testing of FMI technologies or practices</heading><subsection eId="section-56-1"><num>(1)</num><content><p>The Treasury may by regulations make provision about stamp duty or stamp duty reserve tax in connection with regulations made under section 13 of the Financial Services and Markets Act 2023 (testing of FMI technologies or practices).</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><intro><p>Regulations under subsection (1) may—</p></intro><level class="para1" eId="section-56-2-a"><num>(a)</num><content><p>disapply, or modify the application of, an Act;</p></content></level><level class="para1" eId="section-56-2-b"><num>(b)</num><content><p>apply an Act with or without modifications,</p></content></level><wrapUp><p>but may not amend or repeal an Act.</p></wrapUp></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>Regulations under subsection (1) must be made by statutory instrument.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><content><p>A statutory instrument containing provision (whether alone or with other provision) that has the effect of increasing the amount of duty or tax that is chargeable in respect of any instrument, transfer or agreement to transfer above the amount that would have been chargeable in the absence of regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the House of Commons.</p></content></subsection><subsection eId="section-56-5"><num>(5)</num><content><p>A statutory instrument that does not contain such provision is subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56"><num>56</num><heading>Testing of FMI technologies or practices</heading><subsection eId="section-56-1"><num>(1)</num><content><p>The Treasury may by regulations make provision about stamp duty or stamp duty reserve tax in connection with regulations made under section 13 of the Financial Services and Markets Act 2023 (testing of FMI technologies or practices).</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><intro><p>Regulations under subsection (1) may—</p></intro><level class="para1" eId="section-56-2-a"><num>(a)</num><content><p>disapply, or modify the application of, an Act;</p></content></level><level class="para1" eId="section-56-2-b"><num>(b)</num><content><p>apply an Act with or without modifications,</p></content></level><wrapUp><p>but may not amend or repeal an Act.</p></wrapUp></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>Regulations under subsection (1) must be made by statutory instrument.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><content><p>A statutory instrument containing provision (whether alone or with other provision) that has the effect of increasing the amount of duty or tax that is chargeable in respect of any instrument, transfer or agreement to transfer above the amount that would have been chargeable in the absence of regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the House of Commons.</p></content></subsection><subsection eId="section-56-5"><num>(5)</num><content><p>A statutory instrument that does not contain such provision is subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-1"><num>(1)</num><content><p>The Treasury may by regulations make provision about stamp duty or stamp duty reserve tax in connection with regulations made under section 13 of the Financial Services and Markets Act 2023 (testing of FMI technologies or practices).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-2"><num>(2)</num><intro><p>Regulations under subsection (1) may—</p></intro><level class="para1" eId="section-56-2-a"><num>(a)</num><content><p>disapply, or modify the application of, an Act;</p></content></level><level class="para1" eId="section-56-2-b"><num>(b)</num><content><p>apply an Act with or without modifications,</p></content></level><wrapUp><p>but may not amend or repeal an Act.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-2-a"><num>(a)</num><content><p>disapply, or modify the application of, an Act;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-2-b"><num>(b)</num><content><p>apply an Act with or without modifications,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-3"><num>(3)</num><content><p>Regulations under subsection (1) must be made by statutory instrument.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-4"><num>(4)</num><content><p>A statutory instrument containing provision (whether alone or with other provision) that has the effect of increasing the amount of duty or tax that is chargeable in respect of any instrument, transfer or agreement to transfer above the amount that would have been chargeable in the absence of regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the House of Commons.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-5"><num>(5)</num><content><p>A statutory instrument that does not contain such provision is subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-inheritance-tax"><heading>Inheritance tax</heading><section eId="section-57"><num>57</num><heading>Rate bands etc for tax years 2028-29 and 2029-30</heading><intro><p>In section 86 of FA 2021 (no indexation of rate bands, residential enhancement and taper threshold for tax years up to 2027-28)—</p></intro><level class="para1" eId="section-57-a"><num>(a)</num><content><p><mod>for “or 2026” substitute <quotedText>“, 2026, 2027 or 2028”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-57-b"><num>(b)</num><content><p><mod>in the heading, for “2027-28” substitute <quotedText>“2029-30”</quotedText>.</mod></p></content></level></section><section eId="section-58"><num>58</num><heading>EBTs: prohibition on applying property for benefit of participators etc</heading><subsection eId="section-58-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-58-2"><num>(2)</num><intro><p>In section 13 (dispositions by close companies for benefit of employees), in subsection (2)—</p></intro><level class="para1" eId="section-58-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-d"><num>(d)</num><content><p><mod>in paragraph (d), after “who is” insert <quotedText>“, at the time of the disposition or any later time,”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-58-3"><num>(3)</num><intro><p>In section 28 (employee trusts), in subsection (4)—</p></intro><level class="para1" eId="section-58-3-a"><num>(a)</num><content><p><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>a person who is, at the time of the transfer of value mentioned in subsection (1), a participator in the company mentioned in that subsection; or</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-58-3-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the transfer of value mentioned in subsection (1),”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-3-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-3-d"><num>(d)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>any person who is, at the time of the transfer of value mentioned in subsection (1) or any later time, connected with a person within paragraph (a), (b) or (c).</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section eId="section-59"><num>59</num><heading>EBTs: restriction on proportion of beneficiaries who may be participators etc</heading><subsection eId="section-59-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-59-2"><num>(2)</num><content><p><mod>In section 13 (dispositions by close companies for benefit of employees), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9063"><num>(4A)</num><content><p>Subsection (4)(a) does not apply if, immediately after the disposition of property mentioned in subsection (1), more than 25% of relevant beneficiaries are (disregarding subsection (4)(a)) persons falling within subsection (2)(a) to (d).</p></content></subsection><subsection><num>(4B)</num><intro><p>In subsection <ref href="#d25e9063">(4A)</ref> “<term refersTo="#term-relevant-beneficiary">relevant beneficiary</term>” means a person who—</p></intro><level class="para1"><num>(a)</num><content><p>is a person for whose benefit the trusts permit the property to be applied, and</p></content></level><level class="para1"><num>(b)</num><content><p>is a person employed by or holding office with the company mentioned in subsection (1).</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-59-3"><num>(3)</num><content><p><mod>In section 28 (employee trusts), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9102"><num>(6A)</num><content><p>Subsection (6) does not apply if, immediately after the transfer of value mentioned in subsection (1), more than 25% of relevant beneficiaries are (disregarding subsection (6)) persons falling within subsection (4)(a) to (d).</p></content></subsection><subsection><num>(6B)</num><intro><p>In subsection <ref href="#d25e9102">(6A)</ref> “<term refersTo="#term-relevant-beneficiary">relevant beneficiary</term>” means a person who—</p></intro><level class="para1"><num>(a)</num><content><p>is a person for whose benefit the trusts permit the settled property to be applied, and</p></content></level><level class="para1"><num>(b)</num><content><p>is a person employed by or holding office with the company mentioned in subsection (1).</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-59-4"><num>(4)</num><content><p><mod>In section 75 (exemption from charge under section 65 where property becomes subject to employee benefit trust), in subsection (3), in the opening words, after <quotedText>“section 28(4)”</quotedText> insert <quotedText>“and <ref href="#d25e9102">(6A)</ref>”</quotedText>.</mod></p></content></subsection><subsection eId="section-59-5"><num>(5)</num><content><p>This section is treated as having come into force on 30 October 2024.</p></content></subsection></section><section eId="section-60"><num>60</num><heading>EBTs: shares entering trust to have been held for two years</heading><subsection eId="section-60-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-60-2"><num>(2)</num><intro><p>In section 28 (employee trusts)—</p></intro><level class="para1" eId="section-60-2-a"><num>(a)</num><content><p><mod>in subsection (1), after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9183"><num>(c)</num><content><p>the individual has, throughout the period of two years ending with the date of the transfer, been beneficially entitled to the shares in or securities of the company that become comprised in the settlement.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-60-2-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9198"><num>(8)</num><content><p>A reference in subsection (1)<ref href="#d25e9183">(c)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(9)</num><intro><p>In subsection <ref href="#d25e9198">(8)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-60-3"><num>(3)</num><intro><p>In section 75 (exemption from charge under section 65 where property becomes subject to employee benefit trust)—</p></intro><level class="para1" eId="section-60-3-a"><num>(a)</num><content><p><mod>in subsection (2), after paragraph (c) insert <quotedText startQuote="“">; and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9248"><num>(d)</num><content><p>the shares in or securities of the company have been comprised in the settlement mentioned in section 65(1) throughout the period of two years ending with the date on which they cease to be relevant property.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-60-3-b"><num>(b)</num><content><p><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9263"><num>(4)</num><content><p>A reference in subsection (2)<ref href="#d25e9248">(d)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection <ref href="#d25e9263">(4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-60-4"><num>(4)</num><content><p>This section is treated as having come into force on 30 October 2024.</p></content></subsection></section><section eId="section-61"><num>61</num><heading>Agricultural property relief: environmental management agreements</heading><subsection eId="section-61-1"><num>(1)</num><content><p><mod>In Chapter 2 of Part 5 of IHTA 1984 (agricultural property relief), omit section 124C (application of agricultural property relief to land in habitat schemes) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>124C</num><heading>Environmental management agreements</heading><subsection><num>(1)</num><intro><p>For the purposes of this Chapter, land is to be treated as agricultural property occupied for the purposes of agriculture if—</p></intro><level class="para1"><num>(a)</num><content><p>the land was agricultural property throughout the period of two years ending with the day on which it became subject to an environmental management agreement, and</p></content></level><level class="para1"><num>(b)</num><content><p>since that day, it has been used and managed in accordance with the agreement (whether or not the agreement is still in place).</p></content></level></subsection><subsection><num>(2)</num><intro><p>A building occupied with land that is treated as agricultural property occupied for the purposes of agriculture under subsection (1) is to be treated in the same way if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used in connection with the use and management of the land in accordance with the environmental management agreement (whether or not the agreement is still in place) and is of a character appropriate to the land,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>it was built for the purpose of being used in connection with that use and management (whether or not the agreement was still in place), or</p></content></level><level class="para2"><num>(ii)</num><content><p>it was occupied with the land immediately before the land became subject to the environmental management agreement and was of a character appropriate to the land as it stood at that time, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>it is not otherwise agricultural property occupied for the purposes of agriculture.</p></content></level></subsection><subsection><num>(3)</num><content><p>For the purposes of subsection (2), where a building is occupied with land that is treated as agricultural property under subsection (1) and land that is otherwise agricultural property occupied for the purposes of agriculture, the question of whether the building is of a character appropriate to the land is to be considered by reference to all of that land.</p></content></subsection><subsection><num>(4)</num><content><p>The agricultural value of property that is agricultural property as a result of this section is to be taken to be the value that would be the value of the property if it were subject to a perpetual covenant prohibiting its use otherwise than in accordance with the environmental management agreement (whether or not the agreement is still in place) (and section 115(3) does not apply).</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (1)(a) the reference to agricultural property includes land treated as agricultural property under this section.</p></content></subsection><subsection><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-environmental-management-agreement">environmental management agreement</term>” means a legally enforceable agreement between an occupier or other person with a right in land and a public authority which—</p></intro><level class="para1"><num>(a)</num><content><p>is entered into for the purpose of protecting, restoring or enhancing the natural environment, or natural resources, of land or water, and</p></content></level><level class="para1"><num>(b)</num><content><p>in practice requires the land to be used and managed in a way that would (apart from this section) prevent it from being agricultural property occupied for the purposes of agriculture;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-land">land</term>” includes pasture and woodland;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-public-authority">public authority</term>” means a person that is in entering the environmental management agreement—</p></intro><level class="para1"><num>(a)</num><content><p>exercising public functions, or</p></content></level><level class="para1"><num>(b)</num><content><p>acting under arrangements with a public authority in relation to the exercise of the authority’s functions.</p></content></level></hcontainer></subsection><subsection><num>(7)</num><content><p>This section does not apply in respect of an environmental management agreement that ended before 6 March 2024.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-61-2"><num>(2)</num><intro><p>The amendments made by this section have effect—</p></intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content><p>in relation to transfers of value made on or after 6 April 2025, and</p></content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content><p>in relation to occasions on or after that date on which tax falls to be charged under Chapter 3 of Part 3 of IHTA 1984.</p></content></level></subsection></section><section eId="section-62"><num>62</num><heading>National Savings Bank: statements from HMRC no longer to be required</heading><subsection eId="section-62-1"><num>(1)</num><content><p>In the National Savings Regulations 2015 (<ref eId="c00035" href="http://www.legislation.gov.uk/id/uksi/2015/623">S.I. 2015/623</ref>), omit regulation 55 (inheritance tax chargeable on death of depositors).</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><content><p>In the National Savings (No. 2) Regulations 2015 (<ref eId="c00036" href="http://www.legislation.gov.uk/id/uksi/2015/624">S.I. 2015/624</ref>), omit regulation 90 (inheritance tax chargeable on death of holders of stock or certificates).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57"><num>57</num><heading>Rate bands etc for tax years 2028-29 and 2029-30</heading><intro><p>In section 86 of FA 2021 (no indexation of rate bands, residential enhancement and taper threshold for tax years up to 2027-28)—</p></intro><level class="para1" eId="section-57-a"><num>(a)</num><content><p><mod>for “or 2026” substitute <quotedText>“, 2026, 2027 or 2028”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-57-b"><num>(b)</num><content><p><mod>in the heading, for “2027-28” substitute <quotedText>“2029-30”</quotedText>.</mod></p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-a"><num>(a)</num><content><p><mod>for “or 2026” substitute <quotedText>“, 2026, 2027 or 2028”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-b"><num>(b)</num><content><p><mod>in the heading, for “2027-28” substitute <quotedText>“2029-30”</quotedText>.</mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-58"><num>58</num><heading>EBTs: prohibition on applying property for benefit of participators etc</heading><subsection eId="section-58-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-58-2"><num>(2)</num><intro><p>In section 13 (dispositions by close companies for benefit of employees), in subsection (2)—</p></intro><level class="para1" eId="section-58-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-d"><num>(d)</num><content><p><mod>in paragraph (d), after “who is” insert <quotedText>“, at the time of the disposition or any later time,”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-58-3"><num>(3)</num><intro><p>In section 28 (employee trusts), in subsection (4)—</p></intro><level class="para1" eId="section-58-3-a"><num>(a)</num><content><p><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>a person who is, at the time of the transfer of value mentioned in subsection (1), a participator in the company mentioned in that subsection; or</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-58-3-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the transfer of value mentioned in subsection (1),”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-3-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-3-d"><num>(d)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>any person who is, at the time of the transfer of value mentioned in subsection (1) or any later time, connected with a person within paragraph (a), (b) or (c).</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-2"><num>(2)</num><intro><p>In section 13 (dispositions by close companies for benefit of employees), in subsection (2)—</p></intro><level class="para1" eId="section-58-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-2-d"><num>(d)</num><content><p><mod>in paragraph (d), after “who is” insert <quotedText>“, at the time of the disposition or any later time,”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the disposition,”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-2-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-2-d"><num>(d)</num><content><p><mod>in paragraph (d), after “who is” insert <quotedText>“, at the time of the disposition or any later time,”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-58-3"><num>(3)</num><intro><p>In section 28 (employee trusts), in subsection (4)—</p></intro><level class="para1" eId="section-58-3-a"><num>(a)</num><content><p><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>a person who is, at the time of the transfer of value mentioned in subsection (1), a participator in the company mentioned in that subsection; or</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-58-3-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the transfer of value mentioned in subsection (1),”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-3-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level><level class="para1" eId="section-58-3-d"><num>(d)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>any person who is, at the time of the transfer of value mentioned in subsection (1) or any later time, connected with a person within paragraph (a), (b) or (c).</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-58-3-a"><num>(a)</num><content><p><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>a person who is, at the time of the transfer of value mentioned in subsection (1), a participator in the company mentioned in that subsection; or</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-3-b"><num>(b)</num><content><p><mod>in paragraph (b), after “who is” insert <quotedText>“, at the time of the transfer of value mentioned in subsection (1),”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-3-c"><num>(c)</num><content><p><mod>in paragraph (c), for “has been” substitute <quotedText>“is”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-58-3-d"><num>(d)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>any person who is, at the time of the transfer of value mentioned in subsection (1) or any later time, connected with a person within paragraph (a), (b) or (c).</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-59"><num>59</num><heading>EBTs: restriction on proportion of beneficiaries who may be participators etc</heading><subsection eId="section-59-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-59-2"><num>(2)</num><content><p><mod>In section 13 (dispositions by close companies for benefit of employees), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9063"><num>(4A)</num><content><p>Subsection (4)(a) does not apply if, immediately after the disposition of property mentioned in subsection (1), more than 25% of relevant beneficiaries are (disregarding subsection (4)(a)) persons falling within subsection (2)(a) to (d).</p></content></subsection><subsection><num>(4B)</num><intro><p>In subsection <ref href="#d25e9063">(4A)</ref> “<term refersTo="#term-relevant-beneficiary">relevant beneficiary</term>” means a person who—</p></intro><level class="para1"><num>(a)</num><content><p>is a person for whose benefit the trusts permit the property to be applied, and</p></content></level><level class="para1"><num>(b)</num><content><p>is a person employed by or holding office with the company mentioned in subsection (1).</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-59-3"><num>(3)</num><content><p><mod>In section 28 (employee trusts), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9102"><num>(6A)</num><content><p>Subsection (6) does not apply if, immediately after the transfer of value mentioned in subsection (1), more than 25% of relevant beneficiaries are (disregarding subsection (6)) persons falling within subsection (4)(a) to (d).</p></content></subsection><subsection><num>(6B)</num><intro><p>In subsection <ref href="#d25e9102">(6A)</ref> “<term refersTo="#term-relevant-beneficiary">relevant beneficiary</term>” means a person who—</p></intro><level class="para1"><num>(a)</num><content><p>is a person for whose benefit the trusts permit the settled property to be applied, and</p></content></level><level class="para1"><num>(b)</num><content><p>is a person employed by or holding office with the company mentioned in subsection (1).</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-59-4"><num>(4)</num><content><p><mod>In section 75 (exemption from charge under section 65 where property becomes subject to employee benefit trust), in subsection (3), in the opening words, after <quotedText>“section 28(4)”</quotedText> insert <quotedText>“and <ref href="#d25e9102">(6A)</ref>”</quotedText>.</mod></p></content></subsection><subsection eId="section-59-5"><num>(5)</num><content><p>This section is treated as having come into force on 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-59-2"><num>(2)</num><content><p><mod>In section 13 (dispositions by close companies for benefit of employees), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9063"><num>(4A)</num><content><p>Subsection (4)(a) does not apply if, immediately after the disposition of property mentioned in subsection (1), more than 25% of relevant beneficiaries are (disregarding subsection (4)(a)) persons falling within subsection (2)(a) to (d).</p></content></subsection><subsection><num>(4B)</num><intro><p>In subsection <ref href="#d25e9063">(4A)</ref> “<term refersTo="#term-relevant-beneficiary">relevant beneficiary</term>” means a person who—</p></intro><level class="para1"><num>(a)</num><content><p>is a person for whose benefit the trusts permit the property to be applied, and</p></content></level><level class="para1"><num>(b)</num><content><p>is a person employed by or holding office with the company mentioned in subsection (1).</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-59-3"><num>(3)</num><content><p><mod>In section 28 (employee trusts), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9102"><num>(6A)</num><content><p>Subsection (6) does not apply if, immediately after the transfer of value mentioned in subsection (1), more than 25% of relevant beneficiaries are (disregarding subsection (6)) persons falling within subsection (4)(a) to (d).</p></content></subsection><subsection><num>(6B)</num><intro><p>In subsection <ref href="#d25e9102">(6A)</ref> “<term refersTo="#term-relevant-beneficiary">relevant beneficiary</term>” means a person who—</p></intro><level class="para1"><num>(a)</num><content><p>is a person for whose benefit the trusts permit the settled property to be applied, and</p></content></level><level class="para1"><num>(b)</num><content><p>is a person employed by or holding office with the company mentioned in subsection (1).</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-4"><num>(4)</num><content><p><mod>In section 75 (exemption from charge under section 65 where property becomes subject to employee benefit trust), in subsection (3), in the opening words, after <quotedText>“section 28(4)”</quotedText> insert <quotedText>“and <ref href="#d25e9102">(6A)</ref>”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-5"><num>(5)</num><content><p>This section is treated as having come into force on 30 October 2024.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-60"><num>60</num><heading>EBTs: shares entering trust to have been held for two years</heading><subsection eId="section-60-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection><subsection eId="section-60-2"><num>(2)</num><intro><p>In section 28 (employee trusts)—</p></intro><level class="para1" eId="section-60-2-a"><num>(a)</num><content><p><mod>in subsection (1), after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9183"><num>(c)</num><content><p>the individual has, throughout the period of two years ending with the date of the transfer, been beneficially entitled to the shares in or securities of the company that become comprised in the settlement.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-60-2-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9198"><num>(8)</num><content><p>A reference in subsection (1)<ref href="#d25e9183">(c)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(9)</num><intro><p>In subsection <ref href="#d25e9198">(8)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-60-3"><num>(3)</num><intro><p>In section 75 (exemption from charge under section 65 where property becomes subject to employee benefit trust)—</p></intro><level class="para1" eId="section-60-3-a"><num>(a)</num><content><p><mod>in subsection (2), after paragraph (c) insert <quotedText startQuote="“">; and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9248"><num>(d)</num><content><p>the shares in or securities of the company have been comprised in the settlement mentioned in section 65(1) throughout the period of two years ending with the date on which they cease to be relevant property.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-60-3-b"><num>(b)</num><content><p><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9263"><num>(4)</num><content><p>A reference in subsection (2)<ref href="#d25e9248">(d)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection <ref href="#d25e9263">(4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-60-4"><num>(4)</num><content><p>This section is treated as having come into force on 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-1"><num>(1)</num><content><p>IHTA 1984 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-60-2"><num>(2)</num><intro><p>In section 28 (employee trusts)—</p></intro><level class="para1" eId="section-60-2-a"><num>(a)</num><content><p><mod>in subsection (1), after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9183"><num>(c)</num><content><p>the individual has, throughout the period of two years ending with the date of the transfer, been beneficially entitled to the shares in or securities of the company that become comprised in the settlement.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-60-2-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9198"><num>(8)</num><content><p>A reference in subsection (1)<ref href="#d25e9183">(c)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(9)</num><intro><p>In subsection <ref href="#d25e9198">(8)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-60-2-a"><num>(a)</num><content><p><mod>in subsection (1), after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9183"><num>(c)</num><content><p>the individual has, throughout the period of two years ending with the date of the transfer, been beneficially entitled to the shares in or securities of the company that become comprised in the settlement.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-60-2-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9198"><num>(8)</num><content><p>A reference in subsection (1)<ref href="#d25e9183">(c)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(9)</num><intro><p>In subsection <ref href="#d25e9198">(8)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-60-3"><num>(3)</num><intro><p>In section 75 (exemption from charge under section 65 where property becomes subject to employee benefit trust)—</p></intro><level class="para1" eId="section-60-3-a"><num>(a)</num><content><p><mod>in subsection (2), after paragraph (c) insert <quotedText startQuote="“">; and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9248"><num>(d)</num><content><p>the shares in or securities of the company have been comprised in the settlement mentioned in section 65(1) throughout the period of two years ending with the date on which they cease to be relevant property.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-60-3-b"><num>(b)</num><content><p><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9263"><num>(4)</num><content><p>A reference in subsection (2)<ref href="#d25e9248">(d)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection <ref href="#d25e9263">(4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-60-3-a"><num>(a)</num><content><p><mod>in subsection (2), after paragraph (c) insert <quotedText startQuote="“">; and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1" eId="d25e9248"><num>(d)</num><content><p>the shares in or securities of the company have been comprised in the settlement mentioned in section 65(1) throughout the period of two years ending with the date on which they cease to be relevant property.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-60-3-b"><num>(b)</num><content><p><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9263"><num>(4)</num><content><p>A reference in subsection (2)<ref href="#d25e9248">(d)</ref> to shares in or securities of a company includes, in a case in which a reorganisation of share capital has occurred, the original shares to which the new holding relates.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection <ref href="#d25e9263">(4)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-reorganisation-of-share-capital">reorganisation of share capital</term>” means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;</p></content></level><level class="para1"><num>(b)</num><content><p>“the original shares” and “the new holding” have the meaning given by section 126(1) of the 1992 Act.</p></content></level></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-4"><num>(4)</num><content><p>This section is treated as having come into force on 30 October 2024.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-61"><num>61</num><heading>Agricultural property relief: environmental management agreements</heading><subsection eId="section-61-1"><num>(1)</num><content><p><mod>In Chapter 2 of Part 5 of IHTA 1984 (agricultural property relief), omit section 124C (application of agricultural property relief to land in habitat schemes) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>124C</num><heading>Environmental management agreements</heading><subsection><num>(1)</num><intro><p>For the purposes of this Chapter, land is to be treated as agricultural property occupied for the purposes of agriculture if—</p></intro><level class="para1"><num>(a)</num><content><p>the land was agricultural property throughout the period of two years ending with the day on which it became subject to an environmental management agreement, and</p></content></level><level class="para1"><num>(b)</num><content><p>since that day, it has been used and managed in accordance with the agreement (whether or not the agreement is still in place).</p></content></level></subsection><subsection><num>(2)</num><intro><p>A building occupied with land that is treated as agricultural property occupied for the purposes of agriculture under subsection (1) is to be treated in the same way if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used in connection with the use and management of the land in accordance with the environmental management agreement (whether or not the agreement is still in place) and is of a character appropriate to the land,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>it was built for the purpose of being used in connection with that use and management (whether or not the agreement was still in place), or</p></content></level><level class="para2"><num>(ii)</num><content><p>it was occupied with the land immediately before the land became subject to the environmental management agreement and was of a character appropriate to the land as it stood at that time, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>it is not otherwise agricultural property occupied for the purposes of agriculture.</p></content></level></subsection><subsection><num>(3)</num><content><p>For the purposes of subsection (2), where a building is occupied with land that is treated as agricultural property under subsection (1) and land that is otherwise agricultural property occupied for the purposes of agriculture, the question of whether the building is of a character appropriate to the land is to be considered by reference to all of that land.</p></content></subsection><subsection><num>(4)</num><content><p>The agricultural value of property that is agricultural property as a result of this section is to be taken to be the value that would be the value of the property if it were subject to a perpetual covenant prohibiting its use otherwise than in accordance with the environmental management agreement (whether or not the agreement is still in place) (and section 115(3) does not apply).</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (1)(a) the reference to agricultural property includes land treated as agricultural property under this section.</p></content></subsection><subsection><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-environmental-management-agreement">environmental management agreement</term>” means a legally enforceable agreement between an occupier or other person with a right in land and a public authority which—</p></intro><level class="para1"><num>(a)</num><content><p>is entered into for the purpose of protecting, restoring or enhancing the natural environment, or natural resources, of land or water, and</p></content></level><level class="para1"><num>(b)</num><content><p>in practice requires the land to be used and managed in a way that would (apart from this section) prevent it from being agricultural property occupied for the purposes of agriculture;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-land">land</term>” includes pasture and woodland;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-public-authority">public authority</term>” means a person that is in entering the environmental management agreement—</p></intro><level class="para1"><num>(a)</num><content><p>exercising public functions, or</p></content></level><level class="para1"><num>(b)</num><content><p>acting under arrangements with a public authority in relation to the exercise of the authority’s functions.</p></content></level></hcontainer></subsection><subsection><num>(7)</num><content><p>This section does not apply in respect of an environmental management agreement that ended before 6 March 2024.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-61-2"><num>(2)</num><intro><p>The amendments made by this section have effect—</p></intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content><p>in relation to transfers of value made on or after 6 April 2025, and</p></content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content><p>in relation to occasions on or after that date on which tax falls to be charged under Chapter 3 of Part 3 of IHTA 1984.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-61-1"><num>(1)</num><content><p><mod>In Chapter 2 of Part 5 of IHTA 1984 (agricultural property relief), omit section 124C (application of agricultural property relief to land in habitat schemes) and insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>124C</num><heading>Environmental management agreements</heading><subsection><num>(1)</num><intro><p>For the purposes of this Chapter, land is to be treated as agricultural property occupied for the purposes of agriculture if—</p></intro><level class="para1"><num>(a)</num><content><p>the land was agricultural property throughout the period of two years ending with the day on which it became subject to an environmental management agreement, and</p></content></level><level class="para1"><num>(b)</num><content><p>since that day, it has been used and managed in accordance with the agreement (whether or not the agreement is still in place).</p></content></level></subsection><subsection><num>(2)</num><intro><p>A building occupied with land that is treated as agricultural property occupied for the purposes of agriculture under subsection (1) is to be treated in the same way if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used in connection with the use and management of the land in accordance with the environmental management agreement (whether or not the agreement is still in place) and is of a character appropriate to the land,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>it was built for the purpose of being used in connection with that use and management (whether or not the agreement was still in place), or</p></content></level><level class="para2"><num>(ii)</num><content><p>it was occupied with the land immediately before the land became subject to the environmental management agreement and was of a character appropriate to the land as it stood at that time, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>it is not otherwise agricultural property occupied for the purposes of agriculture.</p></content></level></subsection><subsection><num>(3)</num><content><p>For the purposes of subsection (2), where a building is occupied with land that is treated as agricultural property under subsection (1) and land that is otherwise agricultural property occupied for the purposes of agriculture, the question of whether the building is of a character appropriate to the land is to be considered by reference to all of that land.</p></content></subsection><subsection><num>(4)</num><content><p>The agricultural value of property that is agricultural property as a result of this section is to be taken to be the value that would be the value of the property if it were subject to a perpetual covenant prohibiting its use otherwise than in accordance with the environmental management agreement (whether or not the agreement is still in place) (and section 115(3) does not apply).</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (1)(a) the reference to agricultural property includes land treated as agricultural property under this section.</p></content></subsection><subsection><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-environmental-management-agreement">environmental management agreement</term>” means a legally enforceable agreement between an occupier or other person with a right in land and a public authority which—</p></intro><level class="para1"><num>(a)</num><content><p>is entered into for the purpose of protecting, restoring or enhancing the natural environment, or natural resources, of land or water, and</p></content></level><level class="para1"><num>(b)</num><content><p>in practice requires the land to be used and managed in a way that would (apart from this section) prevent it from being agricultural property occupied for the purposes of agriculture;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-land">land</term>” includes pasture and woodland;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-public-authority">public authority</term>” means a person that is in entering the environmental management agreement—</p></intro><level class="para1"><num>(a)</num><content><p>exercising public functions, or</p></content></level><level class="para1"><num>(b)</num><content><p>acting under arrangements with a public authority in relation to the exercise of the authority’s functions.</p></content></level></hcontainer></subsection><subsection><num>(7)</num><content><p>This section does not apply in respect of an environmental management agreement that ended before 6 March 2024.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-2"><num>(2)</num><intro><p>The amendments made by this section have effect—</p></intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content><p>in relation to transfers of value made on or after 6 April 2025, and</p></content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content><p>in relation to occasions on or after that date on which tax falls to be charged under Chapter 3 of Part 3 of IHTA 1984.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-2-a"><num>(a)</num><content><p>in relation to transfers of value made on or after 6 April 2025, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-2-b"><num>(b)</num><content><p>in relation to occasions on or after that date on which tax falls to be charged under Chapter 3 of Part 3 of IHTA 1984.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62"><num>62</num><heading>National Savings Bank: statements from HMRC no longer to be required</heading><subsection eId="section-62-1"><num>(1)</num><content><p>In the National Savings Regulations 2015 (<ref eId="c00035" href="http://www.legislation.gov.uk/id/uksi/2015/623">S.I. 2015/623</ref>), omit regulation 55 (inheritance tax chargeable on death of depositors).</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><content><p>In the National Savings (No. 2) Regulations 2015 (<ref eId="c00036" href="http://www.legislation.gov.uk/id/uksi/2015/624">S.I. 2015/624</ref>), omit regulation 90 (inheritance tax chargeable on death of holders of stock or certificates).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-1"><num>(1)</num><content><p>In the National Savings Regulations 2015 (<ref eId="c00035" href="http://www.legislation.gov.uk/id/uksi/2015/623">S.I. 2015/623</ref>), omit regulation 55 (inheritance tax chargeable on death of depositors).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-2"><num>(2)</num><content><p>In the National Savings (No. 2) Regulations 2015 (<ref eId="c00036" href="http://www.legislation.gov.uk/id/uksi/2015/624">S.I. 2015/624</ref>), omit regulation 90 (inheritance tax chargeable on death of holders of stock or certificates).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-alcohol-duty"><heading>Alcohol duty</heading><section eId="section-63"><num>63</num><heading>Rates of alcohol duty</heading><subsection eId="section-63-1"><num>(1)</num><content><p>Part 2 of F(No.2)A 2023 (alcohol duty) is amended as follows.</p></content></subsection><subsection eId="section-63-2"><num>(2)</num><content><p><mod>For Schedule 7 (main rates) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 7</num><heading>Rates of alcohol duty</heading><content><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic strength of alcoholic product</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate of duty per litre of alcohol in the product</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Less than 3.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.61</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">At least 3.5% but less than 8.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">See Table 2</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">At least 8.5% but not exceeding 22%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£29.54</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding 22%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£32.79</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>TABLE 2</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Description of alcoholic product (of an alcoholic strength of at least 3.5% but less than 8.5%) </i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate of duty per litre of alcohol in the product </i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Still cider</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength not exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.02</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Beer</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£21.78</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Spirits, wine and other fermented products</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£25.67</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-3"><num>(3)</num><content><p><mod>For Schedule 8 (reduced rates for qualifying draught products) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 8</num><heading>Qualifying draught products: reduced rates</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Description of alcoholic product</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate of duty per litre of alcohol in the product </i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Alcoholic products of an alcoholic strength of less than 3.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£8.28</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Still cider of an alcoholic strength of at least 3.5%</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£8.63</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Beer, spirits, wine and other fermented products of an alcoholic strength of at least 3.5% (but less than 8.5%)</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£18.76</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-4"><num>(4)</num><content><p><mod>For Schedule 9 (duty discount for small producer alcoholic products)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 9</num><heading>Small producer alcoholic products: duty discount</heading><part><num>Part 1</num><heading>Alcoholic products, other than qualifying draught products, of an alcoholic strength of less than 8.5%</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48.05</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">157.99</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">231.28</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6.35</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31.76</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">141.70</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">214.99</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10.02</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.55</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50.10</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.53</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">164.78</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.51</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.24</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Beer of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19.94</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">99.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.97</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1290.33</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5.54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2411.75</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3.32</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3657.77</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5153.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-1.64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5153.00</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25.67</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">128.35</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">245.84</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.31</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">376.37</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20.89</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104.43</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">221.92</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.31</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part><part><num>Part 2</num><heading>Qualifying draught products of an alcoholic strength of less than 8.5%</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.28</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">41.40</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">136.13</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">199.28</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.07</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27.37</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">122.09</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185.24</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.06</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.63</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">43.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.32</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">141.93</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207.78</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.07</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Beer of an alcoholic strength of at least 3.5% </i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17.17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">85.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1111.41</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4.77</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2077.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.86</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3150.59</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4438.49</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-1.41</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4438.49</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18.76</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">93.80</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">179.66</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.95</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275.06</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">76.32</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">162.18</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.95</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">257.58</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-5"><num>(5)</num><intro><p>In consequence of the amendments made by the preceding subsections of this section, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—</p></intro><level class="para1" eId="section-63-5-a"><num>(a)</num><content><p><mod>in the entry relating to beer, in the second column, for “£0.88” substitute <quotedText>“£0.91”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-b"><num>(b)</num><content><p><mod>in the entry relating to still wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-c"><num>(c)</num><content><p><mod>in the entry relating to sparkling wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-d"><num>(d)</num><content><p><mod>in the entry relating to cider, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-e"><num>(e)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength not exceeding 5.5% by volume, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-f"><num>(f)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength exceeding 5.5% but less than 8.5% by volume, in the second column, for “£1.73” substitute <quotedText>“£1.80”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-g"><num>(g)</num><content><p><mod>in the entry relating to other fermented products, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-63-5-h"><num>(h)</num><content><p><mod>in the entry relating to spirits, in the second column, for “£11.88” substitute <quotedText>“£12.30”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-63-6"><num>(6)</num><content><p>The amendments made by this section are treated as having come into force on 1 February 2025.</p></content></subsection></section><section eId="section-64"><num>64</num><heading>Abolition of duty stamps for alcoholic products</heading><subsection eId="section-64-1"><num>(1)</num><content><p>Section 112 of, and Schedule 12 to, F(No.2)A 2023 (which make provision about duty stamps for retail containers of alcoholic products) are repealed.</p></content></subsection><subsection eId="section-64-2"><num>(2)</num><intro><p>In consequence of the repeals made by <ref href="#section-64-1">subsection (1)</ref>—</p></intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">(2)</a> of <ref eId="c00037" href="https://www.legislation.gov.uk/ukpga/1994/9">FA 1994</ref>, omit paragraph (ca),</p></content></level><level class="para1" eId="section-64-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">(2)</a> of <ref eId="c00038" href="https://www.legislation.gov.uk/ukpga/1994/9">that Act</ref>—</p></intro><level class="para2" eId="section-64-2-b-i"><num>(i)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">paragraph (ea)</a>, omit sub-paragraph (ii) and the “or” before it, and</p></content></level><level class="para2" eId="section-64-2-b-ii"><num>(ii)</num><content><p>omit paragraphs (f) and (g),</p></content></level></level><level class="para1" eId="section-64-2-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41">Schedule 41</a> to <ref eId="c00039" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>, in the Table, omit the entry relating to alcohol duty and duty stamps,</p></content></level><level class="para1" eId="section-64-2-d"><num>(d)</num><intro><p>in section 119 of F(No.2)A 2023—</p></intro><level class="para2" eId="section-64-2-d-i"><num>(i)</num><content><p>omit subsection (4), and</p></content></level><level class="para2" eId="section-64-2-d-ii"><num>(ii)</num><content><p>in subsections (5) and (8)(a), omit “or subsection (4)”,</p></content></level></level><level class="para1" eId="section-64-2-e"><num>(e)</num><content><p>in Schedule 11 to that Act, omit paragraph 1(4),</p></content></level><level class="para1" eId="section-64-2-f"><num>(f)</num><content><p>in Schedule 13 to that Act, omit paragraph 9,</p></content></level><level class="para1" eId="section-64-2-g"><num>(g)</num><content><p>in the form of United Kingdom Internal Accompanying Document, set out in Schedule 4 to the Excise Warehousing (Etc.) Regulations 1988 (<ref eId="c00040" href="http://www.legislation.gov.uk/id/uksi/1988/809">S.I. 1988/809</ref>), in the explanatory note to Box 18a, omit the sentence beginning “If alcohol or alcoholic beverages are stamped”,</p></content></level><level class="para1" eId="section-64-2-h"><num>(h)</num><content><p>the <ref eId="c00041" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00042" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) are revoked.</p></content></level></subsection><subsection eId="section-64-3"><num>(3)</num><intro><p>In consequence of the revocation of the Duty Stamps Regulations 2006 the following are revoked—</p></intro><level class="para1" eId="section-64-3-a"><num>(a)</num><content><p>paragraphs 3 and 4 of <a href="https://www.legislation.gov.uk/uksi/2009/571/schedule/2">Schedule 2</a> to the <ref eId="c00043" href="https://www.legislation.gov.uk/uksi/2009/571">Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009</ref> (<ref eId="c00044" href="http://www.legislation.gov.uk/id/uksi/2009/571">S.I. 2009/571</ref>),</p></content></level><level class="para1" eId="section-64-3-b"><num>(b)</num><content><p>paragraphs 20 and 21 of <a href="https://www.legislation.gov.uk/uksi/2010/593/schedule/2">Schedule 2</a> to the <ref eId="c00045" href="https://www.legislation.gov.uk/uksi/2010/593">Excise Goods (Holding, Movement and Duty Point) Regulations 2010</ref> (<ref eId="c00046" href="http://www.legislation.gov.uk/id/uksi/2010/593">S.I. 2010/593</ref>),</p></content></level><level class="para1" eId="section-64-3-c"><num>(c)</num><content><p>paragraph 49 of Schedule 3 to the Tribunals, Courts and Enforcement Act 2007 (Consequential Amendments) Order 2012 (<ref eId="c00047" href="http://www.legislation.gov.uk/id/uksi/2012/2404">S.I. 2012/2404</ref>),</p></content></level><level class="para1" eId="section-64-3-d"><num>(d)</num><content><p>regulation 4 of the <ref eId="c00048" href="https://www.legislation.gov.uk/uksi/2013/1229">Spirits (Amendment) Regulations 2013</ref> (<ref eId="c00049" href="http://www.legislation.gov.uk/id/uksi/2013/1229">S.I. 2013/1229</ref>),</p></content></level><level class="para1" eId="section-64-3-e"><num>(e)</num><content><p>regulations 8 to 18 and 23 of the <ref eId="c00050" href="https://www.legislation.gov.uk/uksi/2019/15">Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2019</ref> (<ref eId="c00051" href="http://www.legislation.gov.uk/id/uksi/2019/15">S.I. 2019/15</ref>),</p></content></level><level class="para1" eId="section-64-3-f"><num>(f)</num><content><p>regulations 95 and 97 of the <ref eId="c00052" href="https://www.legislation.gov.uk/uksi/2020/1559">Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020</ref> (<ref eId="c00053" href="https://www.legislation.gov.uk/uksi/2020/1559">S.I. 2020/1559</ref>),</p></content></level><level class="para1" eId="section-64-3-g"><num>(g)</num><content><p>regulations 13, 17 and 26 of the <ref eId="c00054" href="https://www.legislation.gov.uk/uksi/2020/1412">Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020</ref> (<ref eId="c00055" href="https://www.legislation.gov.uk/uksi/2020/1412">S.I. 2020/1412</ref>),</p></content></level><level class="para1" eId="section-64-3-h"><num>(h)</num><content><p>regulation 7 of the <ref eId="c00056" href="https://www.legislation.gov.uk/uksi/2021/1282">Excise Duties (Removal of Alcoholic Liquor to Northern Ireland and Miscellaneous Amendments) Regulations 2021</ref> (<ref eId="c00057" href="http://www.legislation.gov.uk/id/uksi/2021/1282">S.I. 2021/1282</ref>),</p></content></level><level class="para1" eId="section-64-3-i"><num>(i)</num><content><p>Part 2 of Schedule 2 to the Excise Duties and Value Added Tax (Northern Ireland) (Miscellaneous Modifications and Amendments) Regulations 2023 (<ref eId="c00058" href="http://www.legislation.gov.uk/id/uksi/2023/64">S.I. 2023/64</ref>), and</p></content></level><level class="para1" eId="section-64-3-j"><num>(j)</num><content><p>paragraph 10 of the Schedule to the Finance (No. 2) Act 2023, Part 2 (Alcohol Duty) (Appointed Day, Savings, Consequential Amendments and Transitional Provisions) Regulations 2023 (<ref eId="c00059" href="http://www.legislation.gov.uk/id/uksi/2023/884">S.I. 2023/884</ref>).</p></content></level></subsection><subsection eId="section-64-4"><num>(4)</num><content><p>The amendments made by <ref href="#section-64">this section</ref> come into force on 1 May 2025.</p></content></subsection><subsection eId="section-64-5"><num>(5)</num><content><p>Where before that date a person incurs an obligation under the <ref eId="c00060" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00061" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) to take any steps, no requirement to take those steps continues on or after that date (despite <a href="https://www.legislation.gov.uk/ukpga/1978/30/section/16">section 16</a> of the <ref eId="c00062" href="https://www.legislation.gov.uk/ukpga/1978/30">Interpretation Act 1978</ref>).</p></content></subsection><subsection eId="section-64-6"><num>(6)</num><content><p>But <ref href="#section-64-5">subsection (5)</ref> does not apply to any obligation to preserve records made for the purposes of those regulations.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-63"><num>63</num><heading>Rates of alcohol duty</heading><subsection eId="section-63-1"><num>(1)</num><content><p>Part 2 of F(No.2)A 2023 (alcohol duty) is amended as follows.</p></content></subsection><subsection eId="section-63-2"><num>(2)</num><content><p><mod>For Schedule 7 (main rates) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 7</num><heading>Rates of alcohol duty</heading><content><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic strength of alcoholic product</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate of duty per litre of alcohol in the product</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Less than 3.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.61</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">At least 3.5% but less than 8.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">See Table 2</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">At least 8.5% but not exceeding 22%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£29.54</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding 22%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£32.79</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>TABLE 2</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Description of alcoholic product (of an alcoholic strength of at least 3.5% but less than 8.5%) </i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate of duty per litre of alcohol in the product </i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Still cider</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength not exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.02</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Beer</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£21.78</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Spirits, wine and other fermented products</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£25.67</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-3"><num>(3)</num><content><p><mod>For Schedule 8 (reduced rates for qualifying draught products) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 8</num><heading>Qualifying draught products: reduced rates</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Description of alcoholic product</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate of duty per litre of alcohol in the product </i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Alcoholic products of an alcoholic strength of less than 3.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£8.28</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Still cider of an alcoholic strength of at least 3.5%</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£8.63</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Beer, spirits, wine and other fermented products of an alcoholic strength of at least 3.5% (but less than 8.5%)</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£18.76</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-4"><num>(4)</num><content><p><mod>For Schedule 9 (duty discount for small producer alcoholic products)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 9</num><heading>Small producer alcoholic products: duty discount</heading><part><num>Part 1</num><heading>Alcoholic products, other than qualifying draught products, of an alcoholic strength of less than 8.5%</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48.05</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">157.99</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">231.28</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6.35</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31.76</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">141.70</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">214.99</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10.02</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.55</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50.10</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.53</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">164.78</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.51</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.24</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Beer of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19.94</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">99.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.97</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1290.33</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5.54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2411.75</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3.32</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3657.77</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5153.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-1.64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5153.00</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25.67</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">128.35</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">245.84</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.31</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">376.37</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20.89</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104.43</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">221.92</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.31</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part><part><num>Part 2</num><heading>Qualifying draught products of an alcoholic strength of less than 8.5%</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.28</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">41.40</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">136.13</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">199.28</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.07</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27.37</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">122.09</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185.24</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.06</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.63</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">43.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.32</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">141.93</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207.78</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.07</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Beer of an alcoholic strength of at least 3.5% </i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17.17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">85.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1111.41</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4.77</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2077.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.86</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3150.59</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4438.49</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-1.41</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4438.49</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18.76</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">93.80</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">179.66</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.95</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275.06</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">76.32</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">162.18</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.95</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">257.58</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-63-5"><num>(5)</num><intro><p>In consequence of the amendments made by the preceding subsections of this section, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—</p></intro><level class="para1" eId="section-63-5-a"><num>(a)</num><content><p><mod>in the entry relating to beer, in the second column, for “£0.88” substitute <quotedText>“£0.91”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-b"><num>(b)</num><content><p><mod>in the entry relating to still wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-c"><num>(c)</num><content><p><mod>in the entry relating to sparkling wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-d"><num>(d)</num><content><p><mod>in the entry relating to cider, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-e"><num>(e)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength not exceeding 5.5% by volume, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-f"><num>(f)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength exceeding 5.5% but less than 8.5% by volume, in the second column, for “£1.73” substitute <quotedText>“£1.80”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-g"><num>(g)</num><content><p><mod>in the entry relating to other fermented products, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-63-5-h"><num>(h)</num><content><p><mod>in the entry relating to spirits, in the second column, for “£11.88” substitute <quotedText>“£12.30”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-63-6"><num>(6)</num><content><p>The amendments made by this section are treated as having come into force on 1 February 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-1"><num>(1)</num><content><p>Part 2 of F(No.2)A 2023 (alcohol duty) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-63-2"><num>(2)</num><content><p><mod>For Schedule 7 (main rates) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 7</num><heading>Rates of alcohol duty</heading><content><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic strength of alcoholic product</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate of duty per litre of alcohol in the product</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Less than 3.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.61</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">At least 3.5% but less than 8.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">See Table 2</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">At least 8.5% but not exceeding 22%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£29.54</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding 22%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£32.79</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>TABLE 2</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Description of alcoholic product (of an alcoholic strength of at least 3.5% but less than 8.5%) </i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate of duty per litre of alcohol in the product </i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Still cider</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength not exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.02</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Beer</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£21.78</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Spirits, wine and other fermented products</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£25.67</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-63-3"><num>(3)</num><content><p><mod>For Schedule 8 (reduced rates for qualifying draught products) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 8</num><heading>Qualifying draught products: reduced rates</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Description of alcoholic product</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate of duty per litre of alcohol in the product </i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Alcoholic products of an alcoholic strength of less than 3.5%</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£8.28</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Still cider of an alcoholic strength of at least 3.5%</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£8.63</p></default:td></default:tr><default:tr><default:td><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>Beer, spirits, wine and other fermented products of an alcoholic strength of at least 3.5% (but less than 8.5%)</p></item><item><num>(b)</num><p>Sparkling cider of an alcoholic strength exceeding 5.5%</p></item></blockList></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£18.76</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-63-4"><num>(4)</num><content><p><mod>For Schedule 9 (duty discount for small producer alcoholic products)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule"><num>Schedule 9</num><heading>Small producer alcoholic products: duty discount</heading><part><num>Part 1</num><heading>Alcoholic products, other than qualifying draught products, of an alcoholic strength of less than 8.5%</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48.05</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">157.99</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">231.28</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">280.15</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6.35</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31.76</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">141.70</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">214.99</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">263.86</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 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xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10.02</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.55</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50.10</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.53</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">164.78</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.51</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.24</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">292.21</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Beer of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19.94</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11.08</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">99.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.97</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1290.33</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5.54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2411.75</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3.32</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3657.77</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5153.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-1.64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5153.00</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25.67</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">128.35</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">245.84</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.31</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">376.37</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">506.91</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20.89</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104.43</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">221.92</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.31</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.14</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">483.00</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part><part><num>Part 2</num><heading>Qualifying draught products of an alcoholic strength of less than 8.5%</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.28</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">41.40</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">136.13</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">199.28</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.07</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">241.38</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of less than 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5.47</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27.37</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">122.09</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185.24</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.06</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">227.34</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.63</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">43.15</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.32</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">141.93</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.44</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207.78</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.07</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">251.68</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Beer of an alcoholic strength of at least 3.5% </i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">17.17</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">9.54</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">85.86</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">112.5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8.59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1111.41</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4.77</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2077.34</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">450</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2.86</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3150.59</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">900</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4438.49</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1350</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-1.41</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4438.49</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">18.76</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">93.80</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">179.66</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.95</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275.06</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.11</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">370.46</p></default:td></default:tr></default:tbody></default:table></foreign><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup><default:col style="width:12%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/><default:col style="width:22%"/></default:colgroup><default:thead><default:tr><default:th colspan="5"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Spirits of an alcoholic strength of at least 3.5%</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Discount band</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Start threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>End threshold (hectolitres)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Marginal discount (£)</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Cumulative discount (£)</i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15.26</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">76.32</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1.91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">162.18</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0.95</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">257.58</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">6</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">600</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-0.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">352.98</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-5"><num>(5)</num><intro><p>In consequence of the amendments made by the preceding subsections of this section, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—</p></intro><level class="para1" eId="section-63-5-a"><num>(a)</num><content><p><mod>in the entry relating to beer, in the second column, for “£0.88” substitute <quotedText>“£0.91”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-b"><num>(b)</num><content><p><mod>in the entry relating to still wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-c"><num>(c)</num><content><p><mod>in the entry relating to sparkling wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-d"><num>(d)</num><content><p><mod>in the entry relating to cider, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-e"><num>(e)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength not exceeding 5.5% by volume, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-f"><num>(f)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength exceeding 5.5% but less than 8.5% by volume, in the second column, for “£1.73” substitute <quotedText>“£1.80”</quotedText>,</mod></p></content></level><level class="para1" eId="section-63-5-g"><num>(g)</num><content><p><mod>in the entry relating to other fermented products, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-63-5-h"><num>(h)</num><content><p><mod>in the entry relating to spirits, in the second column, for “£11.88” substitute <quotedText>“£12.30”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-5-a"><num>(a)</num><content><p><mod>in the entry relating to beer, in the second column, for “£0.88” substitute <quotedText>“£0.91”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-5-b"><num>(b)</num><content><p><mod>in the entry relating to still wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-5-c"><num>(c)</num><content><p><mod>in the entry relating to sparkling wine, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-5-d"><num>(d)</num><content><p><mod>in the entry relating to cider, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-5-e"><num>(e)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength not exceeding 5.5% by volume, in the second column, for “£0.44” substitute <quotedText>“£0.46”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-5-f"><num>(f)</num><content><p><mod>in the entry relating to sparkling cider of an alcoholic strength exceeding 5.5% but less than 8.5% by volume, in the second column, for “£1.73” substitute <quotedText>“£1.80”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-5-g"><num>(g)</num><content><p><mod>in the entry relating to other fermented products, in the second column, for “£3.28” substitute <quotedText>“£3.40”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-5-h"><num>(h)</num><content><p><mod>in the entry relating to spirits, in the second column, for “£11.88” substitute <quotedText>“£12.30”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-6"><num>(6)</num><content><p>The amendments made by this section are treated as having come into force on 1 February 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64"><num>64</num><heading>Abolition of duty stamps for alcoholic products</heading><subsection eId="section-64-1"><num>(1)</num><content><p>Section 112 of, and Schedule 12 to, F(No.2)A 2023 (which make provision about duty stamps for retail containers of alcoholic products) are repealed.</p></content></subsection><subsection eId="section-64-2"><num>(2)</num><intro><p>In consequence of the repeals made by <ref href="#section-64-1">subsection (1)</ref>—</p></intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">(2)</a> of <ref eId="c00037" href="https://www.legislation.gov.uk/ukpga/1994/9">FA 1994</ref>, omit paragraph (ca),</p></content></level><level class="para1" eId="section-64-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">(2)</a> of <ref eId="c00038" href="https://www.legislation.gov.uk/ukpga/1994/9">that Act</ref>—</p></intro><level class="para2" eId="section-64-2-b-i"><num>(i)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">paragraph (ea)</a>, omit sub-paragraph (ii) and the “or” before it, and</p></content></level><level class="para2" eId="section-64-2-b-ii"><num>(ii)</num><content><p>omit paragraphs (f) and (g),</p></content></level></level><level class="para1" eId="section-64-2-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41">Schedule 41</a> to <ref eId="c00039" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>, in the Table, omit the entry relating to alcohol duty and duty stamps,</p></content></level><level class="para1" eId="section-64-2-d"><num>(d)</num><intro><p>in section 119 of F(No.2)A 2023—</p></intro><level class="para2" eId="section-64-2-d-i"><num>(i)</num><content><p>omit subsection (4), and</p></content></level><level class="para2" eId="section-64-2-d-ii"><num>(ii)</num><content><p>in subsections (5) and (8)(a), omit “or subsection (4)”,</p></content></level></level><level class="para1" eId="section-64-2-e"><num>(e)</num><content><p>in Schedule 11 to that Act, omit paragraph 1(4),</p></content></level><level class="para1" eId="section-64-2-f"><num>(f)</num><content><p>in Schedule 13 to that Act, omit paragraph 9,</p></content></level><level class="para1" eId="section-64-2-g"><num>(g)</num><content><p>in the form of United Kingdom Internal Accompanying Document, set out in Schedule 4 to the Excise Warehousing (Etc.) Regulations 1988 (<ref eId="c00040" href="http://www.legislation.gov.uk/id/uksi/1988/809">S.I. 1988/809</ref>), in the explanatory note to Box 18a, omit the sentence beginning “If alcohol or alcoholic beverages are stamped”,</p></content></level><level class="para1" eId="section-64-2-h"><num>(h)</num><content><p>the <ref eId="c00041" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00042" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) are revoked.</p></content></level></subsection><subsection eId="section-64-3"><num>(3)</num><intro><p>In consequence of the revocation of the Duty Stamps Regulations 2006 the following are revoked—</p></intro><level class="para1" eId="section-64-3-a"><num>(a)</num><content><p>paragraphs 3 and 4 of <a href="https://www.legislation.gov.uk/uksi/2009/571/schedule/2">Schedule 2</a> to the <ref eId="c00043" href="https://www.legislation.gov.uk/uksi/2009/571">Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009</ref> (<ref eId="c00044" href="http://www.legislation.gov.uk/id/uksi/2009/571">S.I. 2009/571</ref>),</p></content></level><level class="para1" eId="section-64-3-b"><num>(b)</num><content><p>paragraphs 20 and 21 of <a href="https://www.legislation.gov.uk/uksi/2010/593/schedule/2">Schedule 2</a> to the <ref eId="c00045" href="https://www.legislation.gov.uk/uksi/2010/593">Excise Goods (Holding, Movement and Duty Point) Regulations 2010</ref> (<ref eId="c00046" href="http://www.legislation.gov.uk/id/uksi/2010/593">S.I. 2010/593</ref>),</p></content></level><level class="para1" eId="section-64-3-c"><num>(c)</num><content><p>paragraph 49 of Schedule 3 to the Tribunals, Courts and Enforcement Act 2007 (Consequential Amendments) Order 2012 (<ref eId="c00047" href="http://www.legislation.gov.uk/id/uksi/2012/2404">S.I. 2012/2404</ref>),</p></content></level><level class="para1" eId="section-64-3-d"><num>(d)</num><content><p>regulation 4 of the <ref eId="c00048" href="https://www.legislation.gov.uk/uksi/2013/1229">Spirits (Amendment) Regulations 2013</ref> (<ref eId="c00049" href="http://www.legislation.gov.uk/id/uksi/2013/1229">S.I. 2013/1229</ref>),</p></content></level><level class="para1" eId="section-64-3-e"><num>(e)</num><content><p>regulations 8 to 18 and 23 of the <ref eId="c00050" href="https://www.legislation.gov.uk/uksi/2019/15">Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2019</ref> (<ref eId="c00051" href="http://www.legislation.gov.uk/id/uksi/2019/15">S.I. 2019/15</ref>),</p></content></level><level class="para1" eId="section-64-3-f"><num>(f)</num><content><p>regulations 95 and 97 of the <ref eId="c00052" href="https://www.legislation.gov.uk/uksi/2020/1559">Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020</ref> (<ref eId="c00053" href="https://www.legislation.gov.uk/uksi/2020/1559">S.I. 2020/1559</ref>),</p></content></level><level class="para1" eId="section-64-3-g"><num>(g)</num><content><p>regulations 13, 17 and 26 of the <ref eId="c00054" href="https://www.legislation.gov.uk/uksi/2020/1412">Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020</ref> (<ref eId="c00055" href="https://www.legislation.gov.uk/uksi/2020/1412">S.I. 2020/1412</ref>),</p></content></level><level class="para1" eId="section-64-3-h"><num>(h)</num><content><p>regulation 7 of the <ref eId="c00056" href="https://www.legislation.gov.uk/uksi/2021/1282">Excise Duties (Removal of Alcoholic Liquor to Northern Ireland and Miscellaneous Amendments) Regulations 2021</ref> (<ref eId="c00057" href="http://www.legislation.gov.uk/id/uksi/2021/1282">S.I. 2021/1282</ref>),</p></content></level><level class="para1" eId="section-64-3-i"><num>(i)</num><content><p>Part 2 of Schedule 2 to the Excise Duties and Value Added Tax (Northern Ireland) (Miscellaneous Modifications and Amendments) Regulations 2023 (<ref eId="c00058" href="http://www.legislation.gov.uk/id/uksi/2023/64">S.I. 2023/64</ref>), and</p></content></level><level class="para1" eId="section-64-3-j"><num>(j)</num><content><p>paragraph 10 of the Schedule to the Finance (No. 2) Act 2023, Part 2 (Alcohol Duty) (Appointed Day, Savings, Consequential Amendments and Transitional Provisions) Regulations 2023 (<ref eId="c00059" href="http://www.legislation.gov.uk/id/uksi/2023/884">S.I. 2023/884</ref>).</p></content></level></subsection><subsection eId="section-64-4"><num>(4)</num><content><p>The amendments made by <ref href="#section-64">this section</ref> come into force on 1 May 2025.</p></content></subsection><subsection eId="section-64-5"><num>(5)</num><content><p>Where before that date a person incurs an obligation under the <ref eId="c00060" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00061" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) to take any steps, no requirement to take those steps continues on or after that date (despite <a href="https://www.legislation.gov.uk/ukpga/1978/30/section/16">section 16</a> of the <ref eId="c00062" href="https://www.legislation.gov.uk/ukpga/1978/30">Interpretation Act 1978</ref>).</p></content></subsection><subsection eId="section-64-6"><num>(6)</num><content><p>But <ref href="#section-64-5">subsection (5)</ref> does not apply to any obligation to preserve records made for the purposes of those regulations.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-1"><num>(1)</num><content><p>Section 112 of, and Schedule 12 to, F(No.2)A 2023 (which make provision about duty stamps for retail containers of alcoholic products) are repealed.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-2"><num>(2)</num><intro><p>In consequence of the repeals made by <ref href="#section-64-1">subsection (1)</ref>—</p></intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">(2)</a> of <ref eId="c00037" href="https://www.legislation.gov.uk/ukpga/1994/9">FA 1994</ref>, omit paragraph (ca),</p></content></level><level class="para1" eId="section-64-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">(2)</a> of <ref eId="c00038" href="https://www.legislation.gov.uk/ukpga/1994/9">that Act</ref>—</p></intro><level class="para2" eId="section-64-2-b-i"><num>(i)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">paragraph (ea)</a>, omit sub-paragraph (ii) and the “or” before it, and</p></content></level><level class="para2" eId="section-64-2-b-ii"><num>(ii)</num><content><p>omit paragraphs (f) and (g),</p></content></level></level><level class="para1" eId="section-64-2-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41">Schedule 41</a> to <ref eId="c00039" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>, in the Table, omit the entry relating to alcohol duty and duty stamps,</p></content></level><level class="para1" eId="section-64-2-d"><num>(d)</num><intro><p>in section 119 of F(No.2)A 2023—</p></intro><level class="para2" eId="section-64-2-d-i"><num>(i)</num><content><p>omit subsection (4), and</p></content></level><level class="para2" eId="section-64-2-d-ii"><num>(ii)</num><content><p>in subsections (5) and (8)(a), omit “or subsection (4)”,</p></content></level></level><level class="para1" eId="section-64-2-e"><num>(e)</num><content><p>in Schedule 11 to that Act, omit paragraph 1(4),</p></content></level><level class="para1" eId="section-64-2-f"><num>(f)</num><content><p>in Schedule 13 to that Act, omit paragraph 9,</p></content></level><level class="para1" eId="section-64-2-g"><num>(g)</num><content><p>in the form of United Kingdom Internal Accompanying Document, set out in Schedule 4 to the Excise Warehousing (Etc.) Regulations 1988 (<ref eId="c00040" href="http://www.legislation.gov.uk/id/uksi/1988/809">S.I. 1988/809</ref>), in the explanatory note to Box 18a, omit the sentence beginning “If alcohol or alcoholic beverages are stamped”,</p></content></level><level class="para1" eId="section-64-2-h"><num>(h)</num><content><p>the <ref eId="c00041" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00042" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) are revoked.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">section 12</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/12">(2)</a> of <ref eId="c00037" href="https://www.legislation.gov.uk/ukpga/1994/9">FA 1994</ref>, omit paragraph (ca),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">(2)</a> of <ref eId="c00038" href="https://www.legislation.gov.uk/ukpga/1994/9">that Act</ref>—</p></intro><level class="para2" eId="section-64-2-b-i"><num>(i)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">paragraph (ea)</a>, omit sub-paragraph (ii) and the “or” before it, and</p></content></level><level class="para2" eId="section-64-2-b-ii"><num>(ii)</num><content><p>omit paragraphs (f) and (g),</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-64-2-b-i"><num>(i)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1994/9/section/13A">paragraph (ea)</a>, omit sub-paragraph (ii) and the “or” before it, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-64-2-b-ii"><num>(ii)</num><content><p>omit paragraphs (f) and (g),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/2008/9/schedule/41">Schedule 41</a> to <ref eId="c00039" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>, in the Table, omit the entry relating to alcohol duty and duty stamps,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-d"><num>(d)</num><intro><p>in section 119 of F(No.2)A 2023—</p></intro><level class="para2" eId="section-64-2-d-i"><num>(i)</num><content><p>omit subsection (4), and</p></content></level><level class="para2" eId="section-64-2-d-ii"><num>(ii)</num><content><p>in subsections (5) and (8)(a), omit “or subsection (4)”,</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-64-2-d-i"><num>(i)</num><content><p>omit subsection (4), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-64-2-d-ii"><num>(ii)</num><content><p>in subsections (5) and (8)(a), omit “or subsection (4)”,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-e"><num>(e)</num><content><p>in Schedule 11 to that Act, omit paragraph 1(4),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-f"><num>(f)</num><content><p>in Schedule 13 to that Act, omit paragraph 9,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-g"><num>(g)</num><content><p>in the form of United Kingdom Internal Accompanying Document, set out in Schedule 4 to the Excise Warehousing (Etc.) Regulations 1988 (<ref eId="c00040" href="http://www.legislation.gov.uk/id/uksi/1988/809">S.I. 1988/809</ref>), in the explanatory note to Box 18a, omit the sentence beginning “If alcohol or alcoholic beverages are stamped”,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-h"><num>(h)</num><content><p>the <ref eId="c00041" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00042" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) are revoked.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-3"><num>(3)</num><intro><p>In consequence of the revocation of the Duty Stamps Regulations 2006 the following are revoked—</p></intro><level class="para1" eId="section-64-3-a"><num>(a)</num><content><p>paragraphs 3 and 4 of <a href="https://www.legislation.gov.uk/uksi/2009/571/schedule/2">Schedule 2</a> to the <ref eId="c00043" href="https://www.legislation.gov.uk/uksi/2009/571">Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009</ref> (<ref eId="c00044" href="http://www.legislation.gov.uk/id/uksi/2009/571">S.I. 2009/571</ref>),</p></content></level><level class="para1" eId="section-64-3-b"><num>(b)</num><content><p>paragraphs 20 and 21 of <a href="https://www.legislation.gov.uk/uksi/2010/593/schedule/2">Schedule 2</a> to the <ref eId="c00045" href="https://www.legislation.gov.uk/uksi/2010/593">Excise Goods (Holding, Movement and Duty Point) Regulations 2010</ref> (<ref eId="c00046" href="http://www.legislation.gov.uk/id/uksi/2010/593">S.I. 2010/593</ref>),</p></content></level><level class="para1" eId="section-64-3-c"><num>(c)</num><content><p>paragraph 49 of Schedule 3 to the Tribunals, Courts and Enforcement Act 2007 (Consequential Amendments) Order 2012 (<ref eId="c00047" href="http://www.legislation.gov.uk/id/uksi/2012/2404">S.I. 2012/2404</ref>),</p></content></level><level class="para1" eId="section-64-3-d"><num>(d)</num><content><p>regulation 4 of the <ref eId="c00048" href="https://www.legislation.gov.uk/uksi/2013/1229">Spirits (Amendment) Regulations 2013</ref> (<ref eId="c00049" href="http://www.legislation.gov.uk/id/uksi/2013/1229">S.I. 2013/1229</ref>),</p></content></level><level class="para1" eId="section-64-3-e"><num>(e)</num><content><p>regulations 8 to 18 and 23 of the <ref eId="c00050" href="https://www.legislation.gov.uk/uksi/2019/15">Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2019</ref> (<ref eId="c00051" href="http://www.legislation.gov.uk/id/uksi/2019/15">S.I. 2019/15</ref>),</p></content></level><level class="para1" eId="section-64-3-f"><num>(f)</num><content><p>regulations 95 and 97 of the <ref eId="c00052" href="https://www.legislation.gov.uk/uksi/2020/1559">Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020</ref> (<ref eId="c00053" href="https://www.legislation.gov.uk/uksi/2020/1559">S.I. 2020/1559</ref>),</p></content></level><level class="para1" eId="section-64-3-g"><num>(g)</num><content><p>regulations 13, 17 and 26 of the <ref eId="c00054" href="https://www.legislation.gov.uk/uksi/2020/1412">Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020</ref> (<ref eId="c00055" href="https://www.legislation.gov.uk/uksi/2020/1412">S.I. 2020/1412</ref>),</p></content></level><level class="para1" eId="section-64-3-h"><num>(h)</num><content><p>regulation 7 of the <ref eId="c00056" href="https://www.legislation.gov.uk/uksi/2021/1282">Excise Duties (Removal of Alcoholic Liquor to Northern Ireland and Miscellaneous Amendments) Regulations 2021</ref> (<ref eId="c00057" href="http://www.legislation.gov.uk/id/uksi/2021/1282">S.I. 2021/1282</ref>),</p></content></level><level class="para1" eId="section-64-3-i"><num>(i)</num><content><p>Part 2 of Schedule 2 to the Excise Duties and Value Added Tax (Northern Ireland) (Miscellaneous Modifications and Amendments) Regulations 2023 (<ref eId="c00058" href="http://www.legislation.gov.uk/id/uksi/2023/64">S.I. 2023/64</ref>), and</p></content></level><level class="para1" eId="section-64-3-j"><num>(j)</num><content><p>paragraph 10 of the Schedule to the Finance (No. 2) Act 2023, Part 2 (Alcohol Duty) (Appointed Day, Savings, Consequential Amendments and Transitional Provisions) Regulations 2023 (<ref eId="c00059" href="http://www.legislation.gov.uk/id/uksi/2023/884">S.I. 2023/884</ref>).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-a"><num>(a)</num><content><p>paragraphs 3 and 4 of <a href="https://www.legislation.gov.uk/uksi/2009/571/schedule/2">Schedule 2</a> to the <ref eId="c00043" href="https://www.legislation.gov.uk/uksi/2009/571">Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009</ref> (<ref eId="c00044" href="http://www.legislation.gov.uk/id/uksi/2009/571">S.I. 2009/571</ref>),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-b"><num>(b)</num><content><p>paragraphs 20 and 21 of <a href="https://www.legislation.gov.uk/uksi/2010/593/schedule/2">Schedule 2</a> to the <ref eId="c00045" href="https://www.legislation.gov.uk/uksi/2010/593">Excise Goods (Holding, Movement and Duty Point) Regulations 2010</ref> (<ref eId="c00046" href="http://www.legislation.gov.uk/id/uksi/2010/593">S.I. 2010/593</ref>),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-c"><num>(c)</num><content><p>paragraph 49 of Schedule 3 to the Tribunals, Courts and Enforcement Act 2007 (Consequential Amendments) Order 2012 (<ref eId="c00047" href="http://www.legislation.gov.uk/id/uksi/2012/2404">S.I. 2012/2404</ref>),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-d"><num>(d)</num><content><p>regulation 4 of the <ref eId="c00048" href="https://www.legislation.gov.uk/uksi/2013/1229">Spirits (Amendment) Regulations 2013</ref> (<ref eId="c00049" href="http://www.legislation.gov.uk/id/uksi/2013/1229">S.I. 2013/1229</ref>),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-e"><num>(e)</num><content><p>regulations 8 to 18 and 23 of the <ref eId="c00050" href="https://www.legislation.gov.uk/uksi/2019/15">Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2019</ref> (<ref eId="c00051" href="http://www.legislation.gov.uk/id/uksi/2019/15">S.I. 2019/15</ref>),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-f"><num>(f)</num><content><p>regulations 95 and 97 of the <ref eId="c00052" href="https://www.legislation.gov.uk/uksi/2020/1559">Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020</ref> (<ref eId="c00053" href="https://www.legislation.gov.uk/uksi/2020/1559">S.I. 2020/1559</ref>),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-g"><num>(g)</num><content><p>regulations 13, 17 and 26 of the <ref eId="c00054" href="https://www.legislation.gov.uk/uksi/2020/1412">Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020</ref> (<ref eId="c00055" href="https://www.legislation.gov.uk/uksi/2020/1412">S.I. 2020/1412</ref>),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-h"><num>(h)</num><content><p>regulation 7 of the <ref eId="c00056" href="https://www.legislation.gov.uk/uksi/2021/1282">Excise Duties (Removal of Alcoholic Liquor to Northern Ireland and Miscellaneous Amendments) Regulations 2021</ref> (<ref eId="c00057" href="http://www.legislation.gov.uk/id/uksi/2021/1282">S.I. 2021/1282</ref>),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-i"><num>(i)</num><content><p>Part 2 of Schedule 2 to the Excise Duties and Value Added Tax (Northern Ireland) (Miscellaneous Modifications and Amendments) Regulations 2023 (<ref eId="c00058" href="http://www.legislation.gov.uk/id/uksi/2023/64">S.I. 2023/64</ref>), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-j"><num>(j)</num><content><p>paragraph 10 of the Schedule to the Finance (No. 2) Act 2023, Part 2 (Alcohol Duty) (Appointed Day, Savings, Consequential Amendments and Transitional Provisions) Regulations 2023 (<ref eId="c00059" href="http://www.legislation.gov.uk/id/uksi/2023/884">S.I. 2023/884</ref>).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-4"><num>(4)</num><content><p>The amendments made by <ref href="#section-64">this section</ref> come into force on 1 May 2025.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-5"><num>(5)</num><content><p>Where before that date a person incurs an obligation under the <ref eId="c00060" href="https://www.legislation.gov.uk/uksi/2006/202">Duty Stamps Regulations 2006</ref> (<ref eId="c00061" href="https://www.legislation.gov.uk/uksi/2006/202">S.I. 2006/202</ref>) to take any steps, no requirement to take those steps continues on or after that date (despite <a href="https://www.legislation.gov.uk/ukpga/1978/30/section/16">section 16</a> of the <ref eId="c00062" href="https://www.legislation.gov.uk/ukpga/1978/30">Interpretation Act 1978</ref>).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-6"><num>(6)</num><content><p>But <ref href="#section-64-5">subsection (5)</ref> does not apply to any obligation to preserve records made for the purposes of those regulations.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-tobacco-products-duty"><heading>Tobacco products duty</heading><section eId="section-65"><num>65</num><heading>Rates of tobacco products duty</heading><subsection eId="section-65-1"><num>(1)</num><content><p><mod>In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1 Cigarettes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An amount equal to the higher of—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>16.5% of the retail price plus £334.58 per thousand cigarettes, or</p></item><item><num>(b)</num><p>£446.67 per thousand cigarettes.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 Cigars</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£417.33 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 Hand-rolling tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£476.83 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4 Other smoking tobacco and chewing tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£183.49 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5 Tobacco for heating</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£343.91 per kilogram</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-65-2"><num>(2)</num><intro><p>In consequence of the provision made by <ref href="#section-65-1">subsection (1)</ref>, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—</p></intro><level class="para1" eId="section-65-2-a"><num>(a)</num><content><p><mod>in the entry relating to cigarettes, for “£422.80” substitute <quotedText>“£446.67”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-b"><num>(b)</num><content><p><mod>in the entry relating to hand rolling tobacco, for “£412.32” substitute <quotedText>“£476.83”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-c"><num>(c)</num><content><p><mod>in the entry relating to other smoking tobacco and chewing tobacco, for “£173.68” substitute <quotedText>“£183.49”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-d"><num>(d)</num><content><p><mod>in the entry relating to cigars, for “£395.03” substitute <quotedText>“£417.33”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-e"><num>(e)</num><content><p><mod>in the entry relating to cigarillos, for “£395.03” substitute <quotedText>“£417.33”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-65-2-f"><num>(f)</num><content><p><mod>in the entry relating to tobacco for heating, for “£97.66” substitute <quotedText>“£103.17”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-65-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force at 6pm on 30 October 2024.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-65"><num>65</num><heading>Rates of tobacco products duty</heading><subsection eId="section-65-1"><num>(1)</num><content><p><mod>In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1 Cigarettes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An amount equal to the higher of—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>16.5% of the retail price plus £334.58 per thousand cigarettes, or</p></item><item><num>(b)</num><p>£446.67 per thousand cigarettes.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 Cigars</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£417.33 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 Hand-rolling tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£476.83 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4 Other smoking tobacco and chewing tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£183.49 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5 Tobacco for heating</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£343.91 per kilogram</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-65-2"><num>(2)</num><intro><p>In consequence of the provision made by <ref href="#section-65-1">subsection (1)</ref>, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—</p></intro><level class="para1" eId="section-65-2-a"><num>(a)</num><content><p><mod>in the entry relating to cigarettes, for “£422.80” substitute <quotedText>“£446.67”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-b"><num>(b)</num><content><p><mod>in the entry relating to hand rolling tobacco, for “£412.32” substitute <quotedText>“£476.83”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-c"><num>(c)</num><content><p><mod>in the entry relating to other smoking tobacco and chewing tobacco, for “£173.68” substitute <quotedText>“£183.49”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-d"><num>(d)</num><content><p><mod>in the entry relating to cigars, for “£395.03” substitute <quotedText>“£417.33”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-e"><num>(e)</num><content><p><mod>in the entry relating to cigarillos, for “£395.03” substitute <quotedText>“£417.33”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-65-2-f"><num>(f)</num><content><p><mod>in the entry relating to tobacco for heating, for “£97.66” substitute <quotedText>“£103.17”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-65-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force at 6pm on 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-65-1"><num>(1)</num><content><p><mod>In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1 Cigarettes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An amount equal to the higher of—</p><blockList xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>16.5% of the retail price plus £334.58 per thousand cigarettes, or</p></item><item><num>(b)</num><p>£446.67 per thousand cigarettes.</p></item></blockList></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 Cigars</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£417.33 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 Hand-rolling tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£476.83 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4 Other smoking tobacco and chewing tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£183.49 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5 Tobacco for heating</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£343.91 per kilogram</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-2"><num>(2)</num><intro><p>In consequence of the provision made by <ref href="#section-65-1">subsection (1)</ref>, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—</p></intro><level class="para1" eId="section-65-2-a"><num>(a)</num><content><p><mod>in the entry relating to cigarettes, for “£422.80” substitute <quotedText>“£446.67”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-b"><num>(b)</num><content><p><mod>in the entry relating to hand rolling tobacco, for “£412.32” substitute <quotedText>“£476.83”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-c"><num>(c)</num><content><p><mod>in the entry relating to other smoking tobacco and chewing tobacco, for “£173.68” substitute <quotedText>“£183.49”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-d"><num>(d)</num><content><p><mod>in the entry relating to cigars, for “£395.03” substitute <quotedText>“£417.33”</quotedText>,</mod></p></content></level><level class="para1" eId="section-65-2-e"><num>(e)</num><content><p><mod>in the entry relating to cigarillos, for “£395.03” substitute <quotedText>“£417.33”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-65-2-f"><num>(f)</num><content><p><mod>in the entry relating to tobacco for heating, for “£97.66” substitute <quotedText>“£103.17”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-2-a"><num>(a)</num><content><p><mod>in the entry relating to cigarettes, for “£422.80” substitute <quotedText>“£446.67”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-2-b"><num>(b)</num><content><p><mod>in the entry relating to hand rolling tobacco, for “£412.32” substitute <quotedText>“£476.83”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-2-c"><num>(c)</num><content><p><mod>in the entry relating to other smoking tobacco and chewing tobacco, for “£173.68” substitute <quotedText>“£183.49”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-2-d"><num>(d)</num><content><p><mod>in the entry relating to cigars, for “£395.03” substitute <quotedText>“£417.33”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-2-e"><num>(e)</num><content><p><mod>in the entry relating to cigarillos, for “£395.03” substitute <quotedText>“£417.33”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-2-f"><num>(f)</num><content><p><mod>in the entry relating to tobacco for heating, for “£97.66” substitute <quotedText>“£103.17”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-3"><num>(3)</num><content><p>The amendments made by this section are treated as having come into force at 6pm on 30 October 2024.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-taxes-relating-to-vehicles"><heading>Taxes relating to vehicles</heading><section eId="section-66"><num>66</num><heading>Rates of vehicle excise duty for light passenger or light goods vehicles etc</heading><subsection eId="section-66-1"><num>(1)</num><content><p>Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.</p></content></subsection><subsection eId="section-66-2"><num>(2)</num><intro><p>In paragraph 1 (general rate)—</p></intro><level class="para1" eId="section-66-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£345” substitute <quotedText>“£360”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-66-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc etc), for “£210” substitute <quotedText>“£220”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-66-3"><num>(3)</num><content><p>In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), omit paragraph (b) together with the “and” before that paragraph.</p></content></subsection><subsection eId="section-66-4"><num>(4)</num><content><p><mod>In paragraph 1B, for the Table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th/></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to or exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">120</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">120</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">140</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">195</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">140</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">215</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">265</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">175</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">315</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">175</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">345</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">395</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">430</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">735</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">760</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-5"><num>(5)</num><content><p><mod>In the sentence immediately following the Table in that paragraph, for the words from “as if” to the end substitute <quotedText>“as if, in column (3), in the last two rows, “430” were substituted for “735” and “760”.”</quotedText></mod></p></content></subsection><subsection eId="section-66-6"><num>(6)</num><content><p>Omit paragraphs 1C to 1F together with the italic heading before paragraph 1C (which provide for a reduced rate).</p></content></subsection><subsection eId="section-66-7"><num>(7)</num><content><p>In paragraph 1GA (vehicles to which Part 1AA applies), in sub-paragraph (3), omit paragraph (c).</p></content></subsection><subsection eId="section-66-8"><num>(8)</num><content><p>In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), in sub-paragraph (2), omit paragraph (b) together with the “and” before that paragraph.</p></content></subsection><subsection eId="section-66-9"><num>(9)</num><content><p><mod>In paragraph 1GC, for Table 1 (vehicles other than higher rate diesel vehicles) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th/></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">270</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">350</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">390</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">440</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">540</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1360</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2190</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4680</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-10"><num>(10)</num><content><p><mod>In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Rate</i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to or exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">270</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">350</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">390</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">440</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">540</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1360</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2190</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4680</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-11"><num>(11)</num><content><p><mod>In paragraph 1GD(1)(rates for any other licence for light passenger vehicles registered on or after 1 April 2017), for the words from “applicable to the vehicle is—” to the end substitute <quotedText>“applicable to the vehicle is £195.”</quotedText></mod></p></content></subsection><subsection eId="section-66-12"><num>(12)</num><content><p><mod>In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), for the words from “applicable to the vehicle is—” to the end substitute <quotedText>“applicable to the vehicle is £620.”</quotedText></mod></p></content></subsection><subsection eId="section-66-13"><num>(13)</num><content><p><mod>In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007, post-2008 lower emission vans or pre-2011 electric vans), for “£335” substitute <quotedText>“£345”</quotedText>.</mod></p></content></subsection><subsection eId="section-66-14"><num>(14)</num><content><p><mod>In paragraph 1N (which defines “<term refersTo="#term-pre-electric-van" eId="term-pre-electric-van">pre-electric van</term>” for the purposes of paragraph 1J), for “2003 and” insert <quotedText>“2003 but before 1 January 2007 or on or after 1 January 2009 but”</quotedText>.</mod></p></content></subsection><subsection eId="section-66-15"><num>(15)</num><intro><p>In paragraph 2(1) (rates for motorcycles)—</p></intro><level class="para1" eId="section-66-15-a"><num>(a)</num><content><p><mod>in paragraph (a) (engine cylinder capacity not exceeding 150cc etc), for “£25” substitute <quotedText>“£26”</quotedText>,</mod></p></content></level><level class="para1" eId="section-66-15-b"><num>(b)</num><content><p><mod>in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£55” substitute <quotedText>“£57”</quotedText>,</mod></p></content></level><level class="para1" eId="section-66-15-c"><num>(c)</num><content><p><mod>in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£84” substitute <quotedText>“£87”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-66-15-d"><num>(d)</num><content><p><mod>in paragraph (d) (other cases), for “£117” substitute <quotedText>“£121”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-66-16"><num>(16)</num><content><p>In consequence of the amendments made by the preceding provisions of this section, in section 10 of FA 2023, omit subsection (5)(b) and (c).</p></content></subsection><subsection eId="section-66-17"><num>(17)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-67"><num>67</num><heading>Rates of vehicle excise duty for rigid goods vehicles without trailers etc</heading><subsection eId="section-67-1"><num>(1)</num><content><p>Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.</p></content></subsection><subsection eId="section-67-2"><num>(2)</num><content><p><mod>In paragraph 9 (rigid goods vehicles exceeding 3,500 kgs revenue weight), for the table in sub-paragraph (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Two axle vehicle</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Three axle vehicle</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Four or more axle vehicle</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">109</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-67-3"><num>(3)</num><content><p><mod>In paragraph 11(1) (tractive units), for Table 1 and Table 2 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>Table 1</num><heading>Tractive unit with two axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any no of semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 or more semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 or more semi-trailer axles</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">87</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">157</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">151</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 2</num><heading>Tractive unit with three or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any no of semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 or more semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 or more semi-trailer axles</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">151</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">300</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-67-4"><num>(4)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-68"><num>68</num><heading>Rates of vehicle excise duty for rigid goods vehicles with trailers</heading><subsection eId="section-68-1"><num>(1)</num><content><p><mod>In paragraph 10 of Schedule 1 to VERA 1994 (supplement to annual rate of duty for rigid goods vehicles with trailers), in sub-paragraph (6), for the Tables 1 to 6 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>Table 1</num><heading>Vehicles with road-friendly suspension and 2 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">331</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">30,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 2</num><heading>Vehicles with road-friendly suspension and 3 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 3</num><heading>Vehicles with road-friendly suspension and 4 or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">622</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 4</num><heading>Vehicles without road-friendly suspension with 2 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">30,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 5</num><heading>Vehicles without road-friendly suspension with 3 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 6</num><heading>Vehicles without road-friendly suspension with 4 or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-68-2"><num>(2)</num><content><p><mod>In that paragraph, in sub-paragraph (7), for “£609” substitute <quotedText>“£631”</quotedText>.</mod></p></content></subsection><subsection eId="section-68-3"><num>(3)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-69"><num>69</num><heading>Vehicle excise duty for vehicles with exceptional loads etc</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>paragraph 6(2A)(a) of Schedule 1 to VERA 1994 (vehicles with exceptional loads),</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>paragraph 9(3) of that Schedule (rigid goods vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle), and</p></content></level><level class="para1" eId="section-69-1-c"><num>(c)</num><content><p>paragraph 11(3) of that Schedule (tractive unit vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle),</p></content></level><wrapUp><p><mod>for “£1,585” substitute <quotedText>“£1,643”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-69-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-70"><num>70</num><heading>Rate of vehicle excise duty for haulage vehicles other than showman’s vehicles</heading><subsection eId="section-70-1"><num>(1)</num><content><p><mod>In paragraph 7(3A) of Schedule 1 to VERA 1994 (which specifies the rate of vehicle excise duty applicable to haulage vehicles other than showman’s vehicles), for “£350” substitute <quotedText>“£365”</quotedText>.</mod></p></content></subsection><subsection eId="section-70-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-71"><num>71</num><heading>Vehicle excise duty: zero-emission vehicles</heading><subsection eId="section-71-1"><num>(1)</num><content><p>VERA 1994 is amended as follows.</p></content></subsection><subsection eId="section-71-2"><num>(2)</num><content><p><mod>In section 62 (other definitions), after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1AA)</num><content><p>For the purposes of this Act, a vehicle is a “zero-emission vehicle” if the vehicle’s rate of CO₂ emissions measured in grams per kilometre driven, or grams per kilowatt hour, is zero.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-71-3"><num>(3)</num><intro><p>In Schedule 1 (annual rates of duty)—</p></intro><level class="para1" eId="section-71-3-a"><num>(a)</num><intro><p>in paragraph 1—</p></intro><level class="para2" eId="section-71-3-a-i"><num>(i)</num><content><p><mod>in sub-paragraph (2), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (2A), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-71-3-b"><num>(b)</num><content><p><mod>in paragraph 1A (vehicles to which Part 1A applies), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><intro><p>Sub-paragraph (1B) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph><num>(1B)</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level><level class="para1" eId="section-71-3-c"><num>(c)</num><content><p><mod>in paragraph 1GA (vehicles to which Part 1AA applies), after sub-paragraph (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1B)</num><intro><p>Sub-paragraph <ref href="#d25e14055">(1C)</ref> has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph eId="d25e14055"><num>(1C)</num><intro><p>For the purposes of this Part of this Schedule (and notwithstanding anything in sub-paragraph (5))—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level><level class="para1" eId="section-71-3-d"><num>(d)</num><content><p><mod>in paragraph 1N, in sub-paragraph (b), at the end insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para1" eId="section-71-3-e"><num>(e)</num><intro><p>in paragraph 2 (motorcycles)—</p></intro><level class="para2" eId="section-71-3-e-i"><num>(i)</num><content><p><mod>in sub-paragraph (1)(a), after “propelled” insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-e-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (3), in the definition of “motorcycle”, after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>.</mod></p></content></level></level></subsection><subsection eId="section-71-4"><num>(4)</num><intro><p>In Schedule 2 (exempt vehicles)—</p></intro><level class="para1" eId="section-71-4-a"><num>(a)</num><content><p><mod>in the italic heading before paragraph 20G, at the end insert <quotedText>“etc”</quotedText>;</mod></p></content></level><level class="para1" eId="section-71-4-b"><num>(b)</num><content><p><mod>in paragraph 20G (electrically propelled vehicles), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>A zero-emission vehicle is an exempt vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-71-5"><num>(5)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section><section eId="section-72"><num>72</num><heading>Rates of HGV road user levy</heading><subsection eId="section-72-1"><num>(1)</num><content><p>Schedule 1 to the HGV Road User Levy Act 2013 (rates of the levy) is amended as follows.</p></content></subsection><subsection eId="section-72-2"><num>(2)</num><content><p><mod>In paragraph 5, for Table 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1: VEHICLES MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Band</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Daily rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Weekly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Monthly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Half-yearly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Yearly rate</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£3.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£7.75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£15.50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£93</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£155</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£7.46</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£18.65</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£37.30</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£223.80</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£373</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.33</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£29.85</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£59.70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£358.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£597</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-72-3"><num>(3)</num><content><p><mod>In paragraph 5, for Table 1A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1A: VEHICLES NOT MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Band</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Daily rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Weekly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Monthly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Half-yearly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Yearly rate</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£4.04</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£20.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£121.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£202</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£24.25</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£48.50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£291</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£485</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.36</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£38.80</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£77.60</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£465.60</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£776</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-72-4"><num><noteRef href="#key-82f27eca2272b26648ad414159b96a62" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-72-5"><num>(5)</num><content><p>The amendments made by this section come into force on 1 April 2025.</p></content></subsection></section><section eId="section-73"><num>73</num><heading>Rates of air passenger duty until 1 April 2026</heading><subsection eId="section-73-1"><num>(1)</num><content><p>Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.</p></content></subsection><subsection eId="section-73-2"><num>(2)</num><content><p><mod>In subsection (2) (short-haul journeys), in paragraph (b), for “£26” substitute <quotedText>“£28”</quotedText>.</mod></p></content></subsection><subsection eId="section-73-3"><num>(3)</num><intro><p>In subsection (2A) (long-haul journeys)—</p></intro><level class="para1" eId="section-73-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£88” substitute <quotedText>“£90”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£194” substitute <quotedText>“£216”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-4"><num>(4)</num><intro><p>In subsection (4A) (ultra-long haul journeys)—</p></intro><level class="para1" eId="section-73-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£92” substitute <quotedText>“£94”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£202” substitute <quotedText>“£224”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-5"><num>(5)</num><intro><p>In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—</p></intro><level class="para1" eId="section-73-5-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level><level class="para1" eId="section-73-5-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level><level class="para1" eId="section-73-5-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£581” substitute <quotedText>“£647”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-5-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£607” substitute <quotedText>“£673”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-6"><num>(6)</num><content><p>The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2025 but before 1 April 2026.</p></content></subsection></section><section eId="section-74"><num>74</num><heading>Rates of air passenger duty from 1 April 2026</heading><subsection eId="section-74-1"><num>(1)</num><content><p>Section 30 of FA 1994 (air passenger duty: rates), as amended by section <ref href="#section-73">73</ref> above, is amended as follows.</p></content></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In subsection (1B) (journeys ending in the United Kingdom)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£7” substitute <quotedText>“£8”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£14” substitute <quotedText>“£16”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-3"><num>(3)</num><intro><p>In subsection (2) (short-haul journeys)—</p></intro><level class="para1" eId="section-74-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£13” substitute <quotedText>“£15”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£28” substitute <quotedText>“£32”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-4"><num>(4)</num><intro><p>In subsection (2A) (long-haul journeys)—</p></intro><level class="para1" eId="section-74-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£90” substitute <quotedText>“£102”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£216” substitute <quotedText>“£244”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-5"><num>(5)</num><intro><p>In subsection (4A) (ultra-long haul journeys)—</p></intro><level class="para1" eId="section-74-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£94” substitute <quotedText>“£106”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£224” substitute <quotedText>“£253”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-6"><num>(6)</num><intro><p>In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—</p></intro><level class="para1" eId="section-74-6-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level><level class="para1" eId="section-74-6-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level><level class="para1" eId="section-74-6-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£647” substitute <quotedText>“£1,097”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-6-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£673” substitute <quotedText>“£1,141”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-7"><num>(7)</num><content><p>The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2026.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-66"><num>66</num><heading>Rates of vehicle excise duty for light passenger or light goods vehicles etc</heading><subsection eId="section-66-1"><num>(1)</num><content><p>Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.</p></content></subsection><subsection eId="section-66-2"><num>(2)</num><intro><p>In paragraph 1 (general rate)—</p></intro><level class="para1" eId="section-66-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£345” substitute <quotedText>“£360”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-66-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc etc), for “£210” substitute <quotedText>“£220”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-66-3"><num>(3)</num><content><p>In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), omit paragraph (b) together with the “and” before that paragraph.</p></content></subsection><subsection eId="section-66-4"><num>(4)</num><content><p><mod>In paragraph 1B, for the Table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th/></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to or exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">120</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">120</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">140</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">195</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">140</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">215</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">265</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">175</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">315</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">175</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">345</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">395</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">430</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">735</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">760</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-5"><num>(5)</num><content><p><mod>In the sentence immediately following the Table in that paragraph, for the words from “as if” to the end substitute <quotedText>“as if, in column (3), in the last two rows, “430” were substituted for “735” and “760”.”</quotedText></mod></p></content></subsection><subsection eId="section-66-6"><num>(6)</num><content><p>Omit paragraphs 1C to 1F together with the italic heading before paragraph 1C (which provide for a reduced rate).</p></content></subsection><subsection eId="section-66-7"><num>(7)</num><content><p>In paragraph 1GA (vehicles to which Part 1AA applies), in sub-paragraph (3), omit paragraph (c).</p></content></subsection><subsection eId="section-66-8"><num>(8)</num><content><p>In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), in sub-paragraph (2), omit paragraph (b) together with the “and” before that paragraph.</p></content></subsection><subsection eId="section-66-9"><num>(9)</num><content><p><mod>In paragraph 1GC, for Table 1 (vehicles other than higher rate diesel vehicles) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th/></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">270</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">350</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">390</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">440</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">540</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1360</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2190</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4680</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-10"><num>(10)</num><content><p><mod>In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Rate</i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to or exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">270</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">350</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">390</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">440</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">540</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1360</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2190</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4680</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-66-11"><num>(11)</num><content><p><mod>In paragraph 1GD(1)(rates for any other licence for light passenger vehicles registered on or after 1 April 2017), for the words from “applicable to the vehicle is—” to the end substitute <quotedText>“applicable to the vehicle is £195.”</quotedText></mod></p></content></subsection><subsection eId="section-66-12"><num>(12)</num><content><p><mod>In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), for the words from “applicable to the vehicle is—” to the end substitute <quotedText>“applicable to the vehicle is £620.”</quotedText></mod></p></content></subsection><subsection eId="section-66-13"><num>(13)</num><content><p><mod>In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007, post-2008 lower emission vans or pre-2011 electric vans), for “£335” substitute <quotedText>“£345”</quotedText>.</mod></p></content></subsection><subsection eId="section-66-14"><num>(14)</num><content><p><mod>In paragraph 1N (which defines “<term refersTo="#term-pre-electric-van" eId="term-pre-electric-van">pre-electric van</term>” for the purposes of paragraph 1J), for “2003 and” insert <quotedText>“2003 but before 1 January 2007 or on or after 1 January 2009 but”</quotedText>.</mod></p></content></subsection><subsection eId="section-66-15"><num>(15)</num><intro><p>In paragraph 2(1) (rates for motorcycles)—</p></intro><level class="para1" eId="section-66-15-a"><num>(a)</num><content><p><mod>in paragraph (a) (engine cylinder capacity not exceeding 150cc etc), for “£25” substitute <quotedText>“£26”</quotedText>,</mod></p></content></level><level class="para1" eId="section-66-15-b"><num>(b)</num><content><p><mod>in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£55” substitute <quotedText>“£57”</quotedText>,</mod></p></content></level><level class="para1" eId="section-66-15-c"><num>(c)</num><content><p><mod>in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£84” substitute <quotedText>“£87”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-66-15-d"><num>(d)</num><content><p><mod>in paragraph (d) (other cases), for “£117” substitute <quotedText>“£121”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-66-16"><num>(16)</num><content><p>In consequence of the amendments made by the preceding provisions of this section, in section 10 of FA 2023, omit subsection (5)(b) and (c).</p></content></subsection><subsection eId="section-66-17"><num>(17)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-1"><num>(1)</num><content><p>Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-2"><num>(2)</num><intro><p>In paragraph 1 (general rate)—</p></intro><level class="para1" eId="section-66-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£345” substitute <quotedText>“£360”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-66-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc etc), for “£210” substitute <quotedText>“£220”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£345” substitute <quotedText>“£360”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc etc), for “£210” substitute <quotedText>“£220”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-3"><num>(3)</num><content><p>In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), omit paragraph (b) together with the “and” before that paragraph.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-66-4"><num>(4)</num><content><p><mod>In paragraph 1B, for the Table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th/></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to or exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">20</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">120</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">120</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">140</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">195</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">140</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">215</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">265</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">165</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">175</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">315</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">175</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">345</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">185</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">395</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">430</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">735</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">760</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-5"><num>(5)</num><content><p><mod>In the sentence immediately following the Table in that paragraph, for the words from “as if” to the end substitute <quotedText>“as if, in column (3), in the last two rows, “430” were substituted for “735” and “760”.”</quotedText></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-6"><num>(6)</num><content><p>Omit paragraphs 1C to 1F together with the italic heading before paragraph 1C (which provide for a reduced rate).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-7"><num>(7)</num><content><p>In paragraph 1GA (vehicles to which Part 1AA applies), in sub-paragraph (3), omit paragraph (c).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-8"><num>(8)</num><content><p>In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), in sub-paragraph (2), omit paragraph (b) together with the “and” before that paragraph.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-66-9"><num>(9)</num><content><p><mod>In paragraph 1GC, for Table 1 (vehicles other than higher rate diesel vehicles) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th/></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i> Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">270</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">350</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">390</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">440</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">540</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1360</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2190</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4680</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-66-10"><num>(10)</num><content><p><mod>In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>CO2 Emissions Figure</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Rate</i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(1)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(2)</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>(3)</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Exceeding or, in the first row, equal to or exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Not exceeding</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>Rate</i></b></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>g/km</i></b></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><b><i>£</i></b></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">270</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">350</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">90</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">390</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">100</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">440</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">540</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1360</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">150</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2190</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">170</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">190</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4680</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">225</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">255</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5490</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-11"><num>(11)</num><content><p><mod>In paragraph 1GD(1)(rates for any other licence for light passenger vehicles registered on or after 1 April 2017), for the words from “applicable to the vehicle is—” to the end substitute <quotedText>“applicable to the vehicle is £195.”</quotedText></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-12"><num>(12)</num><content><p><mod>In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), for the words from “applicable to the vehicle is—” to the end substitute <quotedText>“applicable to the vehicle is £620.”</quotedText></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-13"><num>(13)</num><content><p><mod>In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007, post-2008 lower emission vans or pre-2011 electric vans), for “£335” substitute <quotedText>“£345”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-14"><num>(14)</num><content><p><mod>In paragraph 1N (which defines “<term refersTo="#term-pre-electric-van" eId="term-pre-electric-van">pre-electric van</term>” for the purposes of paragraph 1J), for “2003 and” insert <quotedText>“2003 but before 1 January 2007 or on or after 1 January 2009 but”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-15"><num>(15)</num><intro><p>In paragraph 2(1) (rates for motorcycles)—</p></intro><level class="para1" eId="section-66-15-a"><num>(a)</num><content><p><mod>in paragraph (a) (engine cylinder capacity not exceeding 150cc etc), for “£25” substitute <quotedText>“£26”</quotedText>,</mod></p></content></level><level class="para1" eId="section-66-15-b"><num>(b)</num><content><p><mod>in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£55” substitute <quotedText>“£57”</quotedText>,</mod></p></content></level><level class="para1" eId="section-66-15-c"><num>(c)</num><content><p><mod>in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£84” substitute <quotedText>“£87”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-66-15-d"><num>(d)</num><content><p><mod>in paragraph (d) (other cases), for “£117” substitute <quotedText>“£121”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-15-a"><num>(a)</num><content><p><mod>in paragraph (a) (engine cylinder capacity not exceeding 150cc etc), for “£25” substitute <quotedText>“£26”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-15-b"><num>(b)</num><content><p><mod>in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£55” substitute <quotedText>“£57”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-15-c"><num>(c)</num><content><p><mod>in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£84” substitute <quotedText>“£87”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-15-d"><num>(d)</num><content><p><mod>in paragraph (d) (other cases), for “£117” substitute <quotedText>“£121”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-16"><num>(16)</num><content><p>In consequence of the amendments made by the preceding provisions of this section, in section 10 of FA 2023, omit subsection (5)(b) and (c).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-17"><num>(17)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-67"><num>67</num><heading>Rates of vehicle excise duty for rigid goods vehicles without trailers etc</heading><subsection eId="section-67-1"><num>(1)</num><content><p>Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.</p></content></subsection><subsection eId="section-67-2"><num>(2)</num><content><p><mod>In paragraph 9 (rigid goods vehicles exceeding 3,500 kgs revenue weight), for the table in sub-paragraph (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Two axle vehicle</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Three axle vehicle</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Four or more axle vehicle</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">109</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-67-3"><num>(3)</num><content><p><mod>In paragraph 11(1) (tractive units), for Table 1 and Table 2 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>Table 1</num><heading>Tractive unit with two axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any no of semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 or more semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 or more semi-trailer axles</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">87</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">157</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">151</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 2</num><heading>Tractive unit with three or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any no of semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 or more semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 or more semi-trailer axles</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">151</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">300</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-67-4"><num>(4)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-67-1"><num>(1)</num><content><p>Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-67-2"><num>(2)</num><content><p><mod>In paragraph 9 (rigid goods vehicles exceeding 3,500 kgs revenue weight), for the table in sub-paragraph (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Two axle vehicle</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Three axle vehicle</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Four or more axle vehicle</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">207</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">14,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">109</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">15,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">19,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">130</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">21,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">98</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-67-3"><num>(3)</num><content><p><mod>In paragraph 11(1) (tractive units), for Table 1 and Table 2 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>Table 1</num><heading>Tractive unit with two axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr></default:thead><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any no of semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 or more semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 or more semi-trailer axles</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">22,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">87</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">23,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">157</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">275</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">151</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 2</num><heading>Tractive unit with three or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Revenue weight of vehicle</b></i></p></default:th><default:th colspan="3"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any no of semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2 or more semi-trailer axles</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3 or more semi-trailer axles</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">kgs</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3,500</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">171</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">11,999</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">25,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">26,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">151</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">28,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">300</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">83</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">34,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">218</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">715</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">311</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">44,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">881</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">580</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-67-4"><num>(4)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-68"><num>68</num><heading>Rates of vehicle excise duty for rigid goods vehicles with trailers</heading><subsection eId="section-68-1"><num>(1)</num><content><p><mod>In paragraph 10 of Schedule 1 to VERA 1994 (supplement to annual rate of duty for rigid goods vehicles with trailers), in sub-paragraph (6), for the Tables 1 to 6 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>Table 1</num><heading>Vehicles with road-friendly suspension and 2 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">331</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">30,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 2</num><heading>Vehicles with road-friendly suspension and 3 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 3</num><heading>Vehicles with road-friendly suspension and 4 or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">622</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 4</num><heading>Vehicles without road-friendly suspension with 2 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">30,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 5</num><heading>Vehicles without road-friendly suspension with 3 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 6</num><heading>Vehicles without road-friendly suspension with 4 or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-68-2"><num>(2)</num><content><p><mod>In that paragraph, in sub-paragraph (7), for “£609” substitute <quotedText>“£631”</quotedText>.</mod></p></content></subsection><subsection eId="section-68-3"><num>(3)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-68-1"><num>(1)</num><content><p><mod>In paragraph 10 of Schedule 1 to VERA 1994 (supplement to annual rate of duty for rigid goods vehicles with trailers), in sub-paragraph (6), for the Tables 1 to 6 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>Table 1</num><heading>Vehicles with road-friendly suspension and 2 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">331</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">30,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 2</num><heading>Vehicles with road-friendly suspension and 3 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 3</num><heading>Vehicles with road-friendly suspension and 4 or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">622</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 4</num><heading>Vehicles without road-friendly suspension with 2 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">27,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">30,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 5</num><heading>Vehicles without road-friendly suspension with 3 axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">29,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">300</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">31,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">416</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">33,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">631</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">406</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">562</p></default:td></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>Table 6</num><heading>Vehicles without road-friendly suspension with 4 or more axles</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Vehicle excise duty band</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Plated gross weight of trailer</b></i></p></default:th><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Total weight</b></i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i><b>Rate</b></i></p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(1)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(2)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(3)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(4)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(5)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">(6)</p></default:th></default:tr><default:tr><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Not exceeding (kgs)</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">35,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">238</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">306</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">316</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">383</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">36,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">37,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">460</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">39,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">378</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">D(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">446</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">38,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">626</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">E(T)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">10,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">-</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">555</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-2"><num>(2)</num><content><p><mod>In that paragraph, in sub-paragraph (7), for “£609” substitute <quotedText>“£631”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-3"><num>(3)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69"><num>69</num><heading>Vehicle excise duty for vehicles with exceptional loads etc</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>paragraph 6(2A)(a) of Schedule 1 to VERA 1994 (vehicles with exceptional loads),</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>paragraph 9(3) of that Schedule (rigid goods vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle), and</p></content></level><level class="para1" eId="section-69-1-c"><num>(c)</num><content><p>paragraph 11(3) of that Schedule (tractive unit vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle),</p></content></level><wrapUp><p><mod>for “£1,585” substitute <quotedText>“£1,643”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-69-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>paragraph 6(2A)(a) of Schedule 1 to VERA 1994 (vehicles with exceptional loads),</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>paragraph 9(3) of that Schedule (rigid goods vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle), and</p></content></level><level class="para1" eId="section-69-1-c"><num>(c)</num><content><p>paragraph 11(3) of that Schedule (tractive unit vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle),</p></content></level><wrapUp><p><mod>for “£1,585” substitute <quotedText>“£1,643”</quotedText>.</mod></p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-1-a"><num>(a)</num><content><p>paragraph 6(2A)(a) of Schedule 1 to VERA 1994 (vehicles with exceptional loads),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-1-b"><num>(b)</num><content><p>paragraph 9(3) of that Schedule (rigid goods vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-1-c"><num>(c)</num><content><p>paragraph 11(3) of that Schedule (tractive unit vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70"><num>70</num><heading>Rate of vehicle excise duty for haulage vehicles other than showman’s vehicles</heading><subsection eId="section-70-1"><num>(1)</num><content><p><mod>In paragraph 7(3A) of Schedule 1 to VERA 1994 (which specifies the rate of vehicle excise duty applicable to haulage vehicles other than showman’s vehicles), for “£350” substitute <quotedText>“£365”</quotedText>.</mod></p></content></subsection><subsection eId="section-70-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-1"><num>(1)</num><content><p><mod>In paragraph 7(3A) of Schedule 1 to VERA 1994 (which specifies the rate of vehicle excise duty applicable to haulage vehicles other than showman’s vehicles), for “£350” substitute <quotedText>“£365”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-71"><num>71</num><heading>Vehicle excise duty: zero-emission vehicles</heading><subsection eId="section-71-1"><num>(1)</num><content><p>VERA 1994 is amended as follows.</p></content></subsection><subsection eId="section-71-2"><num>(2)</num><content><p><mod>In section 62 (other definitions), after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1AA)</num><content><p>For the purposes of this Act, a vehicle is a “zero-emission vehicle” if the vehicle’s rate of CO₂ emissions measured in grams per kilometre driven, or grams per kilowatt hour, is zero.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-71-3"><num>(3)</num><intro><p>In Schedule 1 (annual rates of duty)—</p></intro><level class="para1" eId="section-71-3-a"><num>(a)</num><intro><p>in paragraph 1—</p></intro><level class="para2" eId="section-71-3-a-i"><num>(i)</num><content><p><mod>in sub-paragraph (2), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (2A), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-71-3-b"><num>(b)</num><content><p><mod>in paragraph 1A (vehicles to which Part 1A applies), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><intro><p>Sub-paragraph (1B) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph><num>(1B)</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level><level class="para1" eId="section-71-3-c"><num>(c)</num><content><p><mod>in paragraph 1GA (vehicles to which Part 1AA applies), after sub-paragraph (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1B)</num><intro><p>Sub-paragraph <ref href="#d25e14055">(1C)</ref> has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph eId="d25e14055"><num>(1C)</num><intro><p>For the purposes of this Part of this Schedule (and notwithstanding anything in sub-paragraph (5))—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level><level class="para1" eId="section-71-3-d"><num>(d)</num><content><p><mod>in paragraph 1N, in sub-paragraph (b), at the end insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para1" eId="section-71-3-e"><num>(e)</num><intro><p>in paragraph 2 (motorcycles)—</p></intro><level class="para2" eId="section-71-3-e-i"><num>(i)</num><content><p><mod>in sub-paragraph (1)(a), after “propelled” insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-e-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (3), in the definition of “motorcycle”, after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>.</mod></p></content></level></level></subsection><subsection eId="section-71-4"><num>(4)</num><intro><p>In Schedule 2 (exempt vehicles)—</p></intro><level class="para1" eId="section-71-4-a"><num>(a)</num><content><p><mod>in the italic heading before paragraph 20G, at the end insert <quotedText>“etc”</quotedText>;</mod></p></content></level><level class="para1" eId="section-71-4-b"><num>(b)</num><content><p><mod>in paragraph 20G (electrically propelled vehicles), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>A zero-emission vehicle is an exempt vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-71-5"><num>(5)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-1"><num>(1)</num><content><p>VERA 1994 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-71-2"><num>(2)</num><content><p><mod>In section 62 (other definitions), after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1AA)</num><content><p>For the purposes of this Act, a vehicle is a “zero-emission vehicle” if the vehicle’s rate of CO₂ emissions measured in grams per kilometre driven, or grams per kilowatt hour, is zero.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-71-3"><num>(3)</num><intro><p>In Schedule 1 (annual rates of duty)—</p></intro><level class="para1" eId="section-71-3-a"><num>(a)</num><intro><p>in paragraph 1—</p></intro><level class="para2" eId="section-71-3-a-i"><num>(i)</num><content><p><mod>in sub-paragraph (2), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (2A), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level></level><level class="para1" eId="section-71-3-b"><num>(b)</num><content><p><mod>in paragraph 1A (vehicles to which Part 1A applies), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><intro><p>Sub-paragraph (1B) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph><num>(1B)</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level><level class="para1" eId="section-71-3-c"><num>(c)</num><content><p><mod>in paragraph 1GA (vehicles to which Part 1AA applies), after sub-paragraph (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1B)</num><intro><p>Sub-paragraph <ref href="#d25e14055">(1C)</ref> has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph eId="d25e14055"><num>(1C)</num><intro><p>For the purposes of this Part of this Schedule (and notwithstanding anything in sub-paragraph (5))—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level><level class="para1" eId="section-71-3-d"><num>(d)</num><content><p><mod>in paragraph 1N, in sub-paragraph (b), at the end insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para1" eId="section-71-3-e"><num>(e)</num><intro><p>in paragraph 2 (motorcycles)—</p></intro><level class="para2" eId="section-71-3-e-i"><num>(i)</num><content><p><mod>in sub-paragraph (1)(a), after “propelled” insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-e-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (3), in the definition of “motorcycle”, after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>.</mod></p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-3-a"><num>(a)</num><intro><p>in paragraph 1—</p></intro><level class="para2" eId="section-71-3-a-i"><num>(i)</num><content><p><mod>in sub-paragraph (2), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (2A), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-71-3-a-i"><num>(i)</num><content><p><mod>in sub-paragraph (2), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-71-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (2A), after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-71-3-b"><num>(b)</num><content><p><mod>in paragraph 1A (vehicles to which Part 1A applies), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><intro><p>Sub-paragraph (1B) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph><num>(1B)</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-71-3-c"><num>(c)</num><content><p><mod>in paragraph 1GA (vehicles to which Part 1AA applies), after sub-paragraph (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1B)</num><intro><p>Sub-paragraph <ref href="#d25e14055">(1C)</ref> has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,</p></content></level><level class="para1"><num>(b)</num><content><p>the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and</p></content></level><level class="para1"><num>(c)</num><content><p>this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.</p></content></level></subparagraph><subparagraph eId="d25e14055"><num>(1C)</num><intro><p>For the purposes of this Part of this Schedule (and notwithstanding anything in sub-paragraph (5))—</p></intro><level class="para1"><num>(a)</num><content><p>the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and</p></content></level><level class="para1"><num>(b)</num><content><p>accordingly the applicable CO₂ emissions figure is to be taken to be zero.</p></content></level></subparagraph></quotedStructure></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-3-d"><num>(d)</num><content><p><mod>in paragraph 1N, in sub-paragraph (b), at the end insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-3-e"><num>(e)</num><intro><p>in paragraph 2 (motorcycles)—</p></intro><level class="para2" eId="section-71-3-e-i"><num>(i)</num><content><p><mod>in sub-paragraph (1)(a), after “propelled” insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level><level class="para2" eId="section-71-3-e-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (3), in the definition of “motorcycle”, after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>.</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-71-3-e-i"><num>(i)</num><content><p><mod>in sub-paragraph (1)(a), after “propelled” insert <quotedText>“or a zero-emission vehicle”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-71-3-e-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (3), in the definition of “motorcycle”, after “propelled” insert <quotedText>“, or zero-emission,”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-71-4"><num>(4)</num><intro><p>In Schedule 2 (exempt vehicles)—</p></intro><level class="para1" eId="section-71-4-a"><num>(a)</num><content><p><mod>in the italic heading before paragraph 20G, at the end insert <quotedText>“etc”</quotedText>;</mod></p></content></level><level class="para1" eId="section-71-4-b"><num>(b)</num><content><p><mod>in paragraph 20G (electrically propelled vehicles), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>A zero-emission vehicle is an exempt vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-4-a"><num>(a)</num><content><p><mod>in the italic heading before paragraph 20G, at the end insert <quotedText>“etc”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-71-4-b"><num>(b)</num><content><p><mod>in paragraph 20G (electrically propelled vehicles), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>A zero-emission vehicle is an exempt vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-5"><num>(5)</num><content><p>The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-72"><num>72</num><heading>Rates of HGV road user levy</heading><subsection eId="section-72-1"><num>(1)</num><content><p>Schedule 1 to the HGV Road User Levy Act 2013 (rates of the levy) is amended as follows.</p></content></subsection><subsection eId="section-72-2"><num>(2)</num><content><p><mod>In paragraph 5, for Table 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1: VEHICLES MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Band</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Daily rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Weekly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Monthly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Half-yearly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Yearly rate</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£3.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£7.75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£15.50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£93</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£155</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£7.46</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£18.65</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£37.30</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£223.80</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£373</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.33</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£29.85</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£59.70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£358.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£597</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-72-3"><num>(3)</num><content><p><mod>In paragraph 5, for Table 1A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1A: VEHICLES NOT MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Band</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Daily rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Weekly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Monthly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Half-yearly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Yearly rate</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£4.04</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£20.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£121.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£202</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£24.25</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£48.50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£291</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£485</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.36</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£38.80</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£77.60</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£465.60</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£776</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-72-4"><num><noteRef href="#key-82f27eca2272b26648ad414159b96a62" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-72-5"><num>(5)</num><content><p>The amendments made by this section come into force on 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-1"><num>(1)</num><content><p>Schedule 1 to the HGV Road User Levy Act 2013 (rates of the levy) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-72-2"><num>(2)</num><content><p><mod>In paragraph 5, for Table 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1: VEHICLES MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Band</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Daily rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Weekly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Monthly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Half-yearly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Yearly rate</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£3.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£7.75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£15.50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£93</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£155</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£7.46</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£18.65</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£37.30</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£223.80</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£373</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.33</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£29.85</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£59.70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£358.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£597</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-72-3"><num>(3)</num><content><p><mod>In paragraph 5, for Table 1A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1A: VEHICLES NOT MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND</num><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Band</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Daily rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Weekly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Monthly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Half-yearly rate</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Yearly rate</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£4.04</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£20.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£121.20</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£202</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">B</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£9.70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£24.25</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£48.50</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£291</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£485</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">C</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£10.36</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£38.80</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£77.60</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£465.60</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£776</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-72-4"><num><noteRef href="#key-82f27eca2272b26648ad414159b96a62" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-5"><num>(5)</num><content><p>The amendments made by this section come into force on 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73"><num>73</num><heading>Rates of air passenger duty until 1 April 2026</heading><subsection eId="section-73-1"><num>(1)</num><content><p>Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.</p></content></subsection><subsection eId="section-73-2"><num>(2)</num><content><p><mod>In subsection (2) (short-haul journeys), in paragraph (b), for “£26” substitute <quotedText>“£28”</quotedText>.</mod></p></content></subsection><subsection eId="section-73-3"><num>(3)</num><intro><p>In subsection (2A) (long-haul journeys)—</p></intro><level class="para1" eId="section-73-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£88” substitute <quotedText>“£90”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£194” substitute <quotedText>“£216”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-4"><num>(4)</num><intro><p>In subsection (4A) (ultra-long haul journeys)—</p></intro><level class="para1" eId="section-73-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£92” substitute <quotedText>“£94”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£202” substitute <quotedText>“£224”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-5"><num>(5)</num><intro><p>In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—</p></intro><level class="para1" eId="section-73-5-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level><level class="para1" eId="section-73-5-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level><level class="para1" eId="section-73-5-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£581” substitute <quotedText>“£647”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-5-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£607” substitute <quotedText>“£673”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-73-6"><num>(6)</num><content><p>The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2025 but before 1 April 2026.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-1"><num>(1)</num><content><p>Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-2"><num>(2)</num><content><p><mod>In subsection (2) (short-haul journeys), in paragraph (b), for “£26” substitute <quotedText>“£28”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-3"><num>(3)</num><intro><p>In subsection (2A) (long-haul journeys)—</p></intro><level class="para1" eId="section-73-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£88” substitute <quotedText>“£90”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£194” substitute <quotedText>“£216”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£88” substitute <quotedText>“£90”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£194” substitute <quotedText>“£216”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-4"><num>(4)</num><intro><p>In subsection (4A) (ultra-long haul journeys)—</p></intro><level class="para1" eId="section-73-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£92” substitute <quotedText>“£94”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£202” substitute <quotedText>“£224”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£92” substitute <quotedText>“£94”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£202” substitute <quotedText>“£224”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-5"><num>(5)</num><intro><p>In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—</p></intro><level class="para1" eId="section-73-5-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level><level class="para1" eId="section-73-5-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level><level class="para1" eId="section-73-5-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£581” substitute <quotedText>“£647”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-73-5-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£607” substitute <quotedText>“£673”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-5-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-5-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£78” substitute <quotedText>“£84”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-5-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£581” substitute <quotedText>“£647”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-5-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£607” substitute <quotedText>“£673”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-6"><num>(6)</num><content><p>The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2025 but before 1 April 2026.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74"><num>74</num><heading>Rates of air passenger duty from 1 April 2026</heading><subsection eId="section-74-1"><num>(1)</num><content><p>Section 30 of FA 1994 (air passenger duty: rates), as amended by section <ref href="#section-73">73</ref> above, is amended as follows.</p></content></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In subsection (1B) (journeys ending in the United Kingdom)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£7” substitute <quotedText>“£8”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£14” substitute <quotedText>“£16”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-3"><num>(3)</num><intro><p>In subsection (2) (short-haul journeys)—</p></intro><level class="para1" eId="section-74-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£13” substitute <quotedText>“£15”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£28” substitute <quotedText>“£32”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-4"><num>(4)</num><intro><p>In subsection (2A) (long-haul journeys)—</p></intro><level class="para1" eId="section-74-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£90” substitute <quotedText>“£102”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£216” substitute <quotedText>“£244”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-5"><num>(5)</num><intro><p>In subsection (4A) (ultra-long haul journeys)—</p></intro><level class="para1" eId="section-74-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£94” substitute <quotedText>“£106”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£224” substitute <quotedText>“£253”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-6"><num>(6)</num><intro><p>In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—</p></intro><level class="para1" eId="section-74-6-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level><level class="para1" eId="section-74-6-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level><level class="para1" eId="section-74-6-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£647” substitute <quotedText>“£1,097”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-6-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£673” substitute <quotedText>“£1,141”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-74-7"><num>(7)</num><content><p>The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2026.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-1"><num>(1)</num><content><p>Section 30 of FA 1994 (air passenger duty: rates), as amended by section <ref href="#section-73">73</ref> above, is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-2"><num>(2)</num><intro><p>In subsection (1B) (journeys ending in the United Kingdom)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£7” substitute <quotedText>“£8”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£14” substitute <quotedText>“£16”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£7” substitute <quotedText>“£8”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£14” substitute <quotedText>“£16”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-3"><num>(3)</num><intro><p>In subsection (2) (short-haul journeys)—</p></intro><level class="para1" eId="section-74-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£13” substitute <quotedText>“£15”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£28” substitute <quotedText>“£32”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£13” substitute <quotedText>“£15”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£28” substitute <quotedText>“£32”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-4"><num>(4)</num><intro><p>In subsection (2A) (long-haul journeys)—</p></intro><level class="para1" eId="section-74-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£90” substitute <quotedText>“£102”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£216” substitute <quotedText>“£244”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£90” substitute <quotedText>“£102”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-4-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£216” substitute <quotedText>“£244”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-5"><num>(5)</num><intro><p>In subsection (4A) (ultra-long haul journeys)—</p></intro><level class="para1" eId="section-74-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£94” substitute <quotedText>“£106”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£224” substitute <quotedText>“£253”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “£94” substitute <quotedText>“£106”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “£224” substitute <quotedText>“£253”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-6"><num>(6)</num><intro><p>In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—</p></intro><level class="para1" eId="section-74-6-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level><level class="para1" eId="section-74-6-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level><level class="para1" eId="section-74-6-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£647” substitute <quotedText>“£1,097”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-74-6-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£673” substitute <quotedText>“£1,141”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-6-a"><num>(a)</num><content><p><mod>in paragraph (za), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-6-b"><num>(b)</num><content><p><mod>in paragraph (a), for “£84” substitute <quotedText>“£142”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-6-c"><num>(c)</num><content><p><mod>in paragraph (aa), for “£647” substitute <quotedText>“£1,097”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-6-d"><num>(d)</num><content><p><mod>in paragraph (d), for “£673” substitute <quotedText>“£1,141”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-7"><num>(7)</num><content><p>The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2026.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-environmental-taxes"><heading>Environmental taxes</heading><section eId="section-75"><num>75</num><heading>Rates of climate change levy</heading><subsection eId="section-75-1"><num>(1)</num><content><p><mod>In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxable commodity supplied</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rate at which levy payable if supply is not a reduced-rate supply</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Electricity</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.00801 per kilowatt hour</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.00801 per kilowatt hour</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.02175 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any other taxable commodity</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.06264 per kilogram</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-75-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2026.</p></content></subsection></section><section eId="section-76"><num>76</num><heading>Rates of landfill tax</heading><subsection eId="section-76-1"><num>(1)</num><content><p>Section 42 of FA 1996 (amount of landfill tax) is amended as follows.</p></content></subsection><subsection eId="section-76-2"><num>(2)</num><content><p><mod>In subsection (1)(a) (standard rate), for “£103.70” substitute <quotedText>“£126.15”</quotedText>.</mod></p></content></subsection><subsection eId="section-76-3"><num>(3)</num><intro><p>In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—</p></intro><level class="para1" eId="section-76-3-a"><num>(a)</num><content><p><mod>for “£103.70” substitute <quotedText>“£126.15”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-76-3-b"><num>(b)</num><content><p><mod>for “£3.30” substitute <quotedText>“£4.05”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-76-4"><num>(4)</num><content><p>The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2025.</p></content></subsection></section><section eId="section-77"><num>77</num><heading>Rate of aggregates levy</heading><subsection eId="section-77-1"><num>(1)</num><content><p><mod>In section 16(4) of FA 2001 (rate of aggregates levy), for “£2.03” substitute <quotedText>“£2.08”</quotedText>.</mod></p></content></subsection><subsection eId="section-77-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2025.</p></content></subsection></section><section eId="section-78"><num>78</num><heading>Rate of plastic packaging tax</heading><subsection eId="section-78-1"><num>(1)</num><content><p><mod>In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£217.85” substitute <quotedText>“£223.69”</quotedText>.</mod></p></content></subsection><subsection eId="section-78-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2025.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-75"><num>75</num><heading>Rates of climate change levy</heading><subsection eId="section-75-1"><num>(1)</num><content><p><mod>In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxable commodity supplied</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rate at which levy payable if supply is not a reduced-rate supply</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Electricity</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.00801 per kilowatt hour</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.00801 per kilowatt hour</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.02175 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any other taxable commodity</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.06264 per kilogram</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-75-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2026.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-75-1"><num>(1)</num><content><p><mod>In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxable commodity supplied</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rate at which levy payable if supply is not a reduced-rate supply</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Electricity</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.00801 per kilowatt hour</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.00801 per kilowatt hour</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.02175 per kilogram</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Any other taxable commodity</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£0.06264 per kilogram</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2026.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76"><num>76</num><heading>Rates of landfill tax</heading><subsection eId="section-76-1"><num>(1)</num><content><p>Section 42 of FA 1996 (amount of landfill tax) is amended as follows.</p></content></subsection><subsection eId="section-76-2"><num>(2)</num><content><p><mod>In subsection (1)(a) (standard rate), for “£103.70” substitute <quotedText>“£126.15”</quotedText>.</mod></p></content></subsection><subsection eId="section-76-3"><num>(3)</num><intro><p>In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—</p></intro><level class="para1" eId="section-76-3-a"><num>(a)</num><content><p><mod>for “£103.70” substitute <quotedText>“£126.15”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-76-3-b"><num>(b)</num><content><p><mod>for “£3.30” substitute <quotedText>“£4.05”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-76-4"><num>(4)</num><content><p>The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-1"><num>(1)</num><content><p>Section 42 of FA 1996 (amount of landfill tax) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-2"><num>(2)</num><content><p><mod>In subsection (1)(a) (standard rate), for “£103.70” substitute <quotedText>“£126.15”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-3"><num>(3)</num><intro><p>In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—</p></intro><level class="para1" eId="section-76-3-a"><num>(a)</num><content><p><mod>for “£103.70” substitute <quotedText>“£126.15”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-76-3-b"><num>(b)</num><content><p><mod>for “£3.30” substitute <quotedText>“£4.05”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-3-a"><num>(a)</num><content><p><mod>for “£103.70” substitute <quotedText>“£126.15”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-3-b"><num>(b)</num><content><p><mod>for “£3.30” substitute <quotedText>“£4.05”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-4"><num>(4)</num><content><p>The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77"><num>77</num><heading>Rate of aggregates levy</heading><subsection eId="section-77-1"><num>(1)</num><content><p><mod>In section 16(4) of FA 2001 (rate of aggregates levy), for “£2.03” substitute <quotedText>“£2.08”</quotedText>.</mod></p></content></subsection><subsection eId="section-77-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-1"><num>(1)</num><content><p><mod>In section 16(4) of FA 2001 (rate of aggregates levy), for “£2.03” substitute <quotedText>“£2.08”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2025.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78"><num>78</num><heading>Rate of plastic packaging tax</heading><subsection eId="section-78-1"><num>(1)</num><content><p><mod>In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£217.85” substitute <quotedText>“£223.69”</quotedText>.</mod></p></content></subsection><subsection eId="section-78-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-1"><num>(1)</num><content><p><mod>In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£217.85” substitute <quotedText>“£223.69”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-2"><num>(2)</num><content><p>The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2025.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-soft-drinks-industry-levy"><heading>Soft drinks industry levy</heading><section eId="section-79"><num>79</num><heading>Rates of soft drinks industry levy</heading><subsection eId="section-79-1"><num>(1)</num><intro><p>In section 36(1) of FA 2017 (rates of soft drinks industry levy)—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p><mod>in paragraph (a) (soft drinks that meet higher sugar threshold), for “at the rate of £0.24 per litre” substitute <quotedText>“at the rate of £2.59 per 10 litres”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p><mod>in paragraph (b) (other soft drinks), for “at the rate of £0.18 per litre” substitute <quotedText>“at the rate of £1.94 per 10 litres”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to chargeable events occurring on or after 1 April 2025.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79"><num>79</num><heading>Rates of soft drinks industry levy</heading><subsection eId="section-79-1"><num>(1)</num><intro><p>In section 36(1) of FA 2017 (rates of soft drinks industry levy)—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p><mod>in paragraph (a) (soft drinks that meet higher sugar threshold), for “at the rate of £0.24 per litre” substitute <quotedText>“at the rate of £2.59 per 10 litres”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p><mod>in paragraph (b) (other soft drinks), for “at the rate of £0.18 per litre” substitute <quotedText>“at the rate of £1.94 per 10 litres”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to chargeable events occurring on or after 1 April 2025.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-1"><num>(1)</num><intro><p>In section 36(1) of FA 2017 (rates of soft drinks industry levy)—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p><mod>in paragraph (a) (soft drinks that meet higher sugar threshold), for “at the rate of £0.24 per litre” substitute <quotedText>“at the rate of £2.59 per 10 litres”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p><mod>in paragraph (b) (other soft drinks), for “at the rate of £0.18 per litre” substitute <quotedText>“at the rate of £1.94 per 10 litres”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-1-a"><num>(a)</num><content><p><mod>in paragraph (a) (soft drinks that meet higher sugar threshold), for “at the rate of £0.24 per litre” substitute <quotedText>“at the rate of £2.59 per 10 litres”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-1-b"><num>(b)</num><content><p><mod>in paragraph (b) (other soft drinks), for “at the rate of £0.18 per litre” substitute <quotedText>“at the rate of £1.94 per 10 litres”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-2"><num>(2)</num><content><p>The amendments made by this section have effect in relation to chargeable events occurring on or after 1 April 2025.</p></content></subsection>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-4"><num>Part 4</num><heading>Miscellaneous and final</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-avoidance"><heading>Avoidance</heading><section eId="section-80"><num>80</num><heading>Limited liability partnerships</heading><subsection eId="section-80-1"><num>(1)</num><content><p><mod>After section 59A of TCGA 1992 (limited liability partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>59AA</num><heading>Limited liability partnerships: deemed disposal</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a limited liability partnership (the “LLP”) contributed an asset to the LLP in circumstances where section 59A(1) applied in relation to the LLP, and</p></content></level><level class="para1"><num>(b)</num><content><p>the LLP disposes of the asset, or part of the asset, to the member, or a person connected with the member, in circumstances where section 59A(1) has ceased to apply in relation to the LLP.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The asset is deemed to have been disposed of and reacquired by the member—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before it was contributed to the LLP, and</p></content></level><level class="para1"><num>(b)</num><content><p>for a consideration equal to its market value at that time.</p></content></level></subsection><subsection><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>any chargeable gain or allowable loss accruing under subsection (2) is to be treated as accruing at the time the asset, or part of the asset, is disposed of by the LLP (as described in subsection (1)(b)), and</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of Schedule 2 to the Finance Act 2019 (returns for disposals of UK land), the disposal under subsection (2) is to be treated as completed at that time.</p></content></level></subsection><subsection><num>(4)</num><content><p>Any chargeable gain accruing on the deemed disposal is to be reduced by an amount that is just and reasonable, having regard to any chargeable gain that has otherwise accrued to the member by reference to the asset or part of the asset.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-80-2"><num>(2)</num><content><p>The amendment made by this section has effect from 30 October 2024, but does not apply where section 59A(1) of TCGA 1992 ceased to apply in relation to the limited liability partnership before that date.</p></content></subsection></section><section eId="section-81"><num>81</num><heading>Loans to participators</heading><subsection eId="section-81-1"><num>(1)</num><content><p>In <ref eId="c00063" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, omit section 464B (relief in case of return payment to company).</p></content></subsection><subsection eId="section-81-2"><num>(2)</num><content><p>The repeal made by <ref href="#section-81-1">subsection (1)</ref> has effect in relation to payments made on or after 30 October 2024.</p></content></subsection><subsection eId="section-81-3"><num>(3)</num><intro><p>In consequence of the repeal made by <ref href="#section-81-1">subsection (1)</ref>, <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10">Part 10</a> of <ref eId="c00064" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows—</p></intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/464">section 464</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e14919"><num>464ZA</num><heading>Treatment of certain repayments</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><intro><p>within any period of 30 days—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying amount of repayments made to a close company in respect of one or more chargeable payments made by the company to a person totals £5,000 or more, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the available amount of the relevant chargeable payments made by the company to the person or an associate of the person totals £5,000 or more, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the relevant chargeable payments are made in an accounting period subsequent to that in which the chargeable payments mentioned in paragraph (a)(i) were made,</p></content></level><wrapUp><p>the qualifying amount of the repayments, so far as not exceeding the available amount of the relevant chargeable payments, is to be treated for the purposes of this Chapter as a repayment of the relevant chargeable payments.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A chargeable payment is a relevant chargeable payment for the purposes of subsection (1) if (or to the extent that) it is not repaid within the period of 30 days mentioned in that subsection.</p></content></subsection><subsection><num>(3)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before a repayment is made in respect of one or more chargeable payments made by a close company to a person, the total amount owed to the company by the person in respect of chargeable payments is £15,000 or more,</p></content></level><level class="para1"><num>(b)</num><content><p>at the time the repayment is made, arrangements had been made for one or more chargeable payments to be made to replace some or all of the amount repaid, and</p></content></level><level class="para1"><num>(c)</num><content><p>the available amount of the chargeable payments made by the company to the person or an associate of the person under the arrangements totals £5,000 or more,</p></content></level><wrapUp><p>the qualifying amount of the repayment, so far as not exceeding the available amount of the chargeable payments mentioned in paragraph (c), is to be treated for the purposes of this Chapter as a repayment of those chargeable payments.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An amount contained in a chargeable payment is an available amount—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of subsection (1), to the extent that no repayment has been treated as made in respect of it by the previous operation of that subsection, and</p></content></level><level class="para1"><num>(b)</num><intro><p>for the purposes of subsection (3), to the extent that no repayment has been treated as made in respect of it—</p></intro><level class="para2"><num>(i)</num><content><p>by the operation of subsection (1), or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the previous operation of subsection (3).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>An amount contained in a repayment is a qualifying amount to the extent that it has not been treated by the previous operation of this section as a repayment of a chargeable payment.</p></content></subsection><subsection><num>(6)</num><content><p>This section does not apply in relation to a repayment which gives rise to a charge to income tax on the participator or associate by reference to whom the loan, advance or benefit was a chargeable payment.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury may by order vary a sum specified in subsection (1) or (3).</p></content></subsection><subsection><num>(8)</num><content><p>An order under subsection (7) may contain incidental, supplemental, consequential and transitional provision and savings.</p></content></subsection></section><section><num>464ZB</num><heading>Section <ref href="#d25e14919">464ZA</ref>: supplementary</heading><subsection><num>(1)</num><content><p>All such assessments and adjustments of assessments are to be made as are necessary to give effect to section <ref href="#d25e14919">464ZA</ref>(1) and (3).</p></content></subsection><subsection><num>(2)</num><content><p>If a person who has made a tax return becomes aware that, after making it, anything in it has become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3), the person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended.</p></content></subsection><subsection><num>(3)</num><content><p>The notice must be given within 3 months beginning with the day on which the person became aware that anything in the return had become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3).</p></content></subsection><subsection><num>(4)</num><content><p>In section <ref href="#d25e14919">464ZA</ref>, “<term refersTo="#term-chargeable-payment">chargeable payment</term>” means a loan or advance made by a close company which gives rise to a charge to tax under section 455.</p></content></subsection></section></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10/chapter/3B">Chapter 3B</a> (which contained only provisions that are replaced by those inserted by paragraph (a)),</p></content></level><level class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/438">section 438</a>, (overview of Part 10) omit subsection (2B), and</p></content></level><level class="para1" eId="section-81-3-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">section 459</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">(2)</a> (loan treated as made to participator), for “464C and 464D” substitute <quotedText>“464ZA and 464ZB”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-81-4"><num>(4)</num><content><p>The amendments made by <ref href="#section-81-3">subsection (3)</ref> are treated as having come into force on 30 October 2024.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-crytpoasset-reporting-framework"><heading>Crytpo-asset reporting framework</heading><section eId="section-82"><num>82</num><heading>OECD crypto-asset reporting framework</heading><intro><p>In section 349(2) of F(No.2)A 2023 (international arrangements for exchanging information)—</p></intro><level class="para1" eId="section-82-a"><num>(a)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(fa)</num><content><p>the OECD Crypto-Asset Reporting Framework, published in 2022;</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-82-b"><num>(b)</num><content><p><mod>in paragraph (g), for “(f)” substitute <quotedText>“(fa)”</quotedText>.</mod></p></content></level></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-preparing-for-new-taxes-and-information-sharing"><heading>Preparing for new taxes and information sharing</heading><section eId="section-83"><num>83</num><heading>Duty on vaping products</heading><content><p>The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new duty to be charged in respect of vaping products.</p></content></section><section eId="section-84"><num>84</num><heading>Carbon border adjustment mechanism</heading><subsection eId="section-84-1"><num>(1)</num><content><p>The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new tax to be charged in respect of emissions embodied in imported goods.</p></content></subsection><subsection eId="section-84-2"><num>(2)</num><content><p>The Treasury or the Commissioners for His Majesty’s Revenue and Customs may request in writing information from the UK ETS authority or a national authority for any purpose connected with the tax.</p></content></subsection><subsection eId="section-84-3"><num>(3)</num><content><p>If a request is made to an authority under <ref href="#section-84-2">subsection (2)</ref>, the authority must provide the requested information if the authority holds it.</p></content></subsection><subsection eId="section-84-4"><num>(4)</num><content><p>Subsection <ref href="#section-84-3">(3)</ref> does not require the disclosure of personal data (within the meaning of section 3(2) of the Data Protection Act 2018).</p></content></subsection><subsection eId="section-84-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-national-authority" eId="term-national-authority">national authority</term>” has the meaning given by section 95 of the Climate Change Act 2008;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-uk-ets-authority" eId="term-uk-ets-authority">UK ETS authority</term>” has the meaning given by Article 14 of the Greenhouse Gas Emissions Trading Scheme Order 2020 (<ref eId="c00065" href="http://www.legislation.gov.uk/id/uksi/2020/1265">S.I. 2020/1265</ref>).</p></content></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-wrong-crossreference-etc"><heading>Wrong cross-reference etc</heading><section eId="section-85"><num>85</num><heading>Correction of wrong cross-reference etc</heading><subsection eId="section-85-1"><num>(1)</num><content><p><mod>In section 151I(1) of TCGA 1992, for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>a person with permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-85-2"><num>(2)</num><content><p><mod>In section 1179AE(2) of CTA 2009, for “either House of Parliament” substitute <quotedText>“the House of Commons”</quotedText>.</mod></p></content></subsection><subsection eId="section-85-3"><num>(3)</num><content><p><mod>In section 4(2)(a) of the Taxation (Post-transition Period) Act 2020, for “section 42” substitute <quotedText>“section 47”</quotedText>.</mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-final"><heading>Final</heading><section eId="section-86"><num>86</num><heading>Interpretation</heading><content><p>In this Act the following abbreviations are references to the following Acts—</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CAA 2001</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Capital Allowances Act 2001</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CTA 2009</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Corporation Tax Act 2009</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CTA 2010</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Corporation Tax Act 2010</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">FA followed by a year</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Finance Act of that year</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">F(No.2)A followed by a year</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Finance (No.2) Act of that year</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">IHTA 1984</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Inheritance Tax Act 1984</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITA 2007</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax Act 2007</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITEPA 2003</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax (Earnings and Pensions) Act 2003</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITTOIA 2005</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax (Trading and Other Income) Act 2005</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TCGA 1992</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxation of Chargeable Gains Act 1992</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TIOPA 2010</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxation (International and Other Provisions) Act 2010</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TMA 1970</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxes Management Act 1970</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TPDA 1979</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Tobacco Products Duty Act 1979</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">VATA 1994</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Value Added Tax Act 1994</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">VERA 1994</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Vehicle Excise and Registration Act 1994</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></section><section eId="section-87"><num>87</num><heading>Short title</heading><content><p>This Act may be cited as the Finance Act 2025.</p></content></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-avoidance"><heading>Avoidance</heading><section eId="section-80"><num>80</num><heading>Limited liability partnerships</heading><subsection eId="section-80-1"><num>(1)</num><content><p><mod>After section 59A of TCGA 1992 (limited liability partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>59AA</num><heading>Limited liability partnerships: deemed disposal</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a limited liability partnership (the “LLP”) contributed an asset to the LLP in circumstances where section 59A(1) applied in relation to the LLP, and</p></content></level><level class="para1"><num>(b)</num><content><p>the LLP disposes of the asset, or part of the asset, to the member, or a person connected with the member, in circumstances where section 59A(1) has ceased to apply in relation to the LLP.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The asset is deemed to have been disposed of and reacquired by the member—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before it was contributed to the LLP, and</p></content></level><level class="para1"><num>(b)</num><content><p>for a consideration equal to its market value at that time.</p></content></level></subsection><subsection><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>any chargeable gain or allowable loss accruing under subsection (2) is to be treated as accruing at the time the asset, or part of the asset, is disposed of by the LLP (as described in subsection (1)(b)), and</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of Schedule 2 to the Finance Act 2019 (returns for disposals of UK land), the disposal under subsection (2) is to be treated as completed at that time.</p></content></level></subsection><subsection><num>(4)</num><content><p>Any chargeable gain accruing on the deemed disposal is to be reduced by an amount that is just and reasonable, having regard to any chargeable gain that has otherwise accrued to the member by reference to the asset or part of the asset.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-80-2"><num>(2)</num><content><p>The amendment made by this section has effect from 30 October 2024, but does not apply where section 59A(1) of TCGA 1992 ceased to apply in relation to the limited liability partnership before that date.</p></content></subsection></section><section eId="section-81"><num>81</num><heading>Loans to participators</heading><subsection eId="section-81-1"><num>(1)</num><content><p>In <ref eId="c00063" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, omit section 464B (relief in case of return payment to company).</p></content></subsection><subsection eId="section-81-2"><num>(2)</num><content><p>The repeal made by <ref href="#section-81-1">subsection (1)</ref> has effect in relation to payments made on or after 30 October 2024.</p></content></subsection><subsection eId="section-81-3"><num>(3)</num><intro><p>In consequence of the repeal made by <ref href="#section-81-1">subsection (1)</ref>, <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10">Part 10</a> of <ref eId="c00064" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows—</p></intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/464">section 464</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e14919"><num>464ZA</num><heading>Treatment of certain repayments</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><intro><p>within any period of 30 days—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying amount of repayments made to a close company in respect of one or more chargeable payments made by the company to a person totals £5,000 or more, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the available amount of the relevant chargeable payments made by the company to the person or an associate of the person totals £5,000 or more, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the relevant chargeable payments are made in an accounting period subsequent to that in which the chargeable payments mentioned in paragraph (a)(i) were made,</p></content></level><wrapUp><p>the qualifying amount of the repayments, so far as not exceeding the available amount of the relevant chargeable payments, is to be treated for the purposes of this Chapter as a repayment of the relevant chargeable payments.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A chargeable payment is a relevant chargeable payment for the purposes of subsection (1) if (or to the extent that) it is not repaid within the period of 30 days mentioned in that subsection.</p></content></subsection><subsection><num>(3)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before a repayment is made in respect of one or more chargeable payments made by a close company to a person, the total amount owed to the company by the person in respect of chargeable payments is £15,000 or more,</p></content></level><level class="para1"><num>(b)</num><content><p>at the time the repayment is made, arrangements had been made for one or more chargeable payments to be made to replace some or all of the amount repaid, and</p></content></level><level class="para1"><num>(c)</num><content><p>the available amount of the chargeable payments made by the company to the person or an associate of the person under the arrangements totals £5,000 or more,</p></content></level><wrapUp><p>the qualifying amount of the repayment, so far as not exceeding the available amount of the chargeable payments mentioned in paragraph (c), is to be treated for the purposes of this Chapter as a repayment of those chargeable payments.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An amount contained in a chargeable payment is an available amount—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of subsection (1), to the extent that no repayment has been treated as made in respect of it by the previous operation of that subsection, and</p></content></level><level class="para1"><num>(b)</num><intro><p>for the purposes of subsection (3), to the extent that no repayment has been treated as made in respect of it—</p></intro><level class="para2"><num>(i)</num><content><p>by the operation of subsection (1), or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the previous operation of subsection (3).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>An amount contained in a repayment is a qualifying amount to the extent that it has not been treated by the previous operation of this section as a repayment of a chargeable payment.</p></content></subsection><subsection><num>(6)</num><content><p>This section does not apply in relation to a repayment which gives rise to a charge to income tax on the participator or associate by reference to whom the loan, advance or benefit was a chargeable payment.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury may by order vary a sum specified in subsection (1) or (3).</p></content></subsection><subsection><num>(8)</num><content><p>An order under subsection (7) may contain incidental, supplemental, consequential and transitional provision and savings.</p></content></subsection></section><section><num>464ZB</num><heading>Section <ref href="#d25e14919">464ZA</ref>: supplementary</heading><subsection><num>(1)</num><content><p>All such assessments and adjustments of assessments are to be made as are necessary to give effect to section <ref href="#d25e14919">464ZA</ref>(1) and (3).</p></content></subsection><subsection><num>(2)</num><content><p>If a person who has made a tax return becomes aware that, after making it, anything in it has become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3), the person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended.</p></content></subsection><subsection><num>(3)</num><content><p>The notice must be given within 3 months beginning with the day on which the person became aware that anything in the return had become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3).</p></content></subsection><subsection><num>(4)</num><content><p>In section <ref href="#d25e14919">464ZA</ref>, “<term refersTo="#term-chargeable-payment">chargeable payment</term>” means a loan or advance made by a close company which gives rise to a charge to tax under section 455.</p></content></subsection></section></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10/chapter/3B">Chapter 3B</a> (which contained only provisions that are replaced by those inserted by paragraph (a)),</p></content></level><level class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/438">section 438</a>, (overview of Part 10) omit subsection (2B), and</p></content></level><level class="para1" eId="section-81-3-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">section 459</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">(2)</a> (loan treated as made to participator), for “464C and 464D” substitute <quotedText>“464ZA and 464ZB”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-81-4"><num>(4)</num><content><p>The amendments made by <ref href="#section-81-3">subsection (3)</ref> are treated as having come into force on 30 October 2024.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-80"><num>80</num><heading>Limited liability partnerships</heading><subsection eId="section-80-1"><num>(1)</num><content><p><mod>After section 59A of TCGA 1992 (limited liability partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>59AA</num><heading>Limited liability partnerships: deemed disposal</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a limited liability partnership (the “LLP”) contributed an asset to the LLP in circumstances where section 59A(1) applied in relation to the LLP, and</p></content></level><level class="para1"><num>(b)</num><content><p>the LLP disposes of the asset, or part of the asset, to the member, or a person connected with the member, in circumstances where section 59A(1) has ceased to apply in relation to the LLP.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The asset is deemed to have been disposed of and reacquired by the member—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before it was contributed to the LLP, and</p></content></level><level class="para1"><num>(b)</num><content><p>for a consideration equal to its market value at that time.</p></content></level></subsection><subsection><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>any chargeable gain or allowable loss accruing under subsection (2) is to be treated as accruing at the time the asset, or part of the asset, is disposed of by the LLP (as described in subsection (1)(b)), and</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of Schedule 2 to the Finance Act 2019 (returns for disposals of UK land), the disposal under subsection (2) is to be treated as completed at that time.</p></content></level></subsection><subsection><num>(4)</num><content><p>Any chargeable gain accruing on the deemed disposal is to be reduced by an amount that is just and reasonable, having regard to any chargeable gain that has otherwise accrued to the member by reference to the asset or part of the asset.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-80-2"><num>(2)</num><content><p>The amendment made by this section has effect from 30 October 2024, but does not apply where section 59A(1) of TCGA 1992 ceased to apply in relation to the limited liability partnership before that date.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-80-1"><num>(1)</num><content><p><mod>After section 59A of TCGA 1992 (limited liability partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>59AA</num><heading>Limited liability partnerships: deemed disposal</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a limited liability partnership (the “LLP”) contributed an asset to the LLP in circumstances where section 59A(1) applied in relation to the LLP, and</p></content></level><level class="para1"><num>(b)</num><content><p>the LLP disposes of the asset, or part of the asset, to the member, or a person connected with the member, in circumstances where section 59A(1) has ceased to apply in relation to the LLP.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The asset is deemed to have been disposed of and reacquired by the member—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before it was contributed to the LLP, and</p></content></level><level class="para1"><num>(b)</num><content><p>for a consideration equal to its market value at that time.</p></content></level></subsection><subsection><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>any chargeable gain or allowable loss accruing under subsection (2) is to be treated as accruing at the time the asset, or part of the asset, is disposed of by the LLP (as described in subsection (1)(b)), and</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of Schedule 2 to the Finance Act 2019 (returns for disposals of UK land), the disposal under subsection (2) is to be treated as completed at that time.</p></content></level></subsection><subsection><num>(4)</num><content><p>Any chargeable gain accruing on the deemed disposal is to be reduced by an amount that is just and reasonable, having regard to any chargeable gain that has otherwise accrued to the member by reference to the asset or part of the asset.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-2"><num>(2)</num><content><p>The amendment made by this section has effect from 30 October 2024, but does not apply where section 59A(1) of TCGA 1992 ceased to apply in relation to the limited liability partnership before that date.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-81"><num>81</num><heading>Loans to participators</heading><subsection eId="section-81-1"><num>(1)</num><content><p>In <ref eId="c00063" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, omit section 464B (relief in case of return payment to company).</p></content></subsection><subsection eId="section-81-2"><num>(2)</num><content><p>The repeal made by <ref href="#section-81-1">subsection (1)</ref> has effect in relation to payments made on or after 30 October 2024.</p></content></subsection><subsection eId="section-81-3"><num>(3)</num><intro><p>In consequence of the repeal made by <ref href="#section-81-1">subsection (1)</ref>, <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10">Part 10</a> of <ref eId="c00064" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows—</p></intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/464">section 464</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e14919"><num>464ZA</num><heading>Treatment of certain repayments</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><intro><p>within any period of 30 days—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying amount of repayments made to a close company in respect of one or more chargeable payments made by the company to a person totals £5,000 or more, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the available amount of the relevant chargeable payments made by the company to the person or an associate of the person totals £5,000 or more, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the relevant chargeable payments are made in an accounting period subsequent to that in which the chargeable payments mentioned in paragraph (a)(i) were made,</p></content></level><wrapUp><p>the qualifying amount of the repayments, so far as not exceeding the available amount of the relevant chargeable payments, is to be treated for the purposes of this Chapter as a repayment of the relevant chargeable payments.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A chargeable payment is a relevant chargeable payment for the purposes of subsection (1) if (or to the extent that) it is not repaid within the period of 30 days mentioned in that subsection.</p></content></subsection><subsection><num>(3)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before a repayment is made in respect of one or more chargeable payments made by a close company to a person, the total amount owed to the company by the person in respect of chargeable payments is £15,000 or more,</p></content></level><level class="para1"><num>(b)</num><content><p>at the time the repayment is made, arrangements had been made for one or more chargeable payments to be made to replace some or all of the amount repaid, and</p></content></level><level class="para1"><num>(c)</num><content><p>the available amount of the chargeable payments made by the company to the person or an associate of the person under the arrangements totals £5,000 or more,</p></content></level><wrapUp><p>the qualifying amount of the repayment, so far as not exceeding the available amount of the chargeable payments mentioned in paragraph (c), is to be treated for the purposes of this Chapter as a repayment of those chargeable payments.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An amount contained in a chargeable payment is an available amount—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of subsection (1), to the extent that no repayment has been treated as made in respect of it by the previous operation of that subsection, and</p></content></level><level class="para1"><num>(b)</num><intro><p>for the purposes of subsection (3), to the extent that no repayment has been treated as made in respect of it—</p></intro><level class="para2"><num>(i)</num><content><p>by the operation of subsection (1), or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the previous operation of subsection (3).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>An amount contained in a repayment is a qualifying amount to the extent that it has not been treated by the previous operation of this section as a repayment of a chargeable payment.</p></content></subsection><subsection><num>(6)</num><content><p>This section does not apply in relation to a repayment which gives rise to a charge to income tax on the participator or associate by reference to whom the loan, advance or benefit was a chargeable payment.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury may by order vary a sum specified in subsection (1) or (3).</p></content></subsection><subsection><num>(8)</num><content><p>An order under subsection (7) may contain incidental, supplemental, consequential and transitional provision and savings.</p></content></subsection></section><section><num>464ZB</num><heading>Section <ref href="#d25e14919">464ZA</ref>: supplementary</heading><subsection><num>(1)</num><content><p>All such assessments and adjustments of assessments are to be made as are necessary to give effect to section <ref href="#d25e14919">464ZA</ref>(1) and (3).</p></content></subsection><subsection><num>(2)</num><content><p>If a person who has made a tax return becomes aware that, after making it, anything in it has become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3), the person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended.</p></content></subsection><subsection><num>(3)</num><content><p>The notice must be given within 3 months beginning with the day on which the person became aware that anything in the return had become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3).</p></content></subsection><subsection><num>(4)</num><content><p>In section <ref href="#d25e14919">464ZA</ref>, “<term refersTo="#term-chargeable-payment">chargeable payment</term>” means a loan or advance made by a close company which gives rise to a charge to tax under section 455.</p></content></subsection></section></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10/chapter/3B">Chapter 3B</a> (which contained only provisions that are replaced by those inserted by paragraph (a)),</p></content></level><level class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/438">section 438</a>, (overview of Part 10) omit subsection (2B), and</p></content></level><level class="para1" eId="section-81-3-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">section 459</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">(2)</a> (loan treated as made to participator), for “464C and 464D” substitute <quotedText>“464ZA and 464ZB”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-81-4"><num>(4)</num><content><p>The amendments made by <ref href="#section-81-3">subsection (3)</ref> are treated as having come into force on 30 October 2024.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-1"><num>(1)</num><content><p>In <ref eId="c00063" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, omit section 464B (relief in case of return payment to company).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-2"><num>(2)</num><content><p>The repeal made by <ref href="#section-81-1">subsection (1)</ref> has effect in relation to payments made on or after 30 October 2024.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-81-3"><num>(3)</num><intro><p>In consequence of the repeal made by <ref href="#section-81-1">subsection (1)</ref>, <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10">Part 10</a> of <ref eId="c00064" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows—</p></intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/464">section 464</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e14919"><num>464ZA</num><heading>Treatment of certain repayments</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><intro><p>within any period of 30 days—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying amount of repayments made to a close company in respect of one or more chargeable payments made by the company to a person totals £5,000 or more, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the available amount of the relevant chargeable payments made by the company to the person or an associate of the person totals £5,000 or more, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the relevant chargeable payments are made in an accounting period subsequent to that in which the chargeable payments mentioned in paragraph (a)(i) were made,</p></content></level><wrapUp><p>the qualifying amount of the repayments, so far as not exceeding the available amount of the relevant chargeable payments, is to be treated for the purposes of this Chapter as a repayment of the relevant chargeable payments.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A chargeable payment is a relevant chargeable payment for the purposes of subsection (1) if (or to the extent that) it is not repaid within the period of 30 days mentioned in that subsection.</p></content></subsection><subsection><num>(3)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before a repayment is made in respect of one or more chargeable payments made by a close company to a person, the total amount owed to the company by the person in respect of chargeable payments is £15,000 or more,</p></content></level><level class="para1"><num>(b)</num><content><p>at the time the repayment is made, arrangements had been made for one or more chargeable payments to be made to replace some or all of the amount repaid, and</p></content></level><level class="para1"><num>(c)</num><content><p>the available amount of the chargeable payments made by the company to the person or an associate of the person under the arrangements totals £5,000 or more,</p></content></level><wrapUp><p>the qualifying amount of the repayment, so far as not exceeding the available amount of the chargeable payments mentioned in paragraph (c), is to be treated for the purposes of this Chapter as a repayment of those chargeable payments.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An amount contained in a chargeable payment is an available amount—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of subsection (1), to the extent that no repayment has been treated as made in respect of it by the previous operation of that subsection, and</p></content></level><level class="para1"><num>(b)</num><intro><p>for the purposes of subsection (3), to the extent that no repayment has been treated as made in respect of it—</p></intro><level class="para2"><num>(i)</num><content><p>by the operation of subsection (1), or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the previous operation of subsection (3).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>An amount contained in a repayment is a qualifying amount to the extent that it has not been treated by the previous operation of this section as a repayment of a chargeable payment.</p></content></subsection><subsection><num>(6)</num><content><p>This section does not apply in relation to a repayment which gives rise to a charge to income tax on the participator or associate by reference to whom the loan, advance or benefit was a chargeable payment.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury may by order vary a sum specified in subsection (1) or (3).</p></content></subsection><subsection><num>(8)</num><content><p>An order under subsection (7) may contain incidental, supplemental, consequential and transitional provision and savings.</p></content></subsection></section><section><num>464ZB</num><heading>Section <ref href="#d25e14919">464ZA</ref>: supplementary</heading><subsection><num>(1)</num><content><p>All such assessments and adjustments of assessments are to be made as are necessary to give effect to section <ref href="#d25e14919">464ZA</ref>(1) and (3).</p></content></subsection><subsection><num>(2)</num><content><p>If a person who has made a tax return becomes aware that, after making it, anything in it has become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3), the person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended.</p></content></subsection><subsection><num>(3)</num><content><p>The notice must be given within 3 months beginning with the day on which the person became aware that anything in the return had become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3).</p></content></subsection><subsection><num>(4)</num><content><p>In section <ref href="#d25e14919">464ZA</ref>, “<term refersTo="#term-chargeable-payment">chargeable payment</term>” means a loan or advance made by a close company which gives rise to a charge to tax under section 455.</p></content></subsection></section></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10/chapter/3B">Chapter 3B</a> (which contained only provisions that are replaced by those inserted by paragraph (a)),</p></content></level><level class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/438">section 438</a>, (overview of Part 10) omit subsection (2B), and</p></content></level><level class="para1" eId="section-81-3-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">section 459</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">(2)</a> (loan treated as made to participator), for “464C and 464D” substitute <quotedText>“464ZA and 464ZB”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-81-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/464">section 464</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e14919"><num>464ZA</num><heading>Treatment of certain repayments</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><intro><p>within any period of 30 days—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying amount of repayments made to a close company in respect of one or more chargeable payments made by the company to a person totals £5,000 or more, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the available amount of the relevant chargeable payments made by the company to the person or an associate of the person totals £5,000 or more, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the relevant chargeable payments are made in an accounting period subsequent to that in which the chargeable payments mentioned in paragraph (a)(i) were made,</p></content></level><wrapUp><p>the qualifying amount of the repayments, so far as not exceeding the available amount of the relevant chargeable payments, is to be treated for the purposes of this Chapter as a repayment of the relevant chargeable payments.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A chargeable payment is a relevant chargeable payment for the purposes of subsection (1) if (or to the extent that) it is not repaid within the period of 30 days mentioned in that subsection.</p></content></subsection><subsection><num>(3)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>immediately before a repayment is made in respect of one or more chargeable payments made by a close company to a person, the total amount owed to the company by the person in respect of chargeable payments is £15,000 or more,</p></content></level><level class="para1"><num>(b)</num><content><p>at the time the repayment is made, arrangements had been made for one or more chargeable payments to be made to replace some or all of the amount repaid, and</p></content></level><level class="para1"><num>(c)</num><content><p>the available amount of the chargeable payments made by the company to the person or an associate of the person under the arrangements totals £5,000 or more,</p></content></level><wrapUp><p>the qualifying amount of the repayment, so far as not exceeding the available amount of the chargeable payments mentioned in paragraph (c), is to be treated for the purposes of this Chapter as a repayment of those chargeable payments.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An amount contained in a chargeable payment is an available amount—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of subsection (1), to the extent that no repayment has been treated as made in respect of it by the previous operation of that subsection, and</p></content></level><level class="para1"><num>(b)</num><intro><p>for the purposes of subsection (3), to the extent that no repayment has been treated as made in respect of it—</p></intro><level class="para2"><num>(i)</num><content><p>by the operation of subsection (1), or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the previous operation of subsection (3).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>An amount contained in a repayment is a qualifying amount to the extent that it has not been treated by the previous operation of this section as a repayment of a chargeable payment.</p></content></subsection><subsection><num>(6)</num><content><p>This section does not apply in relation to a repayment which gives rise to a charge to income tax on the participator or associate by reference to whom the loan, advance or benefit was a chargeable payment.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury may by order vary a sum specified in subsection (1) or (3).</p></content></subsection><subsection><num>(8)</num><content><p>An order under subsection (7) may contain incidental, supplemental, consequential and transitional provision and savings.</p></content></subsection></section><section><num>464ZB</num><heading>Section <ref href="#d25e14919">464ZA</ref>: supplementary</heading><subsection><num>(1)</num><content><p>All such assessments and adjustments of assessments are to be made as are necessary to give effect to section <ref href="#d25e14919">464ZA</ref>(1) and (3).</p></content></subsection><subsection><num>(2)</num><content><p>If a person who has made a tax return becomes aware that, after making it, anything in it has become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3), the person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended.</p></content></subsection><subsection><num>(3)</num><content><p>The notice must be given within 3 months beginning with the day on which the person became aware that anything in the return had become incorrect because of the operation of section <ref href="#d25e14919">464ZA</ref>(1) or (3).</p></content></subsection><subsection><num>(4)</num><content><p>In section <ref href="#d25e14919">464ZA</ref>, “<term refersTo="#term-chargeable-payment">chargeable payment</term>” means a loan or advance made by a close company which gives rise to a charge to tax under section 455.</p></content></subsection></section></quotedStructure><inline name="appendText">,</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/part/10/chapter/3B">Chapter 3B</a> (which contained only provisions that are replaced by those inserted by paragraph (a)),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/438">section 438</a>, (overview of Part 10) omit subsection (2B), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-3-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">section 459</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/459">(2)</a> (loan treated as made to participator), for “464C and 464D” substitute <quotedText>“464ZA and 464ZB”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-4"><num>(4)</num><content><p>The amendments made by <ref href="#section-81-3">subsection (3)</ref> are treated as having come into force on 30 October 2024.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-crytpoasset-reporting-framework"><heading>Crytpo-asset reporting framework</heading><section eId="section-82"><num>82</num><heading>OECD crypto-asset reporting framework</heading><intro><p>In section 349(2) of F(No.2)A 2023 (international arrangements for exchanging information)—</p></intro><level class="para1" eId="section-82-a"><num>(a)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(fa)</num><content><p>the OECD Crypto-Asset Reporting Framework, published in 2022;</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-82-b"><num>(b)</num><content><p><mod>in paragraph (g), for “(f)” substitute <quotedText>“(fa)”</quotedText>.</mod></p></content></level></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-82"><num>82</num><heading>OECD crypto-asset reporting framework</heading><intro><p>In section 349(2) of F(No.2)A 2023 (international arrangements for exchanging information)—</p></intro><level class="para1" eId="section-82-a"><num>(a)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(fa)</num><content><p>the OECD Crypto-Asset Reporting Framework, published in 2022;</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-82-b"><num>(b)</num><content><p><mod>in paragraph (g), for “(f)” substitute <quotedText>“(fa)”</quotedText>.</mod></p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-82-a"><num>(a)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(fa)</num><content><p>the OECD Crypto-Asset Reporting Framework, published in 2022;</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-b"><num>(b)</num><content><p><mod>in paragraph (g), for “(f)” substitute <quotedText>“(fa)”</quotedText>.</mod></p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-preparing-for-new-taxes-and-information-sharing"><heading>Preparing for new taxes and information sharing</heading><section eId="section-83"><num>83</num><heading>Duty on vaping products</heading><content><p>The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new duty to be charged in respect of vaping products.</p></content></section><section eId="section-84"><num>84</num><heading>Carbon border adjustment mechanism</heading><subsection eId="section-84-1"><num>(1)</num><content><p>The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new tax to be charged in respect of emissions embodied in imported goods.</p></content></subsection><subsection eId="section-84-2"><num>(2)</num><content><p>The Treasury or the Commissioners for His Majesty’s Revenue and Customs may request in writing information from the UK ETS authority or a national authority for any purpose connected with the tax.</p></content></subsection><subsection eId="section-84-3"><num>(3)</num><content><p>If a request is made to an authority under <ref href="#section-84-2">subsection (2)</ref>, the authority must provide the requested information if the authority holds it.</p></content></subsection><subsection eId="section-84-4"><num>(4)</num><content><p>Subsection <ref href="#section-84-3">(3)</ref> does not require the disclosure of personal data (within the meaning of section 3(2) of the Data Protection Act 2018).</p></content></subsection><subsection eId="section-84-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-national-authority" eId="term-national-authority">national authority</term>” has the meaning given by section 95 of the Climate Change Act 2008;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-uk-ets-authority" eId="term-uk-ets-authority">UK ETS authority</term>” has the meaning given by Article 14 of the Greenhouse Gas Emissions Trading Scheme Order 2020 (<ref eId="c00065" href="http://www.legislation.gov.uk/id/uksi/2020/1265">S.I. 2020/1265</ref>).</p></content></hcontainer></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83"><num>83</num><heading>Duty on vaping products</heading><content><p>The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new duty to be charged in respect of vaping products.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84"><num>84</num><heading>Carbon border adjustment mechanism</heading><subsection eId="section-84-1"><num>(1)</num><content><p>The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new tax to be charged in respect of emissions embodied in imported goods.</p></content></subsection><subsection eId="section-84-2"><num>(2)</num><content><p>The Treasury or the Commissioners for His Majesty’s Revenue and Customs may request in writing information from the UK ETS authority or a national authority for any purpose connected with the tax.</p></content></subsection><subsection eId="section-84-3"><num>(3)</num><content><p>If a request is made to an authority under <ref href="#section-84-2">subsection (2)</ref>, the authority must provide the requested information if the authority holds it.</p></content></subsection><subsection eId="section-84-4"><num>(4)</num><content><p>Subsection <ref href="#section-84-3">(3)</ref> does not require the disclosure of personal data (within the meaning of section 3(2) of the Data Protection Act 2018).</p></content></subsection><subsection eId="section-84-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-national-authority" eId="term-national-authority">national authority</term>” has the meaning given by section 95 of the Climate Change Act 2008;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-uk-ets-authority" eId="term-uk-ets-authority">UK ETS authority</term>” has the meaning given by Article 14 of the Greenhouse Gas Emissions Trading Scheme Order 2020 (<ref eId="c00065" href="http://www.legislation.gov.uk/id/uksi/2020/1265">S.I. 2020/1265</ref>).</p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-1"><num>(1)</num><content><p>The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new tax to be charged in respect of emissions embodied in imported goods.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-2"><num>(2)</num><content><p>The Treasury or the Commissioners for His Majesty’s Revenue and Customs may request in writing information from the UK ETS authority or a national authority for any purpose connected with the tax.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-3"><num>(3)</num><content><p>If a request is made to an authority under <ref href="#section-84-2">subsection (2)</ref>, the authority must provide the requested information if the authority holds it.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-4"><num>(4)</num><content><p>Subsection <ref href="#section-84-3">(3)</ref> does not require the disclosure of personal data (within the meaning of section 3(2) of the Data Protection Act 2018).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-national-authority" eId="term-national-authority">national authority</term>” has the meaning given by section 95 of the Climate Change Act 2008;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-uk-ets-authority" eId="term-uk-ets-authority">UK ETS authority</term>” has the meaning given by Article 14 of the Greenhouse Gas Emissions Trading Scheme Order 2020 (<ref eId="c00065" href="http://www.legislation.gov.uk/id/uksi/2020/1265">S.I. 2020/1265</ref>).</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Capital gains tax</heading><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-7-paragraph-3-1"><num>(1)</num><content><p>Chapter 4 of Part 4 of the TCGA 1992 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-2"><num>(2)</num><content><p><mod>In section 151H (introduction), in subsection (3)(b) after “section 151K” insert <quotedText>“or 151KA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-3"><num>(3)</num><intro><p>In section 151K (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-g"><num>(g)</num><content><p><mod>in subsection (7), for “151L” substitute <quotedText>“151KA”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-4"><num>(4)</num><content><p><mod>After section 151K insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e30998"><num>151KA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e31002"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e31008"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e31017"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31044"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e31017">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31253">(6)</ref>),</p></content></level><level class="para1" eId="d25e31056"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31068"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31074"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e31080"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 151K or subsection <ref href="#d25e31002">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e31089"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 151K(1)(a) or subsection <ref href="#d25e31002">(1)</ref><ref href="#d25e31017">(b)</ref> of this section as has not yet been acquired as mentioned in section 151K(1)(d) or subsection <ref href="#d25e31002">(1)</ref><ref href="#d25e31056">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31126"><num>(c)</num><content><p>the customer mentioned in section 151K(1) or <ref href="#d25e31002">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 151K(1)(c) or <ref href="#d25e31002">subsection (1)</ref><ref href="#d25e31044">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31253">(6)</ref>),</p></content></level><level class="para1" eId="d25e31143"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31155"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31161"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e31002">(1)</ref><ref href="#d25e31008">(a)</ref> and <ref href="#d25e31017">(b)</ref> and <ref href="#d25e31080">(2)</ref><ref href="#d25e31089">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e31002">(1)</ref><ref href="#d25e31068">(g)</ref> or <ref href="#d25e31080">(2)</ref><ref href="#d25e31155">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e31217">(5)</ref> are met.</p></content></subsection><subsection eId="d25e31217"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e31253"><num>(6)</num><intro><p>Subsection <ref href="#d25e31002">(1)</ref><ref href="#d25e31074">(h)</ref> or <ref href="#d25e31080">(2)</ref><ref href="#d25e31161">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 1124 of CTA 2010 (meaning of “<term refersTo="#term-control">control</term>”) applies for the purposes of this section.</p></content></subsection><subsection><num>(8)</num><content><p>This section is subject to section 151O (provision not at arm’s length: exclusion of arrangements from sections 151J and 151K, this section and sections 151L to 151N).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-5"><num>(5)</num><intro><p>In section 151R (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-3-5-b-i"><num>(i)</num><content><p><mod>after “section 151K(1)(c)” insert <quotedText>“or <ref href="#d25e30998">151KA</ref><ref href="#d25e31002">(1)</ref><ref href="#d25e31044">(d)</ref> or <ref href="#d25e31080">(2)</ref><ref href="#d25e31126">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-3-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “section 151K” insert <quotedText>“or <ref href="#d25e30998">151KA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-6"><num>(6)</num><content><p><mod>In section 151X (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 151K” insert <quotedText>“or <ref href="#d25e30998">151KA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-7"><num>(7)</num><intro><p>In section 151Y (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of this Act so far as it applies for capital gains tax as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 151K or <ref href="#d25e30998">151KA</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-8"><num>(8)</num><content><p><mod>After section 151Y (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>151Z</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e30998">section 151KA</ref> applies.</p></content></subsection><subsection eId="d25e31488"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e30998">section 151KA</ref><ref href="#d25e31002">(1)</ref><ref href="#d25e31017">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection eId="d25e31501"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e31507"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e30998">section 151KA</ref><ref href="#d25e31002">(1)</ref><ref href="#d25e31017">(b)</ref>,</p></content></level><level class="para1" eId="d25e31520"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e30998">section 151KA</ref><ref href="#d25e31002">(1)</ref><ref href="#d25e31044">(d)</ref> and <ref href="#d25e31056">(e)</ref> or <ref href="#d25e31080">(2)</ref><ref href="#d25e31126">(c)</ref> and <ref href="#d25e31143">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e31507">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e31520">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of this Act so far as it applies for capital gains tax, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e31488">(2)</ref> and <ref href="#d25e31501">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e30998">section 151KA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e30998">section 151KA</ref><ref href="#d25e31080">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p>Gains or losses treated as accruing to an individual under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1M">section 1M</a> of <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (temporary non-residents) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">Section 164</a> of <ref eId="c00171" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (election for special allowance) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-1-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Condition A is that R has made a qualifying payment into a decommissioning fund in the relevant chargeable period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-1-b"><num>(b)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-3-paragraph-3-1-b-i"><num>(i)</num><content><p><mod>in paragraph (ab), after “decommissioning” there were inserted <quotedText>“fund”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-3-1-b-ii"><num>(ii)</num><content><p>paragraphs (ac) and (b) were omitted, and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-3-1-c"><num>(c)</num><content><p>subsections (5A) to (7) were omitted.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">Section 165</a> of <ref eId="c00172" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (general decommissioning expenditure after ceasing ring fence trade) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-2-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The decommissioning condition is met in relation to a notional accounting period (the “relevant period”) if the former trader has made a qualifying payment into a decommissioning fund in the relevant period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-b"><num>(b)</num><content><p><mod>in subsection (2), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>ends with the day on which the trigger event described in <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00173" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations) occurs in relation to the relevant transferred plant or machinery.</p></content></level></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-c"><num>(c)</num><content><p>subsections (2A) to (2C) were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-d"><num>(d)</num><content><p>in subsection (4), in the definition of “relevant decommissioning cost”, “paragraph (a), (b) or (c) of” were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-e"><num>(e)</num><content><p>subsections (4A) to (4D) and (6) were omitted, and</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-f"><num>(f)</num><content><p><mod>in subsection (7), at the appropriate places there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund">decommissioning fund</term>” and “<term refersTo="#term-qualifying-payment">qualifying payment</term>” are to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>““<term refersTo="#term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-3">This Schedule</ref> has effect in relation to qualifying payments into a decommissioning fund made on or after the day on which this Act is passed.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><content><p><ref eId="c00196" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>Omit section 13B (use for other purposes of plant or machinery: property businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>In section 15 (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-ii"><num>(ii)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (c)</a>;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iii"><num>(iii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iv"><num>(iv)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (da)</a>;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (3)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-b-ii"><num>(ii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a> omit “ordinary”.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><content><p>Omit <span><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/16">sections 16</a> to <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/17B">17B</a></span> (which define ordinary UK, or overseas, property business and UK, or EEA, furnished holiday lettings business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><intro><p>In section 28 (qualifying expenditure: thermal insulation of buildings), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">subsections (1)</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">(2)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-5-a"><num>(a)</num><content><p><mod>for “an ordinary UK”, in each subsection, substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-5-b"><num>(b)</num><content><p><mod>for “an ordinary overseas”, in each subsection, substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><intro><p>In section 33 (qualifying expenditure: personal security), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">subsection (8)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (da)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>In section 35 (exclusion of certain expenditure on plant or machinery for use in a dwelling-house), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><intro><p>In section 59 (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-8-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (4A)</a>, for “a relevant qualifying activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-8-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (7A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-9"><num>(9)</num><intro><p>In section 63 (cases in which disposal value of plant or machinery is nil), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (da)</a> (but not the “or” after it).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-10"><num>(10)</num><intro><p>In section 248 (treatment of allowances or charges in relation to UK property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-10-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-10-b"><num>(b)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/248">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-11"><num>(11)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/249">section 249</a> (giving effect to allowances and charges: UK furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-12"><num>(12)</num><intro><p>In section 250 (treatment of allowances or charges in relation to overseas property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-12-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-12-b"><num>(b)</num><content><p>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250">paragraph (a)</a> omit “Ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-13"><num>(13)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250A">section 250A</a> (giving effect to allowances and charges: EEA furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-14"><num>(14)</num><intro><p>In section 270CA (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-14-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-14-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (c)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-15"><num>(15)</num><content><p>Omit section 270CB (meaning of ordinary UK or overseas property business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-16"><num>(16)</num><intro><p>In section 270CG (use for the purposes of a property business), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CG">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-16-a"><num>(a)</num><content><p><mod>for “an ordinary UK” substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-16-b"><num>(b)</num><content><p><mod>for “an ordinary overseas” substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-17"><num>(17)</num><intro><p>In section 270HB (allowances to be treated as expense of property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-17-a"><num>(a)</num><content><p>in the heading omit “ordinary” in both places;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-18"><num>(18)</num><intro><p>In section 536 (contributions not made by public bodies and not eligible for tax relief), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">subsection (5)</a><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">(a)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-18-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (i)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (ii)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iii)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iiia)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-19"><num>(19)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1">Schedule 1</a> (defined expressions) omit the entries for—</p></intro><level class="para1" eId="schedule-5-paragraph-8-19-a"><num>(a)</num><content><p>“EEA furnished holiday lettings business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-b"><num>(b)</num><content><p>“ordinary overseas property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-c"><num>(c)</num><content><p>“ordinary UK property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-d"><num>(d)</num><content><p>“UK furnished holiday lettings business”.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-11-a"><num>(a)</num><content><p>in <ref eId="c00204" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref>, paragraph 62 of Schedule 20;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-b"><num>(b)</num><intro><p>in <ref eId="c00205" href="https://www.legislation.gov.uk/ukpga/1998/36">FA 1998</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-b-i"><num>(i)</num><content><p>paragraph 62 of Schedule 5, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-b-ii"><num>(ii)</num><content><p>paragraph 8 of Schedule 21;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-c"><num>(c)</num><content><p>in <ref eId="c00206" href="https://www.legislation.gov.uk/ukpga/2002/23">FA 2002</ref>, paragraph 3 of Schedule 8;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-d"><num>(d)</num><content><p>in <ref eId="c00207" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraph 441 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-e"><num>(e)</num><content><p>in <ref eId="c00208" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, paragraph 325 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-f"><num>(f)</num><intro><p>in <ref eId="c00209" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-f-i"><num>(i)</num><content><p>paragraph 37 of Schedule 2, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-f-ii"><num>(ii)</num><content><p>paragraph 3 of Schedule 3;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-g"><num>(g)</num><content><p>in <ref eId="c00210" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraph 380 of Schedule 1 to CTA 2009;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-h"><num>(h)</num><content><p>in <ref eId="c00211" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 4 of Schedule 14.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-11-a"><num>(a)</num><content><p>in <ref eId="c00204" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref>, paragraph 62 of Schedule 20;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-11-b"><num>(b)</num><intro><p>in <ref eId="c00205" href="https://www.legislation.gov.uk/ukpga/1998/36">FA 1998</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-b-i"><num>(i)</num><content><p>paragraph 62 of Schedule 5, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-b-ii"><num>(ii)</num><content><p>paragraph 8 of Schedule 21;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-11-b-i"><num>(i)</num><content><p>paragraph 62 of Schedule 5, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-11-b-ii"><num>(ii)</num><content><p>paragraph 8 of Schedule 21;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-11-c"><num>(c)</num><content><p>in <ref eId="c00206" href="https://www.legislation.gov.uk/ukpga/2002/23">FA 2002</ref>, paragraph 3 of Schedule 8;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-11-d"><num>(d)</num><content><p>in <ref eId="c00207" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraph 441 of Schedule 1;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-11-e"><num>(e)</num><content><p>in <ref eId="c00208" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, paragraph 325 of Schedule 1;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-11-f"><num>(f)</num><intro><p>in <ref eId="c00209" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-f-i"><num>(i)</num><content><p>paragraph 37 of Schedule 2, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-f-ii"><num>(ii)</num><content><p>paragraph 3 of Schedule 3;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-11-f-i"><num>(i)</num><content><p>paragraph 37 of Schedule 2, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-11-f-ii"><num>(ii)</num><content><p>paragraph 3 of Schedule 3;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-11-g"><num>(g)</num><content><p>in <ref eId="c00210" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraph 380 of Schedule 1 to CTA 2009;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-11-h"><num>(h)</num><content><p>in <ref eId="c00211" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 4 of Schedule 14.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-7-paragraph-3-1"><num>(1)</num><content><p>Chapter 4 of Part 4 of the TCGA 1992 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-2"><num>(2)</num><content><p><mod>In section 151H (introduction), in subsection (3)(b) after “section 151K” insert <quotedText>“or 151KA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-3"><num>(3)</num><intro><p>In section 151K (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-g"><num>(g)</num><content><p><mod>in subsection (7), for “151L” substitute <quotedText>“151KA”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-4"><num>(4)</num><content><p><mod>After section 151K insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e31004"><num>151KA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e31008"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e31014"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e31023"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31050"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e31023">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31259">(6)</ref>),</p></content></level><level class="para1" eId="d25e31062"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31074"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31080"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e31086"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 151K or subsection <ref href="#d25e31008">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e31095"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 151K(1)(a) or subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref> of this section as has not yet been acquired as mentioned in section 151K(1)(d) or subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31062">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31132"><num>(c)</num><content><p>the customer mentioned in section 151K(1) or <ref href="#d25e31008">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 151K(1)(c) or <ref href="#d25e31008">subsection (1)</ref><ref href="#d25e31050">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31259">(6)</ref>),</p></content></level><level class="para1" eId="d25e31149"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31161"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31167"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e31008">(1)</ref><ref href="#d25e31014">(a)</ref> and <ref href="#d25e31023">(b)</ref> and <ref href="#d25e31086">(2)</ref><ref href="#d25e31095">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31074">(g)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31161">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e31223">(5)</ref> are met.</p></content></subsection><subsection eId="d25e31223"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e31259"><num>(6)</num><intro><p>Subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31080">(h)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31167">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 1124 of CTA 2010 (meaning of “<term refersTo="#term-control">control</term>”) applies for the purposes of this section.</p></content></subsection><subsection><num>(8)</num><content><p>This section is subject to section 151O (provision not at arm’s length: exclusion of arrangements from sections 151J and 151K, this section and sections 151L to 151N).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-5"><num>(5)</num><intro><p>In section 151R (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-3-5-b-i"><num>(i)</num><content><p><mod>after “section 151K(1)(c)” insert <quotedText>“or <ref href="#d25e31004">151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31050">(d)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31132">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-3-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “section 151K” insert <quotedText>“or <ref href="#d25e31004">151KA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-6"><num>(6)</num><content><p><mod>In section 151X (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 151K” insert <quotedText>“or <ref href="#d25e31004">151KA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-7"><num>(7)</num><intro><p>In section 151Y (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of this Act so far as it applies for capital gains tax as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 151K or <ref href="#d25e31004">151KA</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-8"><num>(8)</num><content><p><mod>After section 151Y (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>151Z</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e31004">section 151KA</ref> applies.</p></content></subsection><subsection eId="d25e31494"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection eId="d25e31507"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e31513"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref>,</p></content></level><level class="para1" eId="d25e31526"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31050">(d)</ref> and <ref href="#d25e31062">(e)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31132">(c)</ref> and <ref href="#d25e31149">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e31513">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e31526">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of this Act so far as it applies for capital gains tax, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e31494">(2)</ref> and <ref href="#d25e31507">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e31004">section 151KA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31086">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><p><mod>In Schedule 8 to F(No.2)A 2017, in paragraph 41(4)(b), for “that in which the disposal was made” substitute <quotedText>“the tax year 2024-25”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content><p>The amendment made by this paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p>Foreign chargeable gains under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809J">section 809J</a> of <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (section 809I: order of remittances) in the tax year 2024-25 are to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (UK resident individuals not domiciled in UK) as remitted before 30 October 2024.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p>Chargeable gains treated as accruing to a settlor under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">section 86</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(a)</a> of <ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (attribution of gains to settlors with interest in non-resident or dual resident settlements) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><intro><p><ref href="#schedule-2-paragraph-5">This paragraph</ref> makes provision in relation to—</p></intro><level class="para1" eId="schedule-2-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> of <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (non-UK resident settlements: attribution of gains to beneficiaries) in the tax year 2024-25,</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-b"><num>(b)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (migrant settlements etc) in that tax year, and</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-c"><num>(c)</num><content><p>chargeable gains treated as accruing to a beneficiary of a relevant settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">paragraph 8</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">(1)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C">Schedule 4C</a> to <ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (attribution of Schedule 4C gains to beneficiaries) in that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received before 30 October 2024 are to be treated as accruing before that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received on or after that date are to be treated as accruing on or after that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p>The reference in sub-paragraph (1)(b) to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is to be read as including a reference to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">that section</a> as applied by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">section 90</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(6)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(a)</a> of <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (transfers between settlements).</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Education funding</heading><paragraph eId="schedule-9-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-9-paragraph-26-1"><num>(1)</num><content><p>In the Appendix to <a href="https://www.legislation.gov.uk/uksi/2001/2743/schedule/1">Schedule 1</a> to the <ref eId="c00278" href="https://www.legislation.gov.uk/uksi/2001/2743">Education (Grants) (Music, Ballet and Choir Schools) (England) Regulations 2001</ref> (<ref eId="c00279" href="https://www.legislation.gov.uk/uksi/2001/2743">S.I. 2001/2743</ref>) (aided pupil scheme: computation of income), in paragraph 2, in sub-paragraph (a) omit “, ordinarily resident or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2">Schedule 2</a> to the <ref eId="c00280" href="https://www.legislation.gov.uk/uksi/2010/447">Education (Student Support) (European University Institute) Regulations 2010</ref> (<ref eId="c00281" href="http://www.legislation.gov.uk/id/uksi/2010/447">S.I. 2010/447</ref>) (calculation of contribution), in <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">paragraph 4</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(5)</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(a)</a>, omit “or domiciled” in the first place it appears.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-3"><num>(3)</num><content><p>The <ref eId="c00282" href="https://www.legislation.gov.uk/uksi/2011/1986">Education (Student Support) Regulations 2011</ref> (<ref eId="c00283" href="http://www.legislation.gov.uk/id/uksi/2011/1986">S.I. 2011/1986</ref>) are amended in accordance with <ref href="#schedule-9-paragraph-26-4">sub-paragraphs (4)</ref> and <ref href="#schedule-9-paragraph-26-5">(5)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4">Schedule 4</a> (financial assessment)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-4-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-b-ii"><num>(ii)</num><content><p>omit “so”.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-26-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6">Schedule 6</a> (assessment of eligible part-time student’s household income)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-5-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(6)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;The</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-b-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-2-paragraph-8-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-8-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-8-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made before 30 October 2024, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>A contract is an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> if—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>A contract is not to be regarded as an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-14-3-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-3-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraph <ref href="#schedule-2-paragraph-7">7</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-4"><num>(4)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00106" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-5"><num>(5)</num><intro><p>If the person making the transfer referred to in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> makes—</p></intro><level class="para1" eId="schedule-2-paragraph-14-5-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00107" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-14-5-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00108" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00109" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00110" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-14-2">sub-paragraph (2)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-6"><num>(6)</num><content><p>Any reference in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> (or this paragraph) to the transfer of an asset includes its conveyance.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00111" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-2-paragraph-17-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00122" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00123" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-17-1-a"><num>(a)</num><content><p>the exchange takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-2"><num>(2)</num><content><p>If condition A or B is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-17-3"><num>(3)</num><intro><p>Condition A is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-17-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-17-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-17-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-4-b"><num>(b)</num><intro><p>as at 30 October 2024—</p></intro><level class="para2" eId="schedule-2-paragraph-17-4-b-i"><num>(i)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-4-b-ii"><num>(ii)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-5"><num>(5)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-17-5-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-5-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-6"><num>(6)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-17-6-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-17-6-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-6-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-17-6-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-7"><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-2-paragraph-20-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-20-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-2"><num>(2)</num><content><p>If, when the election is made, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, a relevant individual ceases to hold qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-20-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-5"><num>(5)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-6"><num>(6)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After Chapter 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e19372"><num>Chapter 9A</num><heading>Untaxed amounts</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>229A</num><heading>Meaning of potentially undertaxed</heading><subsection eId="d25e19387"><num>(1)</num><intro><p>The top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed” if—</p></intro><level class="para1"><num>(a)</num><content><p>M is the ultimate parent or is located in the same territory as the ultimate parent, or</p></content></level><level class="para1"><num>(b)</num><content><p>the ultimate parent is not a responsible member.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is not a responsible member,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the ownership interests of the ultimate parent in M are direct ownership interests, and</p></content></level><level class="para1"><num>(c)</num><content><p>every indirect ownership interest the ultimate parent has in M is derived from an ownership interest the ultimate parent has in a responsible member.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> also does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is located in a territory in which a DIIR is in force and is a responsible member, and</p></content></level><level class="para1"><num>(b)</num><content><p>M is located in the same territory as the ultimate parent.</p></content></level></subsection><subsection><num>(4)</num><content><p>This section and section <ref href="#d25e19471">229B</ref> do not apply to members of a joint venture group (but see <ref href="#d25e20224">section 229I</ref> for alternative provision).</p></content></subsection></section><section eId="d25e19471"><num>229B</num><heading>Untaxed amounts</heading><subsection><num>(1)</num><content><p>A member of a multinational group has an untaxed amount if conditions A and B are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the top-up amount and additional top-up amounts of the member are potentially undertaxed.</p></content></subsection><subsection><num>(3)</num><content><p>Condition B is that the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts is less than the sum of the member’s top-up amount and additional top-up amounts.</p></content></subsection><subsection><num>(4)</num><intro><p>The untaxed amount is the amount given by subtracting—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts, from</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the member’s top-up amount and additional top-up amounts.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Allocation of untaxed amounts</heading><section eId="d25e19517"><num>229C</num><heading>Allocation of untaxed amount to members</heading><subsection eId="d25e19521"><num>(1)</num><intro><p>An untaxed amount of a member of a multinational group is to be allocated to qualifying members of the group located in the United Kingdom by—</p></intro><level class="para1"><num>(a)</num><content><p>first, determining the amount (“the UK proportion”) of the untaxed amount to be allocated to the group in the United Kingdom in accordance with <ref href="#d25e19586">section 229D</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>then, allocating an amount of the UK proportion to each qualifying member located in the United Kingdom in accordance with <ref href="#d25e19776">section 229E</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>But no allocation is to be made under <ref href="#d25e19521">subsection (1)</ref> if in section <ref href="#d25e19586">229D</ref><ref href="#d25e19590">(1)</ref> the results of both Step <ref href="#d25e19608">2</ref> and Step <ref href="#d25e19822">5</ref> are nil.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of this Chapter, a member of a multinational group is qualifying unless it is—</p></intro><level class="para1"><num>(a)</num><content><p>an investment entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of a joint venture group.</p></content></level></subsection></section><section eId="d25e19586"><num>229D</num><heading>Amount allocated to the United Kingdom</heading><subsection eId="d25e19590"><num>(1)</num><content><p>Take the following steps to determine the UK proportion of an untaxed amount of a member of a multinational group—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of qualifying members of the group located in the United Kingdom for the accounting period to which the untaxed amount relates (“<term refersTo="#term-the-relevant-period">the relevant period</term>”).</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees in the relevant period of qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in the United Kingdom for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The UK proportion of the untaxed amount is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19616">Step 3</ref>;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19640">Step 6</ref>;</p></item><item><num>(c)</num><p>in any other case, the untaxed amount multiplied by the result of <ref href="#d25e19648">Step 7</ref>.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of <ref href="#d25e19780">subsection (1)</ref>—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>A qualifying undertaxed profits tax applies in a territory in relation to an untaxed amount if—</p></intro><level class="para1"><num>(a)</num><content><p>a qualifying undertaxed profits tax is in force in that territory for the relevant period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of that tax result in a proportion of the untaxed amount (however described for the purposes of that tax) that is greater than nil being allocated to the territory.</p></content></level></subsection><subsection><num>(4)</num><content><p>See sections <ref href="#d25e19975">229G</ref> and <ref href="#d25e20104">229H</ref> for how to determine the number of employees and the value of tangible fixed assets of a qualifying member of a multinational group.</p></content></subsection></section><section eId="d25e19776"><num>229E</num><heading>Allocation to qualifying members</heading><subsection eId="d25e19780"><num>(1)</num><content><p>Take the following steps to determine how much of an untaxed amount is to be allocated to each qualifying member located in the United Kingdom—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of the member in the accounting period (“<term refersTo="#term-the-relevant-period">the relevant period</term>”) to which the untaxed amount relates.</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees for the relevant period of qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the member for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets for the relevant period of the qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The untaxed amount to be allocated to the member is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the UK proportion multiplied by the result of Step 3;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the UK proportion multiplied by the result of Step 6;</p></item><item><num>(c)</num><p>in any other case, the UK proportion multiplied by the result of Step 7.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of subsection (1)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 5 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 2 is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 2 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 5 is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>This section is subject to <ref href="#d25e19921">section 229F</ref>.</p></content></subsection></section><section eId="d25e19921"><num>229F</num><heading>Election to make one member of a group liable for untaxed amounts</heading><subsection><num>(1)</num><intro><p>The filing member of the group may elect for an accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e19776">section 229E</ref> does not apply, and</p></content></level><level class="para1"><num>(b)</num><content><p>instead, a member of the group specified in the election is to be allocated the whole of the UK proportion of each untaxed amount that would be otherwise be allocated between the qualifying members of the group located in the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A member of the group may only be specified in the election if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is located in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member has consented to the election.</p></content></level></subsection><subsection><num>(3)</num><content><p>Paragraph 2 of Schedule 15 (annual elections) applies to an election under this section, and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>How to determine number of employees and tangible fixed assets values</heading><section eId="d25e19975"><num>229G</num><heading>Number of employees</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, the number of employees of a qualifying member of a multinational group in an accounting period is the full-time equivalent employee number for that member for that period.</p></content></subsection><subsection><num>(2)</num><content><p>To determine the full-time equivalent employee number for a member of a multinational group for an accounting period take the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of full-time employees of that member that were full-time employees for the whole of that period.</p></item><item><p><i>Step 2</i></p><p>Determine, for each employee of that member for that period who is not a full-time employee for the whole of that period (whether they were part-time employees or were not employed for the whole of the period), such fraction as is just and reasonable.</p></item><item><p><i>Step 3</i></p><p>Add together the number determined under Step 1 and the fractions determined under Step 2.</p><p>If the member was a member of the group throughout the whole of the period, the result of this Step is the full-time equivalent employee number.</p></item><item><p><i>Step 4</i></p><p>Where the member was not a member of the group for the whole period, make such adjustments to the result of Step 3 as is just and reasonable to arrive at a full-time equivalent employee number that reflects the number of employees of the member in the period for which it was a member of the group.</p><p>For the purpose of this Step, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></item></blockList></content></subsection><subsection eId="d25e20030"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-employee">employee</term>”, in relation to a member of a multinational group, means a person whose employment costs are met by that member (whether or not the person’s activities are carried on in the territory of the member) as recorded in appropriate financial statements of the member and who—</p></intro><level class="para1"><num>(a)</num><content><p>is regarded as an employee under the law of the territory in which the member is located, or</p></content></level><level class="para1"><num>(b)</num><content><p>participates in the ordinary operating activities of the member of the group (including on a part-time basis).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of <ref href="#d25e20030">subsection (3)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection eId="d25e20060"><num>(5)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), where a member of a multinational group is a flow-through entity, employees of the entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as employees of members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(6)</num><content><p><ref href="#d25e20060">Subsection (5)</ref> does not apply to employees of a flow-through entity that are regarded for the purposes of this section as employees of a permanent establishment of the entity.</p></content></subsection><subsection><num>(7)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the reference in <ref href="#d25e20030">subsection (3)</ref> to employment costs recorded in financial statements is to the employment costs that would have been so recorded had such statements been prepared (and those costs are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection></section><section eId="d25e20104"><num>229H</num><heading>Value of tangible fixed assets</heading><subsection eId="d25e20108"><num>(1)</num><intro><p>To determine the value of tangible fixed assets of a qualifying member of a multinational group for an accounting period—</p></intro><level class="para1" eId="d25e20114"><num>(a)</num><intro><p>add together—</p></intro><level class="para2"><num>(i)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the start of the period, as those values are recorded in the member’s financial statements, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the end of the period, as those values are recorded in the member’s financial statements, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>divide the result of <ref href="#d25e20114">paragraph (a)</ref> by 2.</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e20108">subsection (1)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection><num>(3)</num><content><p>In each case the value of a tangible fixed asset is to include accumulated depreciation, depletion or impairment.</p></content></subsection><subsection eId="d25e20156"><num>(4)</num><content><p>If the member is not a member of the group at the start of the period, or at the end of the period, the sum of the values of its tangible fixed assets at that time is to be treated as nil.</p></content></subsection><subsection><num>(5)</num><content><p>For the purpose of <ref href="#d25e20156">subsection (4)</ref>, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></content></subsection><subsection><num>(6)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the values to be used are those that would have been recorded in those accounts had they been prepared (and those values are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection><subsection eId="d25e20177"><num>(7)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), tangible fixed assets held by a member of the group that is a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as held by members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are to be ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(8)</num><content><p><ref href="#d25e20177">Subsection (7)</ref> does not apply to assets of a flow-through entity that are held by a permanent establishment of the entity.</p></content></subsection><subsection><num>(9)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-tangible-fixed-assets">tangible fixed assets</term>” means all tangible assets wherever located, other than cash or cash equivalents or financial assets.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Joint ventures</heading><section eId="d25e20224"><num>229I</num><heading>Joint ventures</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent of a multinational group is not subject to Pillar Two IIR tax for an accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>the group includes a joint venture group, and</p></content></level><level class="para1"><num>(c)</num><content><p>the members of the joint venture group are undertaxed in relation to the multinational group for that period.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The members of a joint venture group are undertaxed in relation to a multinational group if—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed to responsible members of the multinational group under Chapter 7 in respect of members of the joint venture group’s top-up amount and additional top-up amounts, is less than</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of such amounts in respect of the joint venture group that would be attributed under that Chapter to the ultimate parent of the multinational group if it were subject to Pillar Two IIR tax.</p></content></level></subsection><subsection><num>(3)</num><content><p>The amount given by subtracting the amounts mentioned in paragraph (a) of subsection (2) from the amounts mentioned in paragraph (b) of that subsection is an untaxed amount of the joint venture group in relation to the multinational group.</p></content></subsection><subsection><num>(4)</num><content><p>Sections <ref href="#d25e19517">229C</ref> to <ref href="#d25e19921">229F</ref> (allocation of untaxed amounts) apply for the purposes of allocating an untaxed amount of a joint venture group in relation to a multinational group to qualifying members of that multinational group as they apply to the allocation of an untaxed amount of a member of the multinational group to those members.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>References to responsible members</heading><section><num>229J</num><heading>References to responsible members</heading><subsection><num>(1)</num><intro><p>For the purpose of determining untaxed amounts of a member of a multinational group who is located in a territory in which a DIIR is in force, references in this Chapter to a responsible member are to be interpreted as if section 128 (responsible members) had effect with the following modifications—</p></intro><level class="para1"><num>(a)</num><content><p>in subsection (2) omit “that are not located in the territory the ultimate parent is located in”;</p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (3)(c), at the beginning insert <quotedText>“the intermediate parent,”</quotedText>;</mod></p></content></level><level class="para1"><num>(c)</num><content><p>in subsection (4) omit “that are not located in the territory it is located in”;</p></content></level><level class="para1"><num>(d)</num><content><p><mod>in subsection (5)(b), at the beginning insert <quotedText>“it or”</quotedText>;</mod></p></content></level><level class="para1"><num>(e)</num><content><p>in subsection (6) omit “that are not located in the same territory it is located in”;</p></content></level><wrapUp><p>but this is subject to subsection <ref href="#d25e20345">(2)</ref>.</p></wrapUp></subsection><subsection eId="d25e20345"><num>(2)</num><intro><p>For the purpose of determining whether the top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed”, a member of the group which—</p></intro><level class="para1"><num>(a)</num><content><p>is located in the same territory as M, and</p></content></level><level class="para1"><num>(b)</num><content><p>would apart from this subsection be a responsible member,</p></content></level><wrapUp><p>is to be regarded for all purposes of this Chapter as not being a responsible member unless a DIIR is in force for the accounting period in that territory.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-diir">DIIR</term>” means a tax which—</p></intro><level class="para1"><num>(a)</num><content><p>implements, in a Pillar Two territory, rules relating to top-up tax under the IIR (within the meaning of the Pillar Two rules), and</p></content></level><level class="para1"><num>(b)</num><content><p>is designed so that tax charged under it is not limited to tax in respect of members who are located outside that territory.</p></content></level></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 241 (Pillar Two territories), in subsection (2), for “equivalent to this Part—” substitute <quotedText>“which implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules)—”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p><mod>After section 137 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>137A</num><heading>Use of substituted values</heading><subsection><num>(1)</num><intro><p>Where any provision of this Part requires the substitution of a value recorded in the underlying profits accounts of a member of a multinational group for an accounting period, the substituted value—</p></intro><level class="para1"><num>(a)</num><content><p>is to be used for all purposes of this Part instead of the value recorded in the accounts (for example, where the carrying value of an asset has been substituted and the value of that asset is relevant to the member’s deferred tax expense, that substituted value is to be used in connection with determining that expense), and</p></content></level><level class="para1"><num>(b)</num><content><p>is to be updated (for example, in making adjustments for depreciation for subsequent accounting periods),</p></content></level><wrapUp><p>in each case, in accordance with the accounting standard used in determining the underlying profits of the member.</p></wrapUp></subsection><subsection eId="d25e20837"><num>(2)</num><content><p>But where the value in question is the value of an asset, no adjustments for impairment are to be made to it.</p></content></subsection><subsection eId="d25e20843"><num>(3)</num><content><p>Where the impaired value of an asset recorded in the underlying profits accounts for any accounting period is less than the substituted value of the asset for that period, use the value from the underlying profits accounts instead for that period and all subsequent periods (and <ref href="#d25e20837">subsection (2)</ref> does not apply in relation to that value).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><intro><p>In section 197 (eligible tangible asset amount), in <ref href="#d25e20843">subsection (3)</ref>—</p></intro><level class="para1" eId="schedule-4-paragraph-12-2-a"><num>(a)</num><content><p><mod>after “means” insert <quotedText>“values”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-12-2-b"><num>(b)</num><content><p><mod>after “parent” insert <quotedText>“(and not values as substituted as a result of any other provision of this Part)”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-4-paragraph-25-1"><num>(1)</num><content><p>Section 180 (blended CFC regimes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-25-2"><num>(2)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-25-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “the effective tax rate of” substitute <quotedText>“a single effective tax rate of all”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is a member of the multinational group,</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different subsets of (one or more) members of the multinational group located in the territory where the CFC entity is located (“local blending subsets”), and</p></content></level><level class="para2"><num>(iii)</num><content><p>the CFC entity is a member of a local blending subset,</p></content></level><wrapUp><p>the effective tax rate of the local blending subset of which the CFC entity is a member, calculated on the assumptions set out in paragraph (a)(i) and (ii) (“the relevant assumptions”);</p></wrapUp></level><level class="para1"><num>(ab)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is not a member of the multinational group, or is a member of the multinational group but not a member of any local blending subset, and</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different local blending subsets,</p></content></level><wrapUp><p>the effective tax rate, calculated on the relevant assumptions, of the local blending subset whose members have collectively the highest attributable income of C in relation to the CFC entity (as mentioned in subsection (5)(a));</p></wrapUp></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-c"><num>(c)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-25-2-c-i"><num>(i)</num><content><p><mod>for “where it is not located in such a territory,” substitute <quotedText>“where no applicable effective tax rate can be determined under paragraphs (a) to (ab)”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-25-2-c-ii"><num>(ii)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>But this is subject to section 180A.</p></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-25-3"><num>(3)</num><content><p><mod>After section 180 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>180A</num><heading>Section 180: further provision</heading><subsection><num>(1)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 3 of Schedule 16 for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of the multinational group (as defined in paragraph 8 of Schedule 16)).</p></content></subsection><subsection><num>(2)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 10 of Schedule 16 (application in the case of joint venture group) for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of that multinational group (as defined in paragraph 8 of Schedule 16).</p></content></subsection><subsection><num>(3)</num><content><p>Subsection (4) has effect where the filing member of a particular multinational group mentioned in section 180(8)(a) has made one or more separate elections under any of paragraphs 1, 4, 5 and 6 of Schedule 16A for the relevant period in respect of the territory mentioned in section 180(8)(a).</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of section 180, the effective tax rate of any member or set of members to which a particular election mentioned in subsection (4) relates is to be the rate (expressed as a percentage) given by dividing—</p></intro><level class="para1"><num>(a)</num><content><p>the aggregate tax expense of that member or set of members used to determine the effective tax rate for the purposes of the qualifying domestic top-up tax applying in the territory for the accounting period, together with any amounts of qualifying domestic top-up tax paid of that member or set of members, by</p></content></level><level class="para1"><num>(b)</num><content><p>the income of that member or set of members determined for the purposes of the qualifying domestic top-up tax.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “relevant period” is to be interpreted in accordance with section 180(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-28" class="schProv1"><num>28</num><content><p><mod>After section <ref href="#d25e21974">181A</ref> (as inserted by <ref href="#schedule-4-paragraph-27">paragraph 27</ref>) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Cross-border allocation of deferred tax expense</heading><section><num>181B</num><heading>Cross-border allocation of deferred tax assets and liabilities</heading><subsection><num>(1)</num><content><p>Deferred tax assets and liabilities are to be allocated between standard members of a multinational group in one territory and standard members of the group in another territory in accordance with the deferred taxes methodology.</p></content></subsection><subsection eId="d25e22069"><num>(2)</num><intro><p>The “<term refersTo="#term-deferred-taxes-methodology">deferred taxes methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the deferred taxes methodology, or</p></content></level><level class="para1" eId="d25e22084"><num>(b)</num><content><p>where no deferred taxes methodology is identified in any such regulations, the methodology described in the cross-border deferred taxes guidance.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-cross-border-deferred-taxes-guidance">cross-border deferred taxes guidance</term>” means Chapter 4.2 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(4)</num><content><p>Where <ref href="#d25e22069">subsection (2)</ref><ref href="#d25e22084">(b)</ref> applies, the cross-border deferred taxes guidance has effect as deferred taxes methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(5)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the deferred taxes methodology.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-31" class="schProv1"><num>31</num><content><p><mod>In section 185 (inclusion of existing deferred tax assets and liabilities on entry into regime), after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Subsection <ref href="#d25e22266">(9)</ref> applies to a deferred tax asset or deferred tax liability of a member of a qualifying multinational group that arises under a blended CFC regime.</p></content></subsection><subsection eId="d25e22266"><num>(9)</num><content><p>A deferred tax asset or deferred tax liability to which this subsection applies is to be ignored in determining the member’s deferred tax expense.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-37" class="schProv1"><num>37</num><content><p><mod>In section 203 (additional top-up amounts where covered taxes less than expected), in subsections (4)(b), (5)(b), (6)(b) and (7)(b), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-4-paragraph-46-1"><num>(1)</num><content><p>Part 2 of Schedule 16 (transitional safe harbour) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-2"><num>(2)</num><intro><p>In paragraph 3 (election)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (1), after “election” insert <quotedText>“under this paragraph”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2)(c), for “the election” substitute <quotedText>“a transitional safe harbour election”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-c"><num>(c)</num><content><p><mod>in sub-paragraph (7), for “the information” substitute <quotedText>“all relevant information”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-d"><num>(d)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(7A)</num><content><p>For the purposes of sub-paragraph (7), “<term refersTo="#term-all-relevant-information">all relevant information</term>” means all of the information described in paragraphs (a) to (d) of paragraph 4(3).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-e"><num>(e)</num><content><p><mod>after sub-paragraph (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(10)</num><content><p>An election under this paragraph may not be made in respect of the nominal territory of a stateless member of a multinational group.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-3"><num>(3)</num><intro><p>In paragraph 4 (qualified financial statements), in sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for “statement” substitute <quotedText>“statements”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>after “parent” insert <quotedText>“provided the statements are prepared in accordance with acceptable accounting standards or an authorised accounting standard”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-46-3-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>financial statements of members of the group provided—</p></intro><level class="para2"><num>(i)</num><content><p>they are prepared in accordance with acceptable accounting standards or an authorised accounting standard, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the information contained in those statements is reliable and is maintained in a manner that is consistent with its use under the accounting standard used in preparing those statements.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-4"><num>(4)</num><content><p><mod>In paragraph 4, after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>But see also <ref href="#d25e24052">paragraph 4A</ref> in cases where those accounts or statements reflect purchase price accounting adjustments.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-5"><num>(5)</num><content><p><mod>In paragraph 4, in sub-paragraph (3), in paragraph (d), after “income” insert <quotedText>“exclusion”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-6"><num>(6)</num><content><p><mod>After paragraph 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Accounts or statements reflecting purchase price accounting adjustments</heading><paragraph eId="d25e24052" class="schProv1"><num>4A</num><subparagraph><num>(1)</num><intro><p>This paragraph applies in relation to accounts or financial statements (“the relevant statements”) in relation to a multinational group in a territory that—</p></intro><level class="para1"><num>(a)</num><content><p>fall within paragraph (a) or (b) of paragraph 4(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>reflect purchase price accounting adjustments.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a country-by-country report has been submitted in respect of the group in that territory in respect of a period commencing on or after 1 January 2023 and concluding before the commencement of the accounting period for which the transitional safe harbour election is being made,</p></content></level><level class="para1"><num>(b)</num><content><p>the financial accounts used for the preparation of that report did not reflect purchase price accounting adjustments, and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no requirement to reflect purchase price adjustments in the relevant statements under the law of the territory that applies in relation to the preparation of those statements,</p></content></level><wrapUp><p>the relevant statements are not qualified financial statements.</p></wrapUp></subparagraph><subparagraph><num>(3)</num><intro><p>Sub-paragraph <ref href="#d25e24121">(4)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant statements are qualified financial statements, and</p></content></level><level class="para1"><num>(b)</num><content><p>an impairment of goodwill in relation to a transaction entered into on or after 1 December 2021 is reflected in a member’s profit (loss) before income tax.</p></content></level></subparagraph><subparagraph eId="d25e24121"><num>(4)</num><intro><p>Adjust the profit (loss) before income tax of the member so that it does not reflect that impairment for the purposes of determining—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the condition in sub-paragraph <ref href="#d25e24142">(5)</ref> is not met, whether the simplified effective tax rate test is met (see paragraph 8), and</p></content></level><level class="para1"><num>(b)</num><content><p>in any case, whether the routine profits test is met (see paragraph 9).</p></content></level></subparagraph><subparagraph eId="d25e24142"><num>(5)</num><intro><p>The condition in this sub-paragraph is that the relevant statements reflect—</p></intro><level class="para1"><num>(a)</num><content><p>a reversal of deferred tax liability in relation to the goodwill, or</p></content></level><level class="para1"><num>(b)</num><content><p>the recognition or increase of a deferred tax asset in relation to it.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-7"><num>(7)</num><intro><p>In paragraph 5 (qualifying income tax expense)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-7-a"><num>(a)</num><content><p>the existing text becomes sub-paragraph (1), and</p></content></level><level class="para1" eId="schedule-4-paragraph-46-7-b"><num>(b)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><content><p>For the purposes of this Part of this Schedule, any amount of qualifying income tax expense that is in respect of profits of a permanent establishment and that is incurred in the territory of the permanent establishment is to be regarded as the expense of that permanent establishment (rather than of the main entity).</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-4-paragraph-49-1"><num>(1)</num><content><p>Section 201 (inclusion ratio) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-2"><num>(2)</num><content><p><mod>In subsection (1), in Step 2, at the end insert <quotedText>“, but excluding ownership interests in respect of which an amount has been excluded from the relevant member’s adjusted profits.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-3"><num>(3)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00180" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">section 270</a> (charge on profits of property businesses), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-2-2-a"><num>(a)</num><content><p>in the definition of “CAA allowances” omit “or 250A”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-2-b"><num>(b)</num><content><p><mod>in the definition of “CAA charges”, for “either of those sections” substitute <quotedText>“that section”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>In section 272B (meaning of “<term refersTo="#term-costs-of-a-dwelling-related-loan" eId="term-costs-of-a-dwelling-related-loan">costs of a dwelling-related loan</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (2)</a> for “subsections (3) and (4)” substitute <quotedText>“subsection (3)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (4)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><intro><p>In section 307B (cash basis: capital expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (6)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(7)</a>, omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsection (8)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">paragraph (a)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-residential-property">residential property</term>” means land consisting of a dwelling-house or part of a dwelling-house in relation to which a UK property business or an overseas property business is carried on in the tax year, and</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (9)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(19)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">section 307E</a> (cash basis: capital receipts)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (20)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a> for “sections 248 to 250A” substitute <quotedText>“sections 248 and 250”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (22)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a>, for “section 15(1)(b) to (da)” substitute <quotedText>“section 15(1)(b) or (d)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>In section 311A (replacement domestic items relief)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (6)</a>, for “subsections (7) and (8)” substitute <quotedText>“subsection (8)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (7)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In section 313 (restrictions on relief), omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/313">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-8"><num>(8)</num><content><p>Omit Chapter 6 of Part 3 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-9"><num>(9)</num><intro><p>In section 334C (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">(b)</a>, for “a relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (3)</a>, for “each relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (6)</a>, omit the definition of “relevant property business activity”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-10"><num>(10)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4">Schedule 4</a> (index of defined expressions), omit the entry for “commercial letting of furnished holiday accommodation (for purposes of Chapter 6 of Part 3)”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-7-a"><num>(a)</num><content><p>in <ref eId="c00191" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 172 and 173 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-b"><num>(b)</num><content><p>in <ref eId="c00192" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraphs 602 and 603 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-c"><num>(c)</num><content><p>in <ref eId="c00193" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 2 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-d"><num>(d)</num><content><p>in <ref eId="c00194" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(7);</p></content></level><level class="para1" eId="schedule-5-paragraph-7-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 155 of Schedule 4.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-7-a"><num>(a)</num><content><p>in <ref eId="c00191" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 172 and 173 of Schedule 1;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-7-b"><num>(b)</num><content><p>in <ref eId="c00192" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraphs 602 and 603 of Schedule 1;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-7-c"><num>(c)</num><content><p>in <ref eId="c00193" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 2 of Schedule 14;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-7-d"><num>(d)</num><content><p>in <ref eId="c00194" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(7);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-7-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 155 of Schedule 4.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p><ref eId="c00203" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>In section 3A (gains connected to avoidance or foreign activities etc) omit <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">subsections (3)</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">(5)</a></span>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">section 165A</a> (meaning of “<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “<term refersTo="#term-trading-group" eId="term-trading-group">trading group</term>”), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">subsection (14)</a>, in the definition of “trade” omit “(subject to section 241(3))”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-10-4-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">section 241</a> (UK furnished holiday lettings), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-4-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">section 241A</a> (EEA furnished holiday lettings).</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to disposals made on or after the commencement date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> also have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>for the purposes of <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">sections 152</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/157">157</a></span> of <ref eId="c00212" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief on replacement of business asset), in relation to acquisitions that take place on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/253">section 253</a> of <ref eId="c00213" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for loans to traders), in relation to claims for a loss to be treated as accruing to a person on or after the commencement date.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p><ref href="#schedule-5-paragraph-13-1">Sub-paragraph (1)</ref> is subject to <ref href="#schedule-5-paragraph-19">paragraph 19</ref> (business asset disposal relief: disposals relating to pre-commencement businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In <ref href="#schedule-5-paragraph-13">this paragraph</ref>, “<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-16">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>a person is treated as carrying on in the tax year 2024-25 a single trade by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00220" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (UK furnished holiday lettings businesses) or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00221" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>the person has made a loss in that trade in the tax year 2024-25 or a previous tax year,</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-c"><num>(c)</num><content><p>relief for the loss has not been fully given under <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4/chapter/2">Chapter 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4">Part 4</a> of <ref eId="c00222" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (trade losses) or any other provision of the Income Tax Acts, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-d"><num>(d)</num><content><p>the person carries on a corresponding property business in the tax year 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><content><p>So much of the loss as has not been relieved is to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/118">section 118</a> of <ref eId="c00223" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (carry forward against subsequent property business profits) as if it had been made in the corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-16">this paragraph</ref>, “<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00224" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/264">section 264</a> of <ref eId="c00225" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00226" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/265">section 265</a> of <ref eId="c00227" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><intro><p>The amendments made by <ref href="#schedule-5">this Schedule</ref> do not have effect in relation to a disposal made on or after 6 April 2025 if it is—</p></intro><level class="para1" eId="schedule-5-paragraph-19-a"><num>(a)</num><content><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(b)</a> of <ref eId="c00241" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (assets used for purposes of business) where the date on which the business ceases to be carried on is before 6 April 2025;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-b"><num>(b)</num><intro><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(c)</a> of <ref eId="c00242" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (shares in or securities of a company) where—</p></intro><level class="para2" eId="schedule-5-paragraph-19-b-i"><num>(i)</num><content><p>the disposal is a material disposal by virtue of condition B in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7)</a> of <ref eId="c00243" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> or condition D in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7B)</a> of <ref eId="c00244" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-19-b-ii"><num>(ii)</num><content><p>the period of 2 years mentioned in condition B or condition D (as the case may be) ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-c"><num>(c)</num><intro><p>a disposal of trust business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(1)</a> of <ref eId="c00245" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where the settlement business assets are—</p></intro><level class="para2" eId="schedule-5-paragraph-19-c-i"><num>(i)</num><content><p>assets consisting of (or of interests in) shares in or securities of a company in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(4)</a> of <ref eId="c00246" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025, or</p></content></level><level class="para2" eId="schedule-5-paragraph-19-c-ii"><num>(ii)</num><content><p>assets (or interests in assets) used or previously used for the purposes of a business in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(5)</a> of <ref eId="c00247" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-d"><num>(d)</num><content><p>a disposal associated with a relevant material disposal within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">section 169K</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">(1)</a> of <ref eId="c00248" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, where the date of the material disposal of business assets with which the disposal is associated is before 6 April 2025.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-19-a"><num>(a)</num><content><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(b)</a> of <ref eId="c00241" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (assets used for purposes of business) where the date on which the business ceases to be carried on is before 6 April 2025;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-19-b"><num>(b)</num><intro><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(c)</a> of <ref eId="c00242" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (shares in or securities of a company) where—</p></intro><level class="para2" eId="schedule-5-paragraph-19-b-i"><num>(i)</num><content><p>the disposal is a material disposal by virtue of condition B in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7)</a> of <ref eId="c00243" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> or condition D in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7B)</a> of <ref eId="c00244" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-19-b-ii"><num>(ii)</num><content><p>the period of 2 years mentioned in condition B or condition D (as the case may be) ends before 6 April 2025;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-19-b-i"><num>(i)</num><content><p>the disposal is a material disposal by virtue of condition B in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7)</a> of <ref eId="c00243" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> or condition D in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7B)</a> of <ref eId="c00244" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-19-b-ii"><num>(ii)</num><content><p>the period of 2 years mentioned in condition B or condition D (as the case may be) ends before 6 April 2025;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-19-c"><num>(c)</num><intro><p>a disposal of trust business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(1)</a> of <ref eId="c00245" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where the settlement business assets are—</p></intro><level class="para2" eId="schedule-5-paragraph-19-c-i"><num>(i)</num><content><p>assets consisting of (or of interests in) shares in or securities of a company in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(4)</a> of <ref eId="c00246" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025, or</p></content></level><level class="para2" eId="schedule-5-paragraph-19-c-ii"><num>(ii)</num><content><p>assets (or interests in assets) used or previously used for the purposes of a business in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(5)</a> of <ref eId="c00247" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-19-c-i"><num>(i)</num><content><p>assets consisting of (or of interests in) shares in or securities of a company in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(4)</a> of <ref eId="c00246" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-19-c-ii"><num>(ii)</num><content><p>assets (or interests in assets) used or previously used for the purposes of a business in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(5)</a> of <ref eId="c00247" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-19-d"><num>(d)</num><content><p>a disposal associated with a relevant material disposal within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">section 169K</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">(1)</a> of <ref eId="c00248" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, where the date of the material disposal of business assets with which the disposal is associated is before 6 April 2025.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a> (disposals to employee-ownership trusts), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28509"><num>(za)</num><content><p>that the trustees of the settlement are resident in the United Kingdom at the time of the disposal and continue to be UK resident for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a> (no section 236H relief if disqualifying event in next tax year), before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28532"><num>(za)</num><content><p>the trustees of the settlement cease to be resident in the United Kingdom,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p>See also section 80 (trustees ceasing to be resident in U.K.), which provides for similar consequences in circumstances where the trustees of the settlement cease to be resident in the United Kingdom.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a> (relief for deemed disposals under section 71), for “236H(4)(a)” substitute <quotedText>“236H(4)<ref href="#d25e28509">(za)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-2">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><intro><p>that the trustees have taken all reasonable steps to secure that—</p></intro><level class="para2"><num>(i)</num><content><p>the consideration for the disposal does not exceed the market value of the ordinary share capital at the time of the disposal, and</p></content></level><level class="para2"><num>(ii)</num><content><p>where some or all of the consideration for the disposal is deferred, that the rate of any interest payable in relation to the deferral does not exceed a reasonable commercial rate,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a>, for “(d)” substitute <quotedText>“(c) and (d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-5">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><intro><p>If an individual falling within <ref href="#schedule-8-paragraph-6-2">sub-paragraph (2)</ref>—</p></intro><level class="para1" eId="schedule-8-paragraph-6-1-a"><num>(a)</num><content><p>meets the section 26A requirement for tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-1-b"><num>(b)</num><content><p>is not a qualifying new resident for that year for the purposes of Chapter 5C of Part 2 of ITEPA 2003,</p></content></level><wrapUp><p>the individual is to be treated as a qualifying new resident for that tax year for the purposes of that Chapter.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-6-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2023-24 or tax year 2024-25, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that tax year.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-9-paragraph-26-1"><num>(1)</num><content><p>In the Appendix to <a href="https://www.legislation.gov.uk/uksi/2001/2743/schedule/1">Schedule 1</a> to the <ref eId="c00278" href="https://www.legislation.gov.uk/uksi/2001/2743">Education (Grants) (Music, Ballet and Choir Schools) (England) Regulations 2001</ref> (<ref eId="c00279" href="https://www.legislation.gov.uk/uksi/2001/2743">S.I. 2001/2743</ref>) (aided pupil scheme: computation of income), in paragraph 2, in sub-paragraph (a) omit “, ordinarily resident or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2">Schedule 2</a> to the <ref eId="c00280" href="https://www.legislation.gov.uk/uksi/2010/447">Education (Student Support) (European University Institute) Regulations 2010</ref> (<ref eId="c00281" href="http://www.legislation.gov.uk/id/uksi/2010/447">S.I. 2010/447</ref>) (calculation of contribution), in <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">paragraph 4</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(5)</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(a)</a>, omit “or domiciled” in the first place it appears.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-3"><num>(3)</num><content><p>The <ref eId="c00282" href="https://www.legislation.gov.uk/uksi/2011/1986">Education (Student Support) Regulations 2011</ref> (<ref eId="c00283" href="http://www.legislation.gov.uk/id/uksi/2011/1986">S.I. 2011/1986</ref>) are amended in accordance with <ref href="#schedule-9-paragraph-26-4">sub-paragraphs (4)</ref> and <ref href="#schedule-9-paragraph-26-5">(5)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4">Schedule 4</a> (financial assessment)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-4-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-b-ii"><num>(ii)</num><content><p>omit “so”.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-26-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6">Schedule 6</a> (assessment of eligible part-time student’s household income)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-5-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(6)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;The</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-b-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-10-paragraph-2-1"><num>(1)</num><content><p>An amount of capital is “qualifying overseas capital” of an individual if it falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>, <ref href="#schedule-10-paragraph-2-5">(5)</ref> or <ref href="#schedule-10-paragraph-2-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-2"><num>(2)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-2-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-b"><num>(b)</num><content><p>the amount has not been remitted to the United Kingdom, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-c"><num>(c)</num><content><p>the amount, if remitted to the United Kingdom, would have the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-3"><num>(3)</num><intro><p>That effect is that—</p></intro><level class="para1" eId="schedule-10-paragraph-2-3-a"><num>(a)</num><content><p>the individual becomes chargeable to income tax by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">26</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">41F</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">554Z9</a> or 554Z10 of <ref eId="c00289" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> or <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00290" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (income charged on remittance basis), or</p></content></level><level class="para1" eId="schedule-10-paragraph-2-3-b"><num>(b)</num><content><p>a gain is treated as accruing to the individual by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00291" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (gains charged on remittance basis).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-4"><num>(4)</num><content><p>In determining whether an amount of capital falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> for the purposes of making a designation election for a tax year, the condition in <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-10-paragraph-2-2-b">(b)</ref> is to be regarded as met if it was met at the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-5"><num>(5)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-5-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-b"><num>(b)</num><content><p>the amount is remitted to the United Kingdom in the tax year 2025-26, 2026-27 or 2027-28, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-c"><num>(c)</num><content><p>that remittance has the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-6"><num>(6)</num><content><p>An amount that is qualifying overseas capital falling within <ref href="#schedule-10-paragraph-2-5">sub-paragraph (5)</ref> (and that has not previously been designated as result of the amount falling within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>) may only be designated in a designation election for the tax year in which it was remitted.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-7"><num>(7)</num><intro><p>For the purposes of <ref href="#schedule-10-paragraph-2-2">sub-paragraphs (2)</ref><ref href="#schedule-10-paragraph-2-2-c">(c)</ref> and <ref href="#schedule-10-paragraph-2-5">(5)</ref><ref href="#schedule-10-paragraph-2-5-c">(c)</ref>, a remittance is to be treated as having the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref> if it would have that effect ignoring—</p></intro><level class="para1" eId="schedule-10-paragraph-2-7-a"><num>(a)</num><content><p><ref href="#schedule-10-part-2">Part 2</ref> of this Schedule (exemptions etc for designated qualifying overseas capital),</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VA">section 809VA</a> of <ref eId="c00292" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (business investment relief), and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a> of <ref eId="c00293" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (exempt property).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-8"><num>(8)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-8-a"><num>(a)</num><content><p>it does not fall within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> or <ref href="#schedule-10-paragraph-2-5">(5)</ref>,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-b"><num>(b)</num><content><p>it was held by the individual immediately before 6 April 2025,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-c"><num>(c)</num><intro><p>it was situated outside the United Kingdom—</p></intro><level class="para2" eId="schedule-10-paragraph-2-8-c-i"><num>(i)</num><content><p>immediately before it was most recently acquired by the individual before that date, and</p></content></level><level class="para2" eId="schedule-10-paragraph-2-8-c-ii"><num>(ii)</num><content><p>throughout the period beginning with the time referred to in <ref href="#schedule-10-paragraph-2-8-c-i">sub-paragraph (i)</ref> and ending with that date.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-9"><num>(9)</num><content><p>References in <ref href="#schedule-10-part-1">Parts 1</ref> and <ref href="#schedule-10-part-2">2</ref> of <ref href="#schedule-10">this Schedule</ref> to amounts being remitted to the United Kingdom are to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00294" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-10-paragraph-5-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of paragraph 8(1) of Schedule 4C to TCGA 1992 in relation to a capital payment from the trustees of a relevant settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-1-b"><num>(b)</num><content><p>the section 1(3) amount in the Schedule 4C pool is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts in the Schedule 4C pool for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-3-a"><num>(a)</num><content><p>the section 1(3) amount in the Schedule 4C pool for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-5-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-5-3-b-ii"><num>(ii)</num><content><p>to which paragraph 8(1) of Schedule 4C to that Act applies in relation to section 1(3) amounts in the Schedule 4C pool.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or an earlier tax year resulting from the application of paragraph 8(1) of Schedule 4C to TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-5-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount in the Schedule 4C pool under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-6"><num>(6)</num><content><p>The section 1(3) amount in the Schedule 4C pool is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-53f680365af6ece2c1f0aed8e72e1394-1776847357884" ukl:CommentaryRef="key-53f680365af6ece2c1f0aed8e72e1394"><noteRef uk:name="commentary" href="#key-53f680365af6ece2c1f0aed8e72e1394" class="commentary"/>paragraph 3</ins> (and no section 1(3) amount in the Schedule 4C pool or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-5-8-a"><num>(a)</num><content><p>“section 1(3) amount in the Schedule 4C pool” and “relevant settlement” are to be construed in accordance with Schedule 4C to TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-10-paragraph-8-1"><num>(1)</num><content><p>A designation election for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2"><num>(2)</num><intro><p>The designation must—</p></intro><level class="para1" eId="schedule-10-paragraph-8-2-a"><num>(a)</num><content><p>set out the total amount designated, <noteRef href="#key-618a6a5886e1287ff91179a230f38778" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-aa"><num><ins class="first" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55"><noteRef uk:name="commentary" href="#key-2431037c5d02401011ed77937389fc55" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55">for each amount designated, whether or not it is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-b"><num>(b)</num><content><p>identify which (if any) of the amounts designated <ins class="first last" ukl:ChangeId="key-988aec55dba20941dfe651e6fc0cdbee-1776849778990" ukl:CommentaryRef="key-988aec55dba20941dfe651e6fc0cdbee"><noteRef uk:name="commentary" href="#key-988aec55dba20941dfe651e6fc0cdbee" class="commentary"/>on that basis</ins> have been remitted in the tax year to which the return relates.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-2A"><num><ins class="first" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af"><noteRef uk:name="commentary" href="#key-65ee73b2b4a1eeb8133aba3eb5d541af" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">For the purposes of designating an amount of qualifying overseas capital of an individual that—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2A-a"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(a)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is qualifying overseas capital as a result of paragraph 2(2) or (5), or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2A-b"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(b)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is treated as qualifying overseas capital as a result of paragraph 6(1)(b),</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">the value of that amount is the value of the amount when it first arose to the individual.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2B"><num><ins class="first" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa"><noteRef uk:name="commentary" href="#key-dc0713a92959e81f684701908e0759aa" class="commentary"/>(2B)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">In this Part and in Part 2 “</ins><term refersTo="#term-remittance-provision"><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">remittance provision</ins></term><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">” means paragraph 2(2) or (5) or paragraph 6(1)(b).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2C"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2C)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2C-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">an amount is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2C-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">the amount would (ignoring this sub-paragraph) also be regarded as designated under paragraph 3 or 5 (matched capital payments),</ins></p></content></level><wrapUp><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">it is not to be regarded as designated under that paragraph for the purposes of paragraph 10(7) (relief for offshore income gains) or paragraph 13 (relief for matched capital payments) as a result of that designation on that basis.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2D"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2D)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Accordingly two designations of the amount are required to secure the benefit of all of the reliefs that may be available under paragraphs 10(1), 10(7),12(1) and 13—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2D-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">one designation of the amount on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2D-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">another not on that basis.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-3"><num>(3)</num><content><p>Where an amount of relevant foreign tax has been paid, or is payable, in respect of an amount of qualifying overseas capital, only so much of the amount as remains after deducting the amount of relevant foreign tax paid, or payable, may be designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-4"><num>(4)</num><intro><p>For the purposes of this paragraph, relevant foreign tax means a tax imposed by the law of a territory outside the United Kingdom that corresponds to—</p></intro><level class="para1" eId="schedule-10-paragraph-8-4-a"><num>(a)</num><content><p>income tax, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-4-b"><num>(b)</num><content><p>capital gains tax.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-4A"><num><ins class="first" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3"><noteRef uk:name="commentary" href="#key-d2b98820144550a15e507e0a9ff68cf3" class="commentary"/>(4A)</ins></num><intro><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">But where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-4A-a"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">an amount of relevant foreign tax has been paid, or will be paid, in respect of an amount of qualifying overseas capital (“the related qualifying overseas capital”), and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-4A-b"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">it has been, or will be, paid out of funds other than the related qualifying overseas capital,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">sub-paragraph (3) does not apply to the related qualifying overseas capital to the extent that the tax has been, or will be, paid out of those funds.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-5"><num>(5)</num><intro><p>An individual may designate an amount where it has not yet been determined—</p></intro><level class="para1" eId="schedule-10-paragraph-8-5-a"><num>(a)</num><content><p>whether the amount is qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-5-b"><num>(b)</num><content><p>whether, or to what extent, relevant foreign tax is, or was, payable in respect of the amount.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-5A"><num><ins class="first" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1"><noteRef uk:name="commentary" href="#key-7a0c94f10a7604893d15a37e40290eb1" class="commentary"/>(5A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1">Where the individual considers that an amount designated under sub-paragraph (5) could, if it were qualifying overseas capital, be designated on the basis that it is qualifying overseas capital as a result of a remittance provision, the individual may designate it on that basis.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6"><num>(6)</num><intro><p>An amount designated—</p></intro><level class="para1" eId="schedule-10-paragraph-8-6-a"><num>(a)</num><content><p>that is determined to not be qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-6-b"><num>(b)</num><content><p>that should not have been designated as a result of sub-paragraph (3),</p></content></level><wrapUp><p>is to be nevertheless treated as designated qualifying overseas capital, other than for the purpose of Part 2 of this Schedule (exemptions etc).</p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-6A"><num><ins class="first" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52"><noteRef uk:name="commentary" href="#key-faf32870b83f36b1427015ddaafdef52" class="commentary"/>(6A)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Sub-paragraph (6B) applies where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-6A-a"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(a)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">an amount (“the TRF amount”) is treated as designated qualifying overseas capital of an individual as a result of sub-paragraph (6),</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-6A-b"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(b)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">on or after 6 April 2025, an officer of Revenue and Customs, in relation to the tax year 2024-25 or an earlier tax year—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-8-6A-b-i"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(i)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">amends the individual’s self-assessment while an enquiry under section 9A of TMA 1970 (enquiry into return) into the individual’s return for that tax year is in progress,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-ii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(ii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">issues a partial or final closure notice under section 28A of that Act (completion of enquiry) in relation to that return, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-iii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(iii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">makes an assessment under section 29 of that Act, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-8-6A-c"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(c)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">the effect of the officer taking that step is that income tax or capital gains tax is charged in respect of the TRF amount.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-6B"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6B)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">The amount of income tax or capital gains tax due and payable under section 59B of TMA 1970 in respect of the TRF amount is to be treated as reduced (but not below nil) by the amount of the TRF charge paid in respect of the TRF amount.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6C"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Where sub-paragraph (6B) applies, the individual may not amend the return in which the designation election relating to the TRF amount was included to alter or revoke that election (if the return otherwise could have been amended) so as to cause the TRF amount not to be designated.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-7"><num>(7)</num><content><p>Where an amount is designated, it is treated as designated qualifying overseas capital from the beginning of the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-8"><num>(8)</num><content><p>An individual who makes a designation election must keep a record of each amount designated.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content><p>This paragraph applies where an amount of income that is treated as arising to an individual under section 732 of ITA 2007 (“the deemed income”) is exempt from income tax by virtue of paragraph 10.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 6(1)(c), Chapter 2 of Part 13 of ITA 2007 has effect as though the deemed income had been charged to tax under section 731 of that Act.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><intro><p>Accordingly—</p></intro><level class="para1" eId="schedule-10-paragraph-11-3-a"><num>(a)</num><content><p>in the application of section 733(1) of ITA 2007 to the individual for subsequent tax years, the amount of the deemed income will be deducted at Step 2 and at paragraph (a) of Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-3-b"><num>(b)</num><content><p>in the application of section 733(1) of ITA 2007 to any other individual for subsequent tax years, the amount of the deemed income will be deducted at paragraph (b) of Step 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 7, Chapter 2 of Part 13 of ITA 2007 has effect as though the benefit by reference to which the deemed income was treated as arising had never been provided.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><intro><p>Accordingly, in the application of section 733(1) of ITA 2007 to any individual for subsequent tax years—</p></intro><level class="para1" eId="schedule-10-paragraph-11-5-a"><num>(a)</num><content><p>that benefit will not be taken into account at Step 1,</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-b"><num>(b)</num><content><p>no deduction in respect of the deemed income will be made at Step 2 or Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-c"><num>(c)</num><content><p>the total untaxed benefits will not be reduced in respect of that benefit by virtue of section 734 (previous capital gains charge).</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-10-paragraph-16-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">Section 809R</a> of <ref eId="c00313" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “This section applies” substitute <quotedText>“Subsections (2) to (8) apply”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>For the purposes of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (5)</a> for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-5-a"><num>(a)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q as not applying in relation to it, if it” substitute <quotedText>“neither section 809Q nor section 809RZA(2) as applying in relation to it, if they”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-6"><num>(6)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (7)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-6-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-16-6-b"><num>(b)</num><content><p><mod> after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-7"><num>(7)</num><intro><p>In subsection (9)—</p></intro><level class="para1" eId="schedule-10-paragraph-16-7-a"><num>(a)</num><content><p><mod>for “step 1” substitute <quotedText>“steps A1 and 1”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-7-b"><num>(b)</num><content><p><mod>for “step 2” substitute <quotedText>“steps A1 and 2”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-10-paragraph-19-1"><num>(1)</num><content><p><ref eId="c00316" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">section 809VC</a> (qualifying investments) in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">subsection (4)</a>, after “if” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the investment is made before 6 April 2028,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the money or other property used to make the investment is TRF capital, and</p></content></level><level class="para1"><num>(c)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a> (income or gains treated as remitted following certain events)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (6)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38287"><num>(6A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>the income or gains mentioned in subsection (1)(a) include amounts designated as TRF capital (in a tax year after the tax year in which the investment is made), and</p></content></level><level class="para1"><num>(b)</num><content><p>the portion of the investment affected is less than the whole of the investment,</p></content></level><wrapUp><p>so much of the affected income or gains as does not exceed the amounts designated is to be treated as being comprised of the TRF capital.</p></wrapUp></subsection><subsection><num>(6B)</num><intro><p>Where section 809VO (investments made from mixed funds) applies, subsection (8) of that section applies for the purposes of determining the composition of the amount of the affected income or gains that is not treated as being comprised of TRF capital (referred to as the “<term refersTo="#term-relevant-affected-income-and-gains">relevant affected income and gains</term>” in that subsection) as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>subsection (6A) of this section not applying, or</p></content></level><level class="para1"><num>(b)</num><content><p>that subsection only applying to a part of the affected income or gains.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-3-b"><num>(b)</num><intro><p>in subsection (7)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>for “Sections” substitute <quotedText>“Section”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-3-b-ii"><num>(ii)</num><content><p><mod>for “and 809VO (investments made from mixed funds) make” substitute <quotedText>“makes”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-3-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (9)</a>, after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content><p>any part contained in amounts already treated as remitted under section 809VIA(4) following an earlier event,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">section 809VN</a> (order of disposals etc)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">(b)</a>, for the words from “order” to the end substitute <quotedText>“following order.”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The order is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the qualifying investments as were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and then</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to whatever remains, the order in which the qualifying investments were made (that is to say, on a first in, first out basis).</p></content></level></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (4)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">paragraph (b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>assume that a disposal of all or part of that deemed single holding is—</p></intro><level class="para2" eId="d25e38447"><num>(i)</num><content><p>a disposal of so much of the deemed single holding as is from any qualifying investments that were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if any of the deemed single holding remains after the disposal referred to in sub-paragraph (i), a disposal of a holding from qualifying investments until the holdings from all the qualifying investments have been disposed of.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">section 809VO</a> (investments made from mixed funds)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-5-a"><num>(a)</num><content><p><mod>for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38475"><num>(4)</num><content><p>The “fixed proportion” is, unless subsection (4B) applies, the proportion of that kind of income or capital contained in the invested property by virtue of subsection (2).</p></content></subsection><subsection><num>(4A)</num><content><p>Subsection (4B) applies, instead of subsection (3), for determining the composition of the holding in connection with the application of subsections (7) and (8) where the holding contains TRF capital (as a result of the designation of income or capital in the holding as TRF capital in the tax year after the tax year in which the relevant event occurred).</p></content></subsection><subsection eId="d25e38487"><num>(4B)</num><content><p>Where this subsection applies, take the following steps to determine the composition of the holding in connection with the application of those subsections—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the amounts of each kind of income and capital that the holding was treated as containing by virtue of subsection (3).</p></item><item><p><i>Step 2</i></p><p>Reduce the amount of each kind of income and capital by the amount (if any) of that income or capital as is TRF capital.</p></item></blockList></content></subsection><subsection eId="d25e38510"><num>(4C)</num><content><p>Where subsection (4B) applies, the “fixed proportion” is the proportion of that kind of income or capital treated as contained in the invested property by virtue of that subsection (instead of subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-b"><num>(b)</num><content><p><mod>in subsection (7), after “proportion” insert <quotedText>“(determined under subsection (4) or (4C) as the case may be)”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-c"><num>(c)</num><intro><p>in subsection (8)(a)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-5-c-i"><num>(i)</num><content><p><mod>before “affected” insert <quotedText>“relevant”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-5-c-ii"><num>(ii)</num><content><p><mod>before “portion” insert <quotedText>“relevant proportion of the”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-5-d"><num>(d)</num><content><p><mod>in subsection (8)(b), after “(3)” insert <quotedText>“or (4B) (as the case may be)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-e"><num>(e)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p>For the purposes of subsection (8)(a)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “<term refersTo="#term-relevant-affected-income-or-gains">relevant affected income or gains</term>” means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, so much of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, all of the affected income or gains, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “relevant proportion” of the portion of the investment means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, the proportion of the portion of the investment that is equal to the proportion of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, the whole of the portion of the investment.</p></content></level></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VI">section 809VI</a> (the appropriate mitigation steps), in subsection (3), after “But” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>see also section 809VIA (which makes provision treating the disposal proceeds as reduced where TRF capital is involved), and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-7"><num>(7)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e38654"><num>809VIA</num><heading>Application of appropriate mitigation steps where TRF capital involved</heading><subsection><num>(1)</num><content><p>This section applies in relation to a potentially chargeable event where, if no appropriate mitigation steps were regarded as taken, an amount of TRF capital would (ignoring this section) be treated as remitted to the United Kingdom immediately after the end of the relevant grace period as a result of section 809VG(2).</p></content></subsection><subsection><num>(2)</num><content><p>Where there has been a disposal of all or part of the holding (see section 809VI(1) or (2)(b)), so much of the proceeds of that disposal as are equal to that amount of TRF capital is to be regarded as comprising that TRF capital.</p></content></subsection><subsection><num>(3)</num><content><p>Section 809VI has effect as if references in that section to the disposal proceeds did not include the TRF capital.</p></content></subsection><subsection eId="d25e38676"><num>(4)</num><content><p>Unless section 809VG(2) applies in relation to the potentially chargeable event, the TRF capital is to be treated as remitted to the United Kingdom at the time the potentially chargeable event occurred.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-13-paragraph-31-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1986/41/section/102">Section 102</a> of <ref eId="c00337" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref> (gifts with reservation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-2"><num>(2)</num><content><p><mod>In subsection (1), for “(5) and (6)” substitute <quotedText>“(5), (6) and (7A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-3"><num>(3)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e44482"><num>(7A)</num><intro><p>This section does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal of property by way of gift took place before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>the property became settled property by virtue of the disposal and remained settled property at all times after the disposal and before the relevant time,</p></content></level><level class="para1" eId="d25e44500"><num>(c)</num><content><p>immediately before 30 October 2024, the property was excluded property for the purposes of the 1984 Act by virtue of section 48(3) or (3A) (as it had effect at that time), and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the relevant time, the property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 to the 1984 Act applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company (within the meaning, in either case, of the 1984 Act).</p></content></level></level></subsection><subsection><num>(7B)</num><intro><p>In subsection <ref href="#d25e44482">(7A)</ref>, “<term refersTo="#term-the-relevant-time">the relevant time</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the property ceases to meet the condition in subsection (2) at any time before the donor’s death, that time;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, the time of the donor’s death.</p></content></level></subsection><subsection><num>(7C)</num><content><p>In <ref href="#d25e44482">subsection (7A)</ref><ref href="#d25e44500">(c)</ref>, “<term refersTo="#term-for-the-purposes-of-the-1984-act">for the purposes of the 1984 Act</term>” includes for the purposes only of Chapter 3 of Part 3 of that Act (ten-year anniversary charges etc) because of the operation of section 81 of that Act (property moving between settlements).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-37" class="schProv1"><num>37</num><content><p>The <ref eId="c00341" href="https://www.legislation.gov.uk/uksi/2004/2543">Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004</ref> are amended in accordance with paragraphs <ref href="#schedule-13-paragraph-38">38</ref> to <ref href="#schedule-13-paragraph-43">43</ref>.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-13-paragraph-46-1"><num>(1)</num><intro><p>An individual who would otherwise be a long-term UK resident at any time in a given tax year (“the relevant tax year”) is treated for the purposes of <ref eId="c00346" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> as not being a long-term UK resident at that time if the individual—</p></intro><level class="para1" eId="schedule-13-paragraph-46-1-a"><num>(a)</num><content><p>was not domiciled in the United Kingdom on 30 October 2024,</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-b"><num>(b)</num><content><p>has been resident in the United Kingdom for no tax year in the period beginning with the tax year 2025-26 and ending with the relevant tax year, and</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-c"><num>(c)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-13-paragraph-46-1-c-i"><num>(i)</num><content><p>was resident in the United Kingdom for none of the 3 tax years immediately preceding the relevant tax year, or</p></content></level><level class="para2" eId="schedule-13-paragraph-46-1-c-ii"><num>(ii)</num><content><p>was resident in the United Kingdom for fewer than 15 of the 20 tax years immediately preceding the relevant tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-13-paragraph-46-2"><num>(2)</num><content><p>For the purposes of <ref href="#schedule-13-paragraph-46-1">sub-paragraph (1)</ref><ref href="#schedule-13-paragraph-46-1-a">(a)</ref>, in determining where an individual was domiciled on 30 October 2024, ignore section 267 (deemed domicile) and sections 267ZA and 267ZB (domicile elections) of IHTA 1984.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-13-paragraph-49-1"><num>(1)</num><content><p>The repeal of <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> of <ref eId="c00347" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> (persons treated as domiciled in United Kingdom) by <ref href="#schedule-13-paragraph-23">paragraph 23</ref> is to be disregarded in determining for the purposes of that Act any question as to where a person was domiciled at any time before 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-49-2"><num>(2)</num><content><p>In construing section 267 of IHTA 1984, so far as saved by sub-paragraph (1), the repeal of the definition of “formerly domiciled resident” by paragraph <ref href="#schedule-13-paragraph-28">28</ref><ref href="#schedule-13-paragraph-28-3">(3)</ref><ref href="#schedule-13-paragraph-28-3-b">(b)</ref> is also to be disregarded.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p><mod>In Schedule 17 (index of defined expressions), in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“<term refersTo="#term-qualifying-member-(in-chapter-9a-of-part-3)">qualifying member (in Chapter 9A of Part 3)</term>”.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><content><p><mod>In Schedule 15 (elections), in paragraph 2(1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ha)</num><content><p><ref href="#d25e19921">section 229F</ref>;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><content><p><mod>In section 272 (domestic top-up tax for members of groups), in subsection (4), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(c)</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p><mod>In section 273 (domestic top-up tax for single entities), in subsection (4), after paragraph (z) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>z1</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-4-paragraph-38-1"><num>(1)</num><content><p>Section 206 (additional top-up amounts where recalculations required) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-38-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-2-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “members” insert <quotedText>“(“the current members”)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “those members would have for a prior period” substitute <quotedText>“the standard members of the group in the territory in a prior period would have for that period”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-3-b"><num>(b)</num><content><p><mod>in the words after paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-4-a"><num>(a)</num><content><p><mod>in Step 1, for “those members would have had for the prior period” substitute <quotedText>“the standard members of the group in the territory for the prior period would have had for that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-b"><num>(b)</num><content><p><mod>in Step 3, after “nil” insert <quotedText>“(and if there are no such results, the result of this step is nil)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-c"><num>(c)</num><intro><p>in Step 4—</p></intro><level class="para2" eId="schedule-4-paragraph-38-4-c-i"><num>(i)</num><content><p><mod>before “members” insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-4-c-ii"><num>(ii)</num><content><p><mod>for “Step 2” substitute <quotedText>“Step 3”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-5-a"><num>(a)</num><content><p><mod>for “those members” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-5-b"><num>(b)</num><content><p><mod>for “in accordance with subsections (5) to (8)” substitute <quotedText>“as follows”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-6"><num>(6)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-6-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-6-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-6-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-6-b"><num>(b)</num><content><p><mod>in paragraph (b), for “members for the members’ territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-6-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-7"><num>(7)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-7-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-7-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-7-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-7-b"><num>(b)</num><content><p><mod>in paragraph (b), for “standard members in the territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-8"><num>(8)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-8-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-ii"><num>(ii)</num><content><p><mod>before “period”, in the first place it occurs, insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-iii"><num>(iii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-8-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-9"><num>(9)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-9-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-a-ii"><num>(ii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-c"><num>(c)</num><content><p><mod>in the words after paragraph (b) for the words from “amount”, in the second place it occurs, to the end substitute <quotedText>“relevant amount.”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-10"><num>(10)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9)</num><intro><p>The relevant amount is the amount given by multiplying—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of the amounts of qualifying domestic top-up tax accrued by the current members in the current period, by</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount given by dividing—</p></intro><level class="para2"><num>(i)</num><content><p>the collective additional amount under this section, by</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of that collective additional amount, any collective additional amount under section 203 and the total top-up amount for the current period.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-50" class="schProv1"><num>50</num><subparagraph eId="schedule-4-paragraph-50-1"><num>(1)</num><content><p>Section 223 (adjustments) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-50-2"><num>(2)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “group,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “profits” insert <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-3"><num>(3)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-3-a"><num>(a)</num><content><p><mod>in paragraph (a), after “made,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-3-b"><num>(b)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-4"><num>(4)</num><content><p><mod>In subsection (9), after “201(2)” insert <quotedText>“and (3)”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-38" class="schProv1"><num>38</num><intro><p>In regulation 2 (interpretation)—</p></intro><level class="para1" eId="schedule-13-paragraph-38-a"><num>(a)</num><content><p>the existing text becomes paragraph (1);</p></content></level><level class="para1" eId="schedule-13-paragraph-38-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2)</num><content><p>A reference in these Regulations to a person’s being domiciled in the United Kingdom includes a reference to the person’s being treated as so domiciled for the purposes of the 1984 Act.</p></content></paragraph></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-13-paragraph-38-a"><num>(a)</num><content><p>the existing text becomes paragraph (1);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-13-paragraph-38-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2)</num><content><p>A reference in these Regulations to a person’s being domiciled in the United Kingdom includes a reference to the person’s being treated as so domiciled for the purposes of the 1984 Act.</p></content></paragraph></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-13-paragraph-39-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">Regulation 4</a> (excepted estates) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraphs (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a> and <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(3)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a>, for “, domiciled in the United Kingdom” substitute <quotedText>“and was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-3"><num>(3)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraph (5)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>that person—</p></intro><level class="para2"><num>(i)</num><content><p>was not a long-term UK resident at any time on or after 6 April 2025, and</p></content></level><level class="para2"><num>(ii)</num><content><p>was not domiciled in the United Kingdom at any time before that date;</p></content></level></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">regulation 5</a> (spouse, civil partner and charity transfers), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">paragraph (2)</a>, for the words from “was not domiciled” to the end substitute <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>was, at any time in the period beginning with 6 April 2025 and ending with the time of the transfer, not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>was, at any time before 6 April 2025, not domiciled in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-41" class="schProv1"><num>41</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">regulation 5A</a> (IHT threshold), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">paragraph (4)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">(a)</a>, for “died domiciled in the United Kingdom” substitute <quotedText>“was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-42" class="schProv1"><num>42</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6">regulation 6</a> (production of information), in the heading, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-13-paragraph-43-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">Regulation 6A</a> (production of information) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-2"><num>(2)</num><content><p><mod>In the heading, for “deceased domiciled outside the United Kingdom” substitute <quotedText>“cases within regulation 4(5)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">(g)</a>, for “domicile” substitute <quotedText>“place of tax residence”</quotedText>.</mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-wrong-crossreference-etc"><heading>Wrong cross-reference etc</heading><section eId="section-85"><num>85</num><heading>Correction of wrong cross-reference etc</heading><subsection eId="section-85-1"><num>(1)</num><content><p><mod>In section 151I(1) of TCGA 1992, for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>a person with permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-85-2"><num>(2)</num><content><p><mod>In section 1179AE(2) of CTA 2009, for “either House of Parliament” substitute <quotedText>“the House of Commons”</quotedText>.</mod></p></content></subsection><subsection eId="section-85-3"><num>(3)</num><content><p><mod>In section 4(2)(a) of the Taxation (Post-transition Period) Act 2020, for “section 42” substitute <quotedText>“section 47”</quotedText>.</mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-85"><num>85</num><heading>Correction of wrong cross-reference etc</heading><subsection eId="section-85-1"><num>(1)</num><content><p><mod>In section 151I(1) of TCGA 1992, for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>a person with permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-85-2"><num>(2)</num><content><p><mod>In section 1179AE(2) of CTA 2009, for “either House of Parliament” substitute <quotedText>“the House of Commons”</quotedText>.</mod></p></content></subsection><subsection eId="section-85-3"><num>(3)</num><content><p><mod>In section 4(2)(a) of the Taxation (Post-transition Period) Act 2020, for “section 42” substitute <quotedText>“section 47”</quotedText>.</mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-85-1"><num>(1)</num><content><p><mod>In section 151I(1) of TCGA 1992, for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>a person with permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-2"><num>(2)</num><content><p><mod>In section 1179AE(2) of CTA 2009, for “either House of Parliament” substitute <quotedText>“the House of Commons”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-3"><num>(3)</num><content><p><mod>In section 4(2)(a) of the Taxation (Post-transition Period) Act 2020, for “section 42” substitute <quotedText>“section 47”</quotedText>.</mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-final"><heading>Final</heading><section eId="section-86"><num>86</num><heading>Interpretation</heading><content><p>In this Act the following abbreviations are references to the following Acts—</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CAA 2001</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Capital Allowances Act 2001</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CTA 2009</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Corporation Tax Act 2009</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CTA 2010</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Corporation Tax Act 2010</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">FA followed by a year</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Finance Act of that year</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">F(No.2)A followed by a year</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Finance (No.2) Act of that year</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">IHTA 1984</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Inheritance Tax Act 1984</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITA 2007</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax Act 2007</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITEPA 2003</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax (Earnings and Pensions) Act 2003</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITTOIA 2005</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax (Trading and Other Income) Act 2005</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TCGA 1992</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxation of Chargeable Gains Act 1992</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TIOPA 2010</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxation (International and Other Provisions) Act 2010</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TMA 1970</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxes Management Act 1970</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TPDA 1979</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Tobacco Products Duty Act 1979</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">VATA 1994</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Value Added Tax Act 1994</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">VERA 1994</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Vehicle Excise and Registration Act 1994</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></section><section eId="section-87"><num>87</num><heading>Short title</heading><content><p>This Act may be cited as the Finance Act 2025.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-86"><num>86</num><heading>Interpretation</heading><content><p>In this Act the following abbreviations are references to the following Acts—</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CAA 2001</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Capital Allowances Act 2001</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CTA 2009</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Corporation Tax Act 2009</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">CTA 2010</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Corporation Tax Act 2010</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">FA followed by a year</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Finance Act of that year</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">F(No.2)A followed by a year</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Finance (No.2) Act of that year</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">IHTA 1984</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Inheritance Tax Act 1984</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITA 2007</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax Act 2007</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITEPA 2003</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax (Earnings and Pensions) Act 2003</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ITTOIA 2005</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Income Tax (Trading and Other Income) Act 2005</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TCGA 1992</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxation of Chargeable Gains Act 1992</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TIOPA 2010</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxation (International and Other Provisions) Act 2010</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TMA 1970</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taxes Management Act 1970</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">TPDA 1979</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Tobacco Products Duty Act 1979</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">VATA 1994</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Value Added Tax Act 1994</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">VERA 1994</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Vehicle Excise and Registration Act 1994</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87"><num>87</num><heading>Short title</heading><content><p>This Act may be cited as the Finance Act 2025.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" xmlns:default1="http://www.w3.org/1998/Math/MathML" name="schedules"><heading>Schedules</heading><hcontainer name="schedule" eId="schedule-1"><num>Schedule 1<authorialNote class="referenceNote"><p>Section 7</p></authorialNote></num><heading>Consequential provision in connection with section <ref href="#section-7">7</ref></heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of <ref eId="c00066" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> (income taxed at higher rates or gains exceeding unused basic rate band)—</p></intro><level class="para1" eId="schedule-1-paragraph-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-a-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (2)</a>, in the closing words—</p></intro><level class="para2" eId="schedule-1-paragraph-2-b-i"><num>(i)</num><content><p>omit “at the rate of 24% (so far as comprising residential property gains),”, and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-c"><num>(c)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (5)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-c-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-c-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-d"><num>(d)</num><content><p><mod>for <span>subsections (7) to (9)</span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>The individual may allocate so much of the unused part of the individual’s basic rate band as then remains to any carried interest gains or any other gains.</p></content></subsection><subsection><num>(8)</num><content><p>The effect of the allocation is that the gains to which the allocation is made are charged at the rate of 18%.</p></content></subsection><subsection><num>(9)</num><intro><p>Any gains to which no allocation is made are charged—</p></intro><level class="para1"><num>(a)</num><content><p>at the rate of 28% (if they are carried interest gains), or</p></content></level><level class="para1"><num>(b)</num><content><p>at the rate of 24% (if they are other kinds of gains).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 222A (determination of main residence: non-resident CGT disposals), in subsection (1)(b)(i), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 223 (amount of relief), in subsection (7)(b), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1B">Schedule 1B</a> (residential property gains).</p></content></paragraph><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><content><p>Schedule 4AA (re-basing for non-residents in respect of UK land etc held on 5 April 2019) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content><p>Omit paragraphs 5, 10, 11 and 15.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><content><p><mod>In paragraph 22(3), for “Schedule 1B” substitute <quotedText>“paragraphs <ref href="#d25e15950">16E</ref> to <ref href="#d25e16273">16H</ref> of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of other Acts</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><content><p><mod>In paragraph 8(3) of Schedule A1 to IHTA 1984 (non-excluded overseas property), for “Schedule 1B to the 1992 Act” substitute <quotedText>“paragraphs 16B to 16H of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1">Schedule 1</a> to <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/2019/1">FA 2019</ref>, omit <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1/paragraph/15">paragraph 15</a>.</p></content></paragraph><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2">Schedule 2</a> to <ref eId="c00069" href="https://www.legislation.gov.uk/ukpga/2019/1">that Act</ref> (returns and payments on account: disposals of UK land etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/16">paragraph 16</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of “residential property gains”</heading><paragraph class="schProv1"><num>16A</num><subparagraph><num>(1)</num><content><p>In this Part of this Schedule “<term refersTo="#term-residential-property-gain">residential property gain</term>” means so much of a chargeable gain accruing to a person on a disposal of residential property as, in accordance with paragraph 16B, is attributable to that property.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The question whether or not a person disposes of residential property is determined in accordance with paragraphs 16C to 16G.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16B</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A the proportion of a chargeable gain attributable to residential property is equal to—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant fraction of the gain, and</p></content></level><level class="para1"><num>(b)</num><content><p>if there has been mixed use of the land to which the disposal relates on one or more days in the applicable period, the relevant fraction of the gain as adjusted, on a just and reasonable basis, to take account of the mixed use on the day or days.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>The relevant fraction is A/B where—</p></intro><hcontainer name="definition"><content><p>A is the number of days in the applicable period on which the land to which the disposal relates consists of or includes a dwelling, and</p></content></hcontainer><hcontainer name="definition"><content><p>B is the total number of days in the applicable period.</p></content></hcontainer></subparagraph><subparagraph><num>(3)</num><intro><p>There is mixed use of land on any day on which the land consists of—</p></intro><level class="para1"><num>(a)</num><content><p>one or more dwellings, and</p></content></level><level class="para1"><num>(b)</num><content><p>other land.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the disposal is of an interest in land subsisting under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling, that land is taken to consist of or include a dwelling throughout the applicable period.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>In this paragraph “<term refersTo="#term-the-applicable-period">the applicable period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the person making the disposal acquired the interest in land being disposed of or, if later, the day from which the interest in land became chargeable, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the day on which the disposal occurs.</p></content></level></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph an interest in land became “chargeable”—</p></intro><level class="para1"><num>(a)</num><intro><p>in any case where the disposal is of an interest in land in the United Kingdom—</p></intro><level class="para2"><num>(i)</num><content><p>by a person in a tax year in which the person is not UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>by a person in the overseas part of a tax year which is, as respects the person, a split year,</p></content></level><wrapUp><p>from 6 April 2015, and</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in any other case, from 31 March 1982.</p></content></level></subparagraph><subparagraph><num>(7)</num><content><p>If the interest in land disposed of by the person results from interests in land acquired by the person at different times, the person is regarded for the purposes of this paragraph as having acquired the interest disposed of at the time of the first acquisition.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16C</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A a person “disposes of residential property” if the person disposes of an interest in land in a case where—</p></intro><level class="para1"><num>(a)</num><content><p>the land consisted of or included a dwelling at any time falling on or after the date on which the applicable period begins,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest in land subsisted for the benefit of land that consisted of or included a dwelling at any time falling on or after that date, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest in land subsists under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>No account is to be taken for the purposes of this paragraph of any time falling on (or after) the day on which the disposal is made.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16D</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H an “<term refersTo="#term-interest-in-land">interest in land</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>an estate, interest, right or power in or over land, or</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over land,</p></content></level><wrapUp><p>other than an excluded interest.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>The following interests are “excluded interests”—</p></intro><level class="para1"><num>(a)</num><content><p>any interest or right held for securing the payment of money or the performance of any other obligation,</p></content></level><level class="para1"><num>(b)</num><content><p>a licence to use or occupy land,</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to land in England and Wales or Northern Ireland, a tenancy at will or an advowson, franchise or manor, and</p></content></level><level class="para1"><num>(d)</num><content><p>such other descriptions of interest or right in relation to land as may be specified in regulations made by the Treasury.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>An interest or right is not within sub-paragraph (2)(a) if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a rentcharge, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to land in Scotland, a feu duty or a payment mentioned in <a href="https://www.legislation.gov.uk/asp/2000/5/section/56">section 56</a><a href="https://www.legislation.gov.uk/asp/2000/5/section/56">(1)</a> of the <ref eId="c00070" href="https://www.legislation.gov.uk/asp/2000/5">Abolition of Feudal Tenure etc. (Scotland) Act 2000</ref>.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>The grant of an option by a person binding the person to dispose of an interest in land is (so far as it would not otherwise be the case) regarded as a disposal of an interest in land by the person for the purposes of this Schedule.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>This does not affect the operation of section 144 in relation to the grant of the option (or otherwise).</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In applying the domestic concepts of law mentioned in this paragraph to land outside the United Kingdom, this paragraph is to be read so as to produce the result most closely corresponding with that produced in relation to land in the United Kingdom.</p></content></subparagraph><subparagraph><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-franchise">franchise</term>” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls, and</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-land">land</term>” includes—</p></intro><level class="para1"><num>(a)</num><content><p>buildings and structures, and</p></content></level><level class="para1"><num>(b)</num><content><p>land under the sea or otherwise covered by water.</p></content></level></hcontainer></subparagraph></paragraph><paragraph eId="d25e15950" class="schProv1"><num>16E</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H a building is a dwelling at any time when—</p></intro><level class="para1"><num>(a)</num><content><p>it is used, or suitable for use, as a dwelling, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is in the process of being constructed or adapted for use as a dwelling,</p></content></level><wrapUp><p>and, in each case, it is not an institutional building.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><content><p>Land that at any time is, or is intended to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure) is taken to be part of the dwelling at that time.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>A building is an institutional building if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used as residential accommodation for school pupils,</p></content></level><level class="para1"><num>(b)</num><content><p>it is used as residential accommodation for members of the armed forces,</p></content></level><level class="para1"><num>(c)</num><content><p>it is used as a home or other institution providing residential accommodation for children,</p></content></level><level class="para1"><num>(d)</num><content><p>it is used as a home or other institution providing residential accommodation with personal care for persons in need of personal care because of old age, disability, past or present dependence on alcohol or drugs or past or present mental disorder,</p></content></level><level class="para1"><num>(e)</num><content><p>it is used as a hospital or hospice,</p></content></level><level class="para1"><num>(f)</num><content><p>it is used as a prison or similar establishment,</p></content></level><level class="para1"><num>(g)</num><content><p>it is used as a hotel or inn or similar establishment,</p></content></level><level class="para1"><num>(h)</num><content><p>it is otherwise used, or suitable for use, as an institution that is the sole or main residence of its residents,</p></content></level><level class="para1"><num>(i)</num><intro><p>it falls within—</p></intro><level class="para2"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">Schedule 14</a> to the <ref eId="c00071" href="https://www.legislation.gov.uk/ukpga/2004/34">Housing Act 2004</ref> (buildings in England or Wales occupied by students and managed or controlled by educational establishment etc), or</p></content></level><level class="para2"><num>(ii)</num><content><p>any provision having effect in Scotland or Northern Ireland that is designated by regulations made by the Treasury as provision corresponding to <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">that Schedule</a>, or</p></content></level></level><level class="para1"><num>(j)</num><content><p>it qualifies in accordance with the next sub-paragraph as student accommodation.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A building qualifies as student accommodation in accordance with this sub-paragraph at any time if the time falls in a tax year in which—</p></intro><level class="para1"><num>(a)</num><content><p>the accommodation provided by the building includes at least 15 bedrooms,</p></content></level><level class="para1"><num>(b)</num><content><p>the accommodation is purpose-built, or is converted, for occupation by students, and</p></content></level><level class="para1"><num>(c)</num><content><p>the accommodation is occupied by students on at least 165 days.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Accommodation is to be regarded as occupied by persons as students if they occupy it wholly or mainly for undertaking a course of education (otherwise than as school pupils).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16F</num><subparagraph><num>(1)</num><content><p>A building is treated for the purposes of paragraph 16E as continuing to be suitable for use as a dwelling at any time when it has become temporarily unsuitable for use as a dwelling.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>There is an exception to this rule if—</p></intro><level class="para1"><num>(a)</num><content><p>the temporary unsuitability resulted from accidental damage to the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>the damage resulted in the building becoming unsuitable for use as a dwelling for a period of at least 90 consecutive days (“the 90 day period”).</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>This exception does not apply if the damage occurred in the course of work that—</p></intro><level class="para1"><num>(a)</num><content><p>was being done for the purpose of altering the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>itself involved, or could be expected to involve, making the building unsuitable for use as a dwelling for at least 30 consecutive days.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the exception applies, work done in the 90 day period to restore the building to suitability for use as a dwelling is not to count for the purposes of paragraph 16E as constructing or adapting the building for use as a dwelling.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>references to accidental damage include damage otherwise caused by events beyond the control of the person disposing of the interest in land,</p></content></level><level class="para1"><num>(b)</num><content><p>references to alteration of a building include its partial demolition, and</p></content></level><level class="para1"><num>(c)</num><content><p>the 90 day period does not include the day of the disposal (or later days).</p></content></level></subparagraph><subparagraph><num>(6)</num><content><p>For the purposes of this paragraph a building’s unsuitability for use as a dwelling is not regarded as temporary if paragraph 16G applies (disposal of a building that has undergone works).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16G</num><subparagraph><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person disposes of an interest in land on which a building has been suitable for use as a dwelling, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a result of qualifying works, the building has, at or before the time of completion of the disposal, ceased to exist or become unsuitable for use as a dwelling,</p></content></level><wrapUp><p>the building is to be regarded for the purposes of paragraph 16E as unsuitable for use as a dwelling throughout the works period.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of this paragraph works are “qualifying” works if—</p></intro><level class="para1"><num>(a)</num><content><p>any planning permission or development consent required for the works, or for any change of use with which they are associated, has been granted (whether before or after completion), and</p></content></level><level class="para1"><num>(b)</num><content><p>the works have been carried out in accordance with the permission or consent.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-works-period">the works period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>the period when the works were in progress, and</p></content></level><level class="para1"><num>(b)</num><content><p>such period (if any) ending immediately before the start of the works throughout which the building was, for reasons connected with the works, not used as dwelling.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>If at any time when qualifying works are in progress—</p></intro><level class="para1"><num>(a)</num><content><p>the building was undergoing any other work, or put to any other use, in relation to which planning permission or development consent was required but has not (at any time) been granted, or</p></content></level><level class="para1"><num>(b)</num><content><p>anything else was being done in contravention of a condition or requirement attached to a planning permission or development consent relating to the building,</p></content></level><wrapUp><p>the works period does not include that time.</p></wrapUp></subparagraph><subparagraph><num>(5)</num><content><p>If sub-paragraph (1) would have applied but for the fact that, at the completion of the disposal, the works are not qualifying works, the works are regarded as not affecting the building's suitability for use as a dwelling at any time before the disposal.</p></content></subparagraph></paragraph><paragraph eId="d25e16273" class="schProv1"><num>16H</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16G a building is regarded as ceasing to exist from the time when either—</p></intro><level class="para1"><num>(a)</num><content><p>it has been demolished completely to ground level, or</p></content></level><level class="para1"><num>(b)</num><content><p>it has been demolished to ground level except for a single facade (or a double facade if it is on a corner site) the retention of which is a condition or requirement of planning permission or development consent.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of paragraphs 16B to 16G the completion of the disposal of an interest in land is regarded as occurring—</p></intro><level class="para1"><num>(a)</num><content><p>at the time of the disposal, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the disposal is under a contract which is completed by a conveyance, transfer or other instrument, at the time when the instrument takes effect.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>For the purposes of paragraphs 16B to 16G—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building">building</term>” includes a part of a building,</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-development-consent">development consent</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in the United Kingdom, development consent under the <ref eId="c00072" href="https://www.legislation.gov.uk/ukpga/2008/29">Planning Act 2008</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land outside the United Kingdom, consent corresponding to development consent under <ref eId="c00073" href="https://www.legislation.gov.uk/ukpga/2008/29">that Act</ref>, and</p></content></level></hcontainer><hcontainer name="definition"><intro><p><term refersTo="#term-planning-permission">planning permission</term>“—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in England or Wales, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">section 336</a><a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">(1)</a> of the <ref eId="c00074" href="https://www.legislation.gov.uk/ukpga/1990/8">Town and Country Planning Act 1990</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land in Scotland, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">section 227</a><a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">(1)</a> of the <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1997/8">Town and Country Planning (Scotland) Act 1997</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of land in Northern Ireland, has the meaning given by <a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">Article 2</a><a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">(2)</a> of the <ref eId="c00076" href="https://www.legislation.gov.uk/nisi/1991/1220">Planning (Northern Ireland) Order 1991</ref>, and</p></content></level><level class="para1"><num>(d)</num><content><p>in the case of land outside the United Kingdom, means permission corresponding to any planning permission in relation to land anywhere in the United Kingdom.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><content><p><mod>For the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a> substitute <quotedText>“<i>Other interpretation</i>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">(1)</a>, omit the definition of “<term refersTo="#term-residential-property-gains" eId="term-residential-property-gains">residential property gains</term>” (but not the “and” at the end of that definition).</p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 6 of F(No.2)A 2024, omit—</p></intro><level class="para1" eId="schedule-1-paragraph-10-a"><num>(a)</num><content><p>subsection (1)(a), (c) and (e), and</p></content></level><level class="para1" eId="schedule-1-paragraph-10-b"><num>(b)</num><content><p>subsection (2)(a)(i), (b)(i), (c)(i) and (d)(i).</p></content></level></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-2"><num>Schedule 2<authorialNote class="referenceNote"><p>Section 11</p></authorialNote></num><heading>Sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref> : transitional provision</heading><part eId="schedule-2-part-1"><num>Part 1</num><heading>Transitional provision in consequence of section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref></heading><hcontainer name="crossheading" class="schGroup7"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p><ref href="#schedule-2-part-1">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purpose of determining how the provisions of <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> mentioned below are to apply for the tax year 2024-25 for the purposes of the amendments made by section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref>.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Allocation of amounts to times before or after 30 October 2024</heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p>Gains or losses treated as accruing to an individual under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1M">section 1M</a> of <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (temporary non-residents) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p>Foreign chargeable gains under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809J">section 809J</a> of <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (section 809I: order of remittances) in the tax year 2024-25 are to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (UK resident individuals not domiciled in UK) as remitted before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p>Chargeable gains treated as accruing to a settlor under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">section 86</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(a)</a> of <ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (attribution of gains to settlors with interest in non-resident or dual resident settlements) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><intro><p><ref href="#schedule-2-paragraph-5">This paragraph</ref> makes provision in relation to—</p></intro><level class="para1" eId="schedule-2-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> of <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (non-UK resident settlements: attribution of gains to beneficiaries) in the tax year 2024-25,</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-b"><num>(b)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (migrant settlements etc) in that tax year, and</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-c"><num>(c)</num><content><p>chargeable gains treated as accruing to a beneficiary of a relevant settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">paragraph 8</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">(1)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C">Schedule 4C</a> to <ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (attribution of Schedule 4C gains to beneficiaries) in that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received before 30 October 2024 are to be treated as accruing before that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received on or after that date are to be treated as accruing on or after that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p>The reference in sub-paragraph (1)(b) to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is to be read as including a reference to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">that section</a> as applied by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">section 90</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(6)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(a)</a> of <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (transfers between settlements).</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-2-part-2"><num>Part 2</num><heading>Anti-forestalling provisions: sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref></heading><hcontainer name="crossheading" class="schGroup7"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purposes of sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref> in the cases of certain acts done before 30 October 2024.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Assets transferred under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p>If an asset is transferred on or after 30 October 2024 under an unconditional contract made before that date, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><intro><p>A contract is an excluded contract if—</p></intro><level class="para1" eId="schedule-2-paragraph-7-2-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-2-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><content><p>A contract is not to be regarded as an excluded contract unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-4"><num>(4)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-7-4-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-4-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-5"><num>(5)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-6"><num>(6)</num><intro><p>If the person making the transfer makes—</p></intro><level class="para1" eId="schedule-2-paragraph-7-6-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-7-6-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-7-3">sub-paragraph (3)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-7"><num>(7)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-8"><num>(8)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> any reference to the transfer of an asset includes its conveyance.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-2-paragraph-8-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-8-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-8-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer></part><part eId="schedule-2-part-3"><num>Part 3</num><heading>Anti-forestalling provisions: sections <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref> and <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref></heading><hcontainer name="crossheading" class="schGroup7"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p>in the case of business asset disposal relief, for the purposes of section <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref>, and</p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p>in the case of investors’ relief, for the purposes of section <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref>.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made before 30 October 2024, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made on or after 30 October 2024 but before 6 April 2025</heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made on or after 30 October 2024 but before 6 April 2025, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Assets transferred on or after 6 April 2026 under unconditional contract made in tax year 2025-26</heading><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p>If an asset is transferred on or after 6 April 2026 under an unconditional contract made at any time in the tax year 2025-26, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>: supplementary provision</heading><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>A contract is an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> if—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>A contract is not to be regarded as an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-14-3-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-3-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraph <ref href="#schedule-2-paragraph-7">7</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-4"><num>(4)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00106" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-5"><num>(5)</num><intro><p>If the person making the transfer referred to in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> makes—</p></intro><level class="para1" eId="schedule-2-paragraph-14-5-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00107" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-14-5-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00108" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00109" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00110" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-14-2">sub-paragraph (2)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-6"><num>(6)</num><content><p>Any reference in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> (or this paragraph) to the transfer of an asset includes its conveyance.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00111" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Business asset disposal relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-2-paragraph-15-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00112" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-15-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-2"><num>(2)</num><intro><p>If, as at 30 October 2024—</p></intro><level class="para1" eId="schedule-2-paragraph-15-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-15-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-15-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00113" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00114" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00115" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-15-5"><num>(5)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00116" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-17">17</ref>).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Business asset disposal relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-2-paragraph-16-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-16-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-2"><num>(2)</num><intro><p>If, when the election is made—</p></intro><level class="para1" eId="schedule-2-paragraph-16-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-16-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, anything mentioned in sub-paragraph <ref href="#schedule-2-paragraph-16-2">(2)</ref><ref href="#schedule-2-paragraph-16-2-a">(a)</ref> or <ref href="#schedule-2-paragraph-16-2-b">(b)</ref> ceases to be as mentioned there, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-16-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-5"><num>(5)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-16-6"><num>(6)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-18">18</ref>).</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Business asset disposal relief: exchanges of securities etc before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-2-paragraph-17-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00122" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00123" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-17-1-a"><num>(a)</num><content><p>the exchange takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-2"><num>(2)</num><content><p>If condition A or B is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-17-3"><num>(3)</num><intro><p>Condition A is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-17-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-17-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-17-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-4-b"><num>(b)</num><intro><p>as at 30 October 2024—</p></intro><level class="para2" eId="schedule-2-paragraph-17-4-b-i"><num>(i)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-4-b-ii"><num>(ii)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-5"><num>(5)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-17-5-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-5-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-6"><num>(6)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-17-6-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-17-6-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-6-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-17-6-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-7"><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Business asset disposal relief: exchanges of securities etc on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-2-paragraph-18-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00132" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00133" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-18-1-a"><num>(a)</num><content><p>the exchange takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-2"><num>(2)</num><content><p>If the following condition is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-18-3"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1" eId="schedule-2-paragraph-18-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-18-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-18-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-4"><num>(4)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-4-b"><num>(b)</num><content><p>the relief conditions are met when the election is made,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-5"><num>(5)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-5-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-5-b"><num>(b)</num><content><p>at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, the relief conditions cease to be met,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-6"><num>(6)</num><intro><p>For the purposes of this paragraph “the relief conditions” are met if—</p></intro><level class="para1" eId="schedule-2-paragraph-18-6-a"><num>(a)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-6-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-7"><num>(7)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-18-7-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00134" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-7-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-8"><num>(8)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00135" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-8-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00136" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-18-8-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-18-8-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-18-8-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00137" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00138" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-9"><num>(9)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00139" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00140" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00141" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-18-10"><num>(10)</num><content><p>This paragraph does not apply if both the exchange and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-2-paragraph-19-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00142" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-19-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-19-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00143" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00144" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00145" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00146" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00147" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-6"><num>(6)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Investors’ relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-2-paragraph-20-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-20-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-2"><num>(2)</num><content><p>If, when the election is made, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, a relevant individual ceases to hold qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-20-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-5"><num>(5)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-6"><num>(6)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-3"><num>Schedule 3<authorialNote class="referenceNote"><p>Section 18</p></authorialNote></num><heading>Payments into decommissioning funds</heading><hcontainer name="crossheading" class="schGroup7"><heading>Payments into decommissioning fund treated as general decommissioning expenditure</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><intro><p>A qualifying payment into a decommissioning fund is treated for tax purposes as—</p></intro><level class="para1" eId="schedule-3-paragraph-1-1-a"><num>(a)</num><content><p>expenditure incurred in decommissioning a qualifying asset falling within <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(i)</a> of the <ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref> (allowance of expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-b"><num>(b)</num><content><p>general decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (allowances for decommissioning expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-c"><num>(c)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/330C">section 330C</a> of <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (decommissioning expenditure taken into account in calculating ring fence profits), and</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-d"><num>(d)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">section 9</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">(3)</a> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (meaning of decommissioning costs).</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><intro><p>A payment into a decommissioning fund is qualifying if—</p></intro><level class="para1" eId="schedule-3-paragraph-1-2-a"><num>(a)</num><intro><p>the relevant transferred plant or machinery to which the payment relates is—</p></intro><level class="para2" eId="schedule-3-paragraph-1-2-a-i"><num>(i)</num><content><p>an eligible CCS installation which qualifies for change of use relief under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations), or</p></content></level><level class="para2" eId="schedule-3-paragraph-1-2-a-ii"><num>(ii)</num><content><p>an eligible carbon storage network pipeline which qualifies for change of use relief under section 30B of that Act (change of use relief for carbon storage network pipelines), and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-1-2-b"><num>(b)</num><content><p>the payment has been certified in an approval notice given under section 30A(5)(b) or 30B(3)(b) of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p>For the purposes of <ref href="#schedule-3-paragraph-1-2">sub-paragraph (2)</ref>, a payment to a licensed company under an agreement to pay a required amount for the purposes of payment into the decommissioning fund is to be regarded as a payment into that fund.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-4"><num>(4)</num><content><p>But the onward payment into the fund by that licensed company is not a qualifying payment.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-5"><num>(5)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund" eId="term-decommissioning-fund">decommissioning fund</term>” is to be interpreted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">section 92</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(7)</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(a)</a> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (financing costs of decommissioning etc);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-licensed-company" eId="term-licensed-company">licensed company</term>” means a person who holds a licence under <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/7">section 7</a> of the <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (licences for carbon dioxide transport and storage);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-transferred-plant-or-machinery" eId="term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3-paragraph-2">paragraph 2</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-required-amount" eId="term-required-amount">required amount</term>” means an amount determined by the Secretary of State in accordance with regulations made under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(5A)</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(b)</a> or 30B(3A)(b) (as the case may be) of the <ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (amount required to be paid into a decommissioning fund);</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-ring-fence-trade" eId="term-ring-fence-trade">ring fence trade</term>” means activities which—</p></intro><level class="para1"><num>(a)</num><content><p>fall within the definition of “oil-related activities” in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(2)</a> of <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/274">section 274</a> of <ref eId="c00164" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>constitute a separate trade (whether as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(1)</a> of <ref eId="c00165" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/279">section 279</a> of <ref eId="c00166" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> or otherwise);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-tax-purposes" eId="term-tax-purposes">tax purposes</term>” means for the purposes of—</p></intro><level class="para1"><num>(a)</num><content><p>corporation tax (including for the purposes of the supplementary charge in respect of ring fence trades and the energy (oil and gas) profits levy);</p></content></level><level class="para1"><num>(b)</num><content><p>income tax;</p></content></level><level class="para1"><num>(c)</num><content><p>petroleum revenue tax.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Meaning of “relevant transferred plant or machinery”</heading><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><intro><p>Plant or machinery is “relevant transferred plant or machinery” if it meets—</p></intro><level class="para1" eId="schedule-3-paragraph-2-1-a"><num>(a)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-2">sub-paragraphs (2)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>, or</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-b"><num>(b)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-3">sub-paragraphs (3)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-2-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-2-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-2-b-i"><num>(i)</num><content><p>is, or forms part of, an offshore installation or a submarine pipeline, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-2-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation or pipeline.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-3-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-3-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-3-b-i"><num>(i)</num><content><p>is, or forms part of, a relevant onshore installation, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-3-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-4"><num>(4)</num><intro><p>In <ref href="#schedule-3-paragraph-2-3">sub-paragraph (3)</ref> “<term refersTo="#term-relevant-onshore-installation" eId="term-relevant-onshore-installation">relevant onshore installation</term>” means any building or structure which—</p></intro><level class="para1" eId="schedule-3-paragraph-2-4-a"><num>(a)</num><content><p>falls within any of <span><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">sub-paragraphs (ii)</a> to <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(iv)</a></span> of <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(c)</a> of the <ref eId="c00167" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref>,</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-b"><num>(b)</num><content><p>is not an offshore installation, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-c"><num>(c)</num><intro><p>is or has been used for purposes connected with the winning of oil from an oil field any part of which lies within—</p></intro><level class="para2" eId="schedule-3-paragraph-2-4-c-i"><num>(i)</num><content><p>the boundaries of the territorial sea of the United Kingdom, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-4-c-ii"><num>(ii)</num><content><p>an area designated under <a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">section 1</a><a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">(7)</a> of the <ref eId="c00168" href="https://www.legislation.gov.uk/ukpga/1964/29">Continental Shelf Act 1964</ref>.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-5"><num>(5)</num><content><p>The condition in this sub-paragraph is met if ownership of the plant or machinery has been transferred to a licensed company under an agreement to pay a required amount.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-6"><num>(6)</num><intro><p>The condition in this sub-paragraph is met if the agreement to pay a relevant required amount provides that the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-6-a"><num>(a)</num><content><p>will be reused by the licensed company, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-6-b"><num>(b)</num><content><p>will not be replaced by the transferor of the plant or machinery.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-7"><num>(7)</num><content><p>Terms used in <ref href="#schedule-3-paragraph-2">this paragraph</ref> and in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00169" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">that section</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Application of <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">sections 164</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">165</a> of <ref eId="c00170" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">Section 164</a> of <ref eId="c00171" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (election for special allowance) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-1-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Condition A is that R has made a qualifying payment into a decommissioning fund in the relevant chargeable period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-1-b"><num>(b)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-3-paragraph-3-1-b-i"><num>(i)</num><content><p><mod>in paragraph (ab), after “decommissioning” there were inserted <quotedText>“fund”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-3-1-b-ii"><num>(ii)</num><content><p>paragraphs (ac) and (b) were omitted, and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-3-1-c"><num>(c)</num><content><p>subsections (5A) to (7) were omitted.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">Section 165</a> of <ref eId="c00172" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (general decommissioning expenditure after ceasing ring fence trade) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-2-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The decommissioning condition is met in relation to a notional accounting period (the “relevant period”) if the former trader has made a qualifying payment into a decommissioning fund in the relevant period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-b"><num>(b)</num><content><p><mod>in subsection (2), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>ends with the day on which the trigger event described in <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00173" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations) occurs in relation to the relevant transferred plant or machinery.</p></content></level></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-c"><num>(c)</num><content><p>subsections (2A) to (2C) were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-d"><num>(d)</num><content><p>in subsection (4), in the definition of “relevant decommissioning cost”, “paragraph (a), (b) or (c) of” were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-e"><num>(e)</num><content><p>subsections (4A) to (4D) and (6) were omitted, and</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-f"><num>(f)</num><content><p><mod>in subsection (7), at the appropriate places there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund">decommissioning fund</term>” and “<term refersTo="#term-qualifying-payment">qualifying payment</term>” are to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>““<term refersTo="#term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Prevention of subsequent allowance where expenditure paid out of qualifying payment</heading><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p>No allowance under <ref eId="c00174" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is to be made to a person in respect of expenditure paid out of a qualifying payment made into a decommissioning fund where a claim for an allowance in relation to that payment under <ref eId="c00175" href="https://www.legislation.gov.uk/ukpga/2001/2">that Act</ref> has been made (whoever made the claim).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Application of the <ref eId="c00176" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref></heading><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><p><mod><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">Section 1</a> of the <ref eId="c00177" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> has effect in relation to a company that has transferred relevant transferred plant or machinery to a licensed company as if in subsection (5) (assumptions in determining levy profits or loss), after paragraph (c) there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content><p>any amount received from a licensed company (within the meaning of <ref href="#schedule-3">Schedule 3</ref> to FA 2025) for relevant transferred plant or machinery (within the meaning of that Schedule) that would otherwise be brought into account when calculating the amount of the profits or loss of any ring fence trade of the company for the period is left out of account,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-3">This Schedule</ref> has effect in relation to qualifying payments into a decommissioning fund made on or after the day on which this Act is passed.</p></content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-4"><num>Schedule 4<authorialNote class="referenceNote"><p>Section 19</p></authorialNote></num><heading>Pillar two</heading><part eId="schedule-4-part-1"><num>Part 1</num><heading>Introduction</heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>F(No.2)A 2023 is amended in accordance with—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>Part 2 of this Schedule (which contains amendments designed to implement the UTPR within the meaning of the Pillar Two rules), and</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>Part 3 of this Schedule (which contains other amendments in relation to multinational top-up tax and amendments in relation to domestic top-up tax).</p></content></level></paragraph></part><part eId="schedule-4-part-2"><num>Part 2</num><heading>Undertaxed profits rule</heading><hcontainer name="crossheading" class="schGroup7"><heading>Multinational top-up tax to include undertaxed profits rule</heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>Section 121 (introduction to multinational top-up tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “IIR” to the end substitute <quotedText>“IIR and UTPR (within the meaning of the Pillar Two rules).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>In subsection (5), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Expansion of chargeable persons</heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>Section 122 (chargeable persons) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>In subsection (1), omit “responsible” in both places.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-3"><num>(3)</num><content><p>In subsection (2), omit “responsible” in each place.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-4"><num>(4)</num><content><p>In subsection (3)(a), omit “responsible”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-5"><num>(5)</num><content><p>In subsection (7), omit “responsible”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Charge to multinational top-up tax to include UTPR</heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p><mod>For section 123 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>123</num><heading>Charge to multinational top-up tax</heading><subsection eId="d25e19232"><num>(1)</num><intro><p>A person chargeable to tax as, or in respect of, a member of a multinational group (“the relevant member”) is charged multinational top-up tax for an accounting period if one or more members of the group have top-up amounts or additional top-up amounts for that period and—</p></intro><level class="para1" eId="d25e19238"><num>(a)</num><content><p>the relevant member is a responsible member for one or more of those members (see section 128), or</p></content></level><level class="para1" eId="d25e19244"><num>(b)</num><content><p>one or more of those members have untaxed amounts that are allocated to the relevant member (see <ref href="#d25e19366">Chapter 9A</ref>).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The amount charged is the sum of the following—</p></intro><level class="para1"><num>(a)</num><intro><p>where <ref href="#d25e19232">subsection (1)</ref><ref href="#d25e19238">(a)</ref> applies—</p></intro><level class="para2"><num>(i)</num><content><p>top-up amounts attributed to the relevant member in accordance with Chapter 7, and</p></content></level><level class="para2"><num>(ii)</num><content><p>additional top-up amounts attributed to the relevant member in accordance with that Chapter, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>where <ref href="#d25e19232">subsection (1)</ref><ref href="#d25e19244">(b)</ref> applies, the untaxed amounts allocated to the relevant member in accordance with <ref href="#d25e19366">Chapter 9A</ref>.</p></content></level></subsection><subsection eId="d25e19296"><num>(3)</num><content><p>The amount charged (which in accordance with section 254 will be expressed in the CFS currency) is to be converted to sterling using the average exchange rate for the accounting period (if the CFS currency is not sterling).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>In section 124 (how to calculate top-up amounts etc)—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p><mod>in the heading, for “and attribute them” substitute <quotedText>“etc”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p><ref href="#d25e19366">Chapter 9A</ref> makes provision for—</p></intro><level class="para1"><num>(a)</num><content><p>determining whether members of the group have untaxed amounts, and</p></content></level><level class="para1"><num>(b)</num><content><p>allocating those untaxed amounts to members of the group located in the United Kingdom, other than members that are investment entities or joint venture group members.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p><mod>In section 254 (use of currency), in subsection (4), for “step 4 in” substitute <quotedText>“<ref href="#d25e19296">subsection (3)</ref> of”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>New chapter to deal with UTPR</heading><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After Chapter 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e19366"><num>Chapter 9A</num><heading>Untaxed amounts</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>229A</num><heading>Meaning of potentially undertaxed</heading><subsection eId="d25e19381"><num>(1)</num><intro><p>The top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed” if—</p></intro><level class="para1"><num>(a)</num><content><p>M is the ultimate parent or is located in the same territory as the ultimate parent, or</p></content></level><level class="para1"><num>(b)</num><content><p>the ultimate parent is not a responsible member.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subsection <ref href="#d25e19381">(1)</ref> does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is not a responsible member,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the ownership interests of the ultimate parent in M are direct ownership interests, and</p></content></level><level class="para1"><num>(c)</num><content><p>every indirect ownership interest the ultimate parent has in M is derived from an ownership interest the ultimate parent has in a responsible member.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Subsection <ref href="#d25e19381">(1)</ref> also does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is located in a territory in which a DIIR is in force and is a responsible member, and</p></content></level><level class="para1"><num>(b)</num><content><p>M is located in the same territory as the ultimate parent.</p></content></level></subsection><subsection><num>(4)</num><content><p>This section and section <ref href="#d25e19465">229B</ref> do not apply to members of a joint venture group (but see <ref href="#d25e20218">section 229I</ref> for alternative provision).</p></content></subsection></section><section eId="d25e19465"><num>229B</num><heading>Untaxed amounts</heading><subsection><num>(1)</num><content><p>A member of a multinational group has an untaxed amount if conditions A and B are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the top-up amount and additional top-up amounts of the member are potentially undertaxed.</p></content></subsection><subsection><num>(3)</num><content><p>Condition B is that the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts is less than the sum of the member’s top-up amount and additional top-up amounts.</p></content></subsection><subsection><num>(4)</num><intro><p>The untaxed amount is the amount given by subtracting—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts, from</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the member’s top-up amount and additional top-up amounts.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Allocation of untaxed amounts</heading><section eId="d25e19511"><num>229C</num><heading>Allocation of untaxed amount to members</heading><subsection eId="d25e19515"><num>(1)</num><intro><p>An untaxed amount of a member of a multinational group is to be allocated to qualifying members of the group located in the United Kingdom by—</p></intro><level class="para1"><num>(a)</num><content><p>first, determining the amount (“the UK proportion”) of the untaxed amount to be allocated to the group in the United Kingdom in accordance with <ref href="#d25e19580">section 229D</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>then, allocating an amount of the UK proportion to each qualifying member located in the United Kingdom in accordance with <ref href="#d25e19770">section 229E</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>But no allocation is to be made under <ref href="#d25e19515">subsection (1)</ref> if in section <ref href="#d25e19580">229D</ref><ref href="#d25e19584">(1)</ref> the results of both Step <ref href="#d25e19602">2</ref> and Step <ref href="#d25e19816">5</ref> are nil.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of this Chapter, a member of a multinational group is qualifying unless it is—</p></intro><level class="para1"><num>(a)</num><content><p>an investment entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of a joint venture group.</p></content></level></subsection></section><section eId="d25e19580"><num>229D</num><heading>Amount allocated to the United Kingdom</heading><subsection eId="d25e19584"><num>(1)</num><content><p>Take the following steps to determine the UK proportion of an untaxed amount of a member of a multinational group—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of qualifying members of the group located in the United Kingdom for the accounting period to which the untaxed amount relates (“<term refersTo="#term-the-relevant-period">the relevant period</term>”).</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees in the relevant period of qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in the United Kingdom for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The UK proportion of the untaxed amount is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19610">Step 3</ref>;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19634">Step 6</ref>;</p></item><item><num>(c)</num><p>in any other case, the untaxed amount multiplied by the result of <ref href="#d25e19642">Step 7</ref>.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of <ref href="#d25e19774">subsection (1)</ref>—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19626">Step 5</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19602">Step 2</ref> is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19602">Step 2</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19626">Step 5</ref> is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>A qualifying undertaxed profits tax applies in a territory in relation to an untaxed amount if—</p></intro><level class="para1"><num>(a)</num><content><p>a qualifying undertaxed profits tax is in force in that territory for the relevant period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of that tax result in a proportion of the untaxed amount (however described for the purposes of that tax) that is greater than nil being allocated to the territory.</p></content></level></subsection><subsection><num>(4)</num><content><p>See sections <ref href="#d25e19969">229G</ref> and <ref href="#d25e20098">229H</ref> for how to determine the number of employees and the value of tangible fixed assets of a qualifying member of a multinational group.</p></content></subsection></section><section eId="d25e19770"><num>229E</num><heading>Allocation to qualifying members</heading><subsection eId="d25e19774"><num>(1)</num><content><p>Take the following steps to determine how much of an untaxed amount is to be allocated to each qualifying member located in the United Kingdom—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of the member in the accounting period (“<term refersTo="#term-the-relevant-period">the relevant period</term>”) to which the untaxed amount relates.</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees for the relevant period of qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the member for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets for the relevant period of the qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The untaxed amount to be allocated to the member is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the UK proportion multiplied by the result of Step 3;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the UK proportion multiplied by the result of Step 6;</p></item><item><num>(c)</num><p>in any other case, the UK proportion multiplied by the result of Step 7.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of subsection (1)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 5 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 2 is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 2 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 5 is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>This section is subject to <ref href="#d25e19915">section 229F</ref>.</p></content></subsection></section><section eId="d25e19915"><num>229F</num><heading>Election to make one member of a group liable for untaxed amounts</heading><subsection><num>(1)</num><intro><p>The filing member of the group may elect for an accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e19770">section 229E</ref> does not apply, and</p></content></level><level class="para1"><num>(b)</num><content><p>instead, a member of the group specified in the election is to be allocated the whole of the UK proportion of each untaxed amount that would be otherwise be allocated between the qualifying members of the group located in the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A member of the group may only be specified in the election if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is located in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member has consented to the election.</p></content></level></subsection><subsection><num>(3)</num><content><p>Paragraph 2 of Schedule 15 (annual elections) applies to an election under this section, and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>How to determine number of employees and tangible fixed assets values</heading><section eId="d25e19969"><num>229G</num><heading>Number of employees</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, the number of employees of a qualifying member of a multinational group in an accounting period is the full-time equivalent employee number for that member for that period.</p></content></subsection><subsection><num>(2)</num><content><p>To determine the full-time equivalent employee number for a member of a multinational group for an accounting period take the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of full-time employees of that member that were full-time employees for the whole of that period.</p></item><item><p><i>Step 2</i></p><p>Determine, for each employee of that member for that period who is not a full-time employee for the whole of that period (whether they were part-time employees or were not employed for the whole of the period), such fraction as is just and reasonable.</p></item><item><p><i>Step 3</i></p><p>Add together the number determined under Step 1 and the fractions determined under Step 2.</p><p>If the member was a member of the group throughout the whole of the period, the result of this Step is the full-time equivalent employee number.</p></item><item><p><i>Step 4</i></p><p>Where the member was not a member of the group for the whole period, make such adjustments to the result of Step 3 as is just and reasonable to arrive at a full-time equivalent employee number that reflects the number of employees of the member in the period for which it was a member of the group.</p><p>For the purpose of this Step, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></item></blockList></content></subsection><subsection eId="d25e20024"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-employee">employee</term>”, in relation to a member of a multinational group, means a person whose employment costs are met by that member (whether or not the person’s activities are carried on in the territory of the member) as recorded in appropriate financial statements of the member and who—</p></intro><level class="para1"><num>(a)</num><content><p>is regarded as an employee under the law of the territory in which the member is located, or</p></content></level><level class="para1"><num>(b)</num><content><p>participates in the ordinary operating activities of the member of the group (including on a part-time basis).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of <ref href="#d25e20024">subsection (3)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection eId="d25e20054"><num>(5)</num><intro><p>For the purposes of section <ref href="#d25e19580">229D</ref> (but not for the purposes of section <ref href="#d25e19770">229E</ref>), where a member of a multinational group is a flow-through entity, employees of the entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as employees of members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(6)</num><content><p><ref href="#d25e20054">Subsection (5)</ref> does not apply to employees of a flow-through entity that are regarded for the purposes of this section as employees of a permanent establishment of the entity.</p></content></subsection><subsection><num>(7)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the reference in <ref href="#d25e20024">subsection (3)</ref> to employment costs recorded in financial statements is to the employment costs that would have been so recorded had such statements been prepared (and those costs are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection></section><section eId="d25e20098"><num>229H</num><heading>Value of tangible fixed assets</heading><subsection eId="d25e20102"><num>(1)</num><intro><p>To determine the value of tangible fixed assets of a qualifying member of a multinational group for an accounting period—</p></intro><level class="para1" eId="d25e20108"><num>(a)</num><intro><p>add together—</p></intro><level class="para2"><num>(i)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the start of the period, as those values are recorded in the member’s financial statements, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the end of the period, as those values are recorded in the member’s financial statements, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>divide the result of <ref href="#d25e20108">paragraph (a)</ref> by 2.</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e20102">subsection (1)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection><num>(3)</num><content><p>In each case the value of a tangible fixed asset is to include accumulated depreciation, depletion or impairment.</p></content></subsection><subsection eId="d25e20150"><num>(4)</num><content><p>If the member is not a member of the group at the start of the period, or at the end of the period, the sum of the values of its tangible fixed assets at that time is to be treated as nil.</p></content></subsection><subsection><num>(5)</num><content><p>For the purpose of <ref href="#d25e20150">subsection (4)</ref>, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></content></subsection><subsection><num>(6)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the values to be used are those that would have been recorded in those accounts had they been prepared (and those values are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection><subsection eId="d25e20171"><num>(7)</num><intro><p>For the purposes of section <ref href="#d25e19580">229D</ref> (but not for the purposes of section <ref href="#d25e19770">229E</ref>), tangible fixed assets held by a member of the group that is a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as held by members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are to be ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(8)</num><content><p><ref href="#d25e20171">Subsection (7)</ref> does not apply to assets of a flow-through entity that are held by a permanent establishment of the entity.</p></content></subsection><subsection><num>(9)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-tangible-fixed-assets">tangible fixed assets</term>” means all tangible assets wherever located, other than cash or cash equivalents or financial assets.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Joint ventures</heading><section eId="d25e20218"><num>229I</num><heading>Joint ventures</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent of a multinational group is not subject to Pillar Two IIR tax for an accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>the group includes a joint venture group, and</p></content></level><level class="para1"><num>(c)</num><content><p>the members of the joint venture group are undertaxed in relation to the multinational group for that period.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The members of a joint venture group are undertaxed in relation to a multinational group if—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed to responsible members of the multinational group under Chapter 7 in respect of members of the joint venture group’s top-up amount and additional top-up amounts, is less than</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of such amounts in respect of the joint venture group that would be attributed under that Chapter to the ultimate parent of the multinational group if it were subject to Pillar Two IIR tax.</p></content></level></subsection><subsection><num>(3)</num><content><p>The amount given by subtracting the amounts mentioned in paragraph (a) of subsection (2) from the amounts mentioned in paragraph (b) of that subsection is an untaxed amount of the joint venture group in relation to the multinational group.</p></content></subsection><subsection><num>(4)</num><content><p>Sections <ref href="#d25e19511">229C</ref> to <ref href="#d25e19915">229F</ref> (allocation of untaxed amounts) apply for the purposes of allocating an untaxed amount of a joint venture group in relation to a multinational group to qualifying members of that multinational group as they apply to the allocation of an untaxed amount of a member of the multinational group to those members.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>References to responsible members</heading><section><num>229J</num><heading>References to responsible members</heading><subsection><num>(1)</num><intro><p>For the purpose of determining untaxed amounts of a member of a multinational group who is located in a territory in which a DIIR is in force, references in this Chapter to a responsible member are to be interpreted as if section 128 (responsible members) had effect with the following modifications—</p></intro><level class="para1"><num>(a)</num><content><p>in subsection (2) omit “that are not located in the territory the ultimate parent is located in”;</p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (3)(c), at the beginning insert <quotedText>“the intermediate parent,”</quotedText>;</mod></p></content></level><level class="para1"><num>(c)</num><content><p>in subsection (4) omit “that are not located in the territory it is located in”;</p></content></level><level class="para1"><num>(d)</num><content><p><mod>in subsection (5)(b), at the beginning insert <quotedText>“it or”</quotedText>;</mod></p></content></level><level class="para1"><num>(e)</num><content><p>in subsection (6) omit “that are not located in the same territory it is located in”;</p></content></level><wrapUp><p>but this is subject to subsection <ref href="#d25e20339">(2)</ref>.</p></wrapUp></subsection><subsection eId="d25e20339"><num>(2)</num><intro><p>For the purpose of determining whether the top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed”, a member of the group which—</p></intro><level class="para1"><num>(a)</num><content><p>is located in the same territory as M, and</p></content></level><level class="para1"><num>(b)</num><content><p>would apart from this subsection be a responsible member,</p></content></level><wrapUp><p>is to be regarded for all purposes of this Chapter as not being a responsible member unless a DIIR is in force for the accounting period in that territory.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-diir">DIIR</term>” means a tax which—</p></intro><level class="para1"><num>(a)</num><content><p>implements, in a Pillar Two territory, rules relating to top-up tax under the IIR (within the meaning of the Pillar Two rules), and</p></content></level><level class="para1"><num>(b)</num><content><p>is designed so that tax charged under it is not limited to tax in respect of members who are located outside that territory.</p></content></level></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transition into regime</heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>Schedule 16 (transitional provision) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><content><p><mod>In Chapter 1 of Part 2, in the Chapter heading, for “Transitional” substitute <quotedText>“General transitional”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p><mod>In Chapter 2 of Part 2, in the Chapter heading, after “Application” insert <quotedText>“of Chapter 1”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><content><p><mod>After Part 2 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2A</num><heading>UTPR transitional safe harbour election</heading><hcontainer name="crossheading" class="schGroup7"><heading>Election</heading><paragraph class="schProv1"><num>12A</num><subparagraph><num>(1)</num><intro><p>The filing member of a multinational group may elect for an accounting period that in the territory of the ultimate parent—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group located in the territory has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group whose joint venture parent is located in the territory has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>An election may only be made for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the minimum corporate tax rate for the territory of the ultimate parent is equal to, or in excess of, 20%, and</p></content></level><level class="para1"><num>(b)</num><intro><p>the accounting period—</p></intro><level class="para2"><num>(i)</num><content><p>commenced on or before 31 December 2025 and ends before 31 December 2026, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not longer than 12 months.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>The “minimum corporate tax rate” for a territory means—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a territory in which corporate income tax may be imposed by subdivisions of that territory as well as by a national authority, the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>the nominal national rate that generally applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the lowest nominal rate that generally applies that is imposed by a subdivision of that territory (and where one or more subdivisions do not impose corporate income tax, that rate will be zero), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>otherwise, the nominal rate that generally applies.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p><mod>In Schedule 16A at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2</num><heading>Untaxed amounts: international expansion of groups</heading><hcontainer name="crossheading" class="schGroup7"><heading>No untaxed amounts for groups in initial phase of international expansion</heading><paragraph class="schProv1"><num>7</num><subparagraph><num>(1)</num><intro><p>This paragraph applies to a multinational group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>it meets the international expansion condition for that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the accounting period is the first accounting period in which the group came within the scope of Chapter 9A, or any of the following 4 accounting periods.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If this paragraph applies to a multinational group for an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>A multinational group meets the international expansion condition for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the group does not have members located in more than 6 territories, and</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the values of tangible fixed assets of qualifying members of the group, other than members located in the reference territory, for that period does not exceed 50 million euros.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>the value of tangible fixed assets of a qualifying member of a multinational group is to be determined in accordance with <ref href="#d25e20098">section 229H</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>the “reference territory” is the territory for which the sum of the values of tangible fixed assets of qualifying members of the group located in that territory is greatest.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>The first accounting period in which a multinational group comes within the scope of Chapter 9A is the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period for which it meets Condition A in section 129(2) (annual revenue exceeds 750 million euros), and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period beginning on or after the day on which <ref href="#d25e19511">section 229C</ref> (allocation of untaxed amount to members) comes into force for any purpose.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential amendments: IIR and qualifying undertaxed profits tax</heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><intro><p>In section 128 (responsible members)—</p></intro><level class="para1" eId="schedule-4-paragraph-7-1-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(i), after “equivalent to” insert <quotedText>“the IIR provisions of”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-7-1-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>In this section the “<term refersTo="#term-iir-provisions-of-multinational-top-up-tax">IIR provisions of multinational top-up tax</term>” means the provisions of this Part relating to the charging of top-up amounts and additional top-up amounts (but not untaxed amounts).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><content><p><mod>In section 257 (meaning of qualifying undertaxed profits tax), in subsection (1), after “it is” insert <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>multinational top-up tax (see, in particular, <ref href="#d25e19366">Chapter 9A</ref>), or</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Other consequential amendments etc</heading><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 241 (Pillar Two territories), in subsection (2), for “equivalent to this Part—” substitute <quotedText>“which implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules)—”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p><mod>In Schedule 17 (index of defined expressions), in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“<term refersTo="#term-qualifying-member-(in-chapter-9a-of-part-3)">qualifying member (in Chapter 9A of Part 3)</term>”.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><content><p><mod>In Schedule 15 (elections), in paragraph 2(1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ha)</num><content><p><ref href="#d25e19915">section 229F</ref>;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><content><p><mod>In section 272 (domestic top-up tax for members of groups), in subsection (4), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(c)</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p><mod>In section 273 (domestic top-up tax for single entities), in subsection (4), after paragraph (z) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>z1</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><content><p>The amendments made by this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024.</p></content></paragraph></hcontainer></part><part eId="schedule-4-part-3"><num>Part 3</num><heading>Others</heading><hcontainer name="crossheading" class="schGroup7"><heading>Permanent establishments as excluded entities</heading><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 127 (excluded entities), in each of subsections (5), (6) and (7), in paragraph (a), for “it” substitute <quotedText>“the entity or, in the case of a permanent establishment, the main entity”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Use of substituted values</heading><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p><mod>After section 137 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>137A</num><heading>Use of substituted values</heading><subsection><num>(1)</num><intro><p>Where any provision of this Part requires the substitution of a value recorded in the underlying profits accounts of a member of a multinational group for an accounting period, the substituted value—</p></intro><level class="para1"><num>(a)</num><content><p>is to be used for all purposes of this Part instead of the value recorded in the accounts (for example, where the carrying value of an asset has been substituted and the value of that asset is relevant to the member’s deferred tax expense, that substituted value is to be used in connection with determining that expense), and</p></content></level><level class="para1"><num>(b)</num><content><p>is to be updated (for example, in making adjustments for depreciation for subsequent accounting periods),</p></content></level><wrapUp><p>in each case, in accordance with the accounting standard used in determining the underlying profits of the member.</p></wrapUp></subsection><subsection eId="d25e20831"><num>(2)</num><content><p>But where the value in question is the value of an asset, no adjustments for impairment are to be made to it.</p></content></subsection><subsection eId="d25e20837"><num>(3)</num><content><p>Where the impaired value of an asset recorded in the underlying profits accounts for any accounting period is less than the substituted value of the asset for that period, use the value from the underlying profits accounts instead for that period and all subsequent periods (and <ref href="#d25e20831">subsection (2)</ref> does not apply in relation to that value).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><intro><p>In section 197 (eligible tangible asset amount), in <ref href="#d25e20837">subsection (3)</ref>—</p></intro><level class="para1" eId="schedule-4-paragraph-12-2-a"><num>(a)</num><content><p><mod>after “means” insert <quotedText>“values”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-12-2-b"><num>(b)</num><content><p><mod>after “parent” insert <quotedText>“(and not values as substituted as a result of any other provision of this Part)”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Flow-through entities</heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-4-paragraph-13-1"><num>(1)</num><content><p>Section 168 (underlying profits of transparent and reverse hybrid entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-2"><num>(2)</num><content><p>In the heading omit “and reverse hybrid”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20899"><num>(2A)</num><intro><p>Subject to <ref href="#d25e20935">subsection (2C)</ref>, a member of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M if that member—</p></intro><level class="para1"><num>(a)</num><content><p>is a non-FTE entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>holds an ownership interest in M which is not held through a non-FTE entity.</p></content></level></subsection><subsection><num>(2B)</num><content><p>In subsection <ref href="#d25e20899">(2A)</ref> “<term refersTo="#term-non-fte-entity">non-FTE entity</term>” means an entity that is not a flow-through entity.</p></content></subsection><subsection eId="d25e20935"><num>(2C)</num><content><p>If no member of the group is a reference entity in relation to M by virtue of subsection <ref href="#d25e20899">(2A)</ref>, the ultimate parent of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-4"><num>(4)</num><content><p><mod>In subsection (3) for the words from “each” to the end substitute “any member of the group (“<term refersTo="#term-r" eId="term-r">R</term>”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>which is a reference entity in relation to M, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to which condition A or B is met.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-13-5-a"><num>(a)</num><content><p><mod>in each place, for “O” substitute <quotedText>“R”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-b"><num>(b)</num><content><p><mod>for “proportional” substitute <quotedText>“percentage”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-c"><num>(c)</num><content><p>omit “(subject to subsection (7))”.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-13-6"><num>(6)</num><content><p><mod>For subsections (5) and (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Condition A is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is direct,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest, and</p></content></level><level class="para1"><num>(c)</num><content><p>M is regarded as tax transparent in the territory in which R is located.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Condition B is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is indirect,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest,</p></content></level><level class="para1"><num>(c)</num><content><p>M and each entity through which the ownership interest is held are regarded as tax transparent in the territory in which R is located, and</p></content></level><level class="para1"><num>(d)</num><content><p>no entity through which R holds the ownership interest is a reference entity in relation to M.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-7"><num>(7)</num><content><p>Omit subsection (7).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-8"><num>(8)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21073"><num>(9)</num><intro><p>Where every ownership interest in M held by a member of the group is a flow-through ownership interest, and an individual or entity (“the investor”) that is not a member of the group has an ownership interest in M which is held—</p></intro><level class="para1"><num>(a)</num><content><p>directly, or</p></content></level><level class="para1"><num>(b)</num><content><p>through a direct ownership interest in an entity in which a member of the group which is a reference entity in relation to M has an ownership interest,</p></content></level><wrapUp><p>a proportion of M’s underlying profits, equal to the percentage ownership interest the investor has in M, is to be excluded from the adjusted profits of M.</p></wrapUp></subsection><subsection><num>(9A)</num><content><p>Where M is the main entity in relation to a permanent establishment falling within paragraph (a), (b) or (c) of section 232(2), any reduction of M’s underlying profits by virtue of subsection <ref href="#d25e21073">(9)</ref> is to be applied before any attribution of M’s underlying profits to a permanent establishment in accordance with section 159.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-9"><num>(9)</num><content><p>In subsection (10) omit “or an individual”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-10"><num>(10)</num><content><p><mod>After subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10A)</num><intro><p>For the purposes of subsections (5), (6) and (9), an ownership interest in M held by a member of the group is a flow-through ownership interest if (and so far as)—</p></intro><level class="para1"><num>(a)</num><content><p>M is regarded, otherwise than by virtue of section 169(2), as tax transparent in the territory in which M was created,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest is held directly and M is treated by virtue of section 169(2) as being regarded as tax transparent to the extent of the interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest is derived from a direct ownership interest in M to which paragraph (b) applies.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-11"><num>(11)</num><content><p>Omit subsections (11) and (12).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 169 (certain non tax resident entities to be treated as flow-through entities), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-14-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “created” insert <quotedText>“in”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-14-b"><num>(b)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-14-b-i"><num>(i)</num><content><p><mod>after “is” insert <quotedText>“regarded as”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-14-b-ii"><num>(ii)</num><content><p><mod>for “its owners” substitute <quotedText>“holders of direct ownership interests in the member”</quotedText>.</mod></p></content></level></level></paragraph><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (2A) omit “and reverse hybrid”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-4-paragraph-16-1"><num>(1)</num><content><p>Section 178 (reallocation of tax expense) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “hybrid, transparent and reverse hybrid” substitute <quotedText>“hybrid and transparent”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-3"><num>(3)</num><content><p><mod>After subsection (1B) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1C)</num><intro><p>Subsection (1D) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a multinational group (“<term refersTo="#term-m">M</term>”) is a flow-through entity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>any of the following are not regarded as tax transparent in the territory in which a member of the group (“<term refersTo="#term-r">R</term>”), which is a reference entity in relation to M (within the meaning of section 168<ref href="#d25e20899">(2A)</ref>), is located—</p></intro><level class="para2"><num>(i)</num><content><p>M;</p></content></level><level class="para2"><num>(ii)</num><content><p>any member of the group through which R’s ownership interest in M is held.</p></content></level></level></subsection><subsection><num>(1D)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>R, or any member of the group (“<term refersTo="#term-x">X</term>”) which has an ownership interest in R, has an amount of qualifying current tax expense,</p></content></level><level class="para1"><num>(b)</num><content><p>that amount is in respect of profits not included in R’s, or as the case may be X’s, underlying profits, and</p></content></level><level class="para1"><num>(c)</num><content><p>had those profits had been included in R’s, or as the case may be X’s, underlying profits a corresponding amount of profits would have been allocated to M under section 167 (ignoring for this purpose subsection (1)(a) of that section) or 168,</p></content></level><wrapUp><p>that qualifying current tax expense is to be allocated to M (and is to be regarded as qualifying current tax expense of M for the purposes of section 175(2)(a)).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), after “(1A))” insert <quotedText>“or to M (under subsection (1D))”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 240 (location of flow-through entities and permanent establishments), in subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-17-a"><num>(a)</num><content><p><mod>before “would” insert <quotedText>“is the ultimate parent of a multinational group, or”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-17-b"><num>(b)</num><content><p><mod>for “it is located in that territory” substitute <quotedText>“the entity is treated as located in the territory in which it is created”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Tax equity partnerships</heading><paragraph eId="schedule-4-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In section 174 (amount of covered tax balance), in subsection (1), in Step 4, for “covered tax balance expense” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In sections 175 and 176, in the headings, for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-4-paragraph-20-1"><num>(1)</num><content><p>Section 176D (tax credits etc allocated under tax equity partnerships) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-2"><num>(2)</num><content><p><mod>In subsection (1), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>“<term refersTo="#term-flow-through-tax-benefits">Flow-through tax benefits</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>tax credits, other than qualifying refundable tax credits and marketable transferable tax credits, and</p></content></level><level class="para1"><num>(b)</num><content><p>the value of amounts of tax deductible losses,</p></content></level><wrapUp><p>that are made available to be used by an investor in a tax equity partnership arrangement under that arrangement (whether or not those credits or losses are used by the investor).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-4"><num>(4)</num><intro><p>In subsection (3)(b)—</p></intro><level class="para1" eId="schedule-4-paragraph-20-4-a"><num>(a)</num><content><p><mod>for “176D” substitute <quotedText>“176E”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-20-4-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“and the arrangement”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-20-5"><num>(5)</num><content><p><mod>In subsection (7), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-6"><num>(6)</num><content><p><mod>For subsection (11) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21427"><num>(11)</num><intro><p>An election under subsection (3)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the first accounting period for which it is to have effect, which must be the first relevant period,</p></content></level><level class="para1"><num>(b)</num><content><p>must be made no later than the date by which the information return or overseas return notification in respect of the first relevant period is due,</p></content></level><level class="para1"><num>(c)</num><content><p>must be included in an information return submitted to HMRC or a qualifying authority in respect of the first relevant period,</p></content></level><level class="para1"><num>(d)</num><content><p>has effect for the first relevant period and each subsequent accounting period, and</p></content></level><level class="para1"><num>(e)</num><content><p>cannot be revoked.</p></content></level></subsection><subsection><num>(12)</num><intro><p>In subsection <ref href="#d25e21427">(11)</ref>, “<term refersTo="#term-the-first-relevant-period">the first relevant period</term>” means the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period in which the member is an investor in the tax equity partnership arrangement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period for which the Pillar Two rules apply to the member.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-7"><num>(7)</num><content><p>Where a person became an investor in a tax equity partnership arrangement in an accounting period that began before 31 December 2024, section 176D(11) of F(No.2)A 2023 (as inserted by <ref href="#schedule-4-paragraph-20-6">sub-paragraph (6)</ref>) has effect in relation to the arrangement as if “the first relevant period” were the first accounting period beginning on or after that date.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-8"><num>(8)</num><content><p>In sub-paragraph <ref href="#schedule-4-paragraph-20-7">(7)</ref>, “<term refersTo="#term-investor-in-a-tax-equity-partnership-arrangement" eId="term-investor-in-a-tax-equity-partnership-arrangement">investor in a tax equity partnership arrangement</term>” has the same meaning as in section 176D of F(No.2)A 2023.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-4-paragraph-21-1"><num>(1)</num><content><p>Section 176E (flow-through tax benefits: proportional amortisation method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-2"><num>(2)</num><intro><p>In subsection (1), in Step 2—</p></intro><level class="para1" eId="schedule-4-paragraph-21-2-a"><num>(a)</num><content><p><mod>for “flow-through through tax benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-21-2-b"><num>(b)</num><content><p><mod>after “expected” insert <quotedText>“(as at the end of the accounting period)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-21-3"><num>(3)</num><content><p><mod>Also in subsection (1), in Step 7, for “flow-through benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-4"><num>(4)</num><content><p><mod>In subsection (2), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><content><p>Subsections <ref href="#d25e21579">(4)</ref> to <ref href="#d25e21618">(6)</ref> apply in relation to an investor, an arrangement and an accounting period if flow-through tax benefits were provided to the investor under the arrangement in at least one earlier accounting period.</p></content></subsection><subsection eId="d25e21579"><num>(4)</num><content><p>Where the result of Step 3 in subsection (1) would (but for this subsection) be greater than N, this section has effect as if the result of Step 3 were N.</p></content></subsection><subsection eId="d25e21585"><num>(5)</num><intro><p>To find N—</p></intro><level class="para1" eId="d25e21591"><num>(a)</num><content><p>identify the amount that was the result of Step 3 in subsection (1) in each earlier accounting period in which flow-through tax benefits were provided to the investor under the arrangement,</p></content></level><level class="para1" eId="d25e21597"><num>(b)</num><content><p>add together all the amounts identified under <ref href="#d25e21591">paragraph (a)</ref>, and</p></content></level><level class="para1"><num>(c)</num><content><p>subtract the result of <ref href="#d25e21597">paragraph (b)</ref> from the result of Step 1 in subsection (1).</p></content></level><wrapUp><p>The result is N, unless the result is below nil, in which case N is nil.</p></wrapUp></subsection><subsection eId="d25e21618"><num>(6)</num><content><p>A reference in <ref href="#d25e21585">subsection (5)</ref><ref href="#d25e21591">(a)</ref> to the result of Step 3 in subsection (1) in an earlier accounting period, where <ref href="#d25e21579">subsection (4)</ref> had effect in relation to the earlier period, is to the result of that Step as modified under <ref href="#d25e21579">subsection (4)</ref>.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-4-paragraph-22-1"><num>(1)</num><content><p>Section 176F (flow-through tax benefits: subtraction method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-2"><num>(2)</num><content><p><mod>In Step 2, in paragraph (a), for the words from “other than” to the end substitute <quotedText startQuote="“">other than tax credits—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>that were made available in the accounting period, and</p></item><item><num>(ii)</num><p>that are not qualifying refundable tax credits or marketable transferable tax credits;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-3"><num>(3)</num><content><p><mod>In Step 3, for “under arrangement” substitute <quotedText>“under the arrangement”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-23" class="schProv1"><num>23</num><content><p><mod>After section 176F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>176G</num><heading>Clawback of earlier qualifying flow-through tax benefits</heading><subsection><num>(1)</num><intro><p>This section applies to an investor in a tax equity partnership arrangement if—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying flow-through tax benefits are excluded under section 176D(1) from the investor’s covered tax balance for an accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the investor has an excess return from the arrangement in a later accounting period (“the later period”).</p></content></level></subsection><subsection eId="d25e21706"><num>(2)</num><content><p>For the purpose of determining the investor’s covered tax balance for the later period, the investor’s qualifying current tax expense for that period is to be adjusted (after the steps in section 174(1) have been taken) by subtracting the clawback amount.</p></content></subsection><subsection><num>(3)</num><content><p>“The clawback amount” is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the total amount of the qualifying flow-through tax benefits provided to the investor under the arrangement in accounting periods before the later period.</p></item><item><p><i>Step 2</i></p><p>Subtract from the result of Step 1 the total of any amounts subtracted under <ref href="#d25e21706">subsection (2)</ref> from the investor’s qualifying current tax expense for accounting periods before the later period.</p></item><item><p><i>Step 3</i></p><p>Compare the result of Step 2 with the amount of the investor’s excess return from the arrangement in the later period.</p><p>Whichever is less is the clawback amount.</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, an investor has an “excess return” from an arrangement in an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>where section 176E applies, if the result of Step 6 in section 176E(1) exceeds the amount of the flow-through tax benefits provided under the arrangement in the accounting period, in which case the amount of the excess return is the amount of the excess;</p></content></level><level class="para1"><num>(b)</num><content><p>where section 176F applies and the investor did not have an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than nil, in which case the amount of the excess return is the amount by which it is less than nil;</p></content></level><level class="para1"><num>(c)</num><content><p>where section 176F applies and the investor had an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than it was in the last accounting period in which the investor had an excess return from the arrangement, in which case the amount of the excess return is the amount of the difference.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-24" class="schProv1"><num>24</num><content><p>In Schedule 15 (elections), in paragraph 2(1) (annual elections), omit paragraph (za).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-4-paragraph-25-1"><num>(1)</num><content><p>Section 180 (blended CFC regimes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-25-2"><num>(2)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-25-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “the effective tax rate of” substitute <quotedText>“a single effective tax rate of all”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is a member of the multinational group,</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different subsets of (one or more) members of the multinational group located in the territory where the CFC entity is located (“local blending subsets”), and</p></content></level><level class="para2"><num>(iii)</num><content><p>the CFC entity is a member of a local blending subset,</p></content></level><wrapUp><p>the effective tax rate of the local blending subset of which the CFC entity is a member, calculated on the assumptions set out in paragraph (a)(i) and (ii) (“the relevant assumptions”);</p></wrapUp></level><level class="para1"><num>(ab)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is not a member of the multinational group, or is a member of the multinational group but not a member of any local blending subset, and</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different local blending subsets,</p></content></level><wrapUp><p>the effective tax rate, calculated on the relevant assumptions, of the local blending subset whose members have collectively the highest attributable income of C in relation to the CFC entity (as mentioned in subsection (5)(a));</p></wrapUp></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-c"><num>(c)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-25-2-c-i"><num>(i)</num><content><p><mod>for “where it is not located in such a territory,” substitute <quotedText>“where no applicable effective tax rate can be determined under paragraphs (a) to (ab)”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-25-2-c-ii"><num>(ii)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>But this is subject to section 180A.</p></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-25-3"><num>(3)</num><content><p><mod>After section 180 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>180A</num><heading>Section 180: further provision</heading><subsection><num>(1)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 3 of Schedule 16 for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of the multinational group (as defined in paragraph 8 of Schedule 16)).</p></content></subsection><subsection><num>(2)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 10 of Schedule 16 (application in the case of joint venture group) for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of that multinational group (as defined in paragraph 8 of Schedule 16).</p></content></subsection><subsection><num>(3)</num><content><p>Subsection (4) has effect where the filing member of a particular multinational group mentioned in section 180(8)(a) has made one or more separate elections under any of paragraphs 1, 4, 5 and 6 of Schedule 16A for the relevant period in respect of the territory mentioned in section 180(8)(a).</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of section 180, the effective tax rate of any member or set of members to which a particular election mentioned in subsection (4) relates is to be the rate (expressed as a percentage) given by dividing—</p></intro><level class="para1"><num>(a)</num><content><p>the aggregate tax expense of that member or set of members used to determine the effective tax rate for the purposes of the qualifying domestic top-up tax applying in the territory for the accounting period, together with any amounts of qualifying domestic top-up tax paid of that member or set of members, by</p></content></level><level class="para1"><num>(b)</num><content><p>the income of that member or set of members determined for the purposes of the qualifying domestic top-up tax.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “relevant period” is to be interpreted in accordance with section 180(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>No allocation of deferred tax assets and liabilities under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-26" class="schProv1"><num>26</num><content><p><mod>In section 180 (blended CFC regimes), in subsection (3), in the words before paragraph (a), for “tax charged to C under” substitute <quotedText>“C’s current tax expense so far as relating to”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Cross-border allocation of current tax under cross-crediting regimes</heading><paragraph eId="schedule-4-paragraph-27" class="schProv1"><num>27</num><content><p><mod>After section 181 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e21968"><num>181A</num><heading>Cross-border allocation of current tax under cross-crediting regime</heading><subsection><num>(1)</num><content><p>Qualifying current tax expense is to be allocated between standard members of a multinational group in a territory in which a cross-crediting regime applies and standard members of the group in another territory in accordance with the cross-crediting regime methodology.</p></content></subsection><subsection><num>(2)</num><content><p>A cross-crediting regime applies in a territory if, under the law of that territory, taxes paid with respect to one source of income arising in another territory give rise to foreign tax credits which can be used against another source of income arising in a further territory.</p></content></subsection><subsection eId="d25e21984"><num>(3)</num><intro><p>The “<term refersTo="#term-cross-crediting-regime-methodology">cross-crediting regime methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the cross-crediting regime methodology, or</p></content></level><level class="para1" eId="d25e21999"><num>(b)</num><content><p>where no cross-crediting regime methodology is identified in any such regulations, the methodology described in the cross-crediting guidance.</p></content></level></subsection><subsection><num>(4)</num><content><p>The “<term refersTo="#term-cross-crediting-guidance">cross-crediting guidance</term>” means Chapter 3.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(5)</num><content><p>Where <ref href="#d25e21984">subsection (3)</ref><ref href="#d25e21999">(b)</ref> applies, the cross-crediting guidance has effect as cross-crediting regime methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(6)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the cross-crediting regime methodology.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Cross-border allocation of deferred tax</heading><paragraph eId="schedule-4-paragraph-28" class="schProv1"><num>28</num><content><p><mod>After section <ref href="#d25e21968">181A</ref> (as inserted by <ref href="#schedule-4-paragraph-27">paragraph 27</ref>) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Cross-border allocation of deferred tax expense</heading><section><num>181B</num><heading>Cross-border allocation of deferred tax assets and liabilities</heading><subsection><num>(1)</num><content><p>Deferred tax assets and liabilities are to be allocated between standard members of a multinational group in one territory and standard members of the group in another territory in accordance with the deferred taxes methodology.</p></content></subsection><subsection eId="d25e22063"><num>(2)</num><intro><p>The “<term refersTo="#term-deferred-taxes-methodology">deferred taxes methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the deferred taxes methodology, or</p></content></level><level class="para1" eId="d25e22078"><num>(b)</num><content><p>where no deferred taxes methodology is identified in any such regulations, the methodology described in the cross-border deferred taxes guidance.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-cross-border-deferred-taxes-guidance">cross-border deferred taxes guidance</term>” means Chapter 4.2 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(4)</num><content><p>Where <ref href="#d25e22063">subsection (2)</ref><ref href="#d25e22078">(b)</ref> applies, the cross-border deferred taxes guidance has effect as deferred taxes methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(5)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the deferred taxes methodology.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Extension of qualifying foreign tax credits</heading><paragraph eId="schedule-4-paragraph-29" class="schProv1"><num>29</num><intro><p>In section 183 (qualifying foreign tax credits (substitute loss carry forward assets))—</p></intro><level class="para1" eId="schedule-4-paragraph-29-a"><num>(a)</num><intro><p>in subsection (5)—</p></intro><level class="para2" eId="schedule-4-paragraph-29-a-i"><num>(i)</num><content><p>the words from “income”, in the second place it occurs, to the end become paragraph (a), and</p></content></level><level class="para2" eId="schedule-4-paragraph-29-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>other qualifying income.</p></content></level></quotedStructure></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-29-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>For the purposes of subsection (5) “other qualifying income means”—</p></intro><level class="para1"><num>(a)</num><content><p>income identified as such for the purposes of this section in regulations made under section 262(1)(a), or</p></content></level><level class="para1"><num>(b)</num><content><p>where no income is identified as other qualifying income in any such regulations, such income as is necessary to give effect to the substitute loss carry-forward guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-substitute-loss-carry-forward-guidance">substitute loss carry-forward guidance</term>” means Chapter 4.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Deferred tax recapture</heading><paragraph eId="schedule-4-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 184 (recaptured deferred tax liabilities) after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>This section is to be applied in accordance with, and is subject to, the DTL recapture methodology.</p></content></subsection><subsection eId="d25e22197"><num>(6)</num><intro><p>The DTL recapture methodology means provisions about the treatment of deferred tax liabilities—</p></intro><level class="para1"><num>(a)</num><content><p>set out in regulations made under section 262(1)(a) and identified in those regulations as the DTL recapture methodology, or</p></content></level><level class="para1" eId="d25e22209"><num>(b)</num><content><p>where no such provisions are identified in any such regulations, set out in the DTL recapture guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-dtl-recapture-guidance">DTL recapture guidance</term>” means the guidance in Chapter 1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(8)</num><content><p>Where subsection <ref href="#d25e22197">(6)</ref><ref href="#d25e22209">(b)</ref> applies, the DTL recapture guidance has effect as DTL recapture methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(9)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the DTL recapture methodology.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Existing deferred tax assets and liabilities arising under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-31" class="schProv1"><num>31</num><content><p><mod>In section 185 (inclusion of existing deferred tax assets and liabilities on entry into regime), after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Subsection <ref href="#d25e22260">(9)</ref> applies to a deferred tax asset or deferred tax liability of a member of a qualifying multinational group that arises under a blended CFC regime.</p></content></subsection><subsection eId="d25e22260"><num>(9)</num><content><p>A deferred tax asset or deferred tax liability to which this subsection applies is to be ignored in determining the member’s deferred tax expense.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Substance based income exclusion: permanent establishments and flow-through entities</heading><paragraph eId="schedule-4-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 195 (substance based income exclusion), for subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Section 198 supplements the rules in sections 196 and 197 in relation to a member that is a permanent establishment.</p></content></subsection><subsection><num>(9)</num><content><p>Section 198ZA supplements the rules in sections 196 and 197 in relation to a member that is a flow-through entity.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-33" class="schProv1"><num>33</num><content><p><mod>For section 198 (eligible payroll costs and eligible tangible asset amount: permanent establishments and flow-through entities) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>198</num><heading>Eligible payroll costs and eligible tangible asset amount: permanent establishments</heading><subsection><num>(1)</num><content><p>Sections 196 and 197 apply in relation to permanent establishments with the following modifications.</p></content></subsection><subsection><num>(2)</num><content><p>In determining under section 196 the eligible payroll costs of a permanent establishment within section 232(2)(a) to (c), the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the establishment.</p></content></subsection><subsection><num>(3)</num><content><p>In determining under section 197 the eligible tangible asset amount of a permanent establishment within section 232(2)(a) to (c), the only assets to be taken into account are assets used in the business of the establishment.</p></content></subsection><subsection><num>(4)</num><content><p>Both the eligible payroll costs and the eligible tangible asset amount of a permanent establishment within section 232(2)(d) are nil.</p></content></subsection><subsection><num>(5)</num><intro><p>If but for this subsection—</p></intro><level class="para1"><num>(a)</num><content><p>an amount would be taken into account under section 196 in respect of both a permanent establishment and the main entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>an asset would be taken into account under section 197 in respect of both a permanent establishment and the main entity,</p></content></level><wrapUp><p>the amount or asset is only to be taken into account in respect of the permanent establishment.</p></wrapUp></subsection></section><section eId="d25e22349"><num>198ZA</num><heading>Eligible payroll costs: flow-through entities</heading><subsection eId="d25e22353"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period if the member has costs that would be eligible payroll costs if the member were located in that territory and were not a flow-through entity and—</p></intro><level class="para1" eId="d25e22359"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Section 196 applies for the purposes of determining a flow-through payroll amount of a flow-through entity for a territory as it applies for the purposes of determining eligible payroll costs but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in that section to the territory of the member were to the territory to which the flow-through payroll amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22724">(7)</ref> of that section were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period, the eligible payroll costs of each member of the group falling within subsection <ref href="#d25e22353">(1)</ref><ref href="#d25e22359">(a)</ref> for that period (which may be nil) are to be increased by the amount given by multiplying the flow-through payroll amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through payroll amount for that period,</p></content></level><wrapUp><p>the eligible payroll costs of that entity for that period (which may be nil) are to be increased by the amount given by multiplying that flow-through payroll amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section eId="d25e22510"><num>198ZB</num><heading>Eligible tangible asset amount: flow-through entities</heading><subsection eId="d25e22514"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity that is not the ultimate parent has a flow-through tangible asset amount for a territory for an accounting period if the member holds one or more assets in that territory and—</p></intro><level class="para1" eId="d25e22520"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Sections 197 and 197A apply for the purposes of determining a flow-through tangible asset amount of a flow-through entity for a territory as they apply for the purposes of determining an eligible tangible asset amount but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in those sections to the territory of the member were to the territory to which the flow-through tangible asset amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22740">(10)</ref> of section 197 were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through tangible asset amount for a territory for an accounting period, the eligible tangible asset amount of each member of the group falling within subsection <ref href="#d25e22514">(1)</ref><ref href="#d25e22520">(a)</ref> for that period (which may be nil) is to be increased by the amount given by multiplying the flow-through tangible asset amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through tangible asset amount for that period,</p></content></level><wrapUp><p>the eligible tangible asset amount of that entity for that period (which may be nil) is to be increased by the amount given by multiplying that flow-through tangible asset amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section><num>198ZC</num><heading>Eligible payroll costs and eligible tangible asset amount: flow-through ultimate parent</heading><subsection eId="d25e22675"><num>(1)</num><content><p>In determining for an accounting period the eligible payroll costs or eligible tangible asset amount of a flow-through entity that is the ultimate parent of a multinational group, the amount given by section 196 or 197 is to be reduced by the section 170 proportion.</p></content></subsection><subsection eId="d25e22681"><num>(2)</num><intro><p>In subsection <ref href="#d25e22675">(1)</ref>, “<term refersTo="#term-the-section-170-proportion">the section 170 proportion</term>” means the proportion of the adjusted profits of the flow-through entity for the accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where subsection (1) of 170 (adjustments for ultimate parent that is a flow-through entity) applies, is excluded under that subsection, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where that subsection does not apply as a result of the entity having not made a profit for that period, would be excluded under that subsection if the entity had adjusted profits of 100 euros.</p></content></level></subsection><subsection><num>(3)</num><content><p>In subsection <ref href="#d25e22681">(2)</ref>, “<term refersTo="#term-the-adjusted-profits">the adjusted profits</term>” means the adjusted profits before the application of section 170.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 196 (eligible payroll costs), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22724"><num>(7)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having nil eligible payroll costs (subject to the application of section <ref href="#d25e22349">198ZA</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-35" class="schProv1"><num>35</num><content><p><mod>In section 197 (eligible tangible asset amount), after subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22740"><num>(10)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having an eligible tangible asset amount of nil (subject to the application of section <ref href="#d25e22510">198ZB</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Eligible payroll costs</heading><paragraph eId="schedule-4-paragraph-36" class="schProv1"><num>36</num><intro><p>In section 196 (eligible payroll costs)—</p></intro><level class="para1" eId="schedule-4-paragraph-36-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (b);</p></content></level><level class="para1" eId="schedule-4-paragraph-36-b"><num>(b)</num><content><p><mod>in subsection (b) of subsection (3), for the words from “acting” to “group” substitute <quotedText>“participating in the ordinary operating activities of the member”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Additional top-up amounts</heading><paragraph eId="schedule-4-paragraph-37" class="schProv1"><num>37</num><content><p><mod>In section 203 (additional top-up amounts where covered taxes less than expected), in subsections (4)(b), (5)(b), (6)(b) and (7)(b), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-4-paragraph-38-1"><num>(1)</num><content><p>Section 206 (additional top-up amounts where recalculations required) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-38-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-2-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “members” insert <quotedText>“(“the current members”)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “those members would have for a prior period” substitute <quotedText>“the standard members of the group in the territory in a prior period would have for that period”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-3-b"><num>(b)</num><content><p><mod>in the words after paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-4-a"><num>(a)</num><content><p><mod>in Step 1, for “those members would have had for the prior period” substitute <quotedText>“the standard members of the group in the territory for the prior period would have had for that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-b"><num>(b)</num><content><p><mod>in Step 3, after “nil” insert <quotedText>“(and if there are no such results, the result of this step is nil)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-c"><num>(c)</num><intro><p>in Step 4—</p></intro><level class="para2" eId="schedule-4-paragraph-38-4-c-i"><num>(i)</num><content><p><mod>before “members” insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-4-c-ii"><num>(ii)</num><content><p><mod>for “Step 2” substitute <quotedText>“Step 3”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-5-a"><num>(a)</num><content><p><mod>for “those members” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-5-b"><num>(b)</num><content><p><mod>for “in accordance with subsections (5) to (8)” substitute <quotedText>“as follows”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-6"><num>(6)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-6-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-6-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-6-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-6-b"><num>(b)</num><content><p><mod>in paragraph (b), for “members for the members’ territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-6-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-7"><num>(7)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-7-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-7-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-7-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-7-b"><num>(b)</num><content><p><mod>in paragraph (b), for “standard members in the territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-8"><num>(8)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-8-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-ii"><num>(ii)</num><content><p><mod>before “period”, in the first place it occurs, insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-iii"><num>(iii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-8-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-9"><num>(9)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-9-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-a-ii"><num>(ii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-c"><num>(c)</num><content><p><mod>in the words after paragraph (b) for the words from “amount”, in the second place it occurs, to the end substitute <quotedText>“relevant amount.”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-10"><num>(10)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9)</num><intro><p>The relevant amount is the amount given by multiplying—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of the amounts of qualifying domestic top-up tax accrued by the current members in the current period, by</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount given by dividing—</p></intro><level class="para2"><num>(i)</num><content><p>the collective additional amount under this section, by</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of that collective additional amount, any collective additional amount under section 203 and the total top-up amount for the current period.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Joint ventures</heading><paragraph eId="schedule-4-paragraph-39" class="schProv1"><num>39</num><intro><p>In section 226 (joint venture group), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-39-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “group” insert <quotedText>“for an accounting period of that entity”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-b"><num>(b)</num><content><p><mod>in paragraph (a), after “entity” insert <quotedText>“for all or any part of that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-c"><num>(c)</num><content><p><mod>in paragraph (b), after “entity” insert <quotedText>“at any time in that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-d"><num>(d)</num><content><p><mod>in paragraph (c), for “qualifying multinational group” substitute <quotedText>“multinational group that meets condition A in section 129(2) for that accounting period (revenue threshold exceeded in at least 2 of previous 4 accounting periods)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-e"><num>(e)</num><content><p><mod>in paragraph (f), for “of which the entity is a member” substitute <quotedText>“referred to in paragraph (a)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-4-paragraph-40-1"><num>(1)</num><content><p>Section 227 (application of Part to joint venture groups) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-2-a"><num>(a)</num><intro><p>in the words before paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-40-2-a-i"><num>(i)</num><content><p><mod>after “but” insert <quotedText>“in their application by virtue of this subsection”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-ii"><num>(ii)</num><content><p><mod>after “Part”, in the second place it occurs, insert <quotedText>“, this Chapter other than this section and section 226”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-iii"><num>(iii)</num><content><p><mod>for “apply” substitute <quotedText>“have effect”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-40-2-b"><num>(b)</num><content><p><mod>in paragraph (c), for “the multinational” substitute <quotedText>“each respective multinational”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-40-3"><num>(3)</num><content><p><mod>In subsection (2), for “Part,” substitute <quotedText>“Part (in its application by virtue of subsection (1)),”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-4-a"><num>(a)</num><content><p><mod>after “But” insert <quotedText>“(in the application of this Part by virtue of subsection (1))”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-40-4-b"><num>(b)</num><content><p><mod>for “that” substitute <quotedText>“the joint venture”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-41" class="schProv1"><num>41</num><subparagraph eId="schedule-4-paragraph-41-1"><num>(1)</num><content><p>Section 266 (qualifying entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-2"><num>(2)</num><content><p><mod>In subsection (1), after “An entity” insert <quotedText>“which is not a member of a joint venture group”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-3"><num>(3)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23343"><num>(1A)</num><intro><p>A member of a joint venture group is a qualifying entity for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is not a DTT excluded entity,</p></content></level><level class="para1"><num>(b)</num><content><p>the member meets condition A for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>the revenue condition is met in relation to the group for that period.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of subsection <ref href="#d25e23343">(1A)</ref> the “revenue condition” is met in relation to a joint venture group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>a single entity which directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meets Condition A and Condition B for that period, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the members of a group (the “relevant group”) whose ultimate parent directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meet Condition C for that period and—</p></intro><level class="para2"><num>(i)</num><content><p>all of those members are located in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the relevant group is a multinational group (see section 126 in Part 3), and at least one of the members is located in a Pillar Two territory.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Domestic top-up tax</heading><paragraph eId="schedule-4-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-4-paragraph-42-1"><num>(1)</num><content><p>Section 270 (amount charged) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-2"><num>(2)</num><content><p><mod>Before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>Where a person is chargeable to domestic top-up tax for an accounting period as, or in respect of, a qualifying entity which is a member of a group, the amount (if any) the person must pay is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine (in accordance with section 272)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>whether the entity has a top-up amount for that period, and</p></item><item><num>(b)</num><p>the extent of any such amount.</p></item></blockList></item><item><p><i>Step 2</i></p><p>If the result of <ref href="#d25e23427">Step 1</ref> is not expressed in sterling, convert the result of that Step to sterling.</p></item></blockList></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-42-3-a"><num>(a)</num><content><p><mod>in the words before Step 1, for “as a qualifying entity or in respect of a qualifying entity” substitute <quotedText>“as or in respect of a qualifying entity which is not a member of a group”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-42-3-b"><num>(b)</num><content><p><mod>in Step 1, after “Determine” insert <quotedText>“(in accordance with section 273)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-4-paragraph-43-1"><num>(1)</num><content><p>Section 272 (determining top-up amounts of entity that is a member of a group) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-2"><num>(2)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p><mod>Part 3 has effect for those purposes as if the following sections were substituted for section 193—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>193</num><heading>Determination of top-up amounts of entity that is a member of a group</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e23531">(2)</ref> sets out (for the purposes of Step 1 of section 270(A1)) how to determine in relation to an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>whether an entity which is a standard member of a group has a top-up amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, what the amount is.</p></content></level></subsection><subsection eId="d25e23531"><num>(2)</num><content><p>Take the following Steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine for the period (in accordance with section 272) the sum of any top-up amounts and additional top-up amounts of standard members of the group (the “total top-up amount”).</p></item><item><p><i>Step 2</i></p><p>Determine for each such member—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the adjusted profits (if any);</p></item><item><num>(b)</num><p>the covered tax balance.</p></item></blockList></item><item><p><i>Step 3</i></p><p>For each standard member of the group in relation to which a positive amount of adjusted profits is determined under <ref href="#d25e23546">Step 2</ref>, determine the “effective tax rate” by dividing the amount found under <ref href="#d25e23546">Step 2</ref><ref href="#d25e23559">(b)</ref> (covered tax balance) by the amount found under <ref href="#d25e23546">Step 2</ref><ref href="#d25e23555">(a)</ref> (adjusted profits).</p></item><item><p><i>Step 4</i></p><p>For any standard member of the group whose effective tax rate (see <ref href="#d25e23563">Step 3</ref>) is less than 15%—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>determine that member’s “top-up tax percentage” by subtracting the member’s effective tax rate from 15%, and</p></item><item><num>(b)</num><p>proceed to <ref href="#d25e23607">Step 5</ref>.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Calculate for the member an amount (an “allocation key amount”) by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s top-up tax percentage (see <ref href="#d25e23584">Step 4</ref>(a)), by</p></item><item><num>(b)</num><p>the member’s adjusted profits.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Determine the sum (the “group allocation key amount”) of all the allocation key amounts calculated under <ref href="#d25e23607">Step 5</ref> for members of the group.</p></item><item><p><i>Step 7</i></p><p>Determine the “allocation key ratio” for each standard member of the group whose effective tax rate (see <ref href="#d25e23563">Step 3</ref>) is less than 15%, by dividing—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s allocation key amount (see <ref href="#d25e23607">Step 5</ref>), by</p></item><item><num>(b)</num><p>the group allocation key amount (see <ref href="#d25e23627">Step 6</ref>).</p></item></blockList></item><item><p><i>Step 8</i></p><p>Determine each such member’s top-up amount by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of any top-up amounts and additional top-up amounts of standard members of the group for the period (see <ref href="#d25e23538">Step 1</ref>), by</p></item><item><num>(b)</num><p>the member’s allocation key ratio (see <ref href="#d25e23638">Step 7</ref>).</p></item></blockList></item><item><p><i>Step 9</i></p><p>If none of the standard members falls within <ref href="#d25e23563">Step 3</ref>, or none of them has an effective tax rate of less than 15%, each standard member has a top-up amount equal to—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the total top-up amount, divided by</p></item><item><num>(b)</num><p>the number of the standard members.</p></item></blockList></item></blockList></content></subsection></section><section><num>193A</num><heading>Section 193: supplementary</heading><subsection><num>(1)</num><content><p>Section 193 and subsection (2) of this section apply to joint venture groups and their members as they apply to groups and their members.</p></content></subsection><subsection><num>(2)</num><content><p>Section 193 has effect in relation to a qualifying entity that is a standard member of a group as if the total top-up amount referred to in that section included any top-up amounts or additional top-up amounts of qualifying investment entities determined under sections 220 to 224.</p></content></subsection><subsection><num>(3)</num><intro><p>See also subsections (9) to (11) of section 272, which—</p></intro><level class="para1"><num>(a)</num><content><p>define “<term refersTo="#term-qualifying-investment-entity">qualifying investment entity</term>” in relation to a qualifying entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>make further provision about top-up amounts (for the purposes of domestic top-up tax).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-3"><num>(3)</num><content><p>In subsection (8) omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Domestic top-up tax: excluded entities</heading><paragraph eId="schedule-4-paragraph-44" class="schProv1"><num>44</num><content><p><mod>In section 267 (DTT excluded entities), after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>A company is a DTT excluded entity if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a qualifying asset holding company for the purposes of Schedule 2 to FA 2022, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not a member of a multinational group.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>De minimis rule</heading><paragraph eId="schedule-4-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-4-paragraph-45-1"><num>(1)</num><intro><p>In section 199 (election to treat total top-up amount as nil)—</p></intro><level class="para1" eId="schedule-4-paragraph-45-1-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-45-1-a-i"><num>(i)</num><content><p><mod>for “total top-up amount” substitute <quotedText>“top-up amounts of the relevant members”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-45-1-a-ii"><num>(ii)</num><content><p><mod>for “is” substitute <quotedText>“are”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-45-1-b"><num>(b)</num><content><p><mod>in subsections (2)(a), (3), (4), (6)(a) and (6)(b), for “standard” substitute <quotedText>“relevant”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-c"><num>(c)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23834"><num>(2A)</num><intro><p>In this section, a member of a multinational group is a “relevant” member if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a standard member of the group, or</p></content></level><level class="para1"><num>(b)</num><content><p>a minority owned member of the group.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-d"><num>(d)</num><content><p><mod>in the heading, for “total top-up amount” substitute <quotedText>“certain top-up amounts”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-45-2"><num>(2)</num><content><p><mod>In section 228 (minority owned members), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>But neither subsection (3) nor (4) applies to the reference to “standard member” in section 199<ref href="#d25e23834">(2A)</ref> (election to treat top-up amounts of relevant members as nil).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transitional safe harbour</heading><paragraph eId="schedule-4-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-4-paragraph-46-1"><num>(1)</num><content><p>Part 2 of Schedule 16 (transitional safe harbour) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-2"><num>(2)</num><intro><p>In paragraph 3 (election)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (1), after “election” insert <quotedText>“under this paragraph”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2)(c), for “the election” substitute <quotedText>“a transitional safe harbour election”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-c"><num>(c)</num><content><p><mod>in sub-paragraph (7), for “the information” substitute <quotedText>“all relevant information”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-d"><num>(d)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(7A)</num><content><p>For the purposes of sub-paragraph (7), “<term refersTo="#term-all-relevant-information">all relevant information</term>” means all of the information described in paragraphs (a) to (d) of paragraph 4(3).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-e"><num>(e)</num><content><p><mod>after sub-paragraph (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(10)</num><content><p>An election under this paragraph may not be made in respect of the nominal territory of a stateless member of a multinational group.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-3"><num>(3)</num><intro><p>In paragraph 4 (qualified financial statements), in sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for “statement” substitute <quotedText>“statements”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>after “parent” insert <quotedText>“provided the statements are prepared in accordance with acceptable accounting standards or an authorised accounting standard”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-46-3-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>financial statements of members of the group provided—</p></intro><level class="para2"><num>(i)</num><content><p>they are prepared in accordance with acceptable accounting standards or an authorised accounting standard, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the information contained in those statements is reliable and is maintained in a manner that is consistent with its use under the accounting standard used in preparing those statements.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-4"><num>(4)</num><content><p><mod>In paragraph 4, after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>But see also <ref href="#d25e24046">paragraph 4A</ref> in cases where those accounts or statements reflect purchase price accounting adjustments.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-5"><num>(5)</num><content><p><mod>In paragraph 4, in sub-paragraph (3), in paragraph (d), after “income” insert <quotedText>“exclusion”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-6"><num>(6)</num><content><p><mod>After paragraph 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Accounts or statements reflecting purchase price accounting adjustments</heading><paragraph eId="d25e24046" class="schProv1"><num>4A</num><subparagraph><num>(1)</num><intro><p>This paragraph applies in relation to accounts or financial statements (“the relevant statements”) in relation to a multinational group in a territory that—</p></intro><level class="para1"><num>(a)</num><content><p>fall within paragraph (a) or (b) of paragraph 4(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>reflect purchase price accounting adjustments.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a country-by-country report has been submitted in respect of the group in that territory in respect of a period commencing on or after 1 January 2023 and concluding before the commencement of the accounting period for which the transitional safe harbour election is being made,</p></content></level><level class="para1"><num>(b)</num><content><p>the financial accounts used for the preparation of that report did not reflect purchase price accounting adjustments, and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no requirement to reflect purchase price adjustments in the relevant statements under the law of the territory that applies in relation to the preparation of those statements,</p></content></level><wrapUp><p>the relevant statements are not qualified financial statements.</p></wrapUp></subparagraph><subparagraph><num>(3)</num><intro><p>Sub-paragraph <ref href="#d25e24115">(4)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant statements are qualified financial statements, and</p></content></level><level class="para1"><num>(b)</num><content><p>an impairment of goodwill in relation to a transaction entered into on or after 1 December 2021 is reflected in a member’s profit (loss) before income tax.</p></content></level></subparagraph><subparagraph eId="d25e24115"><num>(4)</num><intro><p>Adjust the profit (loss) before income tax of the member so that it does not reflect that impairment for the purposes of determining—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the condition in sub-paragraph <ref href="#d25e24136">(5)</ref> is not met, whether the simplified effective tax rate test is met (see paragraph 8), and</p></content></level><level class="para1"><num>(b)</num><content><p>in any case, whether the routine profits test is met (see paragraph 9).</p></content></level></subparagraph><subparagraph eId="d25e24136"><num>(5)</num><intro><p>The condition in this sub-paragraph is that the relevant statements reflect—</p></intro><level class="para1"><num>(a)</num><content><p>a reversal of deferred tax liability in relation to the goodwill, or</p></content></level><level class="para1"><num>(b)</num><content><p>the recognition or increase of a deferred tax asset in relation to it.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-7"><num>(7)</num><intro><p>In paragraph 5 (qualifying income tax expense)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-7-a"><num>(a)</num><content><p>the existing text becomes sub-paragraph (1), and</p></content></level><level class="para1" eId="schedule-4-paragraph-46-7-b"><num>(b)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><content><p>For the purposes of this Part of this Schedule, any amount of qualifying income tax expense that is in respect of profits of a permanent establishment and that is incurred in the territory of the permanent establishment is to be regarded as the expense of that permanent establishment (rather than of the main entity).</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transitional safe harbour: arbitrage arrangements</heading><paragraph eId="schedule-4-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-4-paragraph-47-1"><num>(1)</num><content><p><mod>In Schedule 16, after paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Deduction and non-inclusion arrangements and duplicate loss arrangements</heading><paragraph class="schProv1"><num>6A</num><subparagraph eId="d25e24200"><num>(1)</num><content><p>Where the aggregate profit (loss) before income tax of the standard members of a multinational group in a territory reflects disqualified expense, the aggregate profit (loss) before income tax is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24206"><num>(2)</num><intro><p>Disqualified expense means any expense or loss of a member of a multinational group reflected in the financial statements of the member arising as a result of qualifying arrangements that involve another member of the group—</p></intro><level class="para1" eId="d25e24212"><num>(a)</num><intro><p>to the extent that the expense or loss is a result of the member directly or indirectly being provided credit by the other member or the other member otherwise making an investment in the member under the arrangements and—</p></intro><level class="para2"><num>(i)</num><content><p>the credit or investment is not reflected as an increase in the revenue, or a gain, in the financial statements of the other member that corresponds to the expense or loss, or</p></content></level><level class="para2" eId="d25e24224"><num>(ii)</num><content><p>it is not reasonable to expect that the credit or investment will be reflected as an increase in the taxable income of the other member over the life of the arrangements that corresponds to the expense or loss, or</p></content></level></level><level class="para1" eId="d25e24230"><num>(b)</num><intro><p>to the extent that—</p></intro><level class="para2" eId="d25e24236"><num>(i)</num><content><p>the expense or loss is also included as an expense or loss in the financial statements of another member of the group, or</p></content></level><level class="para2" eId="d25e24242"><num>(ii)</num><content><p>the expense or loss is mirrored by an amount that can be deducted from the taxable income of another member of the group that is located in a different territory to the member.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>an expense or a loss is not disqualified expense as a result of <ref href="#d25e24206">sub-paragraph (2)</ref><ref href="#d25e24212">(a)</ref> if it is solely referable to the provision of qualifying tier one capital,</p></content></level><level class="para1"><num>(b)</num><content><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24206">sub-paragraph (2)</ref><ref href="#d25e24230">(b)</ref><ref href="#d25e24236">(i)</ref> to the extent it is offset against revenue that is included in the financial statements of each member whose financial statements reflect the expense or loss, and</p></content></level><level class="para1"><num>(c)</num><intro><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24206">sub-paragraph (2)</ref><ref href="#d25e24230">(b)</ref><ref href="#d25e24242">(ii)</ref> to the extent that it is offset against revenue or income that is included in both—</p></intro><level class="para2"><num>(i)</num><content><p>the financial statements that reflect the expense or loss, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the taxable income from which the amount that mirrors the expense or loss can be deducted.</p></content></level></level></subparagraph><subparagraph><num>(4)</num><intro><p>An expense or loss included in the financial statements of a member of a multinational group is to be ignored to the extent that the expense or loss is included in the financial statements of another member of the group as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>the other member having a direct or indirect ownership interest in the member, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member being regarded as tax transparent in the territory in which the other member is located.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Where as a result of <ref href="#d25e24206">sub-paragraph (2)</ref><ref href="#d25e24230">(b)</ref><ref href="#d25e24236">(i)</ref> more than one standard member in a territory has disqualified expense in respect of the same expense or loss, <ref href="#d25e24200">sub-paragraph (1)</ref> applies to all but one of those amounts of disqualified expense.</p></content></subparagraph><subparagraph eId="d25e24337"><num>(6)</num><intro><p>For the purposes of <ref href="#d25e24206">sub-paragraph (2)</ref><ref href="#d25e24212">(a)</ref><ref href="#d25e24224">(ii)</ref>, ignore any increase in the taxable income of the other member—</p></intro><level class="para1" eId="d25e24350"><num>(a)</num><content><p>that is offset by a devalued tax attribute, or</p></content></level><level class="para1"><num>(b)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the payment that gives rise to the expense or loss in question also results in a taxable deduction or loss of a further member of the group located in the same territory as the other member, and</p></content></level><level class="para2"><num>(ii)</num><content><p>that deduction or loss is not reflected in the aggregate profit (loss) before income tax for that territory for the purposes of determining whether an election under paragraph 3 that applies in relation to that further member can be made.</p></content></level></level></subparagraph><subparagraph><num>(7)</num><intro><p>For the purposes of <ref href="#d25e24337">sub-paragraph (6)</ref><ref href="#d25e24350">(a)</ref>, a “<term refersTo="#term-devalued-tax-attribute">devalued tax attribute</term>” means a tax attribute of a member of a multinational group—</p></intro><level class="para1"><num>(a)</num><content><p>whose value is reflected in financial statements of the member at less than the amount of the attribute multiplied by the tax rate that applies to the member, or</p></content></level><level class="para1"><num>(b)</num><content><p>whose value would be so reflected if the qualifying arrangements that result in disqualified expense or disqualified tax expense (see paragraph <ref href="#d25e24466">6B</ref>) were ignored.</p></content></level></subparagraph><subparagraph><num>(8)</num><intro><p>For the purposes of this paragraph and paragraph <ref href="#d25e24466">6B</ref>, arrangements are “qualifying” if—</p></intro><level class="para1"><num>(a)</num><content><p>they were entered into on or after 16 December 2022, or</p></content></level><level class="para1"><num>(b)</num><intro><p>they were entered into before that date, but—</p></intro><level class="para2"><num>(i)</num><content><p>the arrangements are amended on or after that date (including by way of a substitution of one or more of the parties),</p></content></level><level class="para2"><num>(ii)</num><content><p>the performance of rights or obligations under the arrangements is altered on or after that date (for example where payments under the arrangements are reduced or ceased), or</p></content></level><level class="para2"><num>(iii)</num><content><p>the accounting treatment of the arrangements is varied on or after that date.</p></content></level></level></subparagraph><subparagraph><num>(9)</num><intro><p>In this paragraph and in paragraph <ref href="#d25e24466">6B</ref> reference to the financial statements of a member of a multinational group is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an accounting period in which an election under paragraph 3 that applies in relation to the member was made, or for the purposes of determining whether such an election can be made, to the financial statements, or financial accounts, that form the basis of qualified financial statements in relation to the member for the purposes of this Part of this Schedule, or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, to the underlying profits accounts of that member (see section 136).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Duplicate tax recognition arrangements</heading><paragraph eId="d25e24466" class="schProv1"><num>6B</num><subparagraph><num>(1)</num><content><p>Where the aggregate qualifying income tax expense of the standard members of a multinational group in a territory reflects disqualified tax expense, the aggregate qualifying income tax expense is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24476"><num>(2)</num><intro><p>Disqualified tax expense means any qualifying income tax expense of a member of a multinational group reflected in the financial statements of the member that, as a result of qualifying arrangements, is also reflected in—</p></intro><level class="para1" eId="d25e24482"><num>(a)</num><content><p>the covered tax balance of one or more other members of the group, or</p></content></level><level class="para1" eId="d25e24488"><num>(b)</num><content><p>the qualifying income tax expense of one or more other members of the group.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>But qualifying income tax expense is not to be regarded as disqualified tax expense—</p></intro><level class="para1"><num>(a)</num><content><p>if the income to which the tax expense relates is reflected in the financial statements of each member of the group falling within <ref href="#d25e24476">sub-paragraph (2)</ref><ref href="#d25e24482">(a)</ref> and <ref href="#d25e24488">(b)</ref> to at least the same extent to which the tax expense is reflected in the covered tax balance, or qualifying income tax expense, of each of those members;</p></content></level><level class="para1"><num>(b)</num><content><p>to the extent that the duplication of the tax expense would not arise if the adjustments that would have been made in determining the member’s covered tax balance (and that are not required to be made for the purpose of determining the member’s qualifying income tax expense) had been made.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-2"><num>(2)</num><intro><p>The amendment made by <ref href="#schedule-4-paragraph-47-1">sub-paragraph (1)</ref> has effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-47-2-a"><num>(a)</num><content><p>disqualified expense accruing on or after 14 March 2024, and</p></content></level><level class="para1" eId="schedule-4-paragraph-47-2-b"><num>(b)</num><content><p>disqualified tax expense attributable to profits accruing on or after 14 March 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-47-3"><num>(3)</num><content><p><mod>In paragraph 4 (qualified financial statements and basis of calculations), in sub-paragraph (4), in the words after paragraph (b) for “paragraph 6” substitute <quotedText>“paragraphs 6 to 6B”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-4"><num>(4)</num><content><p><mod>In section 155 (qualifying tier one capital), in subsection (3), for “section” substitute <quotedText>“Part”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-5"><num>(5)</num><content><p><mod>In Schedule 17, in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">qualifying tier one capital</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">section 155(3)</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Substance based income exclusion: removal of provision for election</heading><paragraph eId="schedule-4-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-4-paragraph-48-1"><num>(1)</num><content><p>In section 195 (substance based income exclusion) omit subsections (2) and (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-48-2"><num>(2)</num><content><p>Accordingly, in paragraph 2 (annual elections) of Schedule 15 (multinational top-up tax: elections), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Inclusion ratio</heading><paragraph eId="schedule-4-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-4-paragraph-49-1"><num>(1)</num><content><p>Section 201 (inclusion ratio) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-2"><num>(2)</num><content><p><mod>In subsection (1), in Step 2, at the end insert <quotedText>“, but excluding ownership interests in respect of which an amount has been excluded from the relevant member’s adjusted profits.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-3"><num>(3)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-50" class="schProv1"><num>50</num><subparagraph eId="schedule-4-paragraph-50-1"><num>(1)</num><content><p>Section 223 (adjustments) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-50-2"><num>(2)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “group,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “profits” insert <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-3"><num>(3)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-3-a"><num>(a)</num><content><p><mod>in paragraph (a), after “made,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-3-b"><num>(b)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-4"><num>(4)</num><content><p><mod>In subsection (9), after “201(2)” insert <quotedText>“and (3)”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Specification of territories and taxes</heading><paragraph eId="schedule-4-paragraph-51" class="schProv1"><num>51</num><subparagraph eId="schedule-4-paragraph-51-1"><num>(1)</num><intro><p>In section 241 (Pillar Two territories)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-1-a"><num>(a)</num><content><p><mod>in subsection (1), before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a territory to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-c-i"><num>(i)</num><content><p><mod>after “Regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a territory in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a territory made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-e"><num>(e)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the territory was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a territory previously specified ceases to have effect” substitute <quotedText>“for the specification of a territory to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>A territory outside the United Kingdom is to be treated as a Pillar Two territory for the purposes of any accounting period that concluded before the first regulations under this section have been made, if it is a territory in which a tax applies for that accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>that is a Qualified IIR for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>that it is reasonable to conclude is likely to be a Qualified IIR for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-2"><num>(2)</num><intro><p>In section 256 (qualifying domestic top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-2-a"><num>(a)</num><content><p><mod>in subsection (1)(b), for “a” substitute <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-c-i"><num>(i)</num><content><p><mod>after “regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a tax in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a tax made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-e"><num>(e)</num><intro><p>in subsection (4)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the tax was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a tax previously specified ceases to have effect” substitute <quotedText>“for the specification of a tax to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>A tax (other than domestic top-up tax which is always a qualifying domestic top-up tax) is to be treated as a qualifying domestic top-up tax for the purposes of any accounting period that concluded before the first regulations under this section have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that it is likely to be a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-3"><num>(3)</num><intro><p>In Schedule 16A (qualifying domestic top-up tax safe harbour election)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-3-a"><num>(a)</num><intro><p>in paragraph 1(3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-a-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “may only be made” substitute <quotedText>“is only valid”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-ii"><num>(ii)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the accreditation applies to the accounting period, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-3-b"><num>(b)</num><intro><p>in paragraph 2—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-b-i"><num>(i)</num><content><p>the existing text becomes sub-paragraph (1),</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-ii"><num>(ii)</num><content><p><mod>in that sub-paragraph, before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>Regulations may provide for the accreditation of a tax by specification in a notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subparagraph><subparagraph><num>(1B)</num><content><p>Regulations, or a notice, must identify the accounting periods to which the accreditation applies.</p></content></subparagraph><subparagraph><num>(1C)</num><content><p>Regulations under this paragraph may provide for the accreditation of a tax to have effect from a time before the tax was specified (but may not provide for the accreditation of a tax to cease to have effect in relation to accounting periods commencing before the regulations are made).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iv"><num>(iv)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e25099"><num>(2)</num><intro><p>A qualifying domestic top-up tax is to be treated as accredited for the purposes of any accounting period that concluded before the first regulations under this paragraph have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>the tax falls within Chapter 5.5 to 5.7 of the QDMTT safe harbour guidance, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that the tax is likely to fall within Chapter 5.5 to 5.7 of that guidance.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>For the purposes of sub-paragraph <ref href="#d25e25099">(2)</ref> the “<term refersTo="#term-qdmtt-safe-harbour-guidance">QDMTT safe harbour guidance</term>” means Chapter 5 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023, published by the OECD on 17 July 2023.</p></content></subparagraph></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-4"><num>(4)</num><content><p>The amendments made by sub-paragraphs <ref href="#schedule-4-paragraph-51-1">(1)</ref><ref href="#schedule-4-paragraph-51-1-f">(f)</ref>, <ref href="#schedule-4-paragraph-51-2">(2)</ref><ref href="#schedule-4-paragraph-51-2-f">(f)</ref> and <ref href="#schedule-4-paragraph-51-3">(3)</ref><ref href="#schedule-4-paragraph-51-3-b">(b)</ref><ref href="#schedule-4-paragraph-51-3-b-i">(i)</ref> and <ref href="#schedule-4-paragraph-51-3-b-iv">(iv)</ref> are treated as having come into force on 7 November 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Filing etc not required before 30 June 2026</heading><paragraph eId="schedule-4-paragraph-52" class="schProv1"><num>52</num><subparagraph eId="schedule-4-paragraph-52-1"><num>(1)</num><content><p>Schedule 14 (administration) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-2"><num>(2)</num><content><p><mod>In paragraph 10, after sub-paragraph (11) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(12)</num><content><p>Where (ignoring this sub-paragraph) the date by which an information return or overseas return notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-3"><num>(3)</num><content><p><mod>In paragraph 13, after sub-paragraph (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(11)</num><content><p>Where (ignoring this sub-paragraph) the date by which a self assessment return or below-threshold notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is instead 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-4"><num>(4)</num><content><p><mod>In paragraph 32, after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(3A)</num><content><p>Where (ignoring this sub-paragraph) the date on which an amount of multinational top-up tax must be paid falls before 30 June 2026, the date on which it must be paid is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Minor amendments</heading><paragraph eId="schedule-4-paragraph-53" class="schProv1"><num>53</num><content><p>In section 141 (general exclusion of dividends), in subsection (9) omit paragraph (b) and the “or” preceding it.</p></content></paragraph><paragraph eId="schedule-4-paragraph-54" class="schProv1"><num>54</num><intro><p>In section 148A (transferable tax credits), in subsection (5)(a)—</p></intro><level class="para1" eId="schedule-4-paragraph-54-a"><num>(a)</num><content><p><mod>in sub-paragraph (i), for “before the end of 15 months” substitute <quotedText>“in the period beginning with the day on which the credit was granted and ending 15 months after the end”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-54-b"><num>(b)</num><content><p><mod>in sub-paragraph (ii), for “before the end of 15 months of the accounting period in which they are granted” substitute <quotedText>“in that period”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-55" class="schProv1"><num>55</num><content><p><mod>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (9)(b), for the words from “the ultimate parent’s“ to the end substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>the entity is regarded as tax transparent in the territory in which the ultimate parent is located, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the ultimate parent’s interest in that entity is held directly or through one or more entities all of which are regarded as tax transparent in that territory.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-56" class="schProv1"><num>56</num><intro><p>In section 171 (ultimate parent subject to qualifying dividend regime)—</p></intro><level class="para1" eId="schedule-4-paragraph-56-a"><num>(a)</num><content><p>in subsection (2)(b), omit “adjusted”, and</p></content></level><level class="para1" eId="schedule-4-paragraph-56-b"><num>(b)</num><content><p><mod>in subsection (6), for “underlying”, in each place it occurs, substitute <quotedText>“adjusted”</quotedText></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 176B (value of non-marketable transferable tax credits: originator), in subsection (3), after “the”, in the fourth place it occurs, insert <quotedText>“end of the”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-58" class="schProv1"><num>58</num><intro><p>In section 176C (value of non-marketable transferable tax credits: purchaser)—</p></intro><level class="para1" eId="schedule-4-paragraph-58-a"><num>(a)</num><content><p><mod>in subsection (4)(b), for “underlying” substitute <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-58-b"><num>(b)</num><content><p>in subsection (5)(a)(ii) omit “reflected”;</p></content></level><level class="para1" eId="schedule-4-paragraph-58-c"><num>(c)</num><content><p><mod>in subsection (6) for “underlying” substitute <quotedText>“adjusted”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-59" class="schProv1"><num>59</num><content><p><mod>In section 176D (tax credits etc allocated under tax equity partnerships), in subsection (10), for “the amount multiplied” substitute <quotedText>“that amount”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-60" class="schProv1"><num>60</num><intro><p>In section 211 (transfer of assets or liabilities to a member of a multinational group)—</p></intro><level class="para1" eId="schedule-4-paragraph-60-a"><num>(a)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-60-a-i"><num>(i)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-60-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the transferor and the transferee are not members of the same type located in the same territory, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-60-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>For the purposes of subsection (2) two members of a multinational group are of the same type if—</p></intro><level class="para1"><num>(a)</num><content><p>they are both standard members of the group,</p></content></level><level class="para1"><num>(b)</num><content><p>they are both investment entities, or</p></content></level><level class="para1"><num>(c)</num><content><p>they are both members of the same minority subgroup (see section 228).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 212 (meaning of “<term refersTo="#term-qualifying-reorganisation" eId="term-qualifying-reorganisation">qualifying reorganisation</term>”), in subsection (4), after “is”, in the third place it occurs, insert <quotedText>“no greater than”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-62" class="schProv1"><num>62</num><content><p>In section 215 (undistributed income amount), in subsection (2)(c) omit “the made a loss”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-63" class="schProv1"><num>63</num><content><p><mod>In section 216 (election where assets and liabilities adjusted to fair value for tax purposes), in subsection (7)(a), before “immediately after” insert <quotedText>“or liability”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-64" class="schProv1"><num>64</num><content><p><mod>In section 217 (post filing adjustments of covered taxes), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>In the case of a prior accounting period for which there is no information return, overseas information return or self-assessment return, the reference to covered taxes being reflected in such a return is to the covered taxes as would have been reflected in such a return had there been one.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-65" class="schProv1"><num>65</num><content><p><mod>In section 217(8), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the aggregate covered tax balance of the standard members of the group in the territory of the member for the prior period is not reduced by 1 million euros or more, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 220 (top-up amount of investment entity)—</p></intro><level class="para1" eId="schedule-4-paragraph-66-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-66-a-i"><num>(i)</num><content><p><mod>in Step 8, after “entity” insert <quotedText>“, unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9), and</quotedText></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-66-a-ii"><num>(ii)</num><content><p><mod>after that Step insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 9</i></p><p>Where this Step applies, the top-up amount for the entity is the sum of—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the result of Step 8, and</p></item><item><num>(b)</num><p>the positive undistributed income amount for the entity for the period multiplied by 15%.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-66-b"><num>(b)</num><content><p>omit subsection (2).</p></content></level></paragraph><paragraph eId="schedule-4-paragraph-67" class="schProv1"><num>67</num><content><p><mod>In section 222 (investment entity effective tax rate), in Step 9 for “Step 1” substitute <quotedText>“Step 2”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-68" class="schProv1"><num>68</num><content><p>In section 242 (ownership interests and controlling interests), in subsection (5)(a) omit “financial”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-69" class="schProv1"><num>69</num><content><p><mod>In section 255 (Pillar Two rules), in subsection (6), for “3(1)” substitute <quotedText>“3 of Schedule 16”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-70" class="schProv1"><num>70</num><intro><p>In Schedule 14 (administration of multinational top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-70-a"><num>(a)</num><content><p><mod>in paragraph 2(12), for “entity” substitute <quotedText>“member”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-70-b"><num>(b)</num><content><p><mod>in paragraph 7(6), for “or Revenue” substitute <quotedText>“of Revenue”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-71" class="schProv1"><num>71</num><content><p>In Schedule 16A (multinational top-up tax: safe harbours), in paragraph 4(1)(b) omit “members of the group that are”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-72" class="schProv1"><num>72</num><subparagraph eId="schedule-4-paragraph-72-1"><num>(1)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2023—</p></intro><level class="para1" eId="schedule-4-paragraph-72-1-a"><num>(a)</num><content><p><ref href="#schedule-4-paragraph-11">paragraph 11</ref> (permanent establishments as excluded entities);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-b"><num>(b)</num><content><p><ref href="#schedule-4-paragraph-39">paragraph 39</ref><ref href="#schedule-4-paragraph-39-d">(d)</ref> (joint venture conditions);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-c"><num>(c)</num><content><p><ref href="#schedule-4-paragraph-48">paragraph 48</ref> (removal of requirement for SBIE election);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-d"><num>(d)</num><content><p><ref href="#schedule-4-paragraph-51">paragraph 51</ref> (specification of territories and taxes);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-e"><num>(e)</num><content><p><ref href="#schedule-4-paragraph-52">paragraph 52</ref> (filing etc not required before 30 June 2026);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-f"><num>(f)</num><content><p><ref href="#schedule-4-paragraph-66">paragraph 66</ref> (top-up amount of investment entity).</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-2"><num>(2)</num><content><p><ref href="#schedule-4-paragraph-47">Paragraph 47</ref> has effect in relation to relation to accounting periods commencing on or after 31 December 2023, subject to sub-paragraph <ref href="#schedule-4-paragraph-47-2">(2)</ref> of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-3"><num>(3)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024—</p></intro><level class="para1" eId="schedule-4-paragraph-72-3-a"><num>(a)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-18">18</ref> to <ref href="#schedule-4-paragraph-24">24</ref> (tax equity partnerships);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-3-b"><num>(b)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-39-a">(a)</ref> to <ref href="#schedule-4-paragraph-39-c">(c)</ref> of <ref href="#schedule-4-paragraph-39">paragraph 39</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-4"><num>(4)</num><intro><p>The other provisions of this Part of this Schedule have effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-72-4-a"><num>(a)</num><content><p>where a retrospection election has been made in relation to a multinational group, a group, or a qualifying entity that is not a member of a group, accounting periods of that multinational group, group or entity commencing on or after 31 December 2023, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-4-b"><num>(b)</num><content><p>otherwise, accounting periods commencing on or after 31 December 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-5"><num>(5)</num><intro><p>A retrospection election—</p></intro><level class="para1" eId="schedule-4-paragraph-72-5-a"><num>(a)</num><intro><p>is to be made—</p></intro><level class="para2" eId="schedule-4-paragraph-72-5-a-i"><num>(i)</num><content><p>in the case of a multinational group or group, by the filing member, or</p></content></level><level class="para2" eId="schedule-4-paragraph-72-5-a-ii"><num>(ii)</num><content><p>in the case of a qualifying entity that is not a member of a group, by that entity,</p></content></level></level><level class="para1" eId="schedule-4-paragraph-72-5-b"><num>(b)</num><content><p>must be made on or before the day on which the self-assessment return or below-threshold notification for the first accounting period of the multinational group, group or entity commencing on or after 31 December 2023 is made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-5-c"><num>(c)</num><content><p>may not be revoked.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-6"><num>(6)</num><intro><p>But <ref href="#schedule-4-paragraph-72-7">sub-paragraph (7)</ref> applies where any member, or former member, of a multinational group or group is, or would be on either or both of the relevant assumptions—</p></intro><level class="para1" eId="schedule-4-paragraph-72-6-a"><num>(a)</num><content><p>a person chargeable to domestic top-up tax that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the person’s membership of the multinational group or group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-6-b"><num>(b)</num><content><p>a qualifying entity that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the entity’s membership of the multinational group or group in respect of which a person is chargeable to domestic top-up tax.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-7"><num>(7)</num><content><p>Where this sub-paragraph applies, a retrospection election may not be made without the written consent of each such person.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-8"><num>(8)</num><intro><p>For the purposes of sub-paragraph <ref href="#schedule-4-paragraph-72-6">(6)</ref>, the relevant assumptions are—</p></intro><level class="para1" eId="schedule-4-paragraph-72-8-a"><num>(a)</num><content><p>that the retrospection election had been made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-8-b"><num>(b)</num><content><p>that no election under section 271 of F(No.2)A 2023 had been made.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-9"><num>(9)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-9-a"><num>(a)</num><content><p>the filing member of a multinational group is not a responsible member of that multinational group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-9-b"><num>(b)</num><content><p>there is more than one responsible member of that multinational group,</p></content></level><wrapUp><p>a retrospection election may not be made without the written consent of each responsible member.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-72-10"><num>(10)</num><intro><p>Sub-paragraph <ref href="#schedule-4-paragraph-72-11">(11)</ref> applies where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-10-a"><num>(a)</num><content><p>the filing member of a multinational group or group has made a retrospection election,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-b"><num>(b)</num><content><p>at the time the election was made it was reasonable for the filing member to consider that the consent of a person was not required,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-c"><num>(c)</num><content><p>that consent was not given,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-d"><num>(d)</num><content><p>the filing member becomes aware that the consent of that person was, or may have been, required, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-e"><num>(e)</num><content><p>the written consent of that person is given within the period of 60 days beginning with the day on which the condition in paragraph <ref href="#schedule-4-paragraph-72-10-d">(d)</ref> is first met.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-11"><num>(11)</num><content><p>The consent of that person is to be treated as having been given before the election was made.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-12"><num>(12)</num><content><p>References in this paragraph to a “group”, other than in the expression “multinational group”, are to a group for the purposes of Part 4 of F(No.2)A 2023 (domestic top-up tax).</p></content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-5"><num>Schedule 5<authorialNote class="referenceNote"><p>Section 25</p></authorialNote></num><heading>Furnished holiday lettings</heading><part eId="schedule-5-part-1"><num>Part 1</num><heading>Amendments relating to income tax</heading><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00178" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><intro><p>Section 189 of FA 2004 (tax reliefs and exemptions in connection with registered pension schemes: meaning of relevant UK earnings) is amended as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsection (2)</a> omit—</p></intro><level class="para2" eId="schedule-5-paragraph-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (ba)</a>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (bb)</a> (but not the “and” after it);</p></content></level></level><level class="para1" eId="schedule-5-paragraph-1-b"><num>(b)</num><content><p>omit <span><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsections (5)</a> to <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">(6B)</a></span>.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00179" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref></heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00180" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">section 270</a> (charge on profits of property businesses), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-2-2-a"><num>(a)</num><content><p>in the definition of “CAA allowances” omit “or 250A”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-2-b"><num>(b)</num><content><p><mod>in the definition of “CAA charges”, for “either of those sections” substitute <quotedText>“that section”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>In section 272B (meaning of “<term refersTo="#term-costs-of-a-dwelling-related-loan" eId="term-costs-of-a-dwelling-related-loan">costs of a dwelling-related loan</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (2)</a> for “subsections (3) and (4)” substitute <quotedText>“subsection (3)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (4)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><intro><p>In section 307B (cash basis: capital expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (6)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(7)</a>, omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsection (8)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">paragraph (a)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-residential-property">residential property</term>” means land consisting of a dwelling-house or part of a dwelling-house in relation to which a UK property business or an overseas property business is carried on in the tax year, and</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (9)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(19)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">section 307E</a> (cash basis: capital receipts)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (20)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a> for “sections 248 to 250A” substitute <quotedText>“sections 248 and 250”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (22)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a>, for “section 15(1)(b) to (da)” substitute <quotedText>“section 15(1)(b) or (d)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>In section 311A (replacement domestic items relief)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (6)</a>, for “subsections (7) and (8)” substitute <quotedText>“subsection (8)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (7)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In section 313 (restrictions on relief), omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/313">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-8"><num>(8)</num><content><p>Omit Chapter 6 of Part 3 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-9"><num>(9)</num><intro><p>In section 334C (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">(b)</a>, for “a relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (3)</a>, for “each relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (6)</a>, omit the definition of “relevant property business activity”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-10"><num>(10)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4">Schedule 4</a> (index of defined expressions), omit the entry for “commercial letting of furnished holiday accommodation (for purposes of Chapter 6 of Part 3)”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00181" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00182" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>In section 117 (overview of Chapter 4 of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">(2A)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a> (UK furnished holiday lettings business treated as trade),</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a> (EEA furnished holiday lettings business treated as trade), and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-c"><num>(c)</num><content><p>the italic heading before those sections.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">section 388</a> (loan to buy plant or machinery for partnership use)—</p></intro><level class="para1" eId="schedule-5-paragraph-3-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">(a)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (4)</a>, for ““ordinary property business”” substitute <quotedText>““property business””</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">section 389</a> (eligibility requirements for interest on loans), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">subsection (4)</a> omit “ordinary”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>In section 399A (property partnerships: restriction of relief for investment loan interest) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/399A">subsection (9)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>In section 836 (jointly held property), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/836">subsection (3)</a> omit exceptions D and DA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-4-a"><num>(a)</num><intro><p>in <ref eId="c00183" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-a-i"><num>(i)</num><content><p>paragraph 196 of Schedule 1, and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-a-ii"><num>(ii)</num><content><p>paragraphs 74 and 75 of Schedule 2;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/schedule/1">Schedule 1</a> to <ref eId="c00184" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-b-i"><num>(i)</num><content><p>paragraph 473(2)(a) and (b), and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-b-ii"><num>(ii)</num><content><p>paragraphs 508, 509 and 510;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-c"><num>(c)</num><content><p>in <ref eId="c00185" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 1 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-d"><num>(d)</num><content><p>in <ref eId="c00186" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(5);</p></content></level><level class="para1" eId="schedule-5-paragraph-4-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 26 of Schedule 2.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-2"><num>Part 2</num><heading>Amendments relating to corporation tax</heading><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00187" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00188" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>In section 202 (overview of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/202">subsection (5)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><content><p>In section 250A (replacement domestic items relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/250A">subsection (7)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>In section 252 (restrictions on relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/252">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>Omit Chapter 6 of Part 4 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-6"><num>(6)</num><intro><p>In section 748 (assets held for purposes of property business)—</p></intro><level class="para1" eId="schedule-5-paragraph-5-6-a"><num>(a)</num><content><p><mod>for <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (1), “<term refersTo="#term-property-business">property business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a UK property business, or</p></content></level><level class="para1"><num>(b)</num><content><p>an overseas property business.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-5-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (5)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-7"><num>(7)</num><content><p>In Schedule 4 (index of defined expressions) omit the entry for “commercial letting of furnished holiday accommodation (in Chapter 6 of Part 4)”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00189" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p><ref eId="c00190" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a> (UK furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a> (EEA furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-4"><num>(4)</num><content><p>In section 188DD (limitations on relief under section 188CB: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-5"><num>(5)</num><content><p>In section 188ED (limitations on relief under section 188CC: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-6"><num>(6)</num><content><p>In section 269ZF (restriction of certain deductions: determination of company’s qualifying trading profits), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">(e)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">sub-paragraph (vii)</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-7-a"><num>(a)</num><content><p>in <ref eId="c00191" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 172 and 173 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-b"><num>(b)</num><content><p>in <ref eId="c00192" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraphs 602 and 603 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-c"><num>(c)</num><content><p>in <ref eId="c00193" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 2 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-d"><num>(d)</num><content><p>in <ref eId="c00194" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(7);</p></content></level><level class="para1" eId="schedule-5-paragraph-7-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 155 of Schedule 4.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-3"><num>Part 3</num><heading>Amendments relating to capital allowances</heading><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00195" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><content><p><ref eId="c00196" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>Omit section 13B (use for other purposes of plant or machinery: property businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>In section 15 (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-ii"><num>(ii)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (c)</a>;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iii"><num>(iii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iv"><num>(iv)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (da)</a>;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (3)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-b-ii"><num>(ii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a> omit “ordinary”.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><content><p>Omit <span><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/16">sections 16</a> to <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/17B">17B</a></span> (which define ordinary UK, or overseas, property business and UK, or EEA, furnished holiday lettings business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><intro><p>In section 28 (qualifying expenditure: thermal insulation of buildings), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">subsections (1)</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">(2)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-5-a"><num>(a)</num><content><p><mod>for “an ordinary UK”, in each subsection, substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-5-b"><num>(b)</num><content><p><mod>for “an ordinary overseas”, in each subsection, substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><intro><p>In section 33 (qualifying expenditure: personal security), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">subsection (8)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (da)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>In section 35 (exclusion of certain expenditure on plant or machinery for use in a dwelling-house), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><intro><p>In section 59 (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-8-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (4A)</a>, for “a relevant qualifying activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-8-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (7A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-9"><num>(9)</num><intro><p>In section 63 (cases in which disposal value of plant or machinery is nil), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (da)</a> (but not the “or” after it).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-10"><num>(10)</num><intro><p>In section 248 (treatment of allowances or charges in relation to UK property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-10-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-10-b"><num>(b)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/248">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-11"><num>(11)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/249">section 249</a> (giving effect to allowances and charges: UK furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-12"><num>(12)</num><intro><p>In section 250 (treatment of allowances or charges in relation to overseas property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-12-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-12-b"><num>(b)</num><content><p>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250">paragraph (a)</a> omit “Ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-13"><num>(13)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250A">section 250A</a> (giving effect to allowances and charges: EEA furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-14"><num>(14)</num><intro><p>In section 270CA (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-14-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-14-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (c)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-15"><num>(15)</num><content><p>Omit section 270CB (meaning of ordinary UK or overseas property business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-16"><num>(16)</num><intro><p>In section 270CG (use for the purposes of a property business), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CG">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-16-a"><num>(a)</num><content><p><mod>for “an ordinary UK” substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-16-b"><num>(b)</num><content><p><mod>for “an ordinary overseas” substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-17"><num>(17)</num><intro><p>In section 270HB (allowances to be treated as expense of property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-17-a"><num>(a)</num><content><p>in the heading omit “ordinary” in both places;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-18"><num>(18)</num><intro><p>In section 536 (contributions not made by public bodies and not eligible for tax relief), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">subsection (5)</a><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">(a)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-18-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (i)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (ii)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iii)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iiia)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-19"><num>(19)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1">Schedule 1</a> (defined expressions) omit the entries for—</p></intro><level class="para1" eId="schedule-5-paragraph-8-19-a"><num>(a)</num><content><p>“EEA furnished holiday lettings business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-b"><num>(b)</num><content><p>“ordinary overseas property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-c"><num>(c)</num><content><p>“ordinary UK property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-d"><num>(d)</num><content><p>“UK furnished holiday lettings business”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-9-a"><num>(a)</num><content><p>in <ref eId="c00197" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>, paragraph 13 of Schedule 2;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-b"><num>(b)</num><content><p>in <ref eId="c00198" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraphs 527 and 528 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-c"><num>(c)</num><content><p>in <ref eId="c00199" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 477 and 478 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-d"><num>(d)</num><content><p>in <ref eId="c00200" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraph 347 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-e"><num>(e)</num><content><p>in <ref eId="c00201" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 3 of Schedule 14.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-4"><num>Part 4</num><heading>Amendments relating to chargeable gains</heading><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00202" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p><ref eId="c00203" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>In section 3A (gains connected to avoidance or foreign activities etc) omit <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">subsections (3)</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">(5)</a></span>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">section 165A</a> (meaning of “<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “<term refersTo="#term-trading-group" eId="term-trading-group">trading group</term>”), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">subsection (14)</a>, in the definition of “trade” omit “(subject to section 241(3))”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-10-4-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">section 241</a> (UK furnished holiday lettings), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-4-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">section 241A</a> (EEA furnished holiday lettings).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-11-a"><num>(a)</num><content><p>in <ref eId="c00204" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref>, paragraph 62 of Schedule 20;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-b"><num>(b)</num><intro><p>in <ref eId="c00205" href="https://www.legislation.gov.uk/ukpga/1998/36">FA 1998</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-b-i"><num>(i)</num><content><p>paragraph 62 of Schedule 5, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-b-ii"><num>(ii)</num><content><p>paragraph 8 of Schedule 21;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-c"><num>(c)</num><content><p>in <ref eId="c00206" href="https://www.legislation.gov.uk/ukpga/2002/23">FA 2002</ref>, paragraph 3 of Schedule 8;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-d"><num>(d)</num><content><p>in <ref eId="c00207" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraph 441 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-e"><num>(e)</num><content><p>in <ref eId="c00208" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, paragraph 325 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-f"><num>(f)</num><intro><p>in <ref eId="c00209" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-f-i"><num>(i)</num><content><p>paragraph 37 of Schedule 2, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-f-ii"><num>(ii)</num><content><p>paragraph 3 of Schedule 3;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-g"><num>(g)</num><content><p>in <ref eId="c00210" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraph 380 of Schedule 1 to CTA 2009;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-h"><num>(h)</num><content><p>in <ref eId="c00211" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 4 of Schedule 14.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-5"><num>Part 5</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7"><heading>Commencement: <span><ref href="#schedule-5-part-1">Parts 1</ref> to <ref href="#schedule-5-part-3">3</ref></span></heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-1">Part 1</ref> have effect for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>The amendments made by <ref href="#schedule-5-part-2">Part 2</ref> have effect for the purposes of corporation tax in relation to accounting periods beginning on or after 1 April 2025.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><intro><p>The amendments made by <ref href="#schedule-5-part-3">Part 3</ref> have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-12-3-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-12-3-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to periods of account beginning on or after 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement: <ref href="#schedule-5-part-4">Part 4</ref></heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to disposals made on or after the commencement date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> also have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>for the purposes of <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">sections 152</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/157">157</a></span> of <ref eId="c00212" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief on replacement of business asset), in relation to acquisitions that take place on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/253">section 253</a> of <ref eId="c00213" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for loans to traders), in relation to claims for a loss to be treated as accruing to a person on or after the commencement date.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p><ref href="#schedule-5-paragraph-13-1">Sub-paragraph (1)</ref> is subject to <ref href="#schedule-5-paragraph-19">paragraph 19</ref> (business asset disposal relief: disposals relating to pre-commencement businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In <ref href="#schedule-5-paragraph-13">this paragraph</ref>, “<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Anti-forestalling: disposals under unconditional contracts</heading><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-14-2">Sub-paragraph (2)</ref> applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-14-1-a"><num>(a)</num><content><p>an asset is disposed of under an unconditional contract made during the pre-commencement period,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-b"><num>(b)</num><content><p>the asset is conveyed or transferred on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-c"><num>(c)</num><content><p>a relevant claim is made in respect of the disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to the disposal unless—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><content><p>no purpose of entering into the contract was to avoid the amendments made by <ref href="#schedule-5-part-4">Part 4</ref> having effect in relation to the disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-b-i"><num>(i)</num><content><p>the contract was entered into wholly for commercial reasons, or</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-b-ii"><num>(ii)</num><content><p>the parties to the contract are not connected persons, and</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-c"><num>(c)</num><content><p>the claim includes a statement that the conditions in <ref href="#schedule-5-paragraph-14-2-a">paragraphs (a)</ref> and <ref href="#schedule-5-paragraph-14-2-b">(b)</ref> are met.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-14">this paragraph</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025;</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-connected-persons" eId="term-connected-persons">connected persons</term>” is to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/286">section 286</a> of <ref eId="c00214" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-pre-commencement-period" eId="term-the-pre-commencement-period">the pre-commencement period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with 6 March 2024, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the commencement date;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-claim" eId="term-relevant-claim">relevant claim</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">section 152</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153">153</a> of <ref eId="c00215" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief) or a declaration under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153A">section 153A</a> of <ref eId="c00216" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (provisional application of sections 152 and 153),</p></content></level><level class="para1"><num>(b)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165">section 165</a> of <ref eId="c00217" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for gifts of business assets), or</p></content></level><level class="para1"><num>(c)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00218" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (business asset disposal relief).</p></content></level></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Corporation tax: accounting periods straddling 1 April 2025</heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><content><p><ref href="#schedule-5-paragraph-15">This paragraph</ref> applies where a company has an accounting period beginning before, and ending on or after, 1 April 2025 (“the straddling period”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>For the purposes of <ref href="#schedule-5">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>so much of the straddling period as falls before 1 April 2025, and so much of that period as falls on or after 1 April 2025, are treated as separate accounting periods, and</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><intro><p>where it is necessary to apportion an amount for the straddling period to the two separate accounting periods, it is to be apportioned—</p></intro><level class="para2" eId="schedule-5-paragraph-15-2-b-i"><num>(i)</num><content><p>in accordance with <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/1172">section 1172</a> of <ref eId="c00219" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (time basis), or</p></content></level><level class="para2" eId="schedule-5-paragraph-15-2-b-ii"><num>(ii)</num><content><p>if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Carry-forward of losses: income tax</heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-16">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>a person is treated as carrying on in the tax year 2024-25 a single trade by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00220" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (UK furnished holiday lettings businesses) or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00221" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>the person has made a loss in that trade in the tax year 2024-25 or a previous tax year,</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-c"><num>(c)</num><content><p>relief for the loss has not been fully given under <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4/chapter/2">Chapter 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4">Part 4</a> of <ref eId="c00222" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (trade losses) or any other provision of the Income Tax Acts, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-d"><num>(d)</num><content><p>the person carries on a corresponding property business in the tax year 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><content><p>So much of the loss as has not been relieved is to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/118">section 118</a> of <ref eId="c00223" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (carry forward against subsequent property business profits) as if it had been made in the corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-16">this paragraph</ref>, “<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00224" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/264">section 264</a> of <ref eId="c00225" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00226" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/265">section 265</a> of <ref eId="c00227" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Carry-forward of losses: corporation tax</heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-17">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-17-1-a"><num>(a)</num><intro><p>a company is treated as carrying on in its last accounting period to begin before 1 April 2025 a single trade by virtue of—</p></intro><level class="para2" eId="schedule-5-paragraph-17-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00228" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (UK furnished holiday lettings businesses), or</p></content></level><level class="para2" eId="schedule-5-paragraph-17-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00229" href="https://www.legislation.gov.uk/ukpga/2010/4">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level></level><level class="para1" eId="schedule-5-paragraph-17-1-b"><num>(b)</num><content><p>the company has made a loss in that trade in that accounting period or a previous one,</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-c"><num>(c)</num><content><p>but for the provision of <ref href="#schedule-5">this Schedule</ref>, all or part of the loss would fall to be carried forward under <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/45">section 45</a> of <ref eId="c00230" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> to an accounting period beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-d"><num>(d)</num><content><p>the company carries on a corresponding property business in its accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><content><p>The loss or the part of the loss that would otherwise fall to be carried forward as mentioned in <ref href="#schedule-5-paragraph-17-1">sub-paragraph (1)</ref><ref href="#schedule-5-paragraph-17-1-c">(c)</ref> is to be treated for the purposes of the relevant relieving provision as if it had been made by the company in its corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00231" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-3-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/205">section 205</a> of <ref eId="c00232" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-3-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">section 62</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">(5)</a> of <ref eId="c00233" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in UK property business).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00234" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-4-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/206">section 206</a> of <ref eId="c00235" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-4-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">section 66</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">(3)</a> of <ref eId="c00236" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in overseas property business).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Plant and machinery allowances</heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-18">This paragraph</ref> applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00237" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (plant and machinery allowances) where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>immediately before the end of a person’s pre-commencement chargeable period, the person is carrying on an FHL qualifying activity, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>at the start of the person’s post-commencement chargeable period, the person is carrying on the corresponding property activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The amount of any allowance or charge arising in the person’s post-commencement chargeable period or any subsequent chargeable period is to be calculated as if anything done by or to the person in carrying on the FHL qualifying activity had been done by or to the person in carrying on the corresponding property activity.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>In particular—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><intro><p>where plant or machinery is in use for the purposes of the FHL qualifying activity immediately before the end of the person’s pre-commencement chargeable period—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-a-i"><num>(i)</num><content><p>the plant or machinery is to be treated as if it had been brought into use for the purposes of the corresponding property activity on the day on which it was brought into use for the purposes of the FHL qualifying activity, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-a-ii"><num>(ii)</num><content><p>its use for the purposes of the FHL qualifying activity is to be disregarded.</p></content></level></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><intro><p>where the person has unrelieved qualifying expenditure (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">section 59</a> of <ref eId="c00238" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>) to carry forward from the person’s pre-commencement chargeable period in a pool for an FHL qualifying activity, the expenditure is to be—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-b-i"><num>(i)</num><content><p>carried forward to the person’s post-commencement chargeable period, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-b-ii"><num>(ii)</num><content><p>allocated to the appropriate pool for the corresponding property activity.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>Accordingly, the person is not to be taken, by reason only of the effect of the amendments made by <ref href="#schedule-5">this Schedule</ref>, as having—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>brought plant or machinery into use, or ceased to use plant or machinery, for the purposes of a qualifying activity, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>permanently discontinued a qualifying activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">Section 35</a> of <ref eId="c00239" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure) does not apply to expenditure carried forward in accordance with <ref href="#schedule-5-paragraph-18-3">sub-paragraph (3)</ref><ref href="#schedule-5-paragraph-18-3-b">(b)</ref><ref href="#schedule-5-paragraph-18-3-b-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>In <ref href="#schedule-5-paragraph-18">this paragraph</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fhl-qualifying-activity" eId="term-fhl-qualifying-activity">FHL qualifying activity</term>” means a UK furnished holiday lettings business or an EEA furnished holiday lettings business;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-corresponding-property-activity" eId="term-the-corresponding-property-activity">the corresponding property activity</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK furnished holiday lettings business carried on by a person, a UK property business carried on by that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an EEA furnished holiday lettings business carried on by a person, an overseas property business carried on by that person;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-pre-commencement-chargeable-period" eId="term-pre-commencement-chargeable-period">pre-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, a company’s last accounting period to begin before 1 April 2025, and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2024-25;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-post-commencement-chargeable-period" eId="term-post-commencement-chargeable-period">post-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, the accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2025-26.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Expressions used in <ref href="#schedule-5-paragraph-18-6">sub-paragraph (6)</ref> have the same meaning as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00240" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Business asset disposal relief: disposals relating to pre-commencement businesses</heading><paragraph eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><intro><p>The amendments made by <ref href="#schedule-5">this Schedule</ref> do not have effect in relation to a disposal made on or after 6 April 2025 if it is—</p></intro><level class="para1" eId="schedule-5-paragraph-19-a"><num>(a)</num><content><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(b)</a> of <ref eId="c00241" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (assets used for purposes of business) where the date on which the business ceases to be carried on is before 6 April 2025;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-b"><num>(b)</num><intro><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(c)</a> of <ref eId="c00242" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (shares in or securities of a company) where—</p></intro><level class="para2" eId="schedule-5-paragraph-19-b-i"><num>(i)</num><content><p>the disposal is a material disposal by virtue of condition B in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7)</a> of <ref eId="c00243" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> or condition D in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7B)</a> of <ref eId="c00244" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-19-b-ii"><num>(ii)</num><content><p>the period of 2 years mentioned in condition B or condition D (as the case may be) ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-c"><num>(c)</num><intro><p>a disposal of trust business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(1)</a> of <ref eId="c00245" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where the settlement business assets are—</p></intro><level class="para2" eId="schedule-5-paragraph-19-c-i"><num>(i)</num><content><p>assets consisting of (or of interests in) shares in or securities of a company in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(4)</a> of <ref eId="c00246" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025, or</p></content></level><level class="para2" eId="schedule-5-paragraph-19-c-ii"><num>(ii)</num><content><p>assets (or interests in assets) used or previously used for the purposes of a business in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(5)</a> of <ref eId="c00247" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-d"><num>(d)</num><content><p>a disposal associated with a relevant material disposal within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">section 169K</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">(1)</a> of <ref eId="c00248" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, where the date of the material disposal of business assets with which the disposal is associated is before 6 April 2025.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Post-commencement disposals by companies with substantial shareholding</heading><paragraph eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC/paragraph/3">Paragraph 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">Schedule 7AC</a> to <ref eId="c00249" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (exemptions for disposals by companies with substantial shareholding: main conditions previously met) has effect in relation to a disposal made on or after 1 April 2025 in accordance with <ref href="#schedule-5-paragraph-20-2">sub-paragraph (2)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><content><p>In determining whether the condition in sub-paragraph (2)(d) of that paragraph of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">that Schedule</a> is met, <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">sections 241</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">241A</a> of <ref eId="c00250" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (commercial letting of furnished holiday accommodation to be treated as a trade) are to be disregarded.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-6"><num>Schedule 6<authorialNote class="referenceNote"><p>Section 31</p></authorialNote></num><heading>Employee-ownership trusts</heading><part eId="schedule-6-part-1"><num>Part 1</num><heading>Capital gains tax</heading><hcontainer name="crossheading" class="schGroup7"><heading>Introduction</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00251" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Requirement for trustees of employee-ownership trusts to be UK resident</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a> (disposals to employee-ownership trusts), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28503"><num>(za)</num><content><p>that the trustees of the settlement are resident in the United Kingdom at the time of the disposal and continue to be UK resident for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a> (no section 236H relief if disqualifying event in next tax year), before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28526"><num>(za)</num><content><p>the trustees of the settlement cease to be resident in the United Kingdom,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p>See also section 80 (trustees ceasing to be resident in U.K.), which provides for similar consequences in circumstances where the trustees of the settlement cease to be resident in the United Kingdom.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a> (relief for deemed disposals under section 71), for “236H(4)(a)” substitute <quotedText>“236H(4)<ref href="#d25e28503">(za)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-2">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Trustee independence</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>that the settlement meets the trustee independence requirement (see section 236LA) at the time of the disposal and continues to meet that requirement for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236L">section 236L</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>236LA</num><heading>Trustee independence requirement</heading><subsection><num>(1)</num><intro><p>A settlement meets the trustee independence requirement if—</p></intro><level class="para1"><num>(a)</num><content><p>less than 50% of the trustees are persons who are excluded participators, and</p></content></level><level class="para1"><num>(b)</num><content><p>excluded participators do not have control of the settlement.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In this section “<term refersTo="#term-excluded-participator">excluded participator</term>” means—</p></intro><level class="para1" eId="d25e28655"><num>(a)</num><content><p>a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>a company not falling within <ref href="#d25e28655">paragraph (a)</ref>, if 50% or more of its directors are persons falling within that paragraph.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to—</p></intro><level class="para1"><num>(a)</num><content><p>dispose of, advance, lend, invest, pay or apply settlement property;</p></content></level><level class="para1"><num>(b)</num><content><p>vary or terminate the settlement;</p></content></level><level class="para1"><num>(c)</num><content><p>add or remove a person as a beneficiary or to or from a class of beneficiaries;</p></content></level><level class="para1"><num>(d)</num><content><p>appoint or remove trustees or give another individual control over the settlement;</p></content></level><level class="para1"><num>(e)</num><content><p>direct the exercise of a power mentioned in sub-paragraphs (a) to (d).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28721"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(2)</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28744"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-3">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Temporary breach of trustee independence requirement or residence requirement arising from death of trustee</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28526">(za)</ref> occurs (trustees cease to be resident in the United Kingdom),</p></content></level><level class="para1"><num>(b)</num><content><p>the event only occurs as a result of the death of a trustee of the settlement, and</p></content></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with the death of the trustee, the trustees become resident in the United Kingdom,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection><subsection><num>(2B)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28721">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28744">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-4">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consideration requirement</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><intro><p>that the trustees have taken all reasonable steps to secure that—</p></intro><level class="para2"><num>(i)</num><content><p>the consideration for the disposal does not exceed the market value of the ordinary share capital at the time of the disposal, and</p></content></level><level class="para2"><num>(ii)</num><content><p>where some or all of the consideration for the disposal is deferred, that the rate of any interest payable in relation to the deferral does not exceed a reasonable commercial rate,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a>, for “(d)” substitute <quotedText>“(c) and (d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-5">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Extended period for disqualifying events</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-1-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-1-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(1)</a>, after “end of the” insert <quotedText>“fourth”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">section 236R</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-3-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-3-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-4"><num>(4)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-6">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Additional information to be provided in claims</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-1-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a>,</p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-ii"><num>(ii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that paragraph</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29120"><num>(ba)</num><intro><p>the number of persons who at the time of the disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>C, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if C is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group,</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-iii"><num>(iii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the consideration for the disposal (including amounts of consideration due after the disposal).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-1-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (7)<ref href="#d25e29120">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (6)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-2-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">paragraph (b)</a>, and</p></content></level><level class="para2" eId="schedule-6-paragraph-7-2-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29225"><num>(ba)</num><intro><p>the number of persons who at the time of the deemed disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>the company, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the company is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group, and</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-2-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (6)<ref href="#d25e29225">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-7">this paragraph</ref> have effect in relation to claims made under those sections on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-6-part-2"><num>Part 2</num><heading>Income tax</heading><hcontainer name="crossheading" class="schGroup7"><heading>Participation requirement not infringed by exclusion of directors</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-6-paragraph-8-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/312C">section 312C</a> of <ref eId="c00252" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref>, after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>The participation requirement is not infringed by reason of the exclusion of directors of the company from participating in an award.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-8-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-8">this paragraph</ref> has effect in relation to qualifying bonus payments made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief for distributions to trustees of employee-ownership trusts</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-6-paragraph-9-1"><num>(1)</num><content><p><mod>In <ref eId="c00253" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, after section 401 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Employee-ownership trusts</heading><section><num>401ZA</num><heading>Relief: distributions to trustees of employee-ownership trusts</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there has been a disposal of ordinary share capital of a company (“<term refersTo="#term-c">C</term>”) to the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the relief requirements are met in relation to the disposal,</p></content></level><level class="para1"><num>(c)</num><content><p>C has made a payment to the trustees that is a distribution to the trustees chargeable to income tax as a result of this Chapter or Chapter 4 (dividends from non-UK resident companies), and</p></content></level><level class="para1"><num>(d)</num><content><p>the payment was made for the purposes of meeting the trustees’ acquisition costs.</p></content></level></subsection><subsection><num>(2)</num><intro><p>On the making of a claim, so much of the trustees’ acquisition costs may be deducted from the distribution (whether chargeable under this Chapter or Chapter 4) as—</p></intro><level class="para1"><num>(a)</num><content><p>does not reduce the amount of the distribution below nil, and</p></content></level><level class="para1"><num>(b)</num><content><p>has not been deducted from any other distribution.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-relief-requirements">relief requirements</term>” means the requirements set out in section 236H(4) of TCGA 1992 (disposals to employee-ownership trusts), but those requirements have effect for the purposes of this section as if references to “P” were to the person making the disposal whether or not that person is a company.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, the trustees’ acquisition costs are sums expended by the trustees on—</p></intro><level class="para1"><num>(a)</num><content><p>the acquisition of ordinary share capital in C by the trustees that resulted from the disposal;</p></content></level><level class="para1"><num>(b)</num><content><p>the repayment of any sums borrowed to fund that acquisition;</p></content></level><level class="para1"><num>(c)</num><content><p>the payment of interest on any such sums or in respect of any deferral of consideration for the disposal to the extent the payment is not in respect of interest exceeding a reasonable commercial rate;</p></content></level><level class="para1"><num>(d)</num><content><p>any valuation of C carried out in connection with the acquisition;</p></content></level><level class="para1"><num>(e)</num><content><p>any liability to stamp duty or stamp duty reserve tax on the acquisition;</p></content></level><level class="para1"><num>(f)</num><content><p>such other reasonable expenses as are directly connected with the acquisition (but this does not include any expenses incurred in connection with the ownership of the ordinary share capital once acquired).</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-9-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-9">this paragraph</ref> has effect in relation to distributions made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-7"><num>Schedule 7<authorialNote class="referenceNote"><p>Section 35</p></authorialNote></num><heading>Diminishing shared ownership refinancing arrangements</heading><hcontainer name="crossheading" class="schGroup7"><heading>Income tax</heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-7-paragraph-1-1"><num>(1)</num><content><p>Part 10A of ITA 2007 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-2"><num>(2)</num><content><p><mod>In section 564A (introduction), in subsection (3)(b) after “section 564D” insert <quotedText>“or <ref href="#d25e29591">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-3"><num>(3)</num><intro><p>In section 564D (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “564E” substitute <quotedText>“<ref href="#d25e29591">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-4"><num>(4)</num><content><p><mod>After section 564D insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e29591"><num>564DA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e29595"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e29601"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e29610"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29637"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e29610">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29846">(6)</ref>),</p></content></level><level class="para1" eId="d25e29649"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29661"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29667"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e29673"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 564D or subsection <ref href="#d25e29595">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e29682"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 564D(1)(a) or subsection <ref href="#d25e29595">(1)</ref><ref href="#d25e29610">(b)</ref> of this section as has not yet been acquired as mentioned in section 564D(1)(d) or subsection <ref href="#d25e29595">(1)</ref><ref href="#d25e29649">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29719"><num>(c)</num><content><p>the customer mentioned in section 564D(1) or <ref href="#d25e29595">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 564D(1)(c) or <ref href="#d25e29595">subsection (1)</ref><ref href="#d25e29637">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29846">(6)</ref>),</p></content></level><level class="para1" eId="d25e29736"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29748"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29754"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e29595">(1)</ref><ref href="#d25e29601">(a)</ref> and <ref href="#d25e29610">(b)</ref> and <ref href="#d25e29673">(2)</ref><ref href="#d25e29682">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e29595">(1)</ref><ref href="#d25e29661">(g)</ref> or <ref href="#d25e29673">(2)</ref><ref href="#d25e29748">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e29810">(5)</ref> are met.</p></content></subsection><subsection eId="d25e29810"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e29846"><num>(6)</num><intro><p>Subsection <ref href="#d25e29595">(1)</ref><ref href="#d25e29667">(h)</ref> or <ref href="#d25e29673">(2)</ref><ref href="#d25e29754">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 564H (provision not at arm’s length: exclusion of arrangements from sections 564C and 564D, this section and sections 564E to 564G).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-5"><num>(5)</num><intro><p>In section 564K (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-1-5-b-i"><num>(i)</num><content><p><mod>after “section 564D(1)(c)” insert <quotedText>“or <ref href="#d25e29591">564DA</ref><ref href="#d25e29595">(1)</ref><ref href="#d25e29637">(d)</ref> or <ref href="#d25e29673">(2)</ref><ref href="#d25e29719">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “564D” insert <quotedText>“or <ref href="#d25e29591">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-6"><num>(6)</num><content><p><mod>In section 564V (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 564D” insert <quotedText>“or <ref href="#d25e29591">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-7"><num>(7)</num><content><p><mod>After section 564W (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>564WA</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e29591">564DA</ref> applies.</p></content></subsection><subsection><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e29591">section 564DA</ref><ref href="#d25e29595">(1)</ref><ref href="#d25e29610">(b)</ref>, any profit, gain or loss realised by the customer on the disposal of the asset is to be treated as not having been realised for income tax purposes.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30006"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e29591">section 564DA</ref><ref href="#d25e29595">(1)</ref><ref href="#d25e29610">(b)</ref>,</p></content></level><level class="para1" eId="d25e30019"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e29591">section 564DA</ref><ref href="#d25e29595">(1)</ref><ref href="#d25e29637">(d)</ref> and <ref href="#d25e29649">(e)</ref> or <ref href="#d25e29673">(2)</ref><ref href="#d25e29719">(c)</ref> and <ref href="#d25e29736">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30006">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30019">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of calculating, for income tax purposes, the amount of the profit, gain or loss realised by customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30789">(2)</ref> and <ref href="#d25e30802">(3)</ref>, “<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in <ref href="#d25e29591">section 564DA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e29591">section 564DA</ref><ref href="#d25e29673">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for income tax purposes.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Corporation tax</heading><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-7-paragraph-2-1"><num>(1)</num><content><p>Chapter 6 of Part 6 of CTA 2009 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-2"><num>(2)</num><content><p><mod>In section 501 (introduction), in subsection (3)(b) after “section 504” insert <quotedText>“or <ref href="#d25e30205">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-3"><num>(3)</num><intro><p>In section 504 (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “505” substitute <quotedText>“<ref href="#d25e30205">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-4"><num>(4)</num><content><p><mod>After section 504 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e30205"><num>504A</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e30209"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e30215"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e30224"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30251"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e30224">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in <ref href="#d25e30460">subsection (6)</ref>),</p></content></level><level class="para1" eId="d25e30263"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30275"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30281"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e30287"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 504 or subsection <ref href="#d25e30209">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e30296"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 504(1)(a) or subsection <ref href="#d25e30209">(1)</ref><ref href="#d25e30224">(b)</ref> of this section as has not yet been acquired as mentioned in section 504(1)(d) or subsection <ref href="#d25e30209">(1)</ref><ref href="#d25e30263">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30333"><num>(c)</num><content><p>the customer mentioned in section 504(1) or <ref href="#d25e30209">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 504(1)(c) or <ref href="#d25e30209">subsection (1)</ref><ref href="#d25e30251">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e30460">(6)</ref>),</p></content></level><level class="para1" eId="d25e30350"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30362"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30368"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e30209">(1)</ref><ref href="#d25e30215">(a)</ref> and <ref href="#d25e30224">(b)</ref> and <ref href="#d25e30287">(2)</ref><ref href="#d25e30296">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e30209">(1)</ref><ref href="#d25e30275">(g)</ref> or <ref href="#d25e30287">(2)</ref><ref href="#d25e30362">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e30424">(5)</ref> are met.</p></content></subsection><subsection eId="d25e30424"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e30460"><num>(6)</num><intro><p>Subsection <ref href="#d25e30209">(1)</ref><ref href="#d25e30281">(h)</ref> or <ref href="#d25e30287">(2)</ref><ref href="#d25e30368">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 508 (provision not at arm’s length: exclusion of arrangements from sections 503 and 504, this section and sections 505 to 507).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-5"><num>(5)</num><intro><p>In section 510 (application of Part 5 of CTA 2009 to alternative finance arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-5-a"><num>(a)</num><intro><p>in subsection (2)(a)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-a-i"><num>(i)</num><content><p><mod>for “first owner” substitute <quotedText>“financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-ii"><num>(ii)</num><content><p><mod>for the “first owner’s” substitute <quotedText>“financier’s”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-iii"><num>(iii)</num><content><p><mod>for “eventual owner” substitute <quotedText>“customer”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-5-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-b-i"><num>(i)</num><content><p>omit the definitions of “the eventual owner” and “the first owner”;</p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>before the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30205">504A</ref> (see subsection <ref href="#d25e30209">(1)</ref> or <ref href="#d25e30287">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-iii"><num>(iii)</num><content><p><mod>after the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-financier">the financier</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30205">504A</ref> (see subsection <ref href="#d25e30209">(1)</ref> or <ref href="#d25e30287">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-6"><num>(6)</num><intro><p>In section 512 (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-6-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-6-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-6-b-i"><num>(i)</num><content><p><mod>after “section 504(1)(c)” insert <quotedText>“or <ref href="#d25e30205">504A</ref><ref href="#d25e30209">(1)</ref><ref href="#d25e30251">(d)</ref> or <ref href="#d25e30287">(2)</ref><ref href="#d25e30333">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-6-c"><num>(c)</num><content><p><mod>in subsection (4), after “504” insert <quotedText>“or <ref href="#d25e30205">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-7"><num>(7)</num><content><p><mod>In section 514 (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 504” insert <quotedText>“or <ref href="#d25e30205">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-8"><num>(8)</num><intro><p>In section 515 (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-8-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of the Corporation Tax Acts as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 504 or <ref href="#d25e30205">504A</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-9"><num>(9)</num><content><p><mod>After section 515 (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>515A</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e30205">section 504A</ref> applies.</p></content></subsection><subsection eId="d25e30789"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e30205">section 504A</ref><ref href="#d25e30209">(1)</ref><ref href="#d25e30224">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection eId="d25e30802"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30808"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e30205">section 504A</ref><ref href="#d25e30209">(1)</ref><ref href="#d25e30224">(b)</ref>,</p></content></level><level class="para1" eId="d25e30821"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e30205">section 504A</ref><ref href="#d25e30209">(1)</ref><ref href="#d25e30251">(d)</ref> and <ref href="#d25e30263">(e)</ref> or <ref href="#d25e30287">(2)</ref><ref href="#d25e30333">(c)</ref> and <ref href="#d25e30350">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30808">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30821">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of the Corporation Tax Acts, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30789">(2)</ref> and <ref href="#d25e30802">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e30205">section 504A</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e30205">section 504A</ref><ref href="#d25e30287">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of the Corporation Tax Acts.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Capital gains tax</heading><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-7-paragraph-3-1"><num>(1)</num><content><p>Chapter 4 of Part 4 of the TCGA 1992 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-2"><num>(2)</num><content><p><mod>In section 151H (introduction), in subsection (3)(b) after “section 151K” insert <quotedText>“or 151KA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-3"><num>(3)</num><intro><p>In section 151K (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-g"><num>(g)</num><content><p><mod>in subsection (7), for “151L” substitute <quotedText>“151KA”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-4"><num>(4)</num><content><p><mod>After section 151K insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e30998"><num>151KA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e31002"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e31008"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e31017"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31044"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e31017">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31253">(6)</ref>),</p></content></level><level class="para1" eId="d25e31056"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31068"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31074"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e31080"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 151K or subsection <ref href="#d25e31002">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e31089"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 151K(1)(a) or subsection <ref href="#d25e31002">(1)</ref><ref href="#d25e31017">(b)</ref> of this section as has not yet been acquired as mentioned in section 151K(1)(d) or subsection <ref href="#d25e31002">(1)</ref><ref href="#d25e31056">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31126"><num>(c)</num><content><p>the customer mentioned in section 151K(1) or <ref href="#d25e31002">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 151K(1)(c) or <ref href="#d25e31002">subsection (1)</ref><ref href="#d25e31044">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31253">(6)</ref>),</p></content></level><level class="para1" eId="d25e31143"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31155"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31161"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e31002">(1)</ref><ref href="#d25e31008">(a)</ref> and <ref href="#d25e31017">(b)</ref> and <ref href="#d25e31080">(2)</ref><ref href="#d25e31089">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e31002">(1)</ref><ref href="#d25e31068">(g)</ref> or <ref href="#d25e31080">(2)</ref><ref href="#d25e31155">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e31217">(5)</ref> are met.</p></content></subsection><subsection eId="d25e31217"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e31253"><num>(6)</num><intro><p>Subsection <ref href="#d25e31002">(1)</ref><ref href="#d25e31074">(h)</ref> or <ref href="#d25e31080">(2)</ref><ref href="#d25e31161">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 1124 of CTA 2010 (meaning of “<term refersTo="#term-control">control</term>”) applies for the purposes of this section.</p></content></subsection><subsection><num>(8)</num><content><p>This section is subject to section 151O (provision not at arm’s length: exclusion of arrangements from sections 151J and 151K, this section and sections 151L to 151N).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-5"><num>(5)</num><intro><p>In section 151R (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-3-5-b-i"><num>(i)</num><content><p><mod>after “section 151K(1)(c)” insert <quotedText>“or <ref href="#d25e30998">151KA</ref><ref href="#d25e31002">(1)</ref><ref href="#d25e31044">(d)</ref> or <ref href="#d25e31080">(2)</ref><ref href="#d25e31126">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-3-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “section 151K” insert <quotedText>“or <ref href="#d25e30998">151KA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-6"><num>(6)</num><content><p><mod>In section 151X (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 151K” insert <quotedText>“or <ref href="#d25e30998">151KA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-7"><num>(7)</num><intro><p>In section 151Y (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of this Act so far as it applies for capital gains tax as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 151K or <ref href="#d25e30998">151KA</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-8"><num>(8)</num><content><p><mod>After section 151Y (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>151Z</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e30998">section 151KA</ref> applies.</p></content></subsection><subsection eId="d25e31488"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e30998">section 151KA</ref><ref href="#d25e31002">(1)</ref><ref href="#d25e31017">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection eId="d25e31501"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e31507"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e30998">section 151KA</ref><ref href="#d25e31002">(1)</ref><ref href="#d25e31017">(b)</ref>,</p></content></level><level class="para1" eId="d25e31520"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e30998">section 151KA</ref><ref href="#d25e31002">(1)</ref><ref href="#d25e31044">(d)</ref> and <ref href="#d25e31056">(e)</ref> or <ref href="#d25e31080">(2)</ref><ref href="#d25e31126">(c)</ref> and <ref href="#d25e31143">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e31507">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e31520">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of this Act so far as it applies for capital gains tax, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e31488">(2)</ref> and <ref href="#d25e31501">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e30998">section 151KA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e30998">section 151KA</ref><ref href="#d25e31080">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Application</heading><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><content><p>The amendments made by this Schedule have effect in relation to arrangements entered into on or after 30 October 2024.</p></content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-8"><num>Schedule 8<authorialNote class="referenceNote"><p>Section 38(2)</p></authorialNote></num><heading>Relief on foreign employment income: consequential and transitional provision</heading><part eId="schedule-8-part-1"><num>Part 1</num><heading>General consequential amendments</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">section 28</a> (meaning of “<term refersTo="#term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax" eId="term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax">general earnings from overseas Crown employment subject to UK tax</term>”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">(b)</a>, after “or of” insert <quotedText>“Wales, Scotland or”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-3"><num>(3)</num><content><p><mod>In section 225 (payments for restrictive undertakings), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>This section only applies where—</p></intro><level class="para1"><num>(a)</num><content><p>if there are general earnings from the employment that are earned in, or otherwise in respect of, the tax year mentioned in subsection (3), <ref href="#d25e31668">subsection (7)</ref> applies to any of those general earnings, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to assume that, if there were such general earnings, <ref href="#d25e31668">subsection (7)</ref> would apply to any of those general earnings.</p></content></level></subsection><subsection eId="d25e31668"><num>(7)</num><intro><p>This subsection applies to general earnings if either—</p></intro><level class="para1"><num>(a)</num><intro><p>section 15 applies to the general earnings and the general earnings are not—</p></intro><level class="para2"><num>(i)</num><content><p>qualifying foreign general earnings within the meaning of <ref href="#d25e5848">section 41U</ref> (qualifying foreign general earnings), or</p></content></level><level class="para2"><num>(ii)</num><content><p>general earnings to which section 22 or section 26 would apply if the individual made a claim under section 809B of ITA 2007 (claim for the remittance basis) for the tax year mentioned in section 22(1) or 26(1) (being a tax year before tax year 2025-26), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>section 27 applies to the general earnings.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-4"><num>(4)</num><content><p><mod>In section 290E (calculation of earnings rate for a tax year), in subsection (4), for “non-domiciled”, in each place it occurs, substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-5"><num>(5)</num><content><p><mod>In section 333 (scope of this chapter: expenses paid by the employee), in subsection (3)(b), for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-6"><num>(6)</num><content><p><mod>In section 341 (travel at start or finish of overseas employment), in subsection (4), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-7"><num>(7)</num><content><p><mod>In section 342 (travel between employments where duties performed abroad), in subsection (7), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-8"><num>(8)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">section 355</a> (deductions for corresponding payments by non-domiciled employees)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-8-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-8-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">subsection (2)</a>, for the words from “not domiciled” to the end substitute <quotedText>“a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-9"><num>(9)</num><content><p><mod>In section 360 (disallowance of certain accommodation expenses of MPs), in subsection (1), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-10"><num>(10)</num><content><p><mod>In section 370 (travel costs and expenses where duties performed abroad), in subsection (6), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>if the tax year is tax year 2024-2025 or an earlier tax year, would be taxable earnings under section 15 even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the tax year is tax year 2025-2026 or a later tax year and the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, are not qualifying foreign general earnings within the meaning of <ref href="#d25e5848">section 41U</ref> (qualifying foreign general earnings).</p></content></level></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-11"><num>(11)</num><content><p><mod>In the italic heading before section 373 for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-12"><num>(12)</num><intro><p>In section 373 (employee’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-12-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-c"><num>(c)</num><intro><p>in subsection (4)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-12-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-12-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-12-d"><num>(d)</num><content><p><mod>in subsection (4)(b), for “that”, in both places it occurs, substitute <quotedText>“such a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-e"><num>(e)</num><content><p>omit subsection (7).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-13"><num>(13)</num><intro><p>In section 374 (spouse’s, civil partner’s or child’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-13-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-c"><num>(c)</num><intro><p>in subsection (3)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-d"><num>(d)</num><intro><p>in subsection (5)(c)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-d-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-d-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText></mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-e"><num>(e)</num><content><p>omit subsection (10).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-14"><num>(14)</num><intro><p>In section 376 (foreign accommodation and subsistence costs and expenses (overseas employments))—</p></intro><level class="para1" eId="schedule-8-paragraph-1-14-a"><num>(a)</num><content><p><mod>in subsection (1)(c), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-14-b"><num>(b)</num><content><p>omit subsection (6).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-15"><num>(15)</num><content><p><mod>In section 395C (meaning of “<term refersTo="#term-foreign-service" eId="term-foreign-service">foreign service</term>” in section 395B), for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (2) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5848">section 41U</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-16"><num>(16)</num><content><p><mod>In section 413 (exception in certain cases of foreign service), for subsection (3ZA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>In subsection (2A)(a) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5848">section 41U</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><p>ITA 2007 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content><p><mod>In section 24 (reliefs deductible at Step 2), in subsection (1)(a), after the entry for section 266(7) of ICTA insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#d25e5488">section 41P</ref> of ITEPA 2003 (deduction for amount that reflects qualifying foreign employment income),</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-3"><num>(3)</num><content><p><mod>In section 989 (the definitions), at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means an election under <ref href="#d25e5228">section 41M</ref> of ITEPA 2003,</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><intro><p>In Part 8 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (<ref eId="c00254" href="http://www.legislation.gov.uk/id/uksi/2001/1004">S.I. 2001/1004</ref>), in paragraph 5 (travel costs and expenses where duties performed in the United Kingdom) —</p></intro><level class="para1" eId="schedule-8-paragraph-3-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-3-b"><num>(b)</num><content><p><mod>in paragraph (a), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></level></paragraph></part><part eId="schedule-8-part-2"><num>Part 2</num><heading>Consequential amendments relating to PAYE</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After <ref href="#d25e2340">section 690C</ref> of ITEPA 2003 (employees who were internationally mobile etc. before 2025-2026) (as inserted by <ref href="#section-21">section 21</ref> of this Act) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e32155"><num>690D</num><heading>Employer notification for qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies in relation to an employee if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be a qualifying new resident for a tax year (“the qualifying year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the employee works or is likely to work outside the UK during the qualifying year.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the qualifying year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat the foreign proportion of any qualifying payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and <ref href="#d25e32348">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>a “<term refersTo="#term-qualifying-payment">qualifying payment</term>” means a payment of, or on account of, an amount of employment income of the employee that is likely to be qualifying employment income;</p></content></level><level class="para1"><num>(b)</num><content><p>the “foreign proportion” of a qualifying payment is the proportion of the employment income that, on the basis of the best estimate that can reasonably be made, is likely to be qualifying foreign employment income.</p></content></level></subsection><subsection eId="d25e32219"><num>(4)</num><content><p>If a notice given under this section has effect, the proportion of any qualifying payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e32348">section 690E</ref> (direction by HMRC in relation to qualifying new residents) in relation to the employee and the qualifying year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32348">section 690E</ref> is given to the appropriate person in relation to the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under <ref href="#d25e1975">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident in the qualifying year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e32219">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and <ref href="#d25e32348">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 687A or 695A (employment income under Part 7A) or section 696 (readily convertible assets), the employer is to be treated as making payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>”, “<term refersTo="#term-qualifying-employment-income">qualifying employment income</term>” and “<term refersTo="#term-qualifying-foreign-employment-income">qualifying foreign employment income</term>” have the same meaning as in Chapter 5C of Part 2 (relief for new residents on foreign employment income).</p></content></level></subsection></section><section eId="d25e32348"><num>690E</num><heading>Direction by HMRC in relation to qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the qualifying year under <ref href="#d25e32155">section 690D</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any qualifying payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e32373"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any qualifying payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e32373">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a day specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e32418"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32373">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e32373">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e32373">subsection (2)</ref> ceases to have effect if a notice has subsequently been—</p></intro><level class="para1"><num>(a)</num><content><p>given by the appropriate person under <ref href="#d25e1975">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident for the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e32418">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></part><part eId="schedule-8-part-3"><num>Part 3</num><heading>Transitional provision</heading><hcontainer name="crossheading" class="schGroup7"><heading>Individuals no longer meeting section 26A requirement not qualifying new residents</heading><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content><p>If an individual falling within <ref href="#schedule-8-paragraph-5-2">sub-paragraph (2)</ref> would otherwise be a qualifying new resident for tax year 2025-26 for the purposes of Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income), the individual is to be treated as not being a qualifying new resident for that year for the purposes of that Chapter.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-5-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2022-23, and</p></content></level><level class="para1" eId="schedule-8-paragraph-5-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that year or for tax year 2023-24 or 2024-25.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Certain individuals meeting section 26A requirement treated as qualifying new residents</heading><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><intro><p>If an individual falling within <ref href="#schedule-8-paragraph-6-2">sub-paragraph (2)</ref>—</p></intro><level class="para1" eId="schedule-8-paragraph-6-1-a"><num>(a)</num><content><p>meets the section 26A requirement for tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-1-b"><num>(b)</num><content><p>is not a qualifying new resident for that year for the purposes of Chapter 5C of Part 2 of ITEPA 2003,</p></content></level><wrapUp><p>the individual is to be treated as a qualifying new resident for that tax year for the purposes of that Chapter.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-6-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2023-24 or tax year 2024-25, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that tax year.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Limit on relief not to apply to certain foreign employment relief claims</heading><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Section <ref href="#d25e5695">41R</ref> of ITEPA 2003 (limit on relief) does not apply to a foreign employment relief claim made by an individual for a tax year if the claim falls within sub-paragraph <ref href="#schedule-8-paragraph-7-2">(2)</ref> or <ref href="#schedule-8-paragraph-7-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-2-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-2-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> applies to the individual for that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-3-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> does not apply to the individual for that tax year,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-c"><num>(c)</num><content><p>the individual falls within <ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-d"><num>(d)</num><content><p>the individual meets the section 26A requirement for tax year 2025-26.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Definitions</heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-relief-claim" eId="term-foreign-employment-relief-claim">foreign employment relief claim</term>” and “qualifying year” have the same meanings as in Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-section-26a-requirement" eId="term-the-section-26a-requirement">the section 26A requirement</term>” means the requirement of section 26A of ITEPA 2003 (requirement for 3-year period of non-residence).</p></content></hcontainer></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-9"><num>Schedule 9<authorialNote class="referenceNote"><p>Section 40</p></authorialNote></num><heading>Income tax and capital gains tax: remittance basis and domicile</heading><part eId="schedule-9-part-1"><num>Part 1</num><heading>Remittance basis</heading><hcontainer name="crossheading" class="schGroup7"><heading>No remittance basis for tax years after 2024-25</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-9-paragraph-1-1"><num>(1)</num><content><p>Chapter A1 of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00255" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-2"><num>(2)</num><intro><p>In section 809B (claim for remittance basis to apply), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-2-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-c"><num>(c)</num><content><p><mod>in each of paragraphs (a), (b) and (c), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-3"><num>(3)</num><intro><p>In section 809C (claim for remittance basis by long-term UK resident), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-3-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-c"><num>(c)</num><content><p><mod>in each of paragraphs (a) and (b), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-4"><num>(4)</num><content><p><mod>In section 809D (application of remittance basis where income and gains under £2000) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-5"><num>(5)</num><content><p><mod>In section 809E (application of remittance basis without claim: other cases) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-6"><num>(6)</num><intro><p>In consequence of the amendments made by <span><ref href="#schedule-9-paragraph-1-2">sub-paragraphs (2)</ref> to <ref href="#schedule-9-paragraph-1-5">(5)</ref></span>, in section 809A—</p></intro><level class="para1" eId="schedule-9-paragraph-1-6-a"><num>(a)</num><content><p><mod>for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-6-b"><num>(b)</num><content><p><mod>after “Kingdom” insert <quotedText>“in tax years before tax year 2025-26”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of <ref eId="c00256" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00257" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">section 1A</a> (territorial scope), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">section 1K</a> (annual exempt amount), omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>, for “Non-UK domiciled individuals” substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-2-5-a"><num>(a)</num><content><p><mod>for the heading, substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-2-5-b-i"><num>(i)</num><content><p><mod>for “a tax year” substitute <quotedText>“tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>for “is”, in each place it occurs, substitute <quotedText>“was”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-2-6"><num>(6)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/16ZA">Section 16ZA</a> (losses: non-UK domiciled individuals) is omitted.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> (UK resident individuals not domiciled in UK)—</p></intro><level class="para1" eId="schedule-9-paragraph-2-7-a"><num>(a)</num><content><p><mod>in the heading, for “not domiciled in the UK” substitute <quotedText>“to whom the remittance basis applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(1)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/2">paragraphs 2</a>, <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/3">3</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/4">4</a>.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of <ref eId="c00258" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00259" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">section 6</a> (nature of charge to tax on employment income), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (a)</a>, omit “and domicile”;</p></content></level><level class="para1" eId="schedule-9-paragraph-3-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (aa)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">section 20</a> (taxable earnings under this Chapter), for <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">subsection (1)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This Chapter contains provision for determining how much of the following are taxable earnings from an employment in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings that are for a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee (being a tax year before tax year 2025-26), and</p></content></level><level class="para1"><num>(b)</num><content><p>general earnings that are for a tax year for which the employee is non-UK resident.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a> (chargeable overseas earnings for year when remittance basis applies and employee outside section 26)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-4-a"><num>(a)</num><content><p><mod>in the heading and in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(b)</a>, for “does not” substitute <quotedText>“did not”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">section 23</a> (calculation of “chargeable overseas earnings”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (aa)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (b)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-6"><num>(6)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/25">section 25</a>, for “meet” substitute <quotedText>“met”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">section 26</a> (foreign earnings for year when remittance basis applies and employee meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “applies and employee meets” substitute <quotedText>“applied and employee met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-7-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">subsection (1)</a>, in the opening words—</p></intro><level class="para2" eId="schedule-9-paragraph-3-7-b-i"><num>(i)</num><content><p><mod>for “applies”, in the second place it appears, substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-7-b-ii"><num>(ii)</num><content><p><mod>for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">section 41F</a> (taxable specific income: internationally mobile employee etc), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-9"><num>(9)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">section 41H</a> (section 41F: chargeable and unchargeable foreign securities income)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-9-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (4)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (d)</a> for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-3-9-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-10"><num>(10)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">section 271</a> (limited exemption of removal benefits and expenses: general)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-10-a"><num>(a)</num><content><p><mod>in subsections (2)(a) and (2)(b), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-10-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">(b)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-11"><num>(11)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">section 554Z9</a> (remittance basis: A does not meet section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-11-a"><num>(a)</num><content><p><mod>in the heading, for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-11-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-11-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (b)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (c)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (d)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (e)</a>, for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-12"><num>(12)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">section 554Z10</a> (remittance basis: A meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-12-a"><num>(a)</num><content><p><mod>in the heading, for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(b)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(c)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-13"><num>(13)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">section 576A</a> (temporary non-residents), in subsection <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">(5)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-14"><num>(14)</num><content><p><mod>In section 698 (PAYE: special charges on employment-related securities), in subsection (8), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-15"><num>(15)</num><content><p><mod>In section 700 (PAYE: gains from securities options), in subsection (7), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-16"><num>(16)</num><content><p><mod>In section 700A (employment-related securities etc: remittance basis), in the heading, for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Amendment of <ref eId="c00260" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00261" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (relevant foreign income charge on remittance basis), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-4-a"><num>(a)</num><content><p>for “applies”, in the second place it appears, substitute” applied”;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-b"><num>(b)</num><content><p><mod>after “that year” insert <quotedText>“(being a tax year before tax year 2025-26)”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>When amounts will be remitted</heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00262" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">Section 809L</a> (meaning of “<term refersTo="#term-remitted-to-the-united-kingdom" eId="term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>”) is amended in accordance with sub-paragraphs to <ref href="#schedule-9-paragraph-5-3">(3)</ref> to <ref href="#schedule-9-paragraph-5-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>omit the “or” at the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (a)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33717"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-5-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33767"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-6"><num>(6)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-6-a"><num>(a)</num><content><p><mod>for “or (b)”, in each place it occurs, substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-6-b"><num>(b)</num><content><p><mod>after “property”, in the second place it occurs, insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-7"><num>(7)</num><content><p><mod>At the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert <quotedText>“and cases where the property is used to secure the debt.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-8"><num>(8)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9A)</num><intro><p>For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes—</p></intro><level class="para1"><num>(a)</num><content><p>sending, or otherwise effecting a transfer of, the property to the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom.</p></content></level></subsection><subsection eId="d25e33838"><num>(9B)</num><content><p>Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992.</p></content></subsection><subsection><num>(9C)</num><content><p>But subsection <ref href="#d25e33838">(9B)</ref> does not apply where the intangible property is a debt other than a judgment debt.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-9"><num>(9)</num><intro><p>In section 809N (section 809L: gift recipients, qualifying property and enjoyment)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-9-a"><num>(a)</num><content><p><mod>in subsection (7)(c), after “(b)” insert <quotedText>“, <ref href="#d25e33717">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-9-b"><num>(b)</num><intro><p>in subsection (9)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-9-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-10"><num>(10)</num><intro><p>In section 809O (section 809L: dealings where there is a connected operation)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-10-a"><num>(a)</num><content><p><mod>in each of subsections (2), (3), (4) and (5) after “(b)” insert <quotedText>“, <ref href="#d25e33767">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-10-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-10-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the property being dealt with as mentioned in section 809L(5)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-11"><num>(11)</num><intro><p>In section 809P (section 809L: amount remitted)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-11-a"><num>(a)</num><content><p><mod>in subsections (6) and (8), for “or (b)” substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-11-b"><num>(b)</num><content><p><mod>in subsection (12), after “previously remitted”, in each place it occurs, insert <quotedText>“that has been charged to income tax or capital gains tax”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Relief for amounts remitted again on becoming UK resident</heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-1-a"><num>(a)</num><intro><p>income or chargeable gains of an individual have been remitted to the United Kingdom during a period that exceeds 5 years—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-a-i"><num>(i)</num><content><p>that ends before 6 April 2024, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-a-ii"><num>(ii)</num><content><p>in which there was no period for which the individual was UK resident, and</p></content></level></level><level class="para1" eId="schedule-9-paragraph-6-1-b"><num>(b)</num><intro><p>after the end of that period, but before 6 April 2025—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-b-i"><num>(i)</num><content><p>the same, or part of the same, income or chargeable gains (“the repeated remitted amount”) were again remitted to the United Kingdom, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-b-ii"><num>(ii)</num><content><p>a relevant charge has arisen in relation to that remittance.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><intro><p>A “<term refersTo="#term-relevant-charge" eId="term-relevant-charge">relevant charge</term>” in relation to a remittance means—</p></intro><level class="para1" eId="schedule-9-paragraph-6-2-a"><num>(a)</num><content><p>income tax becoming chargeable on that remittance, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-2-b"><num>(b)</num><content><p>a gain accruing under paragraph 1(2) of Schedule 1 to TCGA 1992 on that remittance.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>Any relevant charge that has arisen on the first occasion on which the repeated remitted amount is remitted in circumstances falling within <ref href="#schedule-9-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-9-paragraph-6-1-b">(b)</ref> is to be treated as never having arisen.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>But a remittance that is not charged to income tax or capital gains tax as a result of sub-paragraph <ref href="#schedule-9-paragraph-6-3">(3)</ref> is to be treated as if it were charged to income tax or capital gains tax (as the case may be) for the purposes of section 809P(12) of ITA 2007.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><intro><p>This paragraph is to be treated as never having applied where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-5-a"><num>(a)</num><content><p>for either, or each, of the tax years 2024-25 and 2025-26, the individual is not UK resident, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-5-b"><num>(b)</num><content><p>either, or each, of those tax years is a split year as respects the individual.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><content><p>References in this paragraph to amounts being remitted to the United Kingdom are to be construed in accordance with Chapter A1 of Part 14 of ITA 2007 (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-9-part-2"><num>Part 2</num><heading>Removal of domicile (primary legislation)</heading><hcontainer name="crossheading" class="schGroup7"><heading>Removal of exemption for persons not domiciled in United Kingdom</heading><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/1A">Chapter 1A</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00263" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (exemption for persons not domiciled in United Kingdom) is repealed.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transferable tax allowance for married couples etc</heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 55C of ITA 2007 (election to reduce personal allowance), in subsection (3)(b), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Residence of personal representatives: domicile of deceased no longer relevant</heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-9-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">Section 834</a> of <ref eId="c00264" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of personal representatives) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident within the meaning of IHTA 1984”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (5)</a>.</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">section 62</a> of <ref eId="c00265" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (residence of personal representatives), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">subsection (3)</a>, for the words from “having” to the end substitute <quotedText>“UK resident if the deceased was UK resident or a long-term UK resident within the meaning of IHTA 1984 at the date of death.”</quotedText></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Residence of trustees: domicile of settlor no longer relevant</heading><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-9-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">Section 476</a> of <ref eId="c00266" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of trustees: how to work out if settlor meets condition C) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsections (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a>, omit “or domiciled in the United Kingdom”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34285"><num>(3ZA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on S’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted <quotedText>“or domiciled in the United Kingdom”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3A)</a>, for “subsections (2)(b) and (3)(b)” substitute <quotedText>“<ref href="#d25e34285">subsection (3ZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(c)</a>, for “subsection (2) or (3) or this subsection” substitute <quotedText>“this section”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">Section 69</a> of <ref eId="c00267" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (trustees of settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2B)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">(c)</a>, omit “or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2C)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34373"><num>(2CA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on the settlor’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that the settlor made (or was treated for the purposes of this Act as making) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsection (2B)(c) has effect as if after “resident” there were inserted <quotedText>“or domiciled”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2F)</a>, for “(2B)(c)” substitute <quotedText>“<ref href="#d25e34373">(2CA)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-9-paragraph-13-1"><num>(1)</num><content><p>In the <ref eId="c00268" href="https://www.legislation.gov.uk/uksi/2017/692">Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017</ref> (<ref eId="c00269" href="http://www.legislation.gov.uk/id/uksi/2017/692">S.I. 2017/692</ref>), <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">regulation 42</a> (application of Part 5) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(d)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(ii)</a>, omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2A)</num><content><p><mod>In relation to a trust that was set up before 6 April 2025, paragraph (2)(d)(ii) has effect as if after “resident” there were inserted <quotedText>“and domiciled”</quotedText>.</mod></p></content></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Application of Income Tax Acts in relation to deemed employment</heading><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><content><p>In sections 56, 61G and 61R of ITEPA 2003 (chargeability to tax in respect of deemed employment payment), omit subsections (4) and (5).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Pension schemes</heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00270" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions schemes etc.) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">Chapter 3</a> (payments by registered pension schemes), in <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">section 185G</a>, in subsection (3)(a) omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><intro><p>In the following provisions of <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/5">Chapter 5</a> (registered pension schemes: tax charges) and Chapter 6 (schemes that are not registered pension schemes) omit “or domiciled”—</p></intro><level class="para1" eId="schedule-9-paragraph-15-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">section 205</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">section 206</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">section 207</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-d"><num>(d)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">section 208</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-e"><num>(e)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">section 209</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">(5)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-f"><num>(f)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">section 237A</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">(2)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-g"><num>(g)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">section 237B</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">(8)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-h"><num>(h)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">section 239</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">section 242</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-j"><num>(j)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">section 244J</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">(6)</a>.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p>In section 7 of F(No.2)A 2005 (social security pension lump sum), in subsection (3) omit “or domiciled”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Domicile of overseas electors</heading><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In <ref eId="c00271" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref> omit section 200 (domicile for tax purposes of overseas electors).</p></content></paragraph><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>In <ref eId="c00272" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> omit section 835B (domicile for income tax purposes of overseas electors).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Situs of debt</heading><paragraph eId="schedule-9-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-9-paragraph-19-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">Section 275</a> of <ref eId="c00273" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (location of assets) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (1)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">paragraph (l)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (3A)</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Trust reporting requirements</heading><paragraph eId="schedule-9-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-9-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A">Schedule 5A</a> to <ref eId="c00274" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (settlements with foreign element: information) is amended in accordance with sub-paragraphs <ref href="#schedule-9-paragraph-20-2">(2)</ref> and <ref href="#schedule-9-paragraph-20-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">paragraph 3</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> omit “is domiciled in the United Kingdom and”;</p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-b"><num>(b)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> insert <quotedText>“and is not a qualifying new resident within the meaning of Schedule D1”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/4">paragraph 4</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-3-a"><num>(a)</num><content><p><mod>for sub-paragraph (2)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>where that time was before 6 April 2025, did not fulfil the condition mentioned in sub-paragraph (3) below at that time or at any time before 6 April 2025,</p></content></level><level class="para1"><num>(ba)</num><content><p>where that time was on or after 6 April 2025, does not fulfil the condition mentioned in sub-paragraph <ref href="#d25e34815">(3A)</ref> below at that time,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-b"><num>(b)</num><intro><p>in sub-paragraph (2)(c)—</p></intro><level class="para2" eId="schedule-9-paragraph-20-3-b-i"><num>(i)</num><content><p><mod>for “that condition” substitute <quotedText>“the condition mentioned in sub-paragraph <ref href="#d25e34815">(3A)</ref> below”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-20-3-b-ii"><num>(ii)</num><content><p><mod>for “the commencement day” substitute <quotedText>“6 April 2025”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-20-3-c"><num>(c)</num><content><p><mod>in the closing words of sub-paragraph (2), for “the relevant day” substitute <quotedText>“31 January after the end of the tax year in which the relevant day falls”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-d"><num>(d)</num><content><p><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e34815"><num>(3A)</num><content><p>The condition is that the person concerned is resident in the United Kingdom and is not a qualifying new resident within the meaning of Schedule D1.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-4"><num>(4)</num><content><p>Sub-paragraph <ref href="#schedule-9-paragraph-20-5">(5)</ref> applies where a settlor fulfils the condition in paragraph 4<ref href="#d25e34815">(3A)</ref> of Schedule 5A to TCGA 1992 (settlements with foreign element: information) on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-5"><num>(5)</num><content><p>For the purposes of paragraph 4(2)(c) of that Schedule, the settlor is to be treated as first fulfilling that condition on 6 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Trusts with vulnerable beneficiary</heading><paragraph eId="schedule-9-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-9-paragraph-21-1"><num>(1)</num><content><p><ref eId="c00275" href="https://www.legislation.gov.uk/ukpga/2005/7">FA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">section 28</a> (vulnerable person’s liability: VQTI), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-21-2-a"><num>(a)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (a)</a> insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-21-2-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (c)</a> and the “and” before it.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-21-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1">Schedule 1</a> (non-UK resident vulnerable person), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(a)</a> omit “and domiciled”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Disposals of deeply discounted securities</heading><paragraph eId="schedule-9-paragraph-22" class="schProv1"><num>22</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">section 459</a> of <ref eId="c00276" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (application of transfer of assets abroad legislation to disposals of deeply discounted securities), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">subsection (1)</a> omit “or domiciled”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>The accrued income scheme</heading><paragraph eId="schedule-9-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-9-paragraph-23-1"><num>(1)</num><content><p><ref eId="c00277" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-23-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">section 667</a> (trustees’ accrued income profits treated as settlement income), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-2-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (b)</a> omit “or domiciled in the United Kingdom”.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-23-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">section 680</a> (interest on securities involving accrued income losses: foreign trustees), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-3-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-3-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (d)</a> omit “, or domiciled in the United Kingdom,”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FOTRA securities</heading><paragraph eId="schedule-9-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-9-paragraph-24-1"><num>(1)</num><content><p><mod>In section 22 of F(No.2)A 1931 (Treasury power to issue securities with a FOTRA condition), in subsection (1)(b) for “neither domiciled nor” substitute <quotedText>“not”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-2"><num>(2)</num><content><p>In section 154 of FA 1996 (FOTRA securities), omit subsection (1).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-3"><num>(3)</num><intro><p>Any security issued with a FOTRA domicile condition is treated in relation to times on or after 6 April 2025 as if—</p></intro><level class="para1" eId="schedule-9-paragraph-24-3-a"><num>(a)</num><content><p>it were a security issued with the post-1996 Act FOTRA conditions (and with no other FOTRA condition), and</p></content></level><level class="para1" eId="schedule-9-paragraph-24-3-b"><num>(b)</num><content><p>the post-1996 Act FOTRA conditions had been authorised in relation to the issue of that security by virtue of section 22 of F(No.2)A 1931.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-24-4"><num>(4)</num><intro><p>In <ref href="#schedule-9-paragraph-24-3">sub-paragraph (3)</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-condition" eId="term-a-fotra-condition">a FOTRA condition</term>” means a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-domicile-condition" eId="term-a-fotra-domicile-condition">a FOTRA domicile condition</term>”, in relation to a security, means a FOTRA condition requiring the security to be in the beneficial ownership of persons who are not domiciled in the United Kingdom for an exemption from taxation to apply;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-post-1996-act-fotra-conditions" eId="term-the-post-1996-act-fotra-conditions">the post-1996 Act FOTRA conditions</term>” means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued.</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Reliefs in respect of income from investments etc. of certain pension schemes</heading><paragraph eId="schedule-9-paragraph-25" class="schProv1"><num>25</num><content><p>In section 614 of the Income and Corporation Taxes Act 1988 (exemptions and reliefs in respect of income from investments etc. of certain pension schemes), in subsections (4) and (5), omit “not domiciled and”.</p></content></paragraph></hcontainer></part><part eId="schedule-9-part-3"><num>Part 3</num><heading>Removal of domicile (secondary legislation)</heading><hcontainer name="crossheading" class="schGroup7"><heading>Education funding</heading><paragraph eId="schedule-9-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-9-paragraph-26-1"><num>(1)</num><content><p>In the Appendix to <a href="https://www.legislation.gov.uk/uksi/2001/2743/schedule/1">Schedule 1</a> to the <ref eId="c00278" href="https://www.legislation.gov.uk/uksi/2001/2743">Education (Grants) (Music, Ballet and Choir Schools) (England) Regulations 2001</ref> (<ref eId="c00279" href="https://www.legislation.gov.uk/uksi/2001/2743">S.I. 2001/2743</ref>) (aided pupil scheme: computation of income), in paragraph 2, in sub-paragraph (a) omit “, ordinarily resident or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2">Schedule 2</a> to the <ref eId="c00280" href="https://www.legislation.gov.uk/uksi/2010/447">Education (Student Support) (European University Institute) Regulations 2010</ref> (<ref eId="c00281" href="http://www.legislation.gov.uk/id/uksi/2010/447">S.I. 2010/447</ref>) (calculation of contribution), in <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">paragraph 4</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(5)</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(a)</a>, omit “or domiciled” in the first place it appears.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-3"><num>(3)</num><content><p>The <ref eId="c00282" href="https://www.legislation.gov.uk/uksi/2011/1986">Education (Student Support) Regulations 2011</ref> (<ref eId="c00283" href="http://www.legislation.gov.uk/id/uksi/2011/1986">S.I. 2011/1986</ref>) are amended in accordance with <ref href="#schedule-9-paragraph-26-4">sub-paragraphs (4)</ref> and <ref href="#schedule-9-paragraph-26-5">(5)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4">Schedule 4</a> (financial assessment)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-4-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-b-ii"><num>(ii)</num><content><p>omit “so”.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-26-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6">Schedule 6</a> (assessment of eligible part-time student’s household income)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-5-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(6)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;The</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-b-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Making Tax Digital</heading><paragraph eId="schedule-9-paragraph-27" class="schProv1"><num>27</num><content><p>In the <ref eId="c00284" href="https://www.legislation.gov.uk/uksi/2021/1076">Income Tax (Digital Requirements) Regulations 2021</ref> (<ref eId="c00285" href="http://www.legislation.gov.uk/id/uksi/2021/1076">S.I. 2021/1076</ref>) omit regulation 26.</p></content></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-10"><num>Schedule 10<authorialNote class="referenceNote"><p>Section 41</p></authorialNote></num><heading>Temporary repatriation facility</heading><part eId="schedule-10-part-1"><num>Part 1</num><heading>Temporary repatriation facility charge</heading><hcontainer name="crossheading" class="schGroup7"><heading>Introduction and charge</heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-10-paragraph-1-1"><num>(1)</num><content><p><ref href="#schedule-10-part-1">This Part</ref> of <ref href="#schedule-10">this Schedule</ref> sets out a charge on amounts of qualifying overseas capital of individuals previously subject to the remittance basis.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-2"><num>(2)</num><content><p>The charge is to be known as the temporary repatriation facility charge, and is referred to in this Schedule as the “<term refersTo="#term-trf-charge" eId="term-trf-charge">TRF charge</term>”.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-3"><num>(3)</num><content><p><span><ref href="#schedule-10-paragraph-2">Paragraphs 2</ref> to <ref href="#schedule-10-paragraph-6">6</ref></span> set out when amounts are, or are to be treated, as qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-4"><num>(4)</num><content><p>Amounts of qualifying overseas capital of an individual are subject to the TRF charge only if the individual designates them in accordance with this Part of this Schedule.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-5"><num>(5)</num><content><p>An individual may only designate qualifying overseas capital if the individual was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-6"><num>(6)</num><content><p>An individual designates qualifying overseas capital by making an election (a “designation election”) in a return for the tax year 2025-26, 2026-27 or 2027-28 (see <ref href="#schedule-10-paragraph-8">paragraph 8</ref> for further provision about designation elections).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-7"><num>(7)</num><content><p>A designation election may only be made in a return if, for the tax year to which the return relates, the individual is UK resident for the purposes of income tax and capital gains tax (see <a href="https://www.legislation.gov.uk/ukpga/2013/29/schedule/45">Schedule 45</a> to <ref eId="c00286" href="https://www.legislation.gov.uk/ukpga/2013/29">FA 2013</ref>).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-8"><num>(8)</num><intro><p>The amount of the TRF charge on qualifying overseas capital designated by an individual is—</p></intro><level class="para1" eId="schedule-10-paragraph-1-8-a"><num>(a)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2025-26 or 2026-27, the amount equal to 12% of the amount of that capital, and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-8-b"><num>(b)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2027-28, the amount equal to 15% of the amount of that capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-1-9"><num>(9)</num><content><p>Part 2 of this Schedule sets out exemptions and reliefs from income tax and capital gains tax that apply where amounts of qualifying overseas capital are designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-10"><num>(10)</num><content><p><ref href="#schedule-10-part-3">Part 3</ref> of <ref href="#schedule-10">this Schedule</ref> amends or modifies rules about the remittance of amounts where an individual has designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-11"><num>(11)</num><intro><p>For the purposes of <ref href="#schedule-10-part-1">this Part</ref> of <ref href="#schedule-10">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-10-paragraph-1-11-a"><num>(a)</num><intro><p>an individual is subject to the remittance basis for a tax year—</p></intro><level class="para2" eId="schedule-10-paragraph-1-11-a-i"><num>(i)</num><content><p>in relation to the tax years 2008-09 to 2024-25, if any of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">sections 809B</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">809D</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809E">809E</a> of <ref eId="c00287" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> apply to the individual for that year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-1-11-a-ii"><num>(ii)</num><content><p>in relation to any tax year before 2008-2009, if any income or gains of the individual for that year were subject to the remittance basis (including any income or gains that would have been regarded as arising in the tax year but were not as a result of the application of the remittance basis), and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-1-11-b"><num>(b)</num><content><p>“<term refersTo="#term-return" eId="term-return">return</term>” means a return under <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/8">section 8</a> of <ref eId="c00288" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (personal return for income tax and capital gains tax), and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-11-c"><num>(c)</num><content><p>references to an election being included in a return include an election being so included as a result of an amendment of the return.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Qualifying overseas capital: main cases</heading><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-10-paragraph-2-1"><num>(1)</num><content><p>An amount of capital is “qualifying overseas capital” of an individual if it falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>, <ref href="#schedule-10-paragraph-2-5">(5)</ref> or <ref href="#schedule-10-paragraph-2-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-2"><num>(2)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-2-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-b"><num>(b)</num><content><p>the amount has not been remitted to the United Kingdom, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-c"><num>(c)</num><content><p>the amount, if remitted to the United Kingdom, would have the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-3"><num>(3)</num><intro><p>That effect is that—</p></intro><level class="para1" eId="schedule-10-paragraph-2-3-a"><num>(a)</num><content><p>the individual becomes chargeable to income tax by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">26</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">41F</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">554Z9</a> or 554Z10 of <ref eId="c00289" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> or <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00290" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (income charged on remittance basis), or</p></content></level><level class="para1" eId="schedule-10-paragraph-2-3-b"><num>(b)</num><content><p>a gain is treated as accruing to the individual by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00291" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (gains charged on remittance basis).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-4"><num>(4)</num><content><p>In determining whether an amount of capital falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> for the purposes of making a designation election for a tax year, the condition in <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-10-paragraph-2-2-b">(b)</ref> is to be regarded as met if it was met at the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-5"><num>(5)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-5-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-b"><num>(b)</num><content><p>the amount is remitted to the United Kingdom in the tax year 2025-26, 2026-27 or 2027-28, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-c"><num>(c)</num><content><p>that remittance has the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-6"><num>(6)</num><content><p>An amount that is qualifying overseas capital falling within <ref href="#schedule-10-paragraph-2-5">sub-paragraph (5)</ref> (and that has not previously been designated as result of the amount falling within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>) may only be designated in a designation election for the tax year in which it was remitted.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-7"><num>(7)</num><intro><p>For the purposes of <ref href="#schedule-10-paragraph-2-2">sub-paragraphs (2)</ref><ref href="#schedule-10-paragraph-2-2-c">(c)</ref> and <ref href="#schedule-10-paragraph-2-5">(5)</ref><ref href="#schedule-10-paragraph-2-5-c">(c)</ref>, a remittance is to be treated as having the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref> if it would have that effect ignoring—</p></intro><level class="para1" eId="schedule-10-paragraph-2-7-a"><num>(a)</num><content><p><ref href="#schedule-10-part-2">Part 2</ref> of this Schedule (exemptions etc for designated qualifying overseas capital),</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VA">section 809VA</a> of <ref eId="c00292" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (business investment relief), and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a> of <ref eId="c00293" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (exempt property).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-8"><num>(8)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-8-a"><num>(a)</num><content><p>it does not fall within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> or <ref href="#schedule-10-paragraph-2-5">(5)</ref>,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-b"><num>(b)</num><content><p>it was held by the individual immediately before 6 April 2025,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-c"><num>(c)</num><intro><p>it was situated outside the United Kingdom—</p></intro><level class="para2" eId="schedule-10-paragraph-2-8-c-i"><num>(i)</num><content><p>immediately before it was most recently acquired by the individual before that date, and</p></content></level><level class="para2" eId="schedule-10-paragraph-2-8-c-ii"><num>(ii)</num><content><p>throughout the period beginning with the time referred to in <ref href="#schedule-10-paragraph-2-8-c-i">sub-paragraph (i)</ref> and ending with that date.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-9"><num>(9)</num><content><p>References in <ref href="#schedule-10-part-1">Parts 1</ref> and <ref href="#schedule-10-part-2">2</ref> of <ref href="#schedule-10">this Schedule</ref> to amounts being remitted to the United Kingdom are to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00294" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Capital payments made by settlement: section 87 and 89 TCGA 1992 cases</heading><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of section 87(2) or 89(2) of TCGA 1992 in relation to a capital payment from the trustees of a settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-1-b"><num>(b)</num><content><p>the settlement has a section 1(3) amount that is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-3-a"><num>(a)</num><content><p>the section 1(3) amount for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-3-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-3-3-b-ii"><num>(ii)</num><content><p>to which section 87(2) or 89(2) of that Act applies.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount for the tax year 2024-25 or an earlier tax year resulting from the application of section 87 or 89(2) of TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-5"><num>(5)</num><intro><p>Sub-paragraph <ref href="#schedule-10-paragraph-3-6">(6)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-3-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount under <ref href="#schedule-10-paragraph-3-2">sub-paragraph (2)</ref>, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-6"><num>(6)</num><content><p>The section 1(3) amount is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and paragraphs <ref href="#schedule-10-paragraph-4">4</ref> and <ref href="#schedule-10-paragraph-5">5</ref> (and no section 1(3) amounts or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-3-8-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in section 87 of TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-9"><num>(9)</num><intro><p>For the purposes of this paragraph, and paragraphs <ref href="#schedule-10-paragraph-4">4</ref> and <ref href="#schedule-10-paragraph-5">5</ref>, an individual is a qualifying individual in a tax year if the individual—</p></intro><level class="para1" eId="schedule-10-paragraph-3-9-a"><num>(a)</num><content><p>is UK resident for the purposes of income tax and capital gains tax for that tax year, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-9-b"><num>(b)</num><content><p>was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Capital payments made by settlement: offshore income gains cases</heading><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-10-paragraph-4-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-4-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of section 87(2) of TCGA 1992, as it applies in relation to OIG amounts as a result of regulation 20 of the OFT Regulations, in relation to a capital payment from the trustees of a settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-4-1-b"><num>(b)</num><content><p>the settlement has an OIG amount that is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-4-2"><num>(2)</num><content><p>So much of the payment as is matched with OIG amounts for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-4-3-a"><num>(a)</num><content><p>the OIG amount for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-4-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-4-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-4-3-b-ii"><num>(ii)</num><content><p>to which section 87(2) of that Act applies in relation to OIG amounts (as a result of regulation 20 of the OFT regulations).</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-4-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of an OIG amount for the tax year 2024-25 or an earlier tax year resulting from the application of section 87 or 89(2) of TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-5"><num>(5)</num><intro><p>Sub-paragraph <ref href="#schedule-10-paragraph-4-6">(6)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-4-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with an OIG amount under sub-paragraph <ref href="#schedule-10-paragraph-4-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-4-6"><num>(6)</num><content><p>The OIG amount is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and paragraphs <ref href="#schedule-10-paragraph-3">3</ref> and <ref href="#schedule-10-paragraph-5">5</ref> (and no OIG amount or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-4-8-a"><num>(a)</num><content><p>the “<term refersTo="#term-oft-regulations" eId="term-oft-regulations">OFT Regulations</term>” means the Offshore Funds (Tax) Regulations 2009,</p></content></level><level class="para1" eId="schedule-10-paragraph-4-8-b"><num>(b)</num><content><p>“<term refersTo="#term-oig-amount" eId="term-oig-amount">OIG amount</term>” is to be construed in accordance with the OFT Regulations, and</p></content></level><level class="para1" eId="schedule-10-paragraph-4-8-c"><num>(c)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Capital payments made by settlement: Schedule 4C cases</heading><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-10-paragraph-5-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of paragraph 8(1) of Schedule 4C to TCGA 1992 in relation to a capital payment from the trustees of a relevant settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-1-b"><num>(b)</num><content><p>the section 1(3) amount in the Schedule 4C pool is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts in the Schedule 4C pool for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-3-a"><num>(a)</num><content><p>the section 1(3) amount in the Schedule 4C pool for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-5-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-5-3-b-ii"><num>(ii)</num><content><p>to which paragraph 8(1) of Schedule 4C to that Act applies in relation to section 1(3) amounts in the Schedule 4C pool.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or an earlier tax year resulting from the application of paragraph 8(1) of Schedule 4C to TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-5"><num>(5)</num><intro><p>Sub-paragraph <ref href="#schedule-10-paragraph-5-6">(6)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-5-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount in the Schedule 4C pool under sub-paragraph <ref href="#schedule-10-paragraph-5-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-6"><num>(6)</num><content><p>The section 1(3) amount in the Schedule 4C pool is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and paragraphs <ref href="#schedule-10-paragraph-3">3</ref> and <ref href="#schedule-10-paragraph-4">4</ref> (and no section 1(3) amount in the Schedule 4C pool or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-5-8-a"><num>(a)</num><content><p>“section 1(3) amount in the Schedule 4C pool” and “relevant settlement” are to be construed in accordance with Schedule 4C to TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Amounts of income treated as qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-10-paragraph-6-1"><num>(1)</num><intro><p><ref href="#schedule-10-paragraph-6">This paragraph</ref> applies—</p></intro><level class="para1" eId="schedule-10-paragraph-6-1-a"><num>(a)</num><content><p>where an individual is treated as having an amount of income as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/643A">section 643A</a> of <ref eId="c00295" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (benefits paid out of protected foreign-source income or transitional trust income) for any of the tax years 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-b"><num>(b)</num><content><p>where an individual would have been treated as having an amount of income as a result of any other provision of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5/chapter/5">Chapter 5</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5">Part 5</a> of <ref eId="c00296" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (settlements: amounts treated as income of settlor or family) in the tax year 2024-25 or an earlier tax year but was not only as a result of the application of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">section 648</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">(3)</a> of <ref eId="c00297" href="https://www.legislation.gov.uk/ukpga/2005/5">that Act</ref> (relevant foreign income treated as arising under settlement only if and when remitted), or</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-c"><num>(c)</num><intro><p>where—</p></intro><level class="para2" eId="schedule-10-paragraph-6-1-c-i"><num>(i)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/732">section 732</a> of <ref eId="c00298" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-ii"><num>(ii)</num><content><p>under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/735A">section 735A</a> of <ref eId="c00299" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (if it applied also for this purpose) that amount would be matched with relevant income that arose in the tax year 2024-25 or an earlier tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-iii"><num>(iii)</num><content><p>that amount would have been treated as relevant foreign income of the individual if it had been treated as accruing in the tax year 2024-25 and the individual had been subject to the remittance basis for that tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-6-2"><num>(2)</num><content><p>An amount of income falling within <ref href="#schedule-10-paragraph-6-1-a">paragraph (a)</ref>, <ref href="#schedule-10-paragraph-6-1-b">(b)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> of <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref> is to be treated as an amount of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-3"><num>(3)</num><content><p>An amount of income treated as qualifying overseas capital falling within <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-10-paragraph-6-1-a">(a)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-4"><num>(4)</num><content><p>For the purposes of <ref href="#schedule-10-paragraph-6">this paragraph</ref> “<term refersTo="#term-relevant-foreign-income" eId="term-relevant-foreign-income">relevant foreign income</term>” has the meaning it has in the Income Tax Acts.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Deemed income under section 732 of ITA 2007 where pre-2025 gains available for matching</heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-10-paragraph-7-1"><num>(1)</num><intro><p>Sub-paragraph <ref href="#schedule-10-paragraph-7-2">(2)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-7-1-a"><num>(a)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-b"><num>(b)</num><content><p>the amount of income does not fall within <ref href="#schedule-10-paragraph-6">paragraph 6</ref><ref href="#schedule-10-paragraph-6-1">(1)</ref><ref href="#schedule-10-paragraph-6-1-c">(c)</ref>, and</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-c"><num>(c)</num><content><p>the benefit by reference to which that income is treated as arising would, if it were not chargeable to income tax, be an amount of qualifying overseas capital of the individual by virtue of paragraph <ref href="#schedule-10-paragraph-3">3</ref> or <ref href="#schedule-10-paragraph-5">5</ref> (capital payments).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-2"><num>(2)</num><content><p>The amount is to be treated as an amount of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-7-3"><num>(3)</num><content><p>The amount may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Designation of qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-10-paragraph-8-1"><num>(1)</num><content><p>A designation election for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2"><num>(2)</num><intro><p>The designation must—</p></intro><level class="para1" eId="schedule-10-paragraph-8-2-a"><num>(a)</num><content><p>set out the total amount designated, and</p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-b"><num>(b)</num><content><p>identify which (if any) of the amounts designated have been remitted in the tax year to which the return relates.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-3"><num>(3)</num><content><p>Where an amount of relevant foreign tax has been paid, or is payable, in respect of an amount of qualifying overseas capital, only so much of the amount as remains after deducting the amount of relevant foreign tax paid, or payable, may be designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-4"><num>(4)</num><intro><p>For the purposes of this paragraph, relevant foreign tax means a tax imposed by the law of a territory outside the United Kingdom that corresponds to—</p></intro><level class="para1" eId="schedule-10-paragraph-8-4-a"><num>(a)</num><content><p>income tax, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-4-b"><num>(b)</num><content><p>capital gains tax.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-5"><num>(5)</num><intro><p>An individual may designate an amount where it has not yet been determined—</p></intro><level class="para1" eId="schedule-10-paragraph-8-5-a"><num>(a)</num><content><p>whether the amount is qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-5-b"><num>(b)</num><content><p>whether, or to what extent, relevant foreign tax is, or was, payable in respect of the amount.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-6"><num>(6)</num><intro><p>An amount designated—</p></intro><level class="para1" eId="schedule-10-paragraph-8-6-a"><num>(a)</num><content><p>that is determined to not be qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-6-b"><num>(b)</num><content><p>that should not have been designated as a result of <ref href="#schedule-10-paragraph-8-3">sub-paragraph (3)</ref>,</p></content></level><wrapUp><p>is to be nevertheless treated as designated qualifying overseas capital, other than for the purpose of <ref href="#schedule-10-part-2">Part 2</ref> of this Schedule (exemptions etc).</p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-7"><num>(7)</num><content><p>Where an amount is designated, it is treated as designated qualifying overseas capital from the beginning of the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-8"><num>(8)</num><content><p>An individual who makes a designation election must keep a record of each amount designated.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Payment of the TRF charge through the income tax system</heading><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-10-paragraph-9-1"><num>(1)</num><content><p>An amount of designated qualifying overseas capital is chargeable to the TRF charge for the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-2"><num>(2)</num><content><p>Amounts of TRF charge are to be charged as if they were amounts of income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-3"><num>(3)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/23">Section 23</a> of <ref eId="c00300" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (calculation of income tax liability) applies in relation to a person liable to the TRF charge as if <ref href="#schedule-10-paragraph-1">paragraph 1</ref><ref href="#schedule-10-paragraph-1-8">(8)</ref> were included in the lists of provisions in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">section 30</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">(1)</a> of <ref eId="c00301" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (amounts of tax added at Step 7).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-4"><num>(4)</num><content><p>For the purposes of the collection and management of the TRF charge, all other enactments applying generally to income tax apply to the TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-5"><num>(5)</num><intro><p>Those enactments include—</p></intro><level class="para1" eId="schedule-10-paragraph-9-5-a"><num>(a)</num><content><p>those relating to returns of information and the supply of accounts, statements and reports,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-b"><num>(b)</num><content><p>those relating to the assessing, collecting and receiving of income tax,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-c"><num>(c)</num><content><p>those conferring or regulating a right of appeal, and</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-d"><num>(d)</num><content><p>those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-9-6"><num>(6)</num><content><p>But section 59A of TMA 1970 (payments on account of income tax) does not apply in relation to amounts of TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-7"><num>(7)</num><content><p>For the purposes of section 12B of TMA 1970 (as applied as a result of sub-paragraph <ref href="#schedule-10-paragraph-9-4">(4)</ref>), the records required to be kept as a result of <ref href="#schedule-10-paragraph-8">paragraph 8</ref><ref href="#schedule-10-paragraph-8-8">(8)</ref> are to be regarded as records that must be kept for the purposes of enabling an individual to make and deliver a correct and complete return.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-10-part-2"><num>Part 2</num><heading>Exemptions etc for designated qualifying overseas capital</heading><hcontainer name="crossheading" class="schGroup7"><heading>Income tax exemptions and relief</heading><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><content><p>No liability to income tax arises on the remittance of an amount of designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph <ref href="#schedule-10-paragraph-6">6</ref> if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p>But such an amount is to be treated for the purposes of section 97(1) of TCGA 1992 (capital payments not to include amounts chargeable to income tax) as if it were chargeable to income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under <ref href="#schedule-10-paragraph-7">paragraph 7</ref> if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><intro><p>Accordingly the amount—</p></intro><level class="para1" eId="schedule-10-paragraph-10-5-a"><num>(a)</num><content><p>will be a capital payment for the purposes of sections 86A to 96 of, and Schedule 4C to, TCGA 1992 (see section 97(1) of that Act), and</p></content></level><level class="para1" eId="schedule-10-paragraph-10-5-b"><num>(b)</num><content><p>will, as a result of paragraph <ref href="#schedule-10-paragraph-3">3</ref> or <ref href="#schedule-10-paragraph-5">5</ref> (or both), be qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p>Any such qualifying overseas capital is to be treated as having been designated by the individual (under that paragraph or those paragraphs), but no liability to the TRF charge is to arise as a result of that deemed designation.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-7"><num>(7)</num><intro><p>Sub-paragraph <ref href="#schedule-10-paragraph-10-8">(8)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-10-7-a"><num>(a)</num><content><p>offshore income gains, within the meaning of the Offshore Funds (Tax) Regulations 2009, are treated as accruing to an individual in a tax year under section 87(2) of TCGA 1992 (as applied by regulation 20 of those regulations) as a result of a capital payment made to an individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-10-7-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-8"><num>(8)</num><content><p>The offshore income gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-9"><num>(9)</num><content><p><ref href="#schedule-10-paragraph-10">This paragraph</ref> has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Income tax exemptions: application of transfer of assets abroad rules in future years</heading><paragraph eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content><p>This paragraph applies where an amount of income that is treated as arising to an individual under section 732 of ITA 2007 (“the deemed income”) is exempt from income tax by virtue of paragraph <ref href="#schedule-10-paragraph-10">10</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph <ref href="#schedule-10-paragraph-6">6</ref><ref href="#schedule-10-paragraph-6-1">(1)</ref><ref href="#schedule-10-paragraph-6-1-c">(c)</ref>, Chapter 2 of Part 13 of ITA 2007 has effect as though the deemed income had been charged to tax under section 731 of that Act.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><intro><p>Accordingly—</p></intro><level class="para1" eId="schedule-10-paragraph-11-3-a"><num>(a)</num><content><p>in the application of section 733(1) of ITA 2007 to the individual for subsequent tax years, the amount of the deemed income will be deducted at Step 2 and at paragraph (a) of Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-3-b"><num>(b)</num><content><p>in the application of section 733(1) of ITA 2007 to any other individual for subsequent tax years, the amount of the deemed income will be deducted at paragraph (b) of Step 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content><p>If the deemed income is qualifying overseas capital by virtue of <ref href="#schedule-10-paragraph-7">paragraph 7</ref>, Chapter 2 of Part 13 of ITA 2007 has effect as though the benefit by reference to which the deemed income was treated as arising had never been provided.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><intro><p>Accordingly, in the application of section 733(1) of ITA 2007 to any individual for subsequent tax years—</p></intro><level class="para1" eId="schedule-10-paragraph-11-5-a"><num>(a)</num><content><p>that benefit will not be taken into account at Step 1,</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-b"><num>(b)</num><content><p>no deduction in respect of the deemed income will be made at Step 2 or Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-c"><num>(c)</num><content><p>the total untaxed benefits will not be reduced in respect of that benefit by virtue of section 734 (previous capital gains charge).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Capital gains tax: main exemption</heading><paragraph eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-10-paragraph-12-1"><num>(1)</num><content><p>No gain is treated as accruing under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00302" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> on the remittance of an amount of designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-12-2"><num>(2)</num><content><p><ref href="#schedule-10-paragraph-12">This paragraph</ref> has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Capital gains tax: reliefs in respect of matched capital payments</heading><paragraph eId="schedule-10-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-10-paragraph-13-1"><num>(1)</num><intro><p><ref href="#schedule-10-paragraph-13-2">Sub-paragraph (2)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> or 89(2) of <ref eId="c00303" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-1-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under <ref href="#schedule-10-paragraph-3">paragraph 3</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-2"><num>(2)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-3"><num>(3)</num><intro><p><ref href="#schedule-10-paragraph-13-4">Sub-paragraph (4)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-3-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00304" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>) of a capital payment with the section 1(3) amount for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00305" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring <ref href="#schedule-10-paragraph-13-4">sub-paragraph (4)</ref>) apply in relation to the capital payment mentioned in <ref href="#schedule-10-paragraph-13-3-a">paragraph (a)</ref>,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in <ref href="#schedule-10-paragraph-13-3-a">paragraph (a)</ref>) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with <ref href="#schedule-10-paragraph-3">paragraph 3</ref><ref href="#schedule-10-paragraph-3-2">(2)</ref>, be matched with the section 1(3) amount mentioned in <ref href="#schedule-10-paragraph-13-3-a">paragraph (a)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">Section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00306" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in <ref href="#schedule-10-paragraph-13-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-13-3-a">(a)</ref> as is matched with the amount of the section 1(3) amount as would also, in accordance with <ref href="#schedule-10-paragraph-3">paragraph 3</ref><ref href="#schedule-10-paragraph-3-2">(2)</ref>, be matched with the amount of a capital payment mentioned in <ref href="#schedule-10-paragraph-13-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-13-3-c">(c)</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-5"><num>(5)</num><intro><p>Sub-paragraph <ref href="#schedule-10-paragraph-13-6">(6)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-5-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under paragraph 8(1) of Schedule 4C to TCGA 1992 as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-5-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph <ref href="#schedule-10-paragraph-5">5</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-6"><num>(6)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-7"><num>(7)</num><intro><p>Sub-paragraph <ref href="#schedule-10-paragraph-13-8">(8)</ref> applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-7-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00307" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as it has effect for the purposes of paragraph 8(3) of Schedule 4C to that Act) of a capital payment with the section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-b"><num>(b)</num><content><p>paragraph 13(2) of Schedule 4C to that Act (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph <ref href="#schedule-10-paragraph-13-8">(8)</ref>) apply in relation to the capital payment mentioned in <ref href="#schedule-10-paragraph-13-7-a">paragraph (a)</ref>,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in <ref href="#schedule-10-paragraph-13-7-a">paragraph (a)</ref>) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with <ref href="#schedule-10-paragraph-5">paragraph 5</ref><ref href="#schedule-10-paragraph-5-2">(2)</ref>, be matched with the section 1(3) amount mentioned in <ref href="#schedule-10-paragraph-13-7-a">paragraph (a)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-8"><num>(8)</num><content><p>Paragraph 13(2) of Schedule 4C to TCGA 1992 does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph <ref href="#schedule-10-paragraph-13-7">(7)</ref><ref href="#schedule-10-paragraph-13-7-a">(a)</ref> as is matched with the amount of the section 1(3) amount in the Schedule 4C pool as would also, in accordance with <ref href="#schedule-10-paragraph-5">paragraph 5</ref><ref href="#schedule-10-paragraph-5-2">(2)</ref>, be matched with the amount of a capital payment mentioned in sub-paragraph <ref href="#schedule-10-paragraph-13-7">(7)</ref><ref href="#schedule-10-paragraph-13-7-c">(c)</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-9"><num>(9)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-13-9-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a> of <ref eId="c00308" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></level><level class="para1" eId="schedule-10-paragraph-13-9-b"><num>(b)</num><content><p>“<term refersTo="#term-section-13-amount-in-the-schedule-4c-pool" eId="term-section-13-amount-in-the-schedule-4c-pool">section 1(3) amount in the Schedule 4C pool</term>” is to be construed in accordance with Schedule 4C to TCGA 1992.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-10"><num>(10)</num><content><p><ref href="#schedule-10-paragraph-12">This paragraph</ref> has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-10-part-3"><num>Part 3</num><heading>Effect of designation on when amounts remitted etc</heading><hcontainer name="crossheading" class="schGroup7"><heading>Temporary disapplication of nominated income ordering rules</heading><paragraph eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809I">Section 809I</a> of <ref eId="c00309" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis charge: income and gains treated as remitted) does not apply for a tax year in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content><p>the tax year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><intro><p>the individual—</p></intro><level class="para2" eId="schedule-10-paragraph-14-b-i"><num>(i)</num><content><p>makes a designation of qualifying overseas capital for that tax year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-14-b-ii"><num>(ii)</num><content><p>has made such a designation for a previous tax year, and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-14-c"><num>(c)</num><content><p>that section has not applied in relation to that individual for the tax year 2024-25 or an earlier tax year.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">section 809Q</a> of <ref eId="c00310" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-10-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">Section 809Q</a> of <ref eId="c00311" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-2-a"><num>(a)</num><content><p><mod>before Step 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step A1</i></p><p>Find the amount (if any) of income or capital of the individual for the relevant tax year in the mixed fund immediately before the transfer that is TRF capital.</p><p>If the amount of the transfer is equal to, or less than, the amount of TRF capital, treat the transfer as containing only TRF capital.</p><p>Otherwise—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>treat so much of the transfer as does not exceed the amount of the TRF capital as being comprised of TRF capital, and</p></item><item><num>(b)</num><p>apply the following steps to the remainder of the transfer.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-15-2-b"><num>(b)</num><content><p><mod>in Steps 2 to 4, and in the first sentence in Step 5, for “transfer”, in each place it occurs, substitute <quotedText>“remainder”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-3-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-15-3-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-4"><num>(4)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e37236"><num>(9)</num><intro><p>For the purposes of this Chapter “<term refersTo="#term-trf-capital">TRF capital</term>” means any amount that—</p></intro><level class="para1"><num>(a)</num><content><p>is qualifying overseas capital (within the meaning of <ref href="#schedule-10-part-1">Part 1</ref> of <ref href="#schedule-10">Schedule 10</ref> to FA 2025) as a result of <ref href="#schedule-10-paragraph-2">paragraph 2</ref> of that Schedule, and</p></content></level><level class="para1"><num>(b)</num><content><p>is designated qualifying overseas capital for the purposes of that Part of that Schedule (and see <ref href="#schedule-10-paragraph-8">paragraph 8</ref><ref href="#schedule-10-paragraph-8-7">(7)</ref> which provides for qualifying overseas capital to be treated as designated qualifying overseas capital from the start of the tax year to which the return in which it is designated relates).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-5"><num>(5)</num><content><p><mod>In section 809Z10 of ITA 2007 (general interpretation), after the definition of “the remittance basis user” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-trf-capital">TRF capital</term>” has the meaning given by section 809Q<ref href="#d25e37236">(9)</ref>.</p></content></hcontainer></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00312" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-10-paragraph-16-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">Section 809R</a> of <ref eId="c00313" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “This section applies” substitute <quotedText>“Subsections (2) to (8) apply”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>For the purposes of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (5)</a> for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> applies”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-5-a"><num>(a)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q as not applying in relation to it, if it” substitute <quotedText>“neither section 809Q nor section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> as applying in relation to it, if they”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> applies”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-6"><num>(6)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (7)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-6-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-16-6-b"><num>(b)</num><content><p><mod> after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-7"><num>(7)</num><intro><p>In subsection (9)—</p></intro><level class="para1" eId="schedule-10-paragraph-16-7-a"><num>(a)</num><content><p><mod>for “step 1” substitute <quotedText>“steps A1 and 1”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-7-b"><num>(b)</num><content><p><mod>for “step 2” substitute <quotedText>“steps A1 and 2”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Mixed funds: TRF capital account</heading><paragraph eId="schedule-10-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00314" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37485"><num>809RZA</num><heading>Transfers into TRF capital account</heading><subsection eId="d25e37489"><num>(1)</num><intro><p>Subsection <ref href="#d25e37516">(2)</ref> applies to a transfer made from a mixed fund if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made from a mixed fund that contains TRF capital,</p></content></level><level class="para1"><num>(b)</num><content><p>the transfer is to a TRF capital account, and</p></content></level><level class="para1" eId="d25e37510"><num>(c)</num><content><p>the amount of the transfer does not exceed the amount of TRF capital in the mixed fund at the time of the transfer.</p></content></level></subsection><subsection eId="d25e37516"><num>(2)</num><content><p>The transfer is to be treated as a transfer of TRF capital.</p></content></subsection><subsection><num>(3)</num><intro><p>Where subsection <ref href="#d25e37516">(2)</ref> would apply to a transfer but does not because of paragraph <ref href="#d25e37510">(c)</ref> of subsection <ref href="#d25e37489">(1)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>that transfer is to be treated as two separate transfers occurring one immediately after the other, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first of those transfers is to be treated as being in the amount of TRF capital in the mixed fund (and accordingly subsection (2) will apply to that deemed transfer but not the second, which may result in the TRF capital account ceasing to be a TRF capital account).</p></content></level></subsection><subsection><num>(4)</num><content><p>Section <ref href="#d25e37567">809RZB</ref> makes provision about the nomination of an account as a TRF capital account (and see sections <ref href="#d25e37773">809RZC</ref> and <ref href="#d25e37819">809RZD</ref> for the effect of making a transfer that contains amounts that are not TRF capital).</p></content></subsection></section><section eId="d25e37567"><num>809RZB</num><heading>TRF capital account</heading><subsection eId="d25e37571"><num>(1)</num><content><p>An individual may by notice to the Commissioners nominate an account to be a TRF capital account (and more than one nomination may have effect at any time).</p></content></subsection><subsection><num>(2)</num><content><p>The notice must specify the qualifying date for the account.</p></content></subsection><subsection><num>(3)</num><content><p>“The qualifying date” for the account is the first date on which there is paid into the account sums falling within subsection <ref href="#d25e37592">(4)</ref> which (in total) are more than £10 at a time when the credit balance of the account was £10 or less.</p></content></subsection><subsection eId="d25e37592"><num>(4)</num><content><p>A sum falls within this subsection if it is TRF capital.</p></content></subsection><subsection eId="d25e37598"><num>(5)</num><content><p>The individual may withdraw the nomination by giving a further notice to the Commissioners, specifying the date with effect from which the nomination is withdrawn.</p></content></subsection><subsection><num>(6)</num><content><p>A notice under subsection <ref href="#d25e37571">(1)</ref> or <ref href="#d25e37598">(5)</ref> must be in writing and include such information as the Commissioners may reasonably require.</p></content></subsection><subsection><num>(7)</num><intro><p>A notice under subsection <ref href="#d25e37571">(1)</ref> or <ref href="#d25e37598">(5)</ref> must be given no later than—</p></intro><level class="para1"><num>(a)</num><intro><p>31 January in the tax year following the tax year in which falls, as the case may be—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying date for the account, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn, or</p></content></level></level><level class="para1"><num>(b)</num><content><p>such later date as the Commissioners may allow.</p></content></level></subsection><subsection eId="d25e37652"><num>(8)</num><intro><p>If an individual nominates an account under this section, the account is a “TRF capital account” of the individual throughout the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the qualifying date, and</p></content></level><level class="para1" eId="d25e37664"><num>(b)</num><intro><p>ending with the date before the earliest of the following dates—</p></intro><level class="para2" eId="d25e37670"><num>(i)</num><content><p>the date on which the account is closed or ceases to be an ordinary bank account held by and for the benefit of the individual (alone or jointly with others);</p></content></level><level class="para2" eId="d25e37676"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn under this section;</p></content></level><level class="para2" eId="d25e37682"><num>(iii)</num><content><p>6 April in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></level></level></subsection><subsection><num>(9)</num><intro><p>The account is not to be a TRF capital account at all if—</p></intro><level class="para1"><num>(a)</num><content><p>at any time on the qualifying date, the account is not an ordinary bank account held by and for the benefit of the individual (alone or jointly with others), or</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before the qualifying date, the account has a credit balance of more than £10.</p></content></level></subsection><subsection><num>(10)</num><content><p>Where the account has a credit balance immediately before the qualifying date (which must be £10 or less), that balance is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection><num>(11)</num><content><p>Where interest is payable on TRF capital held in the TRF capital account, any such interest paid into the account is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e37719"><num>(12)</num><content><p>The account is not to be a TRF capital account at all if the qualifying date falls in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></subsection><subsection><num>(13)</num><content><p>Subsection <ref href="#d25e37652">(8)</ref><ref href="#d25e37664">(b)</ref><ref href="#d25e37682">(iii)</ref> or <ref href="#d25e37719">(12)</ref> (as relevant) is to be ignored if the breach occurs on or after a date falling within subsection <ref href="#d25e37652">(8)</ref><ref href="#d25e37664">(b)</ref><ref href="#d25e37670">(i)</ref> or <ref href="#d25e37676">(ii)</ref>.</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section an account is an “ordinary bank account” if it is a cash account in a bank (whether a current or savings account) where sums standing to the credit of the account from time to time represent a debt owed by the bank to the account-holder.</p></content></subsection><subsection><num>(15)</num><content><p>In this section, and in sections <ref href="#d25e37773">809RZC</ref> and <ref href="#d25e37819">809RZD</ref>, a reference to anything “paid into” an account includes anything credited to the account by whatever means.</p></content></subsection></section><section eId="d25e37773"><num>809RZC</num><heading>Breaches of the TRF deposit rule</heading><subsection><num>(1)</num><content><p>There is a breach of the TRF deposit rule if one or more prohibited sums are paid into a TRF capital account on the qualifying date or any day after the qualifying date.</p></content></subsection><subsection eId="d25e37783"><num>(2)</num><content><p>A breach of the TRF deposit rule is remedied if, within 30 days beginning with the day on which the prohibited sums are paid into the account, the required amount is transferred out of the account by way of a single one-off qualifying transfer.</p></content></subsection><subsection><num>(3)</num><content><p>A transfer is “qualifying” if it does not result in the remittance of any amount to the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>“The required amount” is an amount equal to the total of the prohibited sums paid into the TRF capital account on the day of the breach.</p></content></subsection><subsection><num>(5)</num><content><p>If there are 2 days in a tax year on which one or more breaches of the TRF deposit rule occur, subsection <ref href="#d25e37783">(2)</ref> does not apply to any breach on any subsequent day in the tax year (and accordingly any breach occurring on any day after the second day in the tax year on which there has been a breach cannot be remedied).</p></content></subsection><subsection><num>(6)</num><content><p>A “prohibited sum” is anything other than a sum that is TRF capital.</p></content></subsection></section><section eId="d25e37819"><num>809RZD</num><heading>Effect where 30-day deadline is met</heading><subsection><num>(1)</num><content><p>This section applies if the required amount in relation to a breach of the TRF deposit rule was transferred out of the account in accordance with <ref href="#d25e37773">section 809RZC</ref><ref href="#d25e37783">(2)</ref>.</p></content></subsection><subsection eId="d25e37834"><num>(2)</num><intro><p>Sections 809Q and 809R have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the intervening transactions had never taken place, and</p></content></level><level class="para1"><num>(b)</num><content><p>each prohibited sum represented by the required amount had instead been transferred directly (at the time that sum was paid into the TRF capital account) into the account or other property into which the required amount was transferred by virtue of the single one-off qualifying transfer.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Each of the following is an “intervening transaction”—</p></intro><level class="para1"><num>(a)</num><content><p>each payment into the TRF capital account of a prohibited sum represented by the required amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the single one-off qualifying transfer out of the TRF capital account.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Temporary application of annualised basis to mixed funds containing TRF capital</heading><paragraph eId="schedule-10-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-10-paragraph-18-1"><num>(1)</num><content><p>This following modifications have effect for the tax years 2025-26, 2026-27 and 2027-28.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-18-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00315" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> has effect as if—</p></intro><level class="para1" eId="schedule-10-paragraph-18-2-a"><num>(a)</num><content><p><mod>after section 809R there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37907"><num>809RZZA</num><heading>Annualised basis for mixed funds containing TRF capital</heading><subsection><num>(1)</num><content><p>This section applies where, at any time in a tax year, a mixed fund contains TRF capital.</p></content></subsection><subsection eId="d25e37917"><num>(2)</num><content><p>If this section applies, the composition of each transfer made from the fund in that tax year at any time is to be determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Suppose that all transfers made from the mixed fund to a TRF capital account in relation to which section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> applies had been a single transfer made from the fund at the end of the tax year.</p><p>Whether that section applies in relation to transfers to a TRF capital account is determined as if all transfers from the mixed fund were made at the end of the tax year but transfers to a TRF capital account were made—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>before any other transfer from the mixed fund was made, and</p></item><item><num>(b)</num><p>sequentially in the order in which the transfers to a TRF capital account were actually made.</p></item></blockList></item><item><p><i>Step 2</i></p><p>Suppose that all the condition A transfers made from the mixed fund in the tax year had been a single transfer made at the end of the tax year immediately after the single transfer mentioned in <ref href="#d25e37924">Step 1</ref>.</p></item><item><p><i>Step 3</i></p><p>Suppose that all the other transfers made from the account in the tax year had been a single offshore transfer made at the end of the tax year immediately after the single transfer mentioned in <ref href="#d25e37949">Step 2</ref>.</p></item><item><p><i>Step 4</i></p><p>Applying those suppositions—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>find under section 809Q(3) the content of the single transfer mentioned in <ref href="#d25e37949">Step 2</ref>, and</p></item><item><num>(b)</num><p>find under section 809R(4) the content of the single offshore transfer mentioned in <ref href="#d25e37960">Step 3</ref>.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Each transfer made from the fund in the tax year, other than a transfer to which section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> is regarded as applying in accordance with <ref href="#d25e37924">Step 1</ref>, is treated as containing the specified proportion of each kind of income or capital contained in the relevant deemed transfer.</p><p>“The specified proportion” is the amount of the transfer divided by the amount of the relevant deemed transfer.</p><p>“The relevant deemed transfer is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the transfer is a condition A transfer, the single transfer mentioned in <ref href="#d25e37949">Step 2</ref>, and</p></item><item><num>(b)</num><p>otherwise, the single offshore transfer mentioned in <ref href="#d25e37960">Step 3</ref>.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Each transfer made from the fund in the tax year to which section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> is regarded as applying in accordance with <ref href="#d25e37924">Step 1</ref> is to be treated as a transfer to which that section applies (and no other transfer in the tax year is to be regarded as a transfer in relation to which that section applies).</p></item></blockList></content></subsection><subsection><num>(3)</num><content><p><ref href="#d25e37917">Subsection (2)</ref> applies in determining the composition of a transfer for the purposes of sections 809Q and 809R but it does not otherwise affect the date on which a transfer is considered to occur for the purposes of this Chapter.</p></content></subsection><subsection><num>(4)</num><intro><p>A transfer from the fund is a “condition A transfer” if and to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>condition A in section 809L is met, and</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the property or consideration for the service is (wholly or in part), or derives (wholly or in part, and directly or indirectly) from, the transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the transfer, or anything deriving (wholly or in part, and directly or indirectly) from the transfer, is used as mentioned in section 809L(3)(c).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>A transfer from the fund is an “other transfer” if and to the extent that it is neither a condition A transfer nor a transfer to which section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> is regarded as applying in accordance with <ref href="#d25e37924">Step 1</ref>.</p></content></subsection><subsection><num>(6)</num><intro><p>Treat a transfer as an “other transfer” if and to the extent that, at the end of the tax year—</p></intro><level class="para1"><num>(a)</num><content><p>it is neither a condition A transfer nor a transfer to which section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> is regarded as applying in accordance with <ref href="#d25e37924">Step 1</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>on the basis of the best estimate that can reasonably be made at that time, it will not become either a condition A transfer or a transfer to which section <ref href="#d25e37485">809RZA</ref><ref href="#d25e37516">(2)</ref> is regarded as applying in accordance with <ref href="#d25e37924">Step 1</ref>.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of <ref href="#d25e37994">Step 5</ref> in subsection <ref href="#d25e37917">(2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></section></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-18-2-b"><num>(b)</num><content><p><mod>in <ref href="#d25e37819">section 809RZD</ref> (as inserted by <ref href="#schedule-10-paragraph-17">paragraph 17</ref>), at the end there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><content><p>If it is supposed under <ref href="#d25e37924">Steps 1</ref> to <ref href="#d25e37960">3</ref> of <ref href="#d25e37907">section 809RZZA</ref><ref href="#d25e37917">(2)</ref> that single transfers had been made in the intervening period, re-apply those steps in relation to those transfers taking account of subsection <ref href="#d25e37834">(2)</ref> and re-apply sections 809Q and 809R accordingly.</p></content></subsection><subsection><num>(5)</num><intro><p>“The intervening period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the breach occurred, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day on which the single one-off qualifying transfer was made in accordance with <ref href="#d25e37773">section 809RZC</ref><ref href="#d25e37783">(2)</ref>.</p></content></level></subsection><subsection><num>(6)</num><content><p>If more than one qualifying transfer of a sum equal to the required amount was transferred out of the TRF capital account within the 30-day grace period, the first of those transfers is assumed to be the single one-off qualifying transfer.</p></content></subsection><subsection><num>(7)</num><content><p>“The 30-day grace period” is the period of 30 days mentioned in section <ref href="#d25e37773">809RZC</ref><ref href="#d25e37783">(2)</ref>.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Business investment relief</heading><paragraph eId="schedule-10-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-10-paragraph-19-1"><num>(1)</num><content><p><ref eId="c00316" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">section 809VC</a> (qualifying investments) in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">subsection (4)</a>, after “if” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the investment is made before 6 April 2028,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the money or other property used to make the investment is TRF capital, and</p></content></level><level class="para1"><num>(c)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a> (income or gains treated as remitted following certain events)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (6)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38300"><num>(6A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>the income or gains mentioned in subsection (1)(a) include amounts designated as TRF capital (in a tax year after the tax year in which the investment is made), and</p></content></level><level class="para1"><num>(b)</num><content><p>the portion of the investment affected is less than the whole of the investment,</p></content></level><wrapUp><p>so much of the affected income or gains as does not exceed the amounts designated is to be treated as being comprised of the TRF capital.</p></wrapUp></subsection><subsection><num>(6B)</num><intro><p>Where section 809VO (investments made from mixed funds) applies, subsection (8) of that section applies for the purposes of determining the composition of the amount of the affected income or gains that is not treated as being comprised of TRF capital (referred to as the “<term refersTo="#term-relevant-affected-income-and-gains">relevant affected income and gains</term>” in that subsection) as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>subsection (6A) of this section not applying, or</p></content></level><level class="para1"><num>(b)</num><content><p>that subsection only applying to a part of the affected income or gains.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-3-b"><num>(b)</num><intro><p>in subsection (7)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>for “Sections” substitute <quotedText>“Section”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-3-b-ii"><num>(ii)</num><content><p><mod>for “and 809VO (investments made from mixed funds) make” substitute <quotedText>“makes”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-3-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (9)</a>, after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content><p>any part contained in amounts already treated as remitted under <ref href="#d25e38700">section 809VIA</ref><ref href="#d25e38722">(4)</ref> following an earlier event,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">section 809VN</a> (order of disposals etc)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">(b)</a>, for the words from “order” to the end substitute <quotedText>“following order.”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The order is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the qualifying investments as were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and then</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to whatever remains, the order in which the qualifying investments were made (that is to say, on a first in, first out basis).</p></content></level></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (4)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">paragraph (b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>assume that a disposal of all or part of that deemed single holding is—</p></intro><level class="para2" eId="d25e38465"><num>(i)</num><content><p>a disposal of so much of the deemed single holding as is from any qualifying investments that were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if any of the deemed single holding remains after the disposal referred to in sub-paragraph <ref href="#d25e38465">(i)</ref>, a disposal of a holding from qualifying investments until the holdings from all the qualifying investments have been disposed of.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">section 809VO</a> (investments made from mixed funds)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-5-a"><num>(a)</num><content><p><mod>for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38496"><num>(4)</num><content><p>The “fixed proportion” is, unless subsection <ref href="#d25e38514">(4B)</ref> applies, the proportion of that kind of income or capital contained in the invested property by virtue of subsection (2).</p></content></subsection><subsection><num>(4A)</num><content><p>Subsection <ref href="#d25e38514">(4B)</ref> applies, instead of subsection (3), for determining the composition of the holding in connection with the application of subsections (7) and (8) where the holding contains TRF capital (as a result of the designation of income or capital in the holding as TRF capital in the tax year after the tax year in which the relevant event occurred).</p></content></subsection><subsection eId="d25e38514"><num>(4B)</num><content><p>Where this subsection applies, take the following steps to determine the composition of the holding in connection with the application of those subsections—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the amounts of each kind of income and capital that the holding was treated as containing by virtue of subsection (3).</p></item><item><p><i>Step 2</i></p><p>Reduce the amount of each kind of income and capital by the amount (if any) of that income or capital as is TRF capital.</p></item></blockList></content></subsection><subsection eId="d25e38537"><num>(4C)</num><content><p>Where subsection <ref href="#d25e38514">(4B)</ref> applies, the “fixed proportion” is the proportion of that kind of income or capital treated as contained in the invested property by virtue of that subsection (instead of subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-b"><num>(b)</num><content><p><mod>in subsection (7), after “proportion” insert <quotedText>“(determined under subsection <ref href="#d25e38496">(4)</ref> or <ref href="#d25e38537">(4C)</ref> as the case may be)”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-c"><num>(c)</num><intro><p>in subsection (8)(a)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-5-c-i"><num>(i)</num><content><p><mod>before “affected” insert <quotedText>“relevant”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-5-c-ii"><num>(ii)</num><content><p><mod>before “portion” insert <quotedText>“relevant proportion of the”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-5-d"><num>(d)</num><content><p><mod>in subsection (8)(b), after “(3)” insert <quotedText>“or <ref href="#d25e38514">(4B)</ref> (as the case may be)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-e"><num>(e)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p>For the purposes of subsection (8)(a)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “<term refersTo="#term-relevant-affected-income-or-gains">relevant affected income or gains</term>” means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a><ref href="#d25e38300">(6A)</ref> applies to treat some of the affected income or gains as being comprised of TRF capital, so much of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, all of the affected income or gains, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “relevant proportion” of the portion of the investment means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a><ref href="#d25e38300">(6A)</ref> applies to treat some of the affected income or gains as being comprised of TRF capital, the proportion of the portion of the investment that is equal to the proportion of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, the whole of the portion of the investment.</p></content></level></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VI">section 809VI</a> (the appropriate mitigation steps), in subsection (3), after “But” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>see also section <ref href="#d25e38700">809VIA</ref> (which makes provision treating the disposal proceeds as reduced where TRF capital is involved), and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-7"><num>(7)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e38700"><num>809VIA</num><heading>Application of appropriate mitigation steps where TRF capital involved</heading><subsection><num>(1)</num><content><p>This section applies in relation to a potentially chargeable event where, if no appropriate mitigation steps were regarded as taken, an amount of TRF capital would (ignoring this section) be treated as remitted to the United Kingdom immediately after the end of the relevant grace period as a result of section 809VG(2).</p></content></subsection><subsection><num>(2)</num><content><p>Where there has been a disposal of all or part of the holding (see section 809VI(1) or (2)(b)), so much of the proceeds of that disposal as are equal to that amount of TRF capital is to be regarded as comprising that TRF capital.</p></content></subsection><subsection><num>(3)</num><content><p>Section 809VI has effect as if references in that section to the disposal proceeds did not include the TRF capital.</p></content></subsection><subsection eId="d25e38722"><num>(4)</num><content><p>Unless section 809VG(2) applies in relation to the potentially chargeable event, the TRF capital is to be treated as remitted to the United Kingdom at the time the potentially chargeable event occurred.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>No tax credits for pre 2016-17 dividends etc</heading><paragraph eId="schedule-10-paragraph-20" class="schProv1"><num>20</num><content><p>Sections 397 to 398 of ITTOIA 2005 (which have been repealed and only have effect in relation to distributions made before tax year 2016-17) do not apply in relation to any amount of designated qualifying overseas capital.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-10-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-10-paragraph-21-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-10-part-3">this Part</ref> of <ref href="#schedule-10">this Schedule</ref> have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-21-2"><num>(2)</num><content><p><ref href="#schedule-10-paragraph-21-1">Sub-paragraph (1)</ref> does not apply to the modifications made by paragraphs <ref href="#schedule-10-paragraph-14">14</ref> and <ref href="#schedule-10-paragraph-18">18</ref>.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-11"><num>Schedule 11<authorialNote class="referenceNote"><p>Section 42</p></authorialNote></num><heading>Rebasing of assets</heading><hcontainer name="crossheading" class="schGroup7"><heading>Rebasing of assets for individuals who have been subject to the remittance basis</heading><paragraph eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><intro><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> applies to the disposal of an asset by an individual (“<term refersTo="#term-p" eId="term-p">P</term>”) where—</p></intro><level class="para1" eId="schedule-11-paragraph-1-1-a"><num>(a)</num><content><p>the asset was held by P on 5 April 2017,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-b"><num>(b)</num><content><p>the disposal is made on or after 6 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-c"><num>(c)</num><content><p>the asset was not situated in the United Kingdom at any time in the period beginning with 6 March 2024 and ending with 5 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-d"><num>(d)</num><content><p>P was not domiciled in the United Kingdom at any time in a tax year before tax year 2025-26, and</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-e"><num>(e)</num><intro><p>P has made a claim under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">section 809B</a> of <ref eId="c00317" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (claim for remittance basis) for at least one tax year that is—</p></intro><level class="para2" eId="schedule-11-paragraph-1-1-e-i"><num>(i)</num><content><p>one of the tax years from tax year 2017-18 to tax year 2024-25, and</p></content></level><level class="para2" eId="schedule-11-paragraph-1-1-e-ii"><num>(ii)</num><content><p>a tax year for which neither <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">section 809D</a> nor 809E of <ref eId="c00318" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> applied to P (remittance basis applies without claim).</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><content><p>In computing, for the purpose of <ref eId="c00319" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, the gain or loss accruing on the disposal, it is to be assumed that P acquired the asset on 5 April 2017 for a consideration equal to its market value on that date.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content><p><ref href="#schedule-11-paragraph-1-2">Sub-paragraph (2)</ref> applies notwithstanding <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">section 58</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">(1)</a> of <ref eId="c00320" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (disposals between spouses).</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-4"><num>(4)</num><content><p>Where under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">section 127</a> of <ref eId="c00321" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (including that section as applied by sections 132, 135 and 136 of that Act) an original and a new holding of shares or other securities are treated as the same asset, the condition in <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> applies to both the original and the new holding.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/835BA">Section 835BA</a> of <ref eId="c00322" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (deemed domicile) applies for the purposes of <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-d">(d)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-6"><num>(6)</num><content><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> and <ref href="#schedule-11-paragraph-2">paragraphs 2</ref> and <ref href="#schedule-11-paragraph-3">3</ref> have effect as if they were included in <ref eId="c00323" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Assets becoming situated in the United Kingdom before 6 April 2025</heading><paragraph eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purposes of <ref href="#schedule-11-paragraph-1">paragraph 1</ref><ref href="#schedule-11-paragraph-1-1">(1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> in the case of an asset which, having been situated outside the United Kingdom, becomes situated in the United Kingdom before the end of the relevant period.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at a time in the relevant period when—</p></intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">section 809Z</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(c)</a> of <ref eId="c00324" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (public access),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">section 809Z3</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(c)</a> of <ref eId="c00325" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (repairs),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-c"><num>(c)</num><content><p>the sole or principal purpose of its being situated in the United Kingdom is to sell it or put it up for sale, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-d"><num>(d)</num><intro><p>in the case of clothing, footwear, jewellery or a watch, it is for the personal use of—</p></intro><level class="para2" eId="schedule-11-paragraph-2-2-d-i"><num>(i)</num><content><p>P or a husband, wife or civil partner of P, or</p></content></level><level class="para2" eId="schedule-11-paragraph-2-2-d-ii"><num>(ii)</num><content><p>a child or grandchild of a person within <ref href="#schedule-11-paragraph-2-2-d-i">sub-paragraph (i)</ref>, if the child or grandchild has not reached the age of 18.</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at any time in the relevant period if it is brought to, or received or used in, the United Kingdom in circumstances in which <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">section 809L</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(a)</a> of <ref eId="c00326" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> applies but—</p></intro><level class="para1" eId="schedule-11-paragraph-2-3-a"><num>(a)</num><content><p>by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(5)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(c)</a> of <ref eId="c00327" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (notional remitted amount less than £1000) it is treated as not remitted to the United Kingdom, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-3-b"><num>(b)</num><content><p>by the end of the relevant period it has not failed to meet the temporary importation rule in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z4">section 809Z4</a> of <ref eId="c00328" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">Section 809M</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(a)</a> of <ref eId="c00329" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (persons living together) apply for the purposes of <ref href="#schedule-11-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-11-paragraph-2-2-d">(d)</ref><ref href="#schedule-11-paragraph-2-2-d-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-5"><num>(5)</num><content><p>In this paragraph the “<term refersTo="#term-relevant-period" eId="term-relevant-period">relevant period</term>” means the period beginning with 6 March 2024 and ending with 5 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply</heading><paragraph eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content><p>An individual may make an election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply to a disposal made by the individual.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">Sections 42</a> and <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/43">43</a> of <ref eId="c00330" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (procedure and time limit for claims), except <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">section 42</a><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">(1A)</a> of <ref eId="c00331" href="https://www.legislation.gov.uk/ukpga/1970/9">that Act</ref>, apply in relation to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> as they apply in relation to a claim for relief.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-3"><num>(3)</num><content><p>An election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> is irrevocable.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-4"><num>(4)</num><content><p>All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Rebasing under Schedule 8 to F(No.2)A 2017</heading><paragraph eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><p><mod>In Schedule 8 to F(No.2)A 2017, in paragraph 41(4)(b), for “that in which the disposal was made” substitute <quotedText>“the tax year 2024-25”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content><p>The amendment made by this paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-12"><num>Schedule 12<authorialNote class="referenceNote"><p>Section 43</p></authorialNote></num><heading>Trusts: connected amendments, transitional provision etc</heading><part eId="schedule-12-part-1"><num>Part 1</num><heading>Settlements (income)</heading><paragraph eId="schedule-12-paragraph-1" class="schProv1"><num>1</num><content><p>Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family) is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-2" class="schProv1"><num>2</num><intro><p>In section 619 (charge to tax under Chapter 5), in subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-2-a"><num>(a)</num><content><p><mod>at the end of paragraph (d), insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-b"><num>(b)</num><content><p><mod>in paragraph (e), after “protected foreign-source income” insert <quotedText>“or transitional trust income”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-c"><num>(c)</num><content><p>omit paragraph (f) and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 622 (person liable), for “sections 643A and 643I to 643M” substitute <quotedText>“section 643A (under which a close member of the settlor’s family may instead be liable)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-4" class="schProv1"><num>4</num><intro><p>In section 624 (income where settlor retains an interest), in subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-4-a"><num>(a)</num><content><p><mod>after “section 627 (exceptions for certain types of income),” insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-4-b"><num>(b)</num><content><p>omit “section 628A (exception for protected foreign-source income)” and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-5" class="schProv1"><num>5</num><content><p>Omit sections 628A to 628C (protected foreign-source income and transitional trust income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-6" class="schProv1"><num>6</num><content><p>In section 629 (income paid to relevant children of settlor), in subsection (5), omit “or section 630A (exception for protected foreign-source income)”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-7" class="schProv1"><num>7</num><content><p>Omit section 630A (exception to section 629 for protected foreign-source income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-8" class="schProv1"><num>8</num><intro><p>In section 635 (capital sums charge: amount of available income)—</p></intro><level class="para1" eId="schedule-12-paragraph-8-a"><num>(a)</num><content><p>in subsections (2) and (3)(d)(i), omit “unprotected”;</p></content></level><level class="para1" eId="schedule-12-paragraph-8-b"><num>(b)</num><content><p><mod>for subsection (5) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>See also <ref href="#d25e39436">section 643ZB</ref>(2) (which provides for certain income not to be counted towards available income for the purposes of this section).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-9" class="schProv1"><num>9</num><intro><p>In section 636 (capital sums charge: calculation of undistributed income)—</p></intro><level class="para1" eId="schedule-12-paragraph-9-a"><num>(a)</num><intro><p>omit “unprotected” in the following places—</p></intro><level class="para2" eId="schedule-12-paragraph-9-a-i"><num>(i)</num><content><p>subsection (1);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-ii"><num>(ii)</num><content><p>subsection (2) (in both places it occurs);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iii"><num>(iii)</num><content><p>subsection (4);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iv"><num>(iv)</num><content><p>subsection (6);</p></content></level></level><level class="para1" eId="schedule-12-paragraph-9-b"><num>(b)</num><content><p>in subsection (2)(b), omit “domiciled and”.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-10" class="schProv1"><num>10</num><content><p>In section 637 (qualifications to section 636), in subsections (5) and (7A), omit “unprotected”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-11" class="schProv1"><num>11</num><content><p><mod>For the italic heading before section 643A, substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><heading ukl:Context="Pblock">Transitional provision about protected foreign-source income and transitional trust income</heading></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-12" class="schProv1"><num>12</num><content><p><mod>Before section 643A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643ZA</num><heading>“Protected foreign-source income” and “transitional trust income”</heading><subsection eId="d25e39385"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2017-18 to 2024-25, and</p></content></level><level class="para1"><num>(b)</num><content><p>was protected foreign-source income for that tax year within the meaning of section 628A (as that section had effect for that tax year).</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitional-trust-income">transitional trust income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2008-09 to 2016-17, and</p></content></level><level class="para1"><num>(b)</num><content><p>was transitional trust income throughout the tax years 2017-18 to 2024-25 within the meaning of section 628C (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e39385">subsection (1)</ref> ignore section 648(3) to (5) (foreign income treated as arising under settlement only if and when remitted).</p></content></subsection></section><section eId="d25e39436"><num>643ZB</num><heading>Protected foreign-source income and transitional trust income not to be taxed elsewhere in Chapter</heading><subsection><num>(1)</num><content><p>The rules in sections 624(1) and 629(1) do not apply to protected foreign-source income or transitional trust income (which, by virtue of section 648(3) to (5), may be treated as income arising under the settlement in the tax year 2025-26 or a subsequent tax year).</p></content></subsection><subsection><num>(2)</num><content><p>In the following provisions, “<term refersTo="#term-income">income</term>” does not include protected foreign-source income or transitional trust income—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 635(2) and (3)(d)(i);</p></item><item><p>section 636(1), (2) (in the words before paragraph (a)), (4) and (6);</p></item><item><p>section 637(5) and (7A).</p></item></blockList></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-13" class="schProv1"><num>13</num><content><p><mod>For section 643A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643A</num><heading>Benefits paid out of protected foreign-source income or transitional trust income</heading><subsection eId="d25e39482"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an individual to whom this section applies has an untaxed benefits total for a settlement for a tax year (see section 643B),</p></content></level><level class="para1"><num>(b)</num><content><p>there is available protected income in relation to the individual, the settlement and the tax year (see section 643C), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is UK resident for the tax year,</p></content></level><wrapUp><p>an amount equal to so much of the untaxed benefits total as does not exceed the available protected income is treated for income tax purposes as income of the individual for the tax year.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1"><num>(a)</num><content><p>the settlor, and</p></content></level><level class="para1"><num>(b)</num><content><p>anyone who has at any time been a close member of the settlor’s family.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If there is a choice about the individuals in whose case income is to be treated as arising under subsection <ref href="#d25e39482">(1)</ref>, income is to be treated as arising—</p></intro><level class="para1"><num>(a)</num><content><p>to such one or more of them as appears to an officer of Revenue and Customs to be just and reasonable, and</p></content></level><level class="para1"><num>(b)</num><content><p>if more than one, in such respective proportions as appear to the officer to be just and reasonable.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-12-paragraph-14-1"><num>(1)</num><content><p>Section 643B (meaning of “<term refersTo="#term-untaxed-benefits-total" eId="term-untaxed-benefits-total">untaxed benefits total</term>” in section 643A) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-2"><num>(2)</num><content><p><mod>In subsection (1), for Step 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify each benefit provided by the trustees to the individual—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in the current tax year, or an earlier tax year for which the individual was UK resident, and</p></item><item><num>(b)</num><p>if the individual is not the settlor, at a time when the individual was a close member of the settlor’s family.</p></item></blockList></item></blockList></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>For the purposes of Step 1 in subsection (1), if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees provide a benefit to an individual in a given tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for the tax year,</p></content></level><wrapUp><p>the benefit is instead treated as provided to the settlor.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “643M” substitute <quotedText>“643EA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-15" class="schProv1"><num>15</num><content><p><mod>For section 643C substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643C</num><heading>Meaning of “available protected income” in section 643A</heading><subsection eId="d25e39647"><num>(1)</num><content><p>For the purposes of section 643A, take the following steps to determine the amount of available protected income in relation to an individual (“<term refersTo="#term-p">P</term>”), a settlement and a tax year (“the current tax year”)—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify the total amount of protected foreign-source income and transitional trust income that arose (at any time) under the settlement (“the total protected income”).</p></item><item><p><i>Step 2</i></p><p>Deduct any amount of the total protected income that is matched under the transfer of assets abroad code in the current tax year or an earlier tax year.</p></item><item><p><i>Step 3</i></p><p>Deduct any amount of the total protected income on which P or any other individual is liable to income tax in the current tax year or an earlier tax year.</p></item><item><p><i>Step 4</i></p><p>Deduct any amount that, in relation to the settlement, is treated under section 643A as P’s income in an earlier tax year or as another individual’s income in any tax year.</p></item><item><p><i>Step 5</i></p><p>Add back the amount of any income falling within Step 4 that is identified as qualifying foreign income on a foreign income claim made by P or any other individual for any tax year.</p></item></blockList></content></subsection><subsection><num>(2)</num><content><p>For the purposes of Step 1 in subsection <ref href="#d25e39647">(1)</ref>, ignore section 648(3) to (5) (foreign income treated as “arising” under settlement only if and when remitted).</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of Step 2 in subsection <ref href="#d25e39647">(1)</ref>, an amount of the total protected income is “matched under the transfer of assets abroad code” if it is matched under section 735A of ITA 2007 with—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided by the trustees to P or any other individual in the current tax year or in an earlier tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount of income treated as arising to P or any other individual under section 732 of ITA 2007</p></content></level><wrapUp><p>(or if it would be so matched if section 735A applied for those purposes).</p></wrapUp></subsection><subsection eId="d25e39729"><num>(4)</num><content><p>For the purposes of Step 3 in subsection <ref href="#d25e39647">(1)</ref>, ignore any liability to income tax arising under section 643A above or under section 731 of ITA 2007 (transfer of assets abroad: benefits charge).</p></content></subsection><subsection><num>(5)</num><content><p>In Step 4 in subsection <ref href="#d25e39647">(1)</ref> and in <ref href="#d25e39729">subsection (4)</ref>, a reference to section 643A includes, in relation to any of the tax years 2018-19 to 2024-25, section 643J and 643L (old onward gifting rules).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-12-paragraph-16-1"><num>(1)</num><content><p>Section 643E (reimbursement of tax paid by settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-2"><num>(2)</num><content><p><mod>In the heading, for “section 643A” substitute <quotedText>“643B(2)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-3"><num>(3)</num><content><p><mod>In subsection (1), for “section 643A(3) or (4)” substitute <quotedText>“section 643B(2) (benefit received by close family member attributed to settlor)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 643A as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After section 643E insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643EA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e39819"><num>(1)</num><intro><p>Subsection <ref href="#d25e39946">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of a settlement provide a benefit (“the original benefit”) to an individual (“the original recipient”),</p></content></level><level class="para1"><num>(b)</num><intro><p>the original recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is liable neither to income tax nor to capital gains tax by reference to the amount or value of the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a qualifying new resident for the tax year in which the original benefit is provided,</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 643B(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e39858"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e39876"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e39888"><num>(ii)</num><content><p>at any time before the original benefit is provided to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided,</p></content></level></level><level class="para1" eId="d25e39894"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e39918"><num>(g)</num><intro><p>the subsequent recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is the settlor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a close member of the settlor's family at the time when they receive the onward gift or, where the onward gift is provided as mentioned in <ref href="#d25e39819">subsection (1)</ref><ref href="#d25e39876">(e)</ref><ref href="#d25e39888">(ii)</ref>, at the time given by <ref href="#d25e39990">subsection (4)</ref>.</p></content></level></level></subsection><subsection eId="d25e39946"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e39819">subsection (1)</ref><ref href="#d25e39894">(f)</ref> is treated for the purposes of section 643B(1) and (2)(a) as a benefit provided by the trustees to the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of <ref href="#d25e39819">subsection (1)</ref><ref href="#d25e39876">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e39819">subsection (1)</ref><ref href="#d25e39876">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e39819">subsection (1)</ref><ref href="#d25e39894">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection eId="d25e39990"><num>(4)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e39819">subsection (1)</ref><ref href="#d25e39876">(e)</ref><ref href="#d25e39888">(ii)</ref>, it is treated for the purposes of <ref href="#d25e39946">subsection (2)</ref> as made immediately after, and in the tax year in which, the original benefit is provided to the original recipient.</p></content></subsection><subsection><num>(5)</num><content><p>Where the conditions in <ref href="#d25e39819">subsection (1)</ref><ref href="#d25e39876">(e)</ref> to <ref href="#d25e39918">(g)</ref> are met in any case, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e39819">subsection (1)</ref><ref href="#d25e39858">(d)</ref> is also met in that case.</p></content></subsection><subsection><num>(6)</num><content><p>Where the original recipient is liable neither to income tax nor to capital gains tax by reference to the amount or value of part only of the original benefit, this section applies as if the two parts of the original benefit were separate benefits.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-12-paragraph-18-1"><num>(1)</num><content><p>Section 643F (income attributed by section 643A to user of remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-18-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for the words from “is treated” to the end substitute <quotedText>“was treated by section 643A as arising to an individual for any of the tax years 2018-19 to 2024-25, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-3"><num>(3)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-3-a"><num>(a)</num><content><p><mod>in the definition of “protected income”, for “forms” substitute <quotedText>“under section 643C formed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-3-b"><num>(b)</num><content><p><mod>in the definition of “the relevant individual”, in paragraphs (a) and (b), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>A reference in this section to section 643A or 643C (or to any provision of that section) is to that section (or provision) as it had effect for the tax year in which the deemed income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-12-paragraph-19-1"><num>(1)</num><content><p>Section 643G (section 643F(4): benefits and income “relating” to deemed income) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-19-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(aa)</num><content><p>references to section 643A, 643J or 643L (or to a provision of any of those sections) are to that section (or provision) as it had effect for the year,</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-19-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “is allowed” substitute <quotedText>“was allowed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-b"><num>(b)</num><content><p><mod>in paragraph (d), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-c"><num>(c)</num><content><p><mod>in paragraph (e), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-d"><num>(d)</num><content><p><mod>in paragraph (f), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 643H (meaning of close member of settlor’s family), in the heading and in subsection (1), for “643B to 643M” substitute <quotedText>“643A to 643EA”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-21" class="schProv1"><num>21</num><content><p>Omit sections 643I to 643M (old onward gift provisions).</p></content></paragraph><paragraph eId="schedule-12-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-12-paragraph-22-1"><num>(1)</num><content><p>Section 643N (person liable under section 643J or 643L and remittance basis applies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-2"><num>(2)</num><content><p><mod>In the heading, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-22-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-22-3-a-i"><num>(i)</num><content><p><mod>in the words before sub-paragraph (i), for “is treated as arising to an individual for a tax year” substitute <quotedText>“was treated as arising to an individual for the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-22-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-22-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-22-4"><num>(4)</num><content><p><mod>In subsection (3), after “onward payment” insert <quotedText>“referred to in section 643I(1)(d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in this section to section 643I, 643J or 643L (or to a provision of any of those sections) is to that section (or provision) as it had effect for the tax year in which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-12-paragraph-23-1"><num>(1)</num><content><p>Section 645 (property or income originating from settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-2"><num>(2)</num><content><p><mod>In subsection (1), for “sections 628A and 644” substitute <quotedText>“section 644”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>If the same property has been provided by more than one settlor for the purposes of the settlement, so much of the property as is attributable to each settlor on a just and reasonable apportionment is treated for the purposes of this section as provided by that settlor.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-12-paragraph-24-1"><num>(1)</num><content><p>Section 646 (adjustments between settlor and trustees etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-2"><num>(2)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor under section 624 or 629 (as the case may be),</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the income in respect of which the settlor has paid tax, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-3"><num>(3)</num><intro><p>In subsection (6A)—</p></intro><level class="para1" eId="schedule-12-paragraph-24-3-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-24-3-b"><num>(b)</num><content><p><mod>at the end insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which the income to which the repayment relates was treated as arising to the settlor.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-12-paragraph-25-1"><num>(1)</num><content><p>Section 648 (income arising under a settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-2"><num>(2)</num><content><p>In subsection (1)(b), omit “domiciled and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-3"><num>(3)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-25-3-a"><num>(a)</num><content><p><mod>for “if, for a tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applies”, substitute <quotedText>“if, for the tax year 2024-25 or an earlier tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-25-3-b"><num>(b)</num><content><p><mod>for “relevant foreign income” substitute <quotedText>“specified foreign income”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-25-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>In subsection (3), “<term refersTo="#term-specified-foreign-income">specified foreign income</term>” means income that would be relevant foreign income if it were the income of a UK resident individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></part><part eId="schedule-12-part-2"><num>Part 2</num><heading>Transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-26" class="schProv1"><num>26</num><content><p>Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-27" class="schProv1"><num>27</num><intro><p>In section 718 (meaning of “person abroad” etc)—</p></intro><level class="para1" eId="schedule-12-paragraph-27-a"><num>(a)</num><content><p><mod>in subsection (1), for the words from “means” to the end, substitute <quotedText>“means a person who is resident outside the United Kingdom.”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-27-b"><num>(b)</num><content><p>omit subsection (3).</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-28" class="schProv1"><num>28</num><intro><p>In section 720 (charge to tax on income treated as arising under section 721)—</p></intro><level class="para1" eId="schedule-12-paragraph-28-a"><num>(a)</num><content><p>in subsection (4), omit “and section 726 (non-UK domiciled individuals to whom remittance basis applies)”;</p></content></level><level class="para1" eId="schedule-12-paragraph-28-b"><num>(b)</num><content><p><mod>in subsection (7), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-29" class="schProv1"><num>29</num><content><p><mod>In section 721 (individuals with power to enjoy income as a result of relevant transactions), for subsections (3B) and (3BA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3B)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to sections 724 and 725).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-30" class="schProv1"><num>30</num><content><p>Omit sections 721A and 721B (meaning of “protected foreign-source income” etc).</p></content></paragraph><paragraph eId="schedule-12-paragraph-31" class="schProv1"><num>31</num><content><p><mod>After section 725 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>725A</num><heading>Recovery of tax paid as a result of section 721</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 721 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 721 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-12-paragraph-32-1"><num>(1)</num><content><p>Section 726 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 721 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4619">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-33" class="schProv1"><num>33</num><intro><p>In section 727 (charge to tax on income treated as arising under section 728)—</p></intro><level class="para1" eId="schedule-12-paragraph-33-a"><num>(a)</num><content><p>omit subsection (3A);</p></content></level><level class="para1" eId="schedule-12-paragraph-33-b"><num>(b)</num><content><p><mod>in subsection (5), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 728 (individuals receiving capital sums as a result of relevant transactions), for subsections (1A) and (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-35" class="schProv1"><num>35</num><content><p>Omit section 729A (meaning of “<term refersTo="#term-protected-foreign-source-income" eId="term-protected-foreign-source-income">protected foreign-source income</term>”).</p></content></paragraph><paragraph eId="schedule-12-paragraph-36" class="schProv1"><num>36</num><content><p><mod>Before section 730 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>729B</num><heading>Recovery of tax paid as a result of section 728</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 728 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 728 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-12-paragraph-37-1"><num>(1)</num><content><p>Section 730 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 728 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4619">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-12-paragraph-38-1"><num>(1)</num><content><p>Section 731 (charge to tax on income treated as arising under section 732) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-2"><num>(2)</num><content><p><mod>In subsection (1), for “individuals receiving a benefit” substitute <quotedText>“non-transferors receiving a benefit”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-3"><num>(3)</num><content><p>Omit subsections (1A) to (1C) and (2A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-4"><num>(4)</num><content><p>In subsection (3), omit “, but this is subject to section 733A”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-5"><num>(5)</num><content><p><mod>In subsection (4), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-12-paragraph-39-1"><num>(1)</num><content><p>Section 732 (deemed income where benefit received) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-2"><num>(2)</num><content><p><mod>In the heading, for “Individuals” substitute <quotedText>“Non-transferors”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-39-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “receives a benefit in a tax year” substitute <quotedText>“who is UK resident for a tax year receives a benefit in that tax year”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-39-3-b"><num>(b)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual is not liable to income tax under section 720 or 727 by reference to the transfer and would not be so liable if the effect of sections 726 and 730 were ignored,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-39-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-12-paragraph-40-1"><num>(1)</num><content><p>Section 733 (income charged under section 731) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-2"><num>(2)</num><content><p>In subsection (1), in Step 2, omit the words from “except that” to “for an earlier tax year”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>For the purposes of subsection (1), the amount deducted at Step 2 does not include the amount of any income on which tax was not charged under section 731 by virtue of—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e41332">735AD</ref><ref href="#d25e41342">(2)</ref> (transferor not taxable under benefits charge except where benefit matched to protected foreign-source income etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 731(1A) (equivalent provision for tax years 2024-25 and earlier).</p></content></level></subsection><subsection eId="d25e40946"><num>(2B)</num><intro><p>For the purposes of subsection (1), if in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>income is treated as arising to an individual under section 732(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>the income is identified as qualifying foreign income on a foreign income claim,</p></content></level><wrapUp><p>the income is treated for later tax years as not having been charged to income tax under section 731.</p></wrapUp></subsection><subsection><num>(2C)</num><intro><p>It follows from subsection <ref href="#d25e40946">(2B)</ref> that—</p></intro><level class="para1"><num>(a)</num><content><p>in the application of subsection (1) to the individual for subsequent tax years, the amount of the income will be deducted at Step 2 and at paragraph (a) of Step 5, but</p></content></level><level class="para1"><num>(b)</num><content><p>in the application of subsection (1) to any other individual for subsequent tax years, the amount of the income will not be deducted at paragraph (b) of Step 5.</p></content></level></subsection><subsection><num>(2D)</num><content><p>See <ref href="#schedule-10-paragraph-11">paragraph 11</ref> of Schedule <ref href="#schedule-10">10</ref> to FA 2025 (temporary repatriation facility) for special provision about income that is treated as arising under section 732 but that is exempt from income tax under that Schedule.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-41" class="schProv1"><num>41</num><content><p>Omit sections 733A to 733E and 734A (old provision about protected foreign-source income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-12-paragraph-42-1"><num>(1)</num><content><p>Section 735 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 732 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4619">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-12-paragraph-43-1"><num>(1)</num><content><p>Section 735A (matching rules) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-2"><num>(2)</num><content><p><mod>In subsection (1), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>deduct from those benefits any benefit so far as—</p></intro><level class="para2"><num>(i)</num><content><p>chargeable gains (or offshore income gains) are treated as mentioned in section 734(1)(d) as accruing by reference to the benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>income is treated as mentioned in <ref href="#d25e41675">section 735AG</ref><ref href="#d25e41679">(1)</ref><ref href="#d25e41691">(b)</ref> as arising by reference to the benefit under section 643A, 643J or 643L of ITTOIA 2005 (settlements: benefits charge), or</p></content></level><level class="para2"><num>(iii)</num><content><p>income is treated as arising by reference to the benefit under section 732(2) and that income is identified in a foreign income claim,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-3"><num>(3)</num><content><p><mod>in subsection (6), for “the individual, or as a result of section 733A another person” substitute <quotedText>“a person”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-44" class="schProv1"><num>44</num><content><p><mod>After section 735A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Transitional provision about protected foreign-source income and transitionally protected income</heading><section eId="d25e41150"><num>735AA</num><heading>Settlements to which following sections apply</heading><subsection eId="d25e41154"><num>(1)</num><intro><p>Sections <ref href="#d25e41255">735AB</ref> to 735C apply if—</p></intro><level class="para1" eId="d25e41163"><num>(a)</num><content><p>a relevant transfer occurred before 6 April 2025,</p></content></level><level class="para1" eId="d25e41169"><num>(b)</num><intro><p>the person abroad was—</p></intro><level class="para2" eId="d25e41175"><num>(i)</num><content><p>the trustees of a settlement, or</p></content></level><level class="para2" eId="d25e41181"><num>(ii)</num><content><p>a company in which the trustees of a settlement were participators or indirect participators, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>protected foreign-source income or transitionally protected income arose in relation to the transfer.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In sections <ref href="#d25e41255">735AB</ref> to 735C—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-transfer">the relevant transfer</term>” means the transfer referred to in <ref href="#d25e41154">subsection (1)</ref><ref href="#d25e41163">(a)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlement">the settlement</term>” means the settlement referred to in <ref href="#d25e41154">subsection (1)</ref><ref href="#d25e41169">(b)</ref><ref href="#d25e41175">(i)</ref> or <ref href="#d25e41181">(ii)</ref> (as the case may be);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlor">the settlor</term>” means the settlor of that settlement.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41154">subsection (1)</ref><ref href="#d25e41169">(b)</ref><ref href="#d25e41181">(ii)</ref>, the trustees of a settlement are “indirect participators” in a company if they are participators in the first in a chain of two or more companies where the last company in the chain is the person abroad and where each company in the chain (except the last) is a participator in the next company in the chain.</p></content></subsection></section><section eId="d25e41255"><num>735AB</num><heading>“Protected foreign-source income” and “transitionally protected income”</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e41150">sections 735AA</ref> to <ref href="#d25e41478">735AF</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>would have been treated as arising to the settlor under section 721 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 721A (as that section had effect for that tax year), or</p></content></level><level class="para1"><num>(b)</num><content><p>would have been treated as arising to the settlor under section 728 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 729A (as that section had effect for that tax year);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitionally-protected-income">transitionally protected income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>was treated as arising to the settlor under section 721 or 728 in a tax year earlier than the tax year 2017-18,</p></content></level><level class="para1"><num>(b)</num><content><p>was not remitted to the United Kingdom in a tax year earlier than the tax year 2017-18, and</p></content></level><level class="para1"><num>(c)</num><content><p>was transitionally protected income within the meaning of section 726(7) or 730(7) throughout the tax years 2017-18 to 2024-25 (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>In subsection (1), in <ref href="#d25e41300">paragraph (b)</ref> of the definition of “transitionally protected income”, “<term refersTo="#term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>” is to be read in accordance with Chapter A1 of Part 14 (read with section 726 or 730 as the case may be).</p></content></subsection></section><section><num>735AC</num><heading>Transitionally protected income not to be taxed on remittance</heading><content><p>Section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis) does not apply to transitionally protected income.</p></content></section><section eId="d25e41332"><num>735AD</num><heading>Settlor liable for benefits charge despite being transferor</heading><subsection eId="d25e41336"><num>(1)</num><content><p>For the purposes of section 732 (benefits charge: deemed income), subsection (1)(d) of that section (benefits charge confined to individuals not liable under section 720 or 727) is to be disregarded where the individual who receives the benefit is the settlor.</p></content></subsection><subsection eId="d25e41342"><num>(2)</num><content><p>But any income treated as arising to the settlor under section 732(2) is not taxed under section 731 unless the income would, assuming that section 735A applied for this purpose by reference to the settlor, be matched under that section with an amount of relevant income that is protected foreign-source income or transitionally protected income in relation to the relevant transfer.</p></content></subsection></section><section eId="d25e41351"><num>735AE</num><heading>Settlor liable in place of close family member</heading><subsection eId="d25e41355"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit is provided to an individual in a given tax year out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family at the time when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year in which the benefit is provided, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for that tax year,</p></content></level><wrapUp><p>the benefit is instead treated for the purposes of section 732 and <ref href="#d25e41332">section 735AD</ref><ref href="#d25e41336">(1)</ref> as provided to the settlor.</p></wrapUp></subsection><subsection eId="d25e41404"><num>(2)</num><intro><p>For the purposes of this section, a person is a “close member of the settlor’s family” at any time if the settlor is living at that time and—</p></intro><level class="para1"><num>(a)</num><content><p>the person is the settlor’s spouse or civil partner at that time, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>is a child of the settlor, or of a person who at that time is the settlor’s spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>at that time has not reached the age of 18.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41404">subsection (2)</ref>, two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other.</p></content></subsection><subsection><num>(4)</num><content><p>Where any tax for which the settlor is liable as a result of this section is paid, the settlor is entitled to recover the amount of the tax from the individual concerned.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to provide the settlor with a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section><section eId="d25e41478"><num>735AF</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e41482"><num>(1)</num><intro><p>Subsection <ref href="#d25e41585">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit (“the original benefit”) is provided to an individual (“the original recipient”) out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the original recipient is non-UK resident, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p><ref href="#d25e41351">section 735AE</ref><ref href="#d25e41355">(1)</ref> (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e41525"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or there is an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e41543"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is received by the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before the original benefit is received by the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided, and</p></content></level></level><level class="para1" eId="d25e41561"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient.</p></content></level></level></subsection><subsection eId="d25e41585"><num>(2)</num><content><p>For the purposes of sections 732, <ref href="#d25e41332">735AD</ref><ref href="#d25e41336">(1)</ref> and <ref href="#d25e41351">735AE</ref><ref href="#d25e41355">(1)</ref>, so much of the onward gift as falls within <ref href="#d25e41482">subsection (1)</ref><ref href="#d25e41561">(f)</ref> is (so far as would not otherwise be the case) treated as a benefit provided to the subsequent recipient out of assets which are available for the purpose as a result of an associated operation in relation to the relevant transfer.</p></content></subsection><subsection eId="d25e41606"><num>(3)</num><intro><p>For the purposes of <ref href="#d25e41482">subsection (1)</ref><ref href="#d25e41543">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e41482">subsection (1)</ref><ref href="#d25e41543">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e41482">subsection (1)</ref><ref href="#d25e41561">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the conditions in <ref href="#d25e41482">subsection (1)</ref><ref href="#d25e41543">(e)</ref> and <ref href="#d25e41561">(f)</ref> are met, it is to be presumed, unless the contrary is shown, that the condition in <ref href="#d25e41482">subsection (1)</ref><ref href="#d25e41525">(d)</ref> is also met.</p></content></subsection><subsection><num>(5)</num><content><p>In <ref href="#d25e41482">subsection (1)</ref><ref href="#d25e41525">(d)</ref>, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section eId="d25e41675"><num>735AG</num><heading>Deduction allowed for previous settlements charge</heading><subsection eId="d25e41679"><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided as mentioned in section 732(1)(c) are received in a tax year, and</p></content></level><level class="para1" eId="d25e41691"><num>(b)</num><content><p>income is treated under section 643A of ITTOIA 2005 as arising to a person in that or a subsequent tax year by reference (direct or indirect) to the whole or part of any benefits so provided.</p></content></level></subsection><subsection><num>(2)</num><content><p>For any tax year after one in which such income is so treated, the amount of income treated as arising to the individual under section 732(2) in respect of benefits provided as mentioned in section 732(1)(c) as a result of the transfer or operations in question is calculated as follows.</p></content></subsection><subsection><num>(3)</num><content><p>The amount is calculated under section 733(1) as if the total untaxed benefits were reduced by the amount of that income.</p></content></subsection><subsection><num>(4)</num><content><p>The reference in <ref href="#d25e41679">subsection (1)</ref><ref href="#d25e41691">(b)</ref> to income treated as arising under section 643A of ITTOIA 2005 includes, in relation to any of the tax years 2018-19 to 2024-25, a reference to income treated as arising under section 643J or 643L of ITTOIA 2005 (settlements code: old onward gift provisions).</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-the-total-untaxed-benefits">the total untaxed benefits</term>” has the same meaning as in section 733(1) (see Step 2).</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-12-paragraph-45-1"><num>(1)</num><content><p>Section 735B (settlor charge: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical liability under section 733A where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This section applies in relation to income if—</p></intro><level class="para1"><num>(a)</num><content><p>the income was treated under section 732 as arising to an individual (“<term refersTo="#term-the-beneficiary">the beneficiary</term>”) for any of the tax years 2017-18 to 2024-25,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor was under section 733A(2) or (3) (as it had effect for that tax year) liable for tax on the income, and</p></content></level><level class="para1"><num>(c)</num><content><p>section 809B, 809D or 809E (remittance basis) applied to the settlor for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-12-paragraph-46-1"><num>(1)</num><content><p>Section 735C (old onward gifts provisions: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical operation of section 733C or 733E where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for the words before sub-paragraph (i) substitute <quotedText>“the income was treated as arising to an individual for any of the tax years 2018-19 to 2024-25”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-46-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-46-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in subsection (1) to section 733C or 733E (or to any provision of either section) is to that section (or provision) as it had effect for the tax year for which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-47" class="schProv1"><num>47</num><intro><p>In section 736 (exemptions: introduction)—</p></intro><level class="para1" eId="schedule-12-paragraph-47-a"><num>(a)</num><content><p><mod>in subsection (1), for “742A” substitute <quotedText>“742”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-47-b"><num>(b)</num><content><p>omit subsection (2A).</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-48" class="schProv1"><num>48</num><content><p>Omit section 742A (post-5 April 2012 transactions: exemption for genuine transactions).</p></content></paragraph><paragraph eId="schedule-12-paragraph-49" class="schProv1"><num>49</num><content><p>In section 747 (amounts corresponding to accrued income profits and related interest), in subsection (1)(b) and subsection (4)(b), omit “or domiciled”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-50" class="schProv1"><num>50</num><content><p>In section 751 (tribunal’s jurisdiction on appeals), omit paragraph (da).</p></content></paragraph></part><part eId="schedule-12-part-3"><num>Part 3</num><heading>Settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-51" class="schProv1"><num>51</num><content><p><ref eId="c00332" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-52" class="schProv1"><num>52</num><content><p>In section 1A (territorial scope), in subsection (2)(e), omit “87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-53" class="schProv1"><num>53</num><content><p>In section 1E (losses deductible only when within scope of tax etc), omit subsection (4).</p></content></paragraph><paragraph eId="schedule-12-paragraph-54" class="schProv1"><num>54</num><content><p>In section 62 (death: general provisions), in subsection (2A), omit paragraph (a).</p></content></paragraph><paragraph eId="schedule-12-paragraph-55" class="schProv1"><num>55</num><subparagraph eId="schedule-12-paragraph-55-1"><num>(1)</num><content><p>Section 86 (attribution of gains to settlors with interest in non-resident or dual resident settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-2"><num>(2)</num><content><p>In subsection (1)(c), omit “is domiciled in the United Kingdom at some time in the year and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-3"><num>(3)</num><content><p>Omit subsection (3A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-4"><num>(4)</num><content><p>In subsection (4), omit paragraph (b) and the “and” before it.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>See also <ref href="#d25e6477">paragraph 3</ref> of <ref href="#d25e6373">Schedule D1</ref> (foreign gain claims: foreign gains and losses of the trustees ignored for the purposes of subsection (1)(e)).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-56" class="schProv1"><num>56</num><content><p>In section 86A (attribution of gains to settlor where temporarily non-resident), in subsection (1)(b), omit “, 87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 87 (non-UK resident settlements: attribution of gains to beneficiaries), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>See also <ref href="#d25e6534">paragraph 4</ref> of <ref href="#d25e6373">Schedule D1</ref> (foreign gain claims: capital payments ignored for the purposes of this section and Schedule 4C).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-58" class="schProv1"><num>58</num><subparagraph eId="schedule-12-paragraph-58-1"><num>(1)</num><content><p>Section 87B (section 87: remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-58-2-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-58-2-a-i"><num>(i)</num><content><p><mod>for “are treated” substitute <quotedText>“were treated”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-58-2-a-ii"><num>(ii)</num><content><p><mod>for “a tax year” substitute <quotedText>“the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-58-3"><num>(3)</num><content><p><mod>In subsection (2), for “chargeable gains accruing” substitute <quotedText>“treated as having accrued”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-4"><num>(4)</num><content><p><mod>In subsection (4), for “are treated as accruing consists of” substitute <quotedText>“were treated as accruing consisted of”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>The references in this section to sections 87I(1)(c), 87K and 87L (which were repealed by <ref href="#schedule-12-part-3">Part 3</ref> of <ref href="#schedule-12">Schedule 12</ref> to the Finance Act 2025) are to those provisions as they had effect for the tax year in which the chargeable gains were treated as accruing to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-59" class="schProv1"><num>59</num><content><p>In section 87D (sections 87 and 87A: capital payments to non-residents disregarded), in subsection (1) omit paragraph (b) and the “and” before it.</p></content></paragraph><paragraph eId="schedule-12-paragraph-60" class="schProv1"><num>60</num><subparagraph eId="schedule-12-paragraph-60-1"><num>(1)</num><content><p>Section 87G (settlor liable if capital payment received by close family member) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-2"><num>(2)</num><content><p><mod>In subsection (1)(b), for “at any time in that year” substitute <quotedText>“for that tax year”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>But subsection (2) does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the original recipient is resident in the United Kingdom for the tax year in which they receive the capital payment, and</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is a qualifying new resident for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-12-paragraph-60-4-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-60-4-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which those gains were treated as arising,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 87H (meaning of “<term refersTo="#term-close-member-of-the-settlors-family" eId="term-close-member-of-the-settlors-family">close member of the settlor’s family</term>”), in subsection (1), for “87D, 87G and 87L” substitute <quotedText>“87D and 87G”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-62" class="schProv1"><num>62</num><content><p><mod>For sections 87I to 87M (old onward gifting provisions) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e42184"><num>87HA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e42188"><num>(1)</num><intro><p>Subsection <ref href="#d25e42281">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the original recipient”) receives a capital payment (“the original benefit”) from the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the original recipient is not resident in the United Kingdom, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p>section 87G(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e42215"><num>(d)</num><intro><p>at the time when the person receives the original benefit—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be resident in the United Kingdom when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e42233"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to a person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e42245"><num>(ii)</num><content><p>at any time before the original benefit is made to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being made,</p></content></level></level><level class="para1" eId="d25e42251"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the providing of the onward gift to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e42275"><num>(g)</num><content><p>the subsequent recipient is resident in the United Kingdom for the tax year in which they receive the onward gift.</p></content></level></subsection><subsection eId="d25e42281"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e42188">subsection (1)</ref><ref href="#d25e42251">(f)</ref> is treated for the purposes of sections 87, 87A , 87D(2) and 87G(2) as a capital payment received from the trustees by the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><content><p>Where <ref href="#d25e42281">subsection (2)</ref> applies, the subsequent recipient is treated as having received the capital payment as a beneficiary of the settlement (whether or not they are otherwise a beneficiary of it).</p></content></subsection><subsection eId="d25e42301"><num>(4)</num><intro><p>For the purposes of <ref href="#d25e42188">subsection (1)</ref><ref href="#d25e42233">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e42188">subsection (1)</ref><ref href="#d25e42233">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e42188">subsection (1)</ref><ref href="#d25e42251">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(5)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e42188">subsection (1)</ref><ref href="#d25e42233">(e)</ref><ref href="#d25e42245">(ii)</ref>, the onward gift is treated for the purposes of subsection <ref href="#d25e42281">(2)</ref> as made in the tax year in which the original benefit is made to the original recipient.</p></content></subsection><subsection><num>(6)</num><content><p>Where the conditions in <ref href="#d25e42188">subsection (1)</ref><ref href="#d25e42233">(e)</ref> to <ref href="#d25e42275">(g)</ref> are met, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e42188">subsection (1)</ref><ref href="#d25e42215">(d)</ref> is also met.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-63" class="schProv1"><num>63</num><content><p>In section 91 (increase in tax payable under section 87 or 89(2)), in subsection (1)(a), omit “, 87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-64" class="schProv1"><num>64</num><intro><p>In section 97 (supplementary provisions)—</p></intro><level class="para1" eId="schedule-12-paragraph-64-a"><num>(a)</num><content><p><mod>in subsection (1)(a)(ii), for the words from “any of sections 643A” to the end of the sub-paragraph, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-64-b"><num>(b)</num><content><p><mod>in subsection (3), for the words from “section 643A” to “ITA 2007”, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-65" class="schProv1"><num>65</num><content><p>In section 279A (deferred unascertainable consideration: election for treatment of loss), in subsection (7), omit paragraph (b) (but not the “and” after it).</p></content></paragraph><paragraph eId="schedule-12-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 279C (effect of election under section 279A), in subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-66-a"><num>(a)</num><content><p><mod>after paragraph (a) insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-66-b"><num>(b)</num><content><p>omit paragraph (c) and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-67" class="schProv1"><num>67</num><content><p>In Schedule 1 (UK resident individuals not domiciled in UK), in paragraph 3(5), omit paragraph (b) and the “and” before it.</p></content></paragraph><paragraph eId="schedule-12-paragraph-68" class="schProv1"><num>68</num><subparagraph eId="schedule-12-paragraph-68-1"><num>(1)</num><content><p>Schedule 4C (transfers of value: attribution of gains to beneficiaries) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-68-2"><num>(2)</num><content><p><mod>In paragraph 8(6), after “87G(2),” insert <quotedText>“87HA(2),”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-69" class="schProv1"><num>69</num><subparagraph eId="schedule-12-paragraph-69-1"><num>(1)</num><content><p>Schedule 5 (attribution of gains to settlors with interest in non-resident or dual resident settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-2"><num>(2)</num><content><p><mod>In paragraph 1 (construction of section 86(1)(e): losses etc), after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><intro><p>In construing section 86(1)(e) as regards a particular year of assessment, if—</p></intro><level class="para1"><num>(a)</num><content><p>section 86 did not apply to the settlement in a year of assessment ending before 6 April 2025 (“the earlier year”), but</p></content></level><level class="para1"><num>(b)</num><content><p>that section would have applied to the settlement in the earlier year if the condition in section 86(1)(e) (settlor domiciled in the United Kingdom) had been met in the earlier year,</p></content></level><wrapUp><p>deductions shall be made in respect of losses accruing in the earlier year, but only so far as those losses have not been taken into account for the purposes of section 87 in determining the section 1(3) amount for the settlement for the earlier year.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-3"><num>(3)</num><content><p>Omit paragraphs 5A and 5B (protections for deemed domiciles etc).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-4"><num>(4)</num><content><p><mod>After paragraph 5 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Old section 87 rebasing elections to apply in relation to section 86</heading><paragraph class="schProv1"><num>5C</num><subparagraph eId="d25e42517"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of the settlement made (at any time) an election under paragraph 126(1) of Schedule 7 to the Finance Act 2008 (remittance basis: capital gains rebasing), and</p></content></level><level class="para1" eId="d25e42529"><num>(b)</num><content><p>an amount of chargeable gains would (apart from this paragraph) be treated as accruing to the settlor under section 86(4) in a tax year (“the relevant tax year”).</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The settlor is not charged to capital gains tax on so much of the chargeable gains as exceeds the relevant proportion of those gains.</p></content></subparagraph><subparagraph eId="d25e42541"><num>(3)</num><content><p>For that purpose “the relevant proportion” is—</p><tblock class="formula"><foreign><default1:math xmlns="http://www.w3.org/1998/Math/MathML" altimg="http://www.legislation.gov.uk/ukpga/2025/8/images/ukpga_20250008_en_001"><default1:mfrac><default1:mi>A</default1:mi><default1:mi>B</default1:mi></default1:mfrac></default1:math></foreign><blockContainer class="where"><p>where—</p><tblock class="definition"><p>A is the amount that would be treated under section 86(4) as accruing to the settlor in the relevant tax year if immediately before 6 April 2008 every relevant asset had been sold by the trustees and immediately re-acquired by them at its market value at that time, and</p></tblock><tblock class="definition"><p>B is the amount mentioned in <ref href="#d25e42517">sub-paragraph (1)</ref><ref href="#d25e42529">(b)</ref>.</p></tblock></blockContainer></tblock></content></subparagraph><subparagraph><num>(4)</num><intro><p>In <ref href="#d25e42541">sub-paragraph (3)</ref>, “<term refersTo="#term-relevant-asset">relevant asset</term>” means an asset—</p></intro><level class="para1"><num>(a)</num><content><p>that was disposed of in the relevant tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>that was comprised in the settlement from the beginning of 6 April 2008 until its disposal.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-5"><num>(5)</num><intro><p>In paragraph 6 (right of recovery), in sub-paragraph (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-69-5-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-69-5-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which gains were treated as accruing under section 86(4),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph></part><part eId="schedule-12-part-4"><num>Part 4</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-12-paragraph-70" class="schProv1"><num>70</num><subparagraph eId="schedule-12-paragraph-70-1"><num>(1)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-1">1</ref> to <ref href="#schedule-12-paragraph-53">53</ref>, <ref href="#schedule-12-paragraph-55">55</ref> to <ref href="#schedule-12-paragraph-64">64</ref> and <ref href="#schedule-12-paragraph-67">67</ref> to <ref href="#schedule-12-paragraph-69">69</ref> have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-2"><num>(2)</num><content><p>The amendment made by paragraph <ref href="#schedule-12-paragraph-54">54</ref> to section 62 of TCGA 1992 (death: general provisions) has effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-3"><num>(3)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-65">65</ref> and <ref href="#schedule-12-paragraph-66">66</ref> to sections 279A and 279C of TCGA 1992 (deferred unascertainable consideration: election for treatment of loss) have effect in relation to disposals made on or after 6 April 2025 of rights to which section 279A of that Act applies.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Onward gifts: settlements (income)</heading><paragraph eId="schedule-12-paragraph-71" class="schProv1"><num>71</num><subparagraph eId="schedule-12-paragraph-71-1"><num>(1)</num><content><p>Section 643EA of ITTOIA 2005 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-17">paragraph 17</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 643EA of ITTOIA 2005; and in a case within section 643EA(3) “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-72" class="schProv1"><num>72</num><intro><p>Despite the repeal of section 643M of ITTOIA 2005 by <ref href="#schedule-12-paragraph-21">paragraph 21</ref> of this Schedule, that section continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-72-a"><num>(a)</num><content><p>it provided before its repeal for a benefit of a particular amount to be treated for the purposes of section 643B of that Act as having been provided to a particular person at a particular time, and</p></content></level><level class="para1" eId="schedule-12-paragraph-72-b"><num>(b)</num><content><p>the receipt of the benefit by the person is relevant to the application of section 643B of that Act in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Onward gifts: transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-73" class="schProv1"><num>73</num><subparagraph eId="schedule-12-paragraph-73-1"><num>(1)</num><content><p><ref href="#d25e41478">Section 735AF</ref> of ITA 2007 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-44">paragraph 44</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in <ref href="#d25e41478">section 735AF</ref> of ITA 2007; and in a case within <ref href="#d25e41478">section 735AF</ref><ref href="#d25e41606">(3)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Onward gifts: settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-74" class="schProv1"><num>74</num><subparagraph eId="schedule-12-paragraph-74-1"><num>(1)</num><content><p>Section 87HA of TCGA 1992 (benefits routed via non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-62">paragraph 62</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which they receive the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 87HA of TCGA 1992; and in a case within section <ref href="#d25e42184">87HA</ref><ref href="#d25e42301">(4)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-75" class="schProv1"><num>75</num><intro><p>Despite the repeal of sections 87K and 87L of TCGA 1992 (old onward gifting rules) by paragraph <ref href="#schedule-12-paragraph-62">62</ref> of this Schedule, each of those sections continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-75-a"><num>(a)</num><content><p>before its repeal, it provided for section 87 and 87A of that Act to have effect as if a capital payment of a particular amount had been received at a particular time by a particular person, and</p></content></level><level class="para1" eId="schedule-12-paragraph-75-b"><num>(b)</num><content><p>the receipt of the capital payment by that person is relevant to the application of sections 87 and 87A in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-13"><num>Schedule 13<authorialNote class="referenceNote"><p>Section 46</p></authorialNote></num><heading>Inheritance tax</heading><part eId="schedule-13-part-1"><num>Part 1</num><heading>Amendments to <ref eId="c00333" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> and related legislation</heading><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00334" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref></heading><paragraph eId="schedule-13-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00335" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">section 5</a> (meaning of estate), for <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">subsection (1B)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>An interest in possession falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>the person became beneficially entitled to it on or after 9 December 2009 by virtue of a disposition that was prevented from being a transfer of value by section 10 (no gratuitous benefit), and</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>has been a long-term UK resident at any time on or after 6 April 2025 while beneficially entitled to it, or</p></content></level><level class="para2"><num>(ii)</num><content><p>became beneficially entitled to it at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-3" class="schProv1"><num>3</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">section 6</a> (excluded property), omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">section 8D</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">(9)</a>, omit the definitions of “tax year” and “the tax year 2017-18”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-5" class="schProv1"><num>5</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">(3)</a>, omit the definition of “tax year”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">section 18</a> (transfers between spouses or civil partners), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">subsection (2)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident,”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-7" class="schProv1"><num>7</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">section 28A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-13-paragraph-8-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">Section 53</a> (exceptions from charge under section 52) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>Tax shall not be chargeable under section 52 above if—</p></intro><level class="para1"><num>(a)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(c)</num><content><p>the person whose interest comes to an end became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the person’s interest in possession in it comes to an end, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-13-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">Section 54</a> (exceptions from charge on death) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(2B)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(e)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsection (2B)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is entitled to an interest in possession in settled property dies,</p></content></level><level class="para1"><num>(b)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(c)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(d)</num><content><p>the person became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(e)</num><intro><p>immediately before the person’s death, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level></level><wrapUp><p>the value of the settled property shall be left out of account in determining for the purposes of this Act the value of the person’s estate immediately before their death.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>Where a person became beneficially entitled to an interest in possession in settled property on or after 22 March 2006, subsection (2C) applies in relation to the interest only if it is—</p></intro><level class="para1"><num>(a)</num><content><p>an immediate post-death interest,</p></content></level><level class="para1"><num>(b)</num><content><p>a disabled person’s interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>a transitional serial interest,</p></content></level><wrapUp><p>or falls within section 5(1B) (certain interests acquired with no gratuitous benefit).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-13-paragraph-10-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">Section 64</a> (charge at ten-year anniversary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1B)</a>, for the words from the beginning to “ten-year anniversary falls” substitute <quotedText>“Where the settlor of property comprised in a settlement meets the condition in subsection <ref href="#d25e43272">(1BZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-3"><num>(3)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43272"><num>(1BZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident immediately before the ten-year anniversary,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before their death, or</p></content></level><level class="para1"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1BA)</a>, for “subsection (1B)” substitute <quotedText>“subsection <ref href="#d25e43272">(1BZA)</ref>(c)”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-13-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">Section 65</a> (exit charges etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7421">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7A)</a>, for the words from “becomes excluded property” to the end, substitute <quotedText>“is invested in a holding in an authorised unit trust or a share in an open-ended investment company and thereby becomes excluded property by virtue of section <ref href="#d25e7421">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-4"><num>(4)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7B)</a>.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7C)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7421">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (8)</a>, for the words from the beginning to “subsection (8A))”, substitute <quotedText>“If the condition in <ref href="#d25e43400">subsection (8ZA)</ref> is met in relation to property comprised in a settlement”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-7"><num>(7)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43400"><num>(8ZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1" eId="d25e43418"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-8"><num>(8)</num><content><p><mod>In subsection (8A), for “subsection (8)” substitute <quotedText>“<ref href="#d25e43400">subsection (8ZA)</ref><ref href="#d25e43418">(c)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-13-paragraph-12-1"><num>(1)</num><content><p>Section 74A (arrangements involving acquisition of interest in settled property etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-12-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-12-2-a"><num>(a)</num><content><p>in paragraph (b)(i), omit “domiciled in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-12-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><intro><p>the individual—</p></intro><level class="para2"><num>(i)</num><content><p>is a long-term UK resident at any time on or after 6 April 2025 during the course of the arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>acquired the interest, or became able to acquire it, at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>Condition A is that the relevant settled property is excluded property at any time during the course of the arrangements.</p><p>Ignore for this purpose—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7421">48ZA</ref><ref href="#d25e7532">(8)</ref> (as it has effect on and after 6 April 2025);</p></content></level><level class="para1"><num>(b)</num><content><p>section 48(3D) (as it had effect before 6 April 2025).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-13" class="schProv1"><num>13</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">section 75A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">subsection (4)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 80 (initial interest of settlor or spouse), in subsection (1), after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-15" class="schProv1"><num>15</num><intro><p>In section 81 (property moving between settlements), in subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-15-a"><num>(a)</num><content><p><mod>after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-15-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“(but held on the trusts of the second)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-16" class="schProv1"><num>16</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/81B">section 81B</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>81B</num><heading>Excluded property: property to which section 80 applies</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>property is treated under section 80(1) as becoming comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the property would, apart from this section, be excluded property by virtue of meeting the condition in any of subsections <ref href="#d25e7445">(2)</ref> to <ref href="#d25e7457">(4)</ref> of section <ref href="#d25e7421">48ZA</ref> (excluded property: long-term residence and domicile tests).</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter, except sections 78 and 79, the property is excluded property only if the condition in any of those subsections (whether or not the same one) is met by reference to the actual settlor and the actual settlement.</p></content></subsection><subsection><num>(3)</num><content><p>Section 65(8) (no exit charge where property invested in Treasury securities thereby becomes excluded property) applies in relation to the property only if the condition in section 65<ref href="#d25e43400">(8ZA)</ref> is met by reference to the actual settlor.</p></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-the-actual-settlor">the actual settlor</term>” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1); and “<term refersTo="#term-the-actual-settlement">the actual settlement</term>” means that settlement.</p></content></subsection><subsection><num>(5)</num><content><p>This section does not apply in relation to property that is a holding in an authorised unit trust or a share in an open-ended investment company if the occasion first referred to in section 80(1) occurred before 22 July 2020.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-17" class="schProv1"><num>17</num><content><p>Omit sections 82 and 82A (excluded property: property to which section 81 applies).</p></content></paragraph><paragraph eId="schedule-13-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">section 94</a> (close companies: charge on participators), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">(b)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">section 136</a> (transfers within three years before death: transactions of close companies), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-20" class="schProv1"><num>20</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">section 155</a> (visiting forces etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">subsections (2)</a> and (5B), omit “or domicile”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-13-paragraph-21-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">Section 157</a> (non-residents’ bank accounts) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-13-paragraph-21-2-a"><num>(a)</num><content><p>omit “is not domiciled and not resident in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-21-2-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“is neither resident in the United Kingdom nor a long-term UK resident”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-21-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (3)</a>, for the words from “if the settlor” to the end, substitute <quotedText startQuote="“">if—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the trustees are resident in the United Kingdom immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is alive and is a long-term UK resident immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(c)</num><content><p>the settlor died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-22" class="schProv1"><num>22</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">section 218</a> (non-resident trustees), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">(a)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-23" class="schProv1"><num>23</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> (persons treated as domiciled in United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-13-paragraph-24-1"><num>(1)</num><content><p>Section 267ZA (election to be treated as domiciled in the United Kingdom) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-2"><num>(2)</num><content><p><mod>In subsections (3) and (4), for “on or after 6 April 2013 and” substitute <quotedText>“before 6 April 2025 but”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-3"><num>(3)</num><content><p>Omit subsection (5).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-4"><num>(4)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-13-paragraph-24-4-a"><num>(a)</num><content><p><mod>for “is or was domiciled” substitute <quotedText>“was domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-24-4-b"><num>(b)</num><content><p><mod>after “section 267” insert <quotedText>“(deemed domicile)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-25" class="schProv1"><num>25</num><content><p><mod>In section 267ZB (section 267ZA: further provision about election) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>), in subsection (4)(a), for “6 April 2013 or a later date” substitute <quotedText>“5 April 2025 or an earlier date”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-26" class="schProv1"><num>26</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZA">sections 267ZA</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZB">267ZB</a> (election to be treated as domiciled in the United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-27" class="schProv1"><num>27</num><content><p><mod>Before <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267A">section 267A</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e43880"><num>267ZC</num><heading>Election to be treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>A person (“<term refersTo="#term-p">P</term>”) who would not otherwise be a long-term UK resident is treated as one for the purposes of this Act at any time when an election under this section has effect.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under this section may be made—</p></intro><level class="para1"><num>(a)</num><content><p>if condition A or B is met, by P;</p></content></level><level class="para1"><num>(b)</num><content><p>if condition B is met, by P’s personal representatives.</p></content></level></subsection><subsection><num>(3)</num><content><p>Condition A is that, at any time within the period of 7 years ending with the date on which the election is made, P had a spouse or civil partner who was a long-term UK resident.</p></content></subsection><subsection eId="d25e43917"><num>(4)</num><intro><p>Condition B is that a person (“<term refersTo="#term-the-deceased">the deceased</term>”) dies and, at any time within the period of 7 years ending with the date of their death, the deceased was—</p></intro><level class="para1"><num>(a)</num><content><p>a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>the spouse or civil partner of P.</p></content></level></subsection></section><section><num>267ZD</num><heading>Further provision about elections under <ref href="#d25e43880">section 267ZC</ref></heading><subsection eId="d25e43947"><num>(1)</num><intro><p>An election under <ref href="#d25e43880">section 267ZC</ref>—</p></intro><level class="para1" eId="d25e43956"><num>(a)</num><content><p>must be made by notice in writing to HMRC, and</p></content></level><level class="para1"><num>(b)</num><content><p>has effect from such date as is, in accordance with <ref href="#d25e43971">subsection (2)</ref>, specified in the notice.</p></content></level></subsection><subsection eId="d25e43971"><num>(2)</num><intro><p>The date specified in a notice under <ref href="#d25e43947">subsection (1)</ref><ref href="#d25e43956">(a)</ref> (“<term refersTo="#term-the-specified-date">the specified date</term>”) must—</p></intro><level class="para1"><num>(a)</num><content><p>be after 5 April 2025,</p></content></level><level class="para1"><num>(b)</num><intro><p>be within the period of 7 years ending with—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a lifetime election, the date on which the election is made;</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a death election, the date of the deceased's death, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>meet the condition in <ref href="#d25e44018">subsection (3)</ref>.</p></content></level></subsection><subsection eId="d25e44018"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a lifetime election—</p></intro><level class="para2"><num>(i)</num><content><p>the person making the election was, on the specified date, married to or in a civil partnership with the spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the spouse or civil partner was, on the specified date, a long-term UK resident;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>in the case of a death election—</p></intro><level class="para2"><num>(i)</num><content><p>the person who is, by virtue of the election, to be treated as a long-term UK resident was, on the specified date, married to or in a civil partnership with the deceased, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the deceased was, on the specified date, a long-term UK resident.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>A death election may only be made within—</p></intro><level class="para1"><num>(a)</num><content><p>the period of 2 years beginning with the date of the deceased’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>such longer period as an officer of Revenue and Customs may in the particular case allow.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e44108">(6)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an election is made under <ref href="#d25e43880">section 267ZC</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>a disposition is made, or another event occurs, during the period beginning with the date on which the election first has effect and ending with the date on which the election is made, and</p></content></level><level class="para1"><num>(c)</num><content><p>the effect of the election is that the disposition or event gives rise to a transfer of value.</p></content></level></subsection><subsection eId="d25e44108"><num>(6)</num><intro><p>This Act applies with the following modifications in relation to the transfer of value—</p></intro><level class="para1"><num>(a)</num><content><p>subsections (1) and (6)(c) of section 216 (delivery of accounts) have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>sections 226 (payment: general rules) and 233 (interest on unpaid tax) have effect as if the transfer were made at the time when the election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>An election under <ref href="#d25e43880">section 267ZC</ref> cannot be revoked.</p></content></subsection><subsection><num>(8)</num><content><p>If a person who made a lifetime election is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.</p></content></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-death-election">death election</term>” means an election made under <ref href="#d25e43880">section 267ZC</ref> in circumstances where Condition B in <ref href="#d25e43917">subsection (4)</ref> of that section is met;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-lifetime-election">lifetime election</term>” means any other election made under <ref href="#d25e43880">section 267ZC</ref>.</p></content></hcontainer></subsection></section><section eId="d25e44174"><num>267ZE</num><heading>Subject of domicile election treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>This section applies where an election under section 267ZA has effect in relation to a person immediately before 6 April 2025 (whether the election was made before or after that date).</p></content></subsection><subsection eId="d25e44184"><num>(2)</num><intro><p>The person is treated for the purposes of this Act (so far as would not otherwise be the case)—</p></intro><level class="para1"><num>(a)</num><content><p>as being a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>as having been one at all times on and after 6 April 2025.</p></content></level></subsection><subsection eId="d25e44202"><num>(3)</num><content><p>But if the person is not resident in the United Kingdom for a relevant lapse period beginning at any time after the election is made, <ref href="#d25e44184">subsection (2)</ref> ceases to apply to them at the end of that period.</p></content></subsection><subsection><num>(4)</num><intro><p>In <ref href="#d25e44202">subsection (3)</ref> “<term refersTo="#term-relevant-lapse-period">relevant lapse period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the election was made before 30 October 2024, a period of 4 successive tax years;</p></content></level><level class="para1"><num>(b)</num><content><p>if the election was made on or after that date, a period of 10 successive tax years.</p></content></level></subsection></section><section><num>267ZF</num><heading>Double taxation conventions operating by reference to deemed domicile</heading><subsection><num>(1)</num><content><p>This section applies to a case in which the application of any arrangements having effect under section 158 (double taxation conventions) depends (to any extent) on whether a person is treated as domiciled in the United Kingdom for the purposes of inheritance tax.</p></content></subsection><subsection><num>(2)</num><content><p>The person is treated as domiciled in the United Kingdom for the purposes of inheritance tax if they are a long-term UK resident.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 276ZC to 267ZE (persons treated as long-term resident by virtue of election) are to be disregarded in applying this section in relation to any arrangements that are specified in an Order in Council made under section 158 of IHTA 1984 before 17 July 2013 (other than by way of amendment by an Order made on or after that date).</p></content></subsection><subsection><num>(4)</num><content><p>Nothing in this section affects the interpretation of any such arrangements as are mentioned in section 158(6) (certain pre-1975 arrangements).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-13-paragraph-28-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">Section 272</a> (general interpretation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-2"><num>(2)</num><content><p>The existing text becomes subsection (1).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-28-3-a"><num>(a)</num><content><p><mod>in the definition of “excluded property”, for “6 and 48” substitute <quotedText>“6, 48 and 48ZA”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-3-b"><num>(b)</num><content><p>omit the definition of “formerly domiciled resident”.</p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-4"><num>(4)</num><intro><p>Also in subsection (1), in the definition of “foreign-owned”—</p></intro><level class="para1" eId="schedule-13-paragraph-28-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">paragraph (a)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-4-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>if the property is comprised in a settlement, in the case of which the settlor—</p></intro><level class="para2"><num>(i)</num><content><p>is alive and is at that time not a long-term UK resident,</p></content></level><level class="para2"><num>(ii)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para2"><num>(iii)</num><content><p>died before 6 April 2025 and was domiciled outside the United Kingdom when the property became comprised in the settlement,</p></content></level><wrapUp><p>and <ref href="#d25e7421">section 48ZA</ref><ref href="#d25e7544">(9)</ref> (accumulation of income) applies for the purposes of this paragraph as it applies for the purposes of section <ref href="#d25e7421">48ZA</ref><ref href="#d25e7457">(4)</ref>.</p></wrapUp></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-5"><num>(5)</num><content><p><mod>Also in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the meaning given by sections <ref href="#d25e7160">6A</ref> to <ref href="#d25e7353">6C</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-tax-year">tax year</term>” means a year beginning with 6 April and ending with the following 5 April;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-tax-year-2025-26">the tax year 2025-26</term>” means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-6"><num>(6)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>A reference in this Act to a settlor’s being alive or dying is to be read, in relation to a settlor who is a body corporate, as a reference (respectively) to the body’s being in existence or ceasing to exist.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-13-paragraph-29-1"><num>(1)</num><content><p>Schedule A1 (non-excluded overseas property) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-2"><num>(2)</num><content><p><mod>In paragraph 1, for “48(3)(a)” substitute <quotedText>“48ZA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-3"><num>(3)</num><content><p><mod>In paragraph 5(2)(a), for “or 48(3)(a), (3A) or (4)” substitute <quotedText>“, section 48(4) or section 48ZA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4">Schedule 4</a> (maintenance funds for historic buildings etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">paragraph 10</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">(8)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00336" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref></heading><paragraph eId="schedule-13-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-13-paragraph-31-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1986/41/section/102">Section 102</a> of <ref eId="c00337" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref> (gifts with reservation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-2"><num>(2)</num><content><p><mod>In subsection (1), for “(5) and (6)” substitute <quotedText>“(5), (6) and (7A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-3"><num>(3)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e44504"><num>(7A)</num><intro><p>This section does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal of property by way of gift took place before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>the property became settled property by virtue of the disposal and remained settled property at all times after the disposal and before the relevant time,</p></content></level><level class="para1" eId="d25e44522"><num>(c)</num><content><p>immediately before 30 October 2024, the property was excluded property for the purposes of the 1984 Act by virtue of section 48(3) or (3A) (as it had effect at that time), and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the relevant time, the property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 to the 1984 Act applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company (within the meaning, in either case, of the 1984 Act).</p></content></level></level></subsection><subsection><num>(7B)</num><intro><p>In subsection <ref href="#d25e44504">(7A)</ref>, “<term refersTo="#term-the-relevant-time">the relevant time</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the property ceases to meet the condition in subsection (2) at any time before the donor’s death, that time;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, the time of the donor’s death.</p></content></level></subsection><subsection><num>(7C)</num><content><p>In <ref href="#d25e44504">subsection (7A)</ref><ref href="#d25e44522">(c)</ref>, “<term refersTo="#term-for-the-purposes-of-the-1984-act">for the purposes of the 1984 Act</term>” includes for the purposes only of Chapter 3 of Part 3 of that Act (ten-year anniversary charges etc) because of the operation of section 81 of that Act (property moving between settlements).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><ref eId="c00338" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-13-paragraph-32" class="schProv1"><num>32</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15">Schedule 15</a> to <ref eId="c00339" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pre-owned assets charge) is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-33" class="schProv1"><num>33</num><content><p><mod>In paragraph 11 (exemptions from charge), in sub-paragraph (5), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>would fall to be so treated but for section 102<ref href="#d25e44504">(7A)</ref> of the 1986 Act (cases where property was excluded property under the old inheritance tax regime),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">paragraph 12</a>, for “resident or domiciled outside the United Kingdom” substitute <quotedText>“non-UK resident or not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-13-paragraph-35-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">Paragraph 12</a> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (2)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-3"><num>(3)</num><content><p>Omit sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-4"><num>(4)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><content><p>In this paragraph, “<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the same meaning as in IHTA 1984.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Constitutional Reform and Governance Act 2010</heading><paragraph eId="schedule-13-paragraph-36" class="schProv1"><num>36</num><content><p><mod>In section 41 of the Constitutional Reform and Governance Act 2010 (tax status of MPs and members of the House of Lords), for subsections (2) and (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>The person is to be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as resident in the United Kingdom for the whole of that tax year for the purposes of income tax, capital gains tax and inheritance tax, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a long-term UK resident at all times in that tax year for the purposes of inheritance tax.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00340" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>)</heading><paragraph eId="schedule-13-paragraph-37" class="schProv1"><num>37</num><content><p>The <ref eId="c00341" href="https://www.legislation.gov.uk/uksi/2004/2543">Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004</ref> are amended in accordance with paragraphs <ref href="#schedule-13-paragraph-38">38</ref> to <ref href="#schedule-13-paragraph-43">43</ref>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-38" class="schProv1"><num>38</num><intro><p>In regulation 2 (interpretation)—</p></intro><level class="para1" eId="schedule-13-paragraph-38-a"><num>(a)</num><content><p>the existing text becomes paragraph (1);</p></content></level><level class="para1" eId="schedule-13-paragraph-38-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2)</num><content><p>A reference in these Regulations to a person’s being domiciled in the United Kingdom includes a reference to the person’s being treated as so domiciled for the purposes of the 1984 Act.</p></content></paragraph></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-13-paragraph-39-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">Regulation 4</a> (excepted estates) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraphs (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a> and <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(3)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a>, for “, domiciled in the United Kingdom” substitute <quotedText>“and was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-3"><num>(3)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraph (5)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>that person—</p></intro><level class="para2"><num>(i)</num><content><p>was not a long-term UK resident at any time on or after 6 April 2025, and</p></content></level><level class="para2"><num>(ii)</num><content><p>was not domiciled in the United Kingdom at any time before that date;</p></content></level></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">regulation 5</a> (spouse, civil partner and charity transfers), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">paragraph (2)</a>, for the words from “was not domiciled” to the end substitute <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>was, at any time in the period beginning with 6 April 2025 and ending with the time of the transfer, not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>was, at any time before 6 April 2025, not domiciled in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-41" class="schProv1"><num>41</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">regulation 5A</a> (IHT threshold), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">paragraph (4)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">(a)</a>, for “died domiciled in the United Kingdom” substitute <quotedText>“was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-42" class="schProv1"><num>42</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6">regulation 6</a> (production of information), in the heading, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-13-paragraph-43-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">Regulation 6A</a> (production of information) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-2"><num>(2)</num><content><p><mod>In the heading, for “deceased domiciled outside the United Kingdom” substitute <quotedText>“cases within regulation 4(5)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">(g)</a>, for “domicile” substitute <quotedText>“place of tax residence”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00342" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>)</heading><paragraph eId="schedule-13-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-13-paragraph-44-1"><num>(1)</num><content><p>In the <ref eId="c00343" href="https://www.legislation.gov.uk/uksi/2008/606">Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008</ref>, <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">regulation 4</a> (excepted settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a><a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">(a)</a>, for “is domiciled in the United Kingdom” substitute <quotedText>“meets the condition in paragraph (3A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(3A)</num><intro><p>The condition in this paragraph is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to times on or after 6 April 2025, that the settlor is a long-term UK resident;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to times before that date, that the settlor is domiciled in the United Kingdom (or treated as such for the purposes of the 1984 Act).</p></content></level></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-13-part-2"><num>Part 2</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-13-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-13-paragraph-45-1"><num>(1)</num><content><p><ref href="#schedule-13-part-1">Part 1</ref> of <ref href="#schedule-13">this Schedule</ref>, other than <ref href="#schedule-13-paragraph-26">paragraph 26</ref>, comes into force on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-2"><num>(2)</num><content><p><ref href="#schedule-13-paragraph-26">Paragraph 26</ref> (repeal of sections 267ZA and 267ZB) comes into force on 6 April 2032.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-12">paragraph 12</ref> to section 74A of IHTA 1984 (arrangements involving acquisition of interest in settled property etc) have effect where the relevant time (as defined in section 74C(5) of that Act) is on or after 6 April 2025 (even if the arrangements were entered into before that date).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-4"><num>(4)</num><content><p>The amendment made by <ref href="#schedule-13-paragraph-19">paragraph 19</ref> to section 136 of IHTA 1984 (transactions of close companies) has effect in relation to relevant transactions (within the meaning of that section) on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-5"><num>(5)</num><content><p>The amendments made by <span><ref href="#schedule-13-paragraph-37">paragraphs 37</ref> to <ref href="#schedule-13-paragraph-43">43</ref></span> to the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00344" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>) have effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-6"><num>(6)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-44">paragraph 44</ref> to the Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00345" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>) have effect in relation to chargeable events (within the meaning of regulation 2 of those Regulations) occurring on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Certain pre-commencement emigrants treated as not being long-term UK residents</heading><paragraph eId="schedule-13-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-13-paragraph-46-1"><num>(1)</num><intro><p>An individual who would otherwise be a long-term UK resident at any time in a given tax year (“the relevant tax year”) is treated for the purposes of <ref eId="c00346" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> as not being a long-term UK resident at that time if the individual—</p></intro><level class="para1" eId="schedule-13-paragraph-46-1-a"><num>(a)</num><content><p>was not domiciled in the United Kingdom on 30 October 2024,</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-b"><num>(b)</num><content><p>has been resident in the United Kingdom for no tax year in the period beginning with the tax year 2025-26 and ending with the relevant tax year, and</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-c"><num>(c)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-13-paragraph-46-1-c-i"><num>(i)</num><content><p>was resident in the United Kingdom for none of the 3 tax years immediately preceding the relevant tax year, or</p></content></level><level class="para2" eId="schedule-13-paragraph-46-1-c-ii"><num>(ii)</num><content><p>was resident in the United Kingdom for fewer than 15 of the 20 tax years immediately preceding the relevant tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-13-paragraph-46-2"><num>(2)</num><content><p>For the purposes of <ref href="#schedule-13-paragraph-46-1">sub-paragraph (1)</ref><ref href="#schedule-13-paragraph-46-1-a">(a)</ref>, in determining where an individual was domiciled on 30 October 2024, ignore section 267 (deemed domicile) and sections 267ZA and 267ZB (domicile elections) of IHTA 1984.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Property moving between settlements</heading><paragraph eId="schedule-13-paragraph-47" class="schProv1"><num>47</num><content><p>The amendment of section 81(1) of IHTA 1984 by <ref href="#schedule-13-paragraph-15">paragraph 15</ref><ref href="#schedule-13-paragraph-15-b">(b)</ref> of this Schedule (trusts on which property moving between settlements is held) is to be disregarded in construing section 81(1) in a case where the property in question ceased to be comprised in the first settlement before 6 April 2025.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Settlor’s death etc: application to bodies corporate</heading><paragraph eId="schedule-13-paragraph-48" class="schProv1"><num>48</num><content><p>The insertion of section 272(2) of IHTA 1984 by <ref href="#schedule-13-paragraph-28">paragraph 28</ref><ref href="#schedule-13-paragraph-28-6">(6)</ref> of this Schedule (meaning of references to dying or being alive in the case of corporate settlors) is to be disregarded in construing section 201(1)(d) of IHTA 1984 in relation to property that became comprised in the settlement before 6 April 2025.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Deemed domicile rules still to apply in relation to times before commencement</heading><paragraph eId="schedule-13-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-13-paragraph-49-1"><num>(1)</num><content><p>The repeal of <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> of <ref eId="c00347" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> (persons treated as domiciled in United Kingdom) by <ref href="#schedule-13-paragraph-23">paragraph 23</ref> is to be disregarded in determining for the purposes of that Act any question as to where a person was domiciled at any time before 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-49-2"><num>(2)</num><content><p>In construing section 267 of IHTA 1984, so far as saved by sub-paragraph (1), the repeal of the definition of “formerly domiciled resident” by paragraph <ref href="#schedule-13-paragraph-28">28</ref><ref href="#schedule-13-paragraph-28-3">(3)</ref><ref href="#schedule-13-paragraph-28-3-b">(b)</ref> is also to be disregarded.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-1"><num>Schedule 1<authorialNote class="referenceNote"><p>Section 7</p></authorialNote></num><heading>Consequential provision in connection with section <ref href="#section-7">7</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e15399"><heading>Amendments of <ref eId="c00066" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> (income taxed at higher rates or gains exceeding unused basic rate band)—</p></intro><level class="para1" eId="schedule-1-paragraph-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-a-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (2)</a>, in the closing words—</p></intro><level class="para2" eId="schedule-1-paragraph-2-b-i"><num>(i)</num><content><p>omit “at the rate of 24% (so far as comprising residential property gains),”, and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-c"><num>(c)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (5)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-c-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-c-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-d"><num>(d)</num><content><p><mod>for <span>subsections (7) to (9)</span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>The individual may allocate so much of the unused part of the individual’s basic rate band as then remains to any carried interest gains or any other gains.</p></content></subsection><subsection><num>(8)</num><content><p>The effect of the allocation is that the gains to which the allocation is made are charged at the rate of 18%.</p></content></subsection><subsection><num>(9)</num><intro><p>Any gains to which no allocation is made are charged—</p></intro><level class="para1"><num>(a)</num><content><p>at the rate of 28% (if they are carried interest gains), or</p></content></level><level class="para1"><num>(b)</num><content><p>at the rate of 24% (if they are other kinds of gains).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 222A (determination of main residence: non-resident CGT disposals), in subsection (1)(b)(i), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 223 (amount of relief), in subsection (7)(b), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1B">Schedule 1B</a> (residential property gains).</p></content></paragraph><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><content><p>Schedule 4AA (re-basing for non-residents in respect of UK land etc held on 5 April 2019) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content><p>Omit paragraphs 5, 10, 11 and 15.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><content><p><mod>In paragraph 22(3), for “Schedule 1B” substitute <quotedText>“paragraphs <ref href="#d25e15956">16E</ref> to <ref href="#d25e16279">16H</ref> of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e15597"><heading>Amendments of other Acts</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><content><p><mod>In paragraph 8(3) of Schedule A1 to IHTA 1984 (non-excluded overseas property), for “Schedule 1B to the 1992 Act” substitute <quotedText>“paragraphs 16B to 16H of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1">Schedule 1</a> to <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/2019/1">FA 2019</ref>, omit <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1/paragraph/15">paragraph 15</a>.</p></content></paragraph><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2">Schedule 2</a> to <ref eId="c00069" href="https://www.legislation.gov.uk/ukpga/2019/1">that Act</ref> (returns and payments on account: disposals of UK land etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/16">paragraph 16</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of “residential property gains”</heading><paragraph class="schProv1"><num>16A</num><subparagraph><num>(1)</num><content><p>In this Part of this Schedule “<term refersTo="#term-residential-property-gain">residential property gain</term>” means so much of a chargeable gain accruing to a person on a disposal of residential property as, in accordance with paragraph 16B, is attributable to that property.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The question whether or not a person disposes of residential property is determined in accordance with paragraphs 16C to 16G.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16B</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A the proportion of a chargeable gain attributable to residential property is equal to—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant fraction of the gain, and</p></content></level><level class="para1"><num>(b)</num><content><p>if there has been mixed use of the land to which the disposal relates on one or more days in the applicable period, the relevant fraction of the gain as adjusted, on a just and reasonable basis, to take account of the mixed use on the day or days.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>The relevant fraction is A/B where—</p></intro><hcontainer name="definition"><content><p>A is the number of days in the applicable period on which the land to which the disposal relates consists of or includes a dwelling, and</p></content></hcontainer><hcontainer name="definition"><content><p>B is the total number of days in the applicable period.</p></content></hcontainer></subparagraph><subparagraph><num>(3)</num><intro><p>There is mixed use of land on any day on which the land consists of—</p></intro><level class="para1"><num>(a)</num><content><p>one or more dwellings, and</p></content></level><level class="para1"><num>(b)</num><content><p>other land.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the disposal is of an interest in land subsisting under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling, that land is taken to consist of or include a dwelling throughout the applicable period.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>In this paragraph “<term refersTo="#term-the-applicable-period">the applicable period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the person making the disposal acquired the interest in land being disposed of or, if later, the day from which the interest in land became chargeable, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the day on which the disposal occurs.</p></content></level></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph an interest in land became “chargeable”—</p></intro><level class="para1"><num>(a)</num><intro><p>in any case where the disposal is of an interest in land in the United Kingdom—</p></intro><level class="para2"><num>(i)</num><content><p>by a person in a tax year in which the person is not UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>by a person in the overseas part of a tax year which is, as respects the person, a split year,</p></content></level><wrapUp><p>from 6 April 2015, and</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in any other case, from 31 March 1982.</p></content></level></subparagraph><subparagraph><num>(7)</num><content><p>If the interest in land disposed of by the person results from interests in land acquired by the person at different times, the person is regarded for the purposes of this paragraph as having acquired the interest disposed of at the time of the first acquisition.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16C</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A a person “disposes of residential property” if the person disposes of an interest in land in a case where—</p></intro><level class="para1"><num>(a)</num><content><p>the land consisted of or included a dwelling at any time falling on or after the date on which the applicable period begins,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest in land subsisted for the benefit of land that consisted of or included a dwelling at any time falling on or after that date, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest in land subsists under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>No account is to be taken for the purposes of this paragraph of any time falling on (or after) the day on which the disposal is made.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16D</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H an “<term refersTo="#term-interest-in-land">interest in land</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>an estate, interest, right or power in or over land, or</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over land,</p></content></level><wrapUp><p>other than an excluded interest.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>The following interests are “excluded interests”—</p></intro><level class="para1"><num>(a)</num><content><p>any interest or right held for securing the payment of money or the performance of any other obligation,</p></content></level><level class="para1"><num>(b)</num><content><p>a licence to use or occupy land,</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to land in England and Wales or Northern Ireland, a tenancy at will or an advowson, franchise or manor, and</p></content></level><level class="para1"><num>(d)</num><content><p>such other descriptions of interest or right in relation to land as may be specified in regulations made by the Treasury.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>An interest or right is not within sub-paragraph (2)(a) if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a rentcharge, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to land in Scotland, a feu duty or a payment mentioned in <a href="https://www.legislation.gov.uk/asp/2000/5/section/56">section 56</a><a href="https://www.legislation.gov.uk/asp/2000/5/section/56">(1)</a> of the <ref eId="c00070" href="https://www.legislation.gov.uk/asp/2000/5">Abolition of Feudal Tenure etc. (Scotland) Act 2000</ref>.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>The grant of an option by a person binding the person to dispose of an interest in land is (so far as it would not otherwise be the case) regarded as a disposal of an interest in land by the person for the purposes of this Schedule.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>This does not affect the operation of section 144 in relation to the grant of the option (or otherwise).</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In applying the domestic concepts of law mentioned in this paragraph to land outside the United Kingdom, this paragraph is to be read so as to produce the result most closely corresponding with that produced in relation to land in the United Kingdom.</p></content></subparagraph><subparagraph><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-franchise">franchise</term>” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls, and</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-land">land</term>” includes—</p></intro><level class="para1"><num>(a)</num><content><p>buildings and structures, and</p></content></level><level class="para1"><num>(b)</num><content><p>land under the sea or otherwise covered by water.</p></content></level></hcontainer></subparagraph></paragraph><paragraph eId="d25e15956" class="schProv1"><num>16E</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H a building is a dwelling at any time when—</p></intro><level class="para1"><num>(a)</num><content><p>it is used, or suitable for use, as a dwelling, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is in the process of being constructed or adapted for use as a dwelling,</p></content></level><wrapUp><p>and, in each case, it is not an institutional building.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><content><p>Land that at any time is, or is intended to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure) is taken to be part of the dwelling at that time.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>A building is an institutional building if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used as residential accommodation for school pupils,</p></content></level><level class="para1"><num>(b)</num><content><p>it is used as residential accommodation for members of the armed forces,</p></content></level><level class="para1"><num>(c)</num><content><p>it is used as a home or other institution providing residential accommodation for children,</p></content></level><level class="para1"><num>(d)</num><content><p>it is used as a home or other institution providing residential accommodation with personal care for persons in need of personal care because of old age, disability, past or present dependence on alcohol or drugs or past or present mental disorder,</p></content></level><level class="para1"><num>(e)</num><content><p>it is used as a hospital or hospice,</p></content></level><level class="para1"><num>(f)</num><content><p>it is used as a prison or similar establishment,</p></content></level><level class="para1"><num>(g)</num><content><p>it is used as a hotel or inn or similar establishment,</p></content></level><level class="para1"><num>(h)</num><content><p>it is otherwise used, or suitable for use, as an institution that is the sole or main residence of its residents,</p></content></level><level class="para1"><num>(i)</num><intro><p>it falls within—</p></intro><level class="para2"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">Schedule 14</a> to the <ref eId="c00071" href="https://www.legislation.gov.uk/ukpga/2004/34">Housing Act 2004</ref> (buildings in England or Wales occupied by students and managed or controlled by educational establishment etc), or</p></content></level><level class="para2"><num>(ii)</num><content><p>any provision having effect in Scotland or Northern Ireland that is designated by regulations made by the Treasury as provision corresponding to <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">that Schedule</a>, or</p></content></level></level><level class="para1"><num>(j)</num><content><p>it qualifies in accordance with the next sub-paragraph as student accommodation.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A building qualifies as student accommodation in accordance with this sub-paragraph at any time if the time falls in a tax year in which—</p></intro><level class="para1"><num>(a)</num><content><p>the accommodation provided by the building includes at least 15 bedrooms,</p></content></level><level class="para1"><num>(b)</num><content><p>the accommodation is purpose-built, or is converted, for occupation by students, and</p></content></level><level class="para1"><num>(c)</num><content><p>the accommodation is occupied by students on at least 165 days.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Accommodation is to be regarded as occupied by persons as students if they occupy it wholly or mainly for undertaking a course of education (otherwise than as school pupils).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16F</num><subparagraph><num>(1)</num><content><p>A building is treated for the purposes of paragraph 16E as continuing to be suitable for use as a dwelling at any time when it has become temporarily unsuitable for use as a dwelling.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>There is an exception to this rule if—</p></intro><level class="para1"><num>(a)</num><content><p>the temporary unsuitability resulted from accidental damage to the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>the damage resulted in the building becoming unsuitable for use as a dwelling for a period of at least 90 consecutive days (“the 90 day period”).</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>This exception does not apply if the damage occurred in the course of work that—</p></intro><level class="para1"><num>(a)</num><content><p>was being done for the purpose of altering the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>itself involved, or could be expected to involve, making the building unsuitable for use as a dwelling for at least 30 consecutive days.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the exception applies, work done in the 90 day period to restore the building to suitability for use as a dwelling is not to count for the purposes of paragraph 16E as constructing or adapting the building for use as a dwelling.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>references to accidental damage include damage otherwise caused by events beyond the control of the person disposing of the interest in land,</p></content></level><level class="para1"><num>(b)</num><content><p>references to alteration of a building include its partial demolition, and</p></content></level><level class="para1"><num>(c)</num><content><p>the 90 day period does not include the day of the disposal (or later days).</p></content></level></subparagraph><subparagraph><num>(6)</num><content><p>For the purposes of this paragraph a building’s unsuitability for use as a dwelling is not regarded as temporary if paragraph 16G applies (disposal of a building that has undergone works).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16G</num><subparagraph><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person disposes of an interest in land on which a building has been suitable for use as a dwelling, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a result of qualifying works, the building has, at or before the time of completion of the disposal, ceased to exist or become unsuitable for use as a dwelling,</p></content></level><wrapUp><p>the building is to be regarded for the purposes of paragraph 16E as unsuitable for use as a dwelling throughout the works period.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of this paragraph works are “qualifying” works if—</p></intro><level class="para1"><num>(a)</num><content><p>any planning permission or development consent required for the works, or for any change of use with which they are associated, has been granted (whether before or after completion), and</p></content></level><level class="para1"><num>(b)</num><content><p>the works have been carried out in accordance with the permission or consent.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-works-period">the works period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>the period when the works were in progress, and</p></content></level><level class="para1"><num>(b)</num><content><p>such period (if any) ending immediately before the start of the works throughout which the building was, for reasons connected with the works, not used as dwelling.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>If at any time when qualifying works are in progress—</p></intro><level class="para1"><num>(a)</num><content><p>the building was undergoing any other work, or put to any other use, in relation to which planning permission or development consent was required but has not (at any time) been granted, or</p></content></level><level class="para1"><num>(b)</num><content><p>anything else was being done in contravention of a condition or requirement attached to a planning permission or development consent relating to the building,</p></content></level><wrapUp><p>the works period does not include that time.</p></wrapUp></subparagraph><subparagraph><num>(5)</num><content><p>If sub-paragraph (1) would have applied but for the fact that, at the completion of the disposal, the works are not qualifying works, the works are regarded as not affecting the building's suitability for use as a dwelling at any time before the disposal.</p></content></subparagraph></paragraph><paragraph eId="d25e16279" class="schProv1"><num>16H</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16G a building is regarded as ceasing to exist from the time when either—</p></intro><level class="para1"><num>(a)</num><content><p>it has been demolished completely to ground level, or</p></content></level><level class="para1"><num>(b)</num><content><p>it has been demolished to ground level except for a single facade (or a double facade if it is on a corner site) the retention of which is a condition or requirement of planning permission or development consent.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of paragraphs 16B to 16G the completion of the disposal of an interest in land is regarded as occurring—</p></intro><level class="para1"><num>(a)</num><content><p>at the time of the disposal, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the disposal is under a contract which is completed by a conveyance, transfer or other instrument, at the time when the instrument takes effect.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>For the purposes of paragraphs 16B to 16G—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building">building</term>” includes a part of a building,</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-development-consent">development consent</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in the United Kingdom, development consent under the <ref eId="c00072" href="https://www.legislation.gov.uk/ukpga/2008/29">Planning Act 2008</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land outside the United Kingdom, consent corresponding to development consent under <ref eId="c00073" href="https://www.legislation.gov.uk/ukpga/2008/29">that Act</ref>, and</p></content></level></hcontainer><hcontainer name="definition"><intro><p><term refersTo="#term-planning-permission">planning permission</term>“—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in England or Wales, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">section 336</a><a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">(1)</a> of the <ref eId="c00074" href="https://www.legislation.gov.uk/ukpga/1990/8">Town and Country Planning Act 1990</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land in Scotland, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">section 227</a><a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">(1)</a> of the <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1997/8">Town and Country Planning (Scotland) Act 1997</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of land in Northern Ireland, has the meaning given by <a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">Article 2</a><a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">(2)</a> of the <ref eId="c00076" href="https://www.legislation.gov.uk/nisi/1991/1220">Planning (Northern Ireland) Order 1991</ref>, and</p></content></level><level class="para1"><num>(d)</num><content><p>in the case of land outside the United Kingdom, means permission corresponding to any planning permission in relation to land anywhere in the United Kingdom.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><content><p><mod>For the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a> substitute <quotedText>“<i>Other interpretation</i>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">(1)</a>, omit the definition of “<term refersTo="#term-residential-property-gains" eId="term-residential-property-gains">residential property gains</term>” (but not the “and” at the end of that definition).</p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 6 of F(No.2)A 2024, omit—</p></intro><level class="para1" eId="schedule-1-paragraph-10-a"><num>(a)</num><content><p>subsection (1)(a), (c) and (e), and</p></content></level><level class="para1" eId="schedule-1-paragraph-10-b"><num>(b)</num><content><p>subsection (2)(a)(i), (b)(i), (c)(i) and (d)(i).</p></content></level></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Amendments of <ref eId="c00258" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00259" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">section 6</a> (nature of charge to tax on employment income), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (a)</a>, omit “and domicile”;</p></content></level><level class="para1" eId="schedule-9-paragraph-3-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (aa)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">section 20</a> (taxable earnings under this Chapter), for <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">subsection (1)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This Chapter contains provision for determining how much of the following are taxable earnings from an employment in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings that are for a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee (being a tax year before tax year 2025-26), and</p></content></level><level class="para1"><num>(b)</num><content><p>general earnings that are for a tax year for which the employee is non-UK resident.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a> (chargeable overseas earnings for year when remittance basis applies and employee outside section 26)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-4-a"><num>(a)</num><content><p><mod>in the heading and in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(b)</a>, for “does not” substitute <quotedText>“did not”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">section 23</a> (calculation of “chargeable overseas earnings”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (aa)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (b)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-6"><num>(6)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/25">section 25</a>, for “meet” substitute <quotedText>“met”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">section 26</a> (foreign earnings for year when remittance basis applies and employee meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “applies and employee meets” substitute <quotedText>“applied and employee met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-7-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">subsection (1)</a>, in the opening words—</p></intro><level class="para2" eId="schedule-9-paragraph-3-7-b-i"><num>(i)</num><content><p><mod>for “applies”, in the second place it appears, substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-7-b-ii"><num>(ii)</num><content><p><mod>for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">section 41F</a> (taxable specific income: internationally mobile employee etc), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-9"><num>(9)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">section 41H</a> (section 41F: chargeable and unchargeable foreign securities income)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-9-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (4)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (d)</a> for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-3-9-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-10"><num>(10)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">section 271</a> (limited exemption of removal benefits and expenses: general)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-10-a"><num>(a)</num><content><p><mod>in subsections (2)(a) and (2)(b), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-10-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">(b)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-11"><num>(11)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">section 554Z9</a> (remittance basis: A does not meet section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-11-a"><num>(a)</num><content><p><mod>in the heading, for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-11-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-11-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (b)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (c)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (d)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (e)</a>, for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-12"><num>(12)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">section 554Z10</a> (remittance basis: A meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-12-a"><num>(a)</num><content><p><mod>in the heading, for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(b)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(c)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-13"><num>(13)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">section 576A</a> (temporary non-residents), in subsection <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">(5)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-14"><num>(14)</num><content><p><mod>In section 698 (PAYE: special charges on employment-related securities), in subsection (8), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-15"><num>(15)</num><content><p><mod>In section 700 (PAYE: gains from securities options), in subsection (7), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-16"><num>(16)</num><content><p><mod>In section 700A (employment-related securities etc: remittance basis), in the heading, for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-1">Part 1</ref> have effect for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>The amendments made by <ref href="#schedule-5-part-2">Part 2</ref> have effect for the purposes of corporation tax in relation to accounting periods beginning on or after 1 April 2025.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><intro><p>The amendments made by <ref href="#schedule-5-part-3">Part 3</ref> have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-12-3-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-12-3-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to periods of account beginning on or after 6 April 2025.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><content><p><ref href="#schedule-5-paragraph-15">This paragraph</ref> applies where a company has an accounting period beginning before, and ending on or after, 1 April 2025 (“the straddling period”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>For the purposes of <ref href="#schedule-5">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>so much of the straddling period as falls before 1 April 2025, and so much of that period as falls on or after 1 April 2025, are treated as separate accounting periods, and</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><intro><p>where it is necessary to apportion an amount for the straddling period to the two separate accounting periods, it is to be apportioned—</p></intro><level class="para2" eId="schedule-5-paragraph-15-2-b-i"><num>(i)</num><content><p>in accordance with <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/1172">section 1172</a> of <ref eId="c00219" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (time basis), or</p></content></level><level class="para2" eId="schedule-5-paragraph-15-2-b-ii"><num>(ii)</num><content><p>if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.</p></content></level></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-18">This paragraph</ref> applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00237" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (plant and machinery allowances) where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>immediately before the end of a person’s pre-commencement chargeable period, the person is carrying on an FHL qualifying activity, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>at the start of the person’s post-commencement chargeable period, the person is carrying on the corresponding property activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The amount of any allowance or charge arising in the person’s post-commencement chargeable period or any subsequent chargeable period is to be calculated as if anything done by or to the person in carrying on the FHL qualifying activity had been done by or to the person in carrying on the corresponding property activity.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>In particular—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><intro><p>where plant or machinery is in use for the purposes of the FHL qualifying activity immediately before the end of the person’s pre-commencement chargeable period—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-a-i"><num>(i)</num><content><p>the plant or machinery is to be treated as if it had been brought into use for the purposes of the corresponding property activity on the day on which it was brought into use for the purposes of the FHL qualifying activity, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-a-ii"><num>(ii)</num><content><p>its use for the purposes of the FHL qualifying activity is to be disregarded.</p></content></level></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><intro><p>where the person has unrelieved qualifying expenditure (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">section 59</a> of <ref eId="c00238" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>) to carry forward from the person’s pre-commencement chargeable period in a pool for an FHL qualifying activity, the expenditure is to be—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-b-i"><num>(i)</num><content><p>carried forward to the person’s post-commencement chargeable period, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-b-ii"><num>(ii)</num><content><p>allocated to the appropriate pool for the corresponding property activity.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>Accordingly, the person is not to be taken, by reason only of the effect of the amendments made by <ref href="#schedule-5">this Schedule</ref>, as having—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>brought plant or machinery into use, or ceased to use plant or machinery, for the purposes of a qualifying activity, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>permanently discontinued a qualifying activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">Section 35</a> of <ref eId="c00239" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure) does not apply to expenditure carried forward in accordance with <ref href="#schedule-5-paragraph-18-3">sub-paragraph (3)</ref><ref href="#schedule-5-paragraph-18-3-b">(b)</ref><ref href="#schedule-5-paragraph-18-3-b-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>In <ref href="#schedule-5-paragraph-18">this paragraph</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fhl-qualifying-activity" eId="term-fhl-qualifying-activity">FHL qualifying activity</term>” means a UK furnished holiday lettings business or an EEA furnished holiday lettings business;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-corresponding-property-activity" eId="term-the-corresponding-property-activity">the corresponding property activity</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK furnished holiday lettings business carried on by a person, a UK property business carried on by that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an EEA furnished holiday lettings business carried on by a person, an overseas property business carried on by that person;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-pre-commencement-chargeable-period" eId="term-pre-commencement-chargeable-period">pre-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, a company’s last accounting period to begin before 1 April 2025, and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2024-25;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-post-commencement-chargeable-period" eId="term-post-commencement-chargeable-period">post-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, the accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2025-26.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Expressions used in <ref href="#schedule-5-paragraph-18-6">sub-paragraph (6)</ref> have the same meaning as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00240" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>that the settlement meets the trustee independence requirement (see section 236LA) at the time of the disposal and continues to meet that requirement for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236L">section 236L</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>236LA</num><heading>Trustee independence requirement</heading><subsection><num>(1)</num><intro><p>A settlement meets the trustee independence requirement if—</p></intro><level class="para1"><num>(a)</num><content><p>less than 50% of the trustees are persons who are excluded participators, and</p></content></level><level class="para1"><num>(b)</num><content><p>excluded participators do not have control of the settlement.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In this section “<term refersTo="#term-excluded-participator">excluded participator</term>” means—</p></intro><level class="para1" eId="d25e28661"><num>(a)</num><content><p>a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>a company not falling within <ref href="#d25e28661">paragraph (a)</ref>, if 50% or more of its directors are persons falling within that paragraph.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to—</p></intro><level class="para1"><num>(a)</num><content><p>dispose of, advance, lend, invest, pay or apply settlement property;</p></content></level><level class="para1"><num>(b)</num><content><p>vary or terminate the settlement;</p></content></level><level class="para1"><num>(c)</num><content><p>add or remove a person as a beneficiary or to or from a class of beneficiaries;</p></content></level><level class="para1"><num>(d)</num><content><p>appoint or remove trustees or give another individual control over the settlement;</p></content></level><level class="para1"><num>(e)</num><content><p>direct the exercise of a power mentioned in sub-paragraphs (a) to (d).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28727"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(2)</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28750"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-3">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-1-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-1-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(1)</a>, after “end of the” insert <quotedText>“fourth”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">section 236R</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-3-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-3-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-4"><num>(4)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-6">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-6-paragraph-9-1"><num>(1)</num><content><p><mod>In <ref eId="c00253" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, after section 401 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Employee-ownership trusts</heading><section><num>401ZA</num><heading>Relief: distributions to trustees of employee-ownership trusts</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there has been a disposal of ordinary share capital of a company (“<term refersTo="#term-c">C</term>”) to the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the relief requirements are met in relation to the disposal,</p></content></level><level class="para1"><num>(c)</num><content><p>C has made a payment to the trustees that is a distribution to the trustees chargeable to income tax as a result of this Chapter or Chapter 4 (dividends from non-UK resident companies), and</p></content></level><level class="para1"><num>(d)</num><content><p>the payment was made for the purposes of meeting the trustees’ acquisition costs.</p></content></level></subsection><subsection><num>(2)</num><intro><p>On the making of a claim, so much of the trustees’ acquisition costs may be deducted from the distribution (whether chargeable under this Chapter or Chapter 4) as—</p></intro><level class="para1"><num>(a)</num><content><p>does not reduce the amount of the distribution below nil, and</p></content></level><level class="para1"><num>(b)</num><content><p>has not been deducted from any other distribution.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-relief-requirements">relief requirements</term>” means the requirements set out in section 236H(4) of TCGA 1992 (disposals to employee-ownership trusts), but those requirements have effect for the purposes of this section as if references to “P” were to the person making the disposal whether or not that person is a company.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, the trustees’ acquisition costs are sums expended by the trustees on—</p></intro><level class="para1"><num>(a)</num><content><p>the acquisition of ordinary share capital in C by the trustees that resulted from the disposal;</p></content></level><level class="para1"><num>(b)</num><content><p>the repayment of any sums borrowed to fund that acquisition;</p></content></level><level class="para1"><num>(c)</num><content><p>the payment of interest on any such sums or in respect of any deferral of consideration for the disposal to the extent the payment is not in respect of interest exceeding a reasonable commercial rate;</p></content></level><level class="para1"><num>(d)</num><content><p>any valuation of C carried out in connection with the acquisition;</p></content></level><level class="para1"><num>(e)</num><content><p>any liability to stamp duty or stamp duty reserve tax on the acquisition;</p></content></level><level class="para1"><num>(f)</num><content><p>such other reasonable expenses as are directly connected with the acquisition (but this does not include any expenses incurred in connection with the ownership of the ordinary share capital once acquired).</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-9-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-9">this paragraph</ref> has effect in relation to distributions made on or after 30 October 2024.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00259" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">section 6</a> (nature of charge to tax on employment income), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (a)</a>, omit “and domicile”;</p></content></level><level class="para1" eId="schedule-9-paragraph-3-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (aa)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">section 20</a> (taxable earnings under this Chapter), for <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">subsection (1)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This Chapter contains provision for determining how much of the following are taxable earnings from an employment in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings that are for a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee (being a tax year before tax year 2025-26), and</p></content></level><level class="para1"><num>(b)</num><content><p>general earnings that are for a tax year for which the employee is non-UK resident.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a> (chargeable overseas earnings for year when remittance basis applies and employee outside section 26)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-4-a"><num>(a)</num><content><p><mod>in the heading and in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(b)</a>, for “does not” substitute <quotedText>“did not”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">section 23</a> (calculation of “chargeable overseas earnings”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (aa)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (b)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-6"><num>(6)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/25">section 25</a>, for “meet” substitute <quotedText>“met”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">section 26</a> (foreign earnings for year when remittance basis applies and employee meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “applies and employee meets” substitute <quotedText>“applied and employee met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-7-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">subsection (1)</a>, in the opening words—</p></intro><level class="para2" eId="schedule-9-paragraph-3-7-b-i"><num>(i)</num><content><p><mod>for “applies”, in the second place it appears, substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-7-b-ii"><num>(ii)</num><content><p><mod>for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">section 41F</a> (taxable specific income: internationally mobile employee etc), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-9"><num>(9)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">section 41H</a> (section 41F: chargeable and unchargeable foreign securities income)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-9-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (4)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (d)</a> for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-3-9-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-10"><num>(10)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">section 271</a> (limited exemption of removal benefits and expenses: general)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-10-a"><num>(a)</num><content><p><mod>in subsections (2)(a) and (2)(b), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-10-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">(b)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-11"><num>(11)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">section 554Z9</a> (remittance basis: A does not meet section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-11-a"><num>(a)</num><content><p><mod>in the heading, for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-11-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-11-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (b)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (c)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (d)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (e)</a>, for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-12"><num>(12)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">section 554Z10</a> (remittance basis: A meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-12-a"><num>(a)</num><content><p><mod>in the heading, for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(b)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(c)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-13"><num>(13)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">section 576A</a> (temporary non-residents), in subsection <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">(5)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-14"><num>(14)</num><content><p><mod>In section 698 (PAYE: special charges on employment-related securities), in subsection (8), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-15"><num>(15)</num><content><p><mod>In section 700 (PAYE: gains from securities options), in subsection (7), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-16"><num>(16)</num><content><p><mod>In section 700A (employment-related securities etc: remittance basis), in the heading, for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-1-a"><num>(a)</num><intro><p>income or chargeable gains of an individual have been remitted to the United Kingdom during a period that exceeds 5 years—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-a-i"><num>(i)</num><content><p>that ends before 6 April 2024, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-a-ii"><num>(ii)</num><content><p>in which there was no period for which the individual was UK resident, and</p></content></level></level><level class="para1" eId="schedule-9-paragraph-6-1-b"><num>(b)</num><intro><p>after the end of that period, but before 6 April 2025—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-b-i"><num>(i)</num><content><p>the same, or part of the same, income or chargeable gains (“the repeated remitted amount”) were again remitted to the United Kingdom, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-b-ii"><num>(ii)</num><content><p>a relevant charge has arisen in relation to that remittance.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><intro><p>A “<term refersTo="#term-relevant-charge" eId="term-relevant-charge">relevant charge</term>” in relation to a remittance means—</p></intro><level class="para1" eId="schedule-9-paragraph-6-2-a"><num>(a)</num><content><p>income tax becoming chargeable on that remittance, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-2-b"><num>(b)</num><content><p>a gain accruing under paragraph 1(2) of Schedule 1 to TCGA 1992 on that remittance.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>Any relevant charge that has arisen on the first occasion on which the repeated remitted amount is remitted in circumstances falling within <ref href="#schedule-9-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-9-paragraph-6-1-b">(b)</ref> is to be treated as never having arisen.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>But a remittance that is not charged to income tax or capital gains tax as a result of sub-paragraph <ref href="#schedule-9-paragraph-6-3">(3)</ref> is to be treated as if it were charged to income tax or capital gains tax (as the case may be) for the purposes of section 809P(12) of ITA 2007.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><intro><p>This paragraph is to be treated as never having applied where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-5-a"><num>(a)</num><content><p>for either, or each, of the tax years 2024-25 and 2025-26, the individual is not UK resident, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-5-b"><num>(b)</num><content><p>either, or each, of those tax years is a split year as respects the individual.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><content><p>References in this paragraph to amounts being remitted to the United Kingdom are to be construed in accordance with Chapter A1 of Part 14 of ITA 2007 (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> (income taxed at higher rates or gains exceeding unused basic rate band)—</p></intro><level class="para1" eId="schedule-1-paragraph-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-a-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (2)</a>, in the closing words—</p></intro><level class="para2" eId="schedule-1-paragraph-2-b-i"><num>(i)</num><content><p>omit “at the rate of 24% (so far as comprising residential property gains),”, and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-c"><num>(c)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (5)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-c-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-c-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-d"><num>(d)</num><content><p><mod>for <span>subsections (7) to (9)</span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>The individual may allocate so much of the unused part of the individual’s basic rate band as then remains to any carried interest gains or any other gains.</p></content></subsection><subsection><num>(8)</num><content><p>The effect of the allocation is that the gains to which the allocation is made are charged at the rate of 18%.</p></content></subsection><subsection><num>(9)</num><intro><p>Any gains to which no allocation is made are charged—</p></intro><level class="para1"><num>(a)</num><content><p>at the rate of 28% (if they are carried interest gains), or</p></content></level><level class="para1"><num>(b)</num><content><p>at the rate of 24% (if they are other kinds of gains).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-a-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-1-paragraph-2-a-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-1-paragraph-2-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (2)</a>, in the closing words—</p></intro><level class="para2" eId="schedule-1-paragraph-2-b-i"><num>(i)</num><content><p>omit “at the rate of 24% (so far as comprising residential property gains),”, and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-1-paragraph-2-b-i"><num>(i)</num><content><p>omit “at the rate of 24% (so far as comprising residential property gains),”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-1-paragraph-2-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-2-c"><num>(c)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (5)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-c-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-c-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>, and</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-1-paragraph-2-c-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-1-paragraph-2-c-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-1-paragraph-2-d"><num>(d)</num><content><p><mod>for <span>subsections (7) to (9)</span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>The individual may allocate so much of the unused part of the individual’s basic rate band as then remains to any carried interest gains or any other gains.</p></content></subsection><subsection><num>(8)</num><content><p>The effect of the allocation is that the gains to which the allocation is made are charged at the rate of 18%.</p></content></subsection><subsection><num>(9)</num><intro><p>Any gains to which no allocation is made are charged—</p></intro><level class="para1"><num>(a)</num><content><p>at the rate of 28% (if they are carried interest gains), or</p></content></level><level class="para1"><num>(b)</num><content><p>at the rate of 24% (if they are other kinds of gains).</p></content></level></subsection></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 222A (determination of main residence: non-resident CGT disposals), in subsection (1)(b)(i), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 223 (amount of relief), in subsection (7)(b), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1B">Schedule 1B</a> (residential property gains).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><content><p>Schedule 4AA (re-basing for non-residents in respect of UK land etc held on 5 April 2019) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content><p>Omit paragraphs 5, 10, 11 and 15.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><content><p><mod>In paragraph 22(3), for “Schedule 1B” substitute <quotedText>“paragraphs <ref href="#d25e15956">16E</ref> to <ref href="#d25e16279">16H</ref> of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e15399"><heading>Amendments of <ref eId="c00066" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> (income taxed at higher rates or gains exceeding unused basic rate band)—</p></intro><level class="para1" eId="schedule-1-paragraph-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-a-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (2)</a>, in the closing words—</p></intro><level class="para2" eId="schedule-1-paragraph-2-b-i"><num>(i)</num><content><p>omit “at the rate of 24% (so far as comprising residential property gains),”, and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-c"><num>(c)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (5)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-c-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-c-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-d"><num>(d)</num><content><p><mod>for <span>subsections (7) to (9)</span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>The individual may allocate so much of the unused part of the individual’s basic rate band as then remains to any carried interest gains or any other gains.</p></content></subsection><subsection><num>(8)</num><content><p>The effect of the allocation is that the gains to which the allocation is made are charged at the rate of 18%.</p></content></subsection><subsection><num>(9)</num><intro><p>Any gains to which no allocation is made are charged—</p></intro><level class="para1"><num>(a)</num><content><p>at the rate of 28% (if they are carried interest gains), or</p></content></level><level class="para1"><num>(b)</num><content><p>at the rate of 24% (if they are other kinds of gains).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 222A (determination of main residence: non-resident CGT disposals), in subsection (1)(b)(i), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 223 (amount of relief), in subsection (7)(b), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1B">Schedule 1B</a> (residential property gains).</p></content></paragraph><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><content><p>Schedule 4AA (re-basing for non-residents in respect of UK land etc held on 5 April 2019) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content><p>Omit paragraphs 5, 10, 11 and 15.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><content><p><mod>In paragraph 22(3), for “Schedule 1B” substitute <quotedText>“paragraphs <ref href="#d25e15956">16E</ref> to <ref href="#d25e16279">16H</ref> of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Transition into regime</heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>Schedule 16 (transitional provision) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><content><p><mod>In Chapter 1 of Part 2, in the Chapter heading, for “Transitional” substitute <quotedText>“General transitional”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p><mod>In Chapter 2 of Part 2, in the Chapter heading, after “Application” insert <quotedText>“of Chapter 1”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><content><p><mod>After Part 2 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2A</num><heading>UTPR transitional safe harbour election</heading><hcontainer name="crossheading" class="schGroup7"><heading>Election</heading><paragraph class="schProv1"><num>12A</num><subparagraph><num>(1)</num><intro><p>The filing member of a multinational group may elect for an accounting period that in the territory of the ultimate parent—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group located in the territory has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group whose joint venture parent is located in the territory has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>An election may only be made for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the minimum corporate tax rate for the territory of the ultimate parent is equal to, or in excess of, 20%, and</p></content></level><level class="para1"><num>(b)</num><intro><p>the accounting period—</p></intro><level class="para2"><num>(i)</num><content><p>commenced on or before 31 December 2025 and ends before 31 December 2026, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not longer than 12 months.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>The “minimum corporate tax rate” for a territory means—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a territory in which corporate income tax may be imposed by subdivisions of that territory as well as by a national authority, the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>the nominal national rate that generally applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the lowest nominal rate that generally applies that is imposed by a subdivision of that territory (and where one or more subdivisions do not impose corporate income tax, that rate will be zero), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>otherwise, the nominal rate that generally applies.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p><mod>In Schedule 16A at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2</num><heading>Untaxed amounts: international expansion of groups</heading><hcontainer name="crossheading" class="schGroup7"><heading>No untaxed amounts for groups in initial phase of international expansion</heading><paragraph class="schProv1"><num>7</num><subparagraph><num>(1)</num><intro><p>This paragraph applies to a multinational group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>it meets the international expansion condition for that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the accounting period is the first accounting period in which the group came within the scope of Chapter 9A, or any of the following 4 accounting periods.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If this paragraph applies to a multinational group for an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>A multinational group meets the international expansion condition for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the group does not have members located in more than 6 territories, and</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the values of tangible fixed assets of qualifying members of the group, other than members located in the reference territory, for that period does not exceed 50 million euros.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>the value of tangible fixed assets of a qualifying member of a multinational group is to be determined in accordance with <ref href="#d25e20098">section 229H</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>the “reference territory” is the territory for which the sum of the values of tangible fixed assets of qualifying members of the group located in that territory is greatest.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>The first accounting period in which a multinational group comes within the scope of Chapter 9A is the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period for which it meets Condition A in section 129(2) (annual revenue exceeds 750 million euros), and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period beginning on or after the day on which <ref href="#d25e19511">section 229C</ref> (allocation of untaxed amount to members) comes into force for any purpose.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><content><p><mod>In paragraph 8(3) of Schedule A1 to IHTA 1984 (non-excluded overseas property), for “Schedule 1B to the 1992 Act” substitute <quotedText>“paragraphs 16B to 16H of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p>No allowance under <ref eId="c00174" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is to be made to a person in respect of expenditure paid out of a qualifying payment made into a decommissioning fund where a claim for an allowance in relation to that payment under <ref eId="c00175" href="https://www.legislation.gov.uk/ukpga/2001/2">that Act</ref> has been made (whoever made the claim).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>Section 121 (introduction to multinational top-up tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “IIR” to the end substitute <quotedText>“IIR and UTPR (within the meaning of the Pillar Two rules).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>In subsection (5), omit paragraph (e).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>Schedule 16 (transitional provision) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><content><p><mod>In Chapter 1 of Part 2, in the Chapter heading, for “Transitional” substitute <quotedText>“General transitional”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p><mod>In Chapter 2 of Part 2, in the Chapter heading, after “Application” insert <quotedText>“of Chapter 1”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><content><p><mod>After Part 2 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2A</num><heading>UTPR transitional safe harbour election</heading><hcontainer name="crossheading" class="schGroup7"><heading>Election</heading><paragraph class="schProv1"><num>12A</num><subparagraph><num>(1)</num><intro><p>The filing member of a multinational group may elect for an accounting period that in the territory of the ultimate parent—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group located in the territory has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group whose joint venture parent is located in the territory has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>An election may only be made for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the minimum corporate tax rate for the territory of the ultimate parent is equal to, or in excess of, 20%, and</p></content></level><level class="para1"><num>(b)</num><intro><p>the accounting period—</p></intro><level class="para2"><num>(i)</num><content><p>commenced on or before 31 December 2025 and ends before 31 December 2026, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not longer than 12 months.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>The “minimum corporate tax rate” for a territory means—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a territory in which corporate income tax may be imposed by subdivisions of that territory as well as by a national authority, the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>the nominal national rate that generally applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the lowest nominal rate that generally applies that is imposed by a subdivision of that territory (and where one or more subdivisions do not impose corporate income tax, that rate will be zero), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>otherwise, the nominal rate that generally applies.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p><mod>In Schedule 16A at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2</num><heading>Untaxed amounts: international expansion of groups</heading><hcontainer name="crossheading" class="schGroup7"><heading>No untaxed amounts for groups in initial phase of international expansion</heading><paragraph class="schProv1"><num>7</num><subparagraph><num>(1)</num><intro><p>This paragraph applies to a multinational group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>it meets the international expansion condition for that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the accounting period is the first accounting period in which the group came within the scope of Chapter 9A, or any of the following 4 accounting periods.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If this paragraph applies to a multinational group for an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>A multinational group meets the international expansion condition for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the group does not have members located in more than 6 territories, and</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the values of tangible fixed assets of qualifying members of the group, other than members located in the reference territory, for that period does not exceed 50 million euros.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>the value of tangible fixed assets of a qualifying member of a multinational group is to be determined in accordance with <ref href="#d25e20104">section 229H</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>the “reference territory” is the territory for which the sum of the values of tangible fixed assets of qualifying members of the group located in that territory is greatest.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>The first accounting period in which a multinational group comes within the scope of Chapter 9A is the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period for which it meets Condition A in section 129(2) (annual revenue exceeds 750 million euros), and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period beginning on or after the day on which <ref href="#d25e19517">section 229C</ref> (allocation of untaxed amount to members) comes into force for any purpose.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><content><p>In sections 56, 61G and 61R of ITEPA 2003 (chargeability to tax in respect of deemed employment payment), omit subsections (4) and (5).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-13-paragraph-44-1"><num>(1)</num><content><p>In the <ref eId="c00343" href="https://www.legislation.gov.uk/uksi/2008/606">Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008</ref>, <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">regulation 4</a> (excepted settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a><a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">(a)</a>, for “is domiciled in the United Kingdom” substitute <quotedText>“meets the condition in paragraph (3A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(3A)</num><intro><p>The condition in this paragraph is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to times on or after 6 April 2025, that the settlor is a long-term UK resident;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to times before that date, that the settlor is domiciled in the United Kingdom (or treated as such for the purposes of the 1984 Act).</p></content></level></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1">Schedule 1</a> to <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/2019/1">FA 2019</ref>, omit <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1/paragraph/15">paragraph 15</a>.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2">Schedule 2</a> to <ref eId="c00069" href="https://www.legislation.gov.uk/ukpga/2019/1">that Act</ref> (returns and payments on account: disposals of UK land etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/16">paragraph 16</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of “residential property gains”</heading><paragraph class="schProv1"><num>16A</num><subparagraph><num>(1)</num><content><p>In this Part of this Schedule “<term refersTo="#term-residential-property-gain">residential property gain</term>” means so much of a chargeable gain accruing to a person on a disposal of residential property as, in accordance with paragraph 16B, is attributable to that property.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The question whether or not a person disposes of residential property is determined in accordance with paragraphs 16C to 16G.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16B</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A the proportion of a chargeable gain attributable to residential property is equal to—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant fraction of the gain, and</p></content></level><level class="para1"><num>(b)</num><content><p>if there has been mixed use of the land to which the disposal relates on one or more days in the applicable period, the relevant fraction of the gain as adjusted, on a just and reasonable basis, to take account of the mixed use on the day or days.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>The relevant fraction is A/B where—</p></intro><hcontainer name="definition"><content><p>A is the number of days in the applicable period on which the land to which the disposal relates consists of or includes a dwelling, and</p></content></hcontainer><hcontainer name="definition"><content><p>B is the total number of days in the applicable period.</p></content></hcontainer></subparagraph><subparagraph><num>(3)</num><intro><p>There is mixed use of land on any day on which the land consists of—</p></intro><level class="para1"><num>(a)</num><content><p>one or more dwellings, and</p></content></level><level class="para1"><num>(b)</num><content><p>other land.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the disposal is of an interest in land subsisting under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling, that land is taken to consist of or include a dwelling throughout the applicable period.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>In this paragraph “<term refersTo="#term-the-applicable-period">the applicable period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the person making the disposal acquired the interest in land being disposed of or, if later, the day from which the interest in land became chargeable, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the day on which the disposal occurs.</p></content></level></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph an interest in land became “chargeable”—</p></intro><level class="para1"><num>(a)</num><intro><p>in any case where the disposal is of an interest in land in the United Kingdom—</p></intro><level class="para2"><num>(i)</num><content><p>by a person in a tax year in which the person is not UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>by a person in the overseas part of a tax year which is, as respects the person, a split year,</p></content></level><wrapUp><p>from 6 April 2015, and</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in any other case, from 31 March 1982.</p></content></level></subparagraph><subparagraph><num>(7)</num><content><p>If the interest in land disposed of by the person results from interests in land acquired by the person at different times, the person is regarded for the purposes of this paragraph as having acquired the interest disposed of at the time of the first acquisition.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16C</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A a person “disposes of residential property” if the person disposes of an interest in land in a case where—</p></intro><level class="para1"><num>(a)</num><content><p>the land consisted of or included a dwelling at any time falling on or after the date on which the applicable period begins,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest in land subsisted for the benefit of land that consisted of or included a dwelling at any time falling on or after that date, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest in land subsists under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>No account is to be taken for the purposes of this paragraph of any time falling on (or after) the day on which the disposal is made.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16D</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H an “<term refersTo="#term-interest-in-land">interest in land</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>an estate, interest, right or power in or over land, or</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over land,</p></content></level><wrapUp><p>other than an excluded interest.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>The following interests are “excluded interests”—</p></intro><level class="para1"><num>(a)</num><content><p>any interest or right held for securing the payment of money or the performance of any other obligation,</p></content></level><level class="para1"><num>(b)</num><content><p>a licence to use or occupy land,</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to land in England and Wales or Northern Ireland, a tenancy at will or an advowson, franchise or manor, and</p></content></level><level class="para1"><num>(d)</num><content><p>such other descriptions of interest or right in relation to land as may be specified in regulations made by the Treasury.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>An interest or right is not within sub-paragraph (2)(a) if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a rentcharge, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to land in Scotland, a feu duty or a payment mentioned in <a href="https://www.legislation.gov.uk/asp/2000/5/section/56">section 56</a><a href="https://www.legislation.gov.uk/asp/2000/5/section/56">(1)</a> of the <ref eId="c00070" href="https://www.legislation.gov.uk/asp/2000/5">Abolition of Feudal Tenure etc. (Scotland) Act 2000</ref>.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>The grant of an option by a person binding the person to dispose of an interest in land is (so far as it would not otherwise be the case) regarded as a disposal of an interest in land by the person for the purposes of this Schedule.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>This does not affect the operation of section 144 in relation to the grant of the option (or otherwise).</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In applying the domestic concepts of law mentioned in this paragraph to land outside the United Kingdom, this paragraph is to be read so as to produce the result most closely corresponding with that produced in relation to land in the United Kingdom.</p></content></subparagraph><subparagraph><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-franchise">franchise</term>” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls, and</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-land">land</term>” includes—</p></intro><level class="para1"><num>(a)</num><content><p>buildings and structures, and</p></content></level><level class="para1"><num>(b)</num><content><p>land under the sea or otherwise covered by water.</p></content></level></hcontainer></subparagraph></paragraph><paragraph eId="d25e15956" class="schProv1"><num>16E</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H a building is a dwelling at any time when—</p></intro><level class="para1"><num>(a)</num><content><p>it is used, or suitable for use, as a dwelling, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is in the process of being constructed or adapted for use as a dwelling,</p></content></level><wrapUp><p>and, in each case, it is not an institutional building.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><content><p>Land that at any time is, or is intended to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure) is taken to be part of the dwelling at that time.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>A building is an institutional building if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used as residential accommodation for school pupils,</p></content></level><level class="para1"><num>(b)</num><content><p>it is used as residential accommodation for members of the armed forces,</p></content></level><level class="para1"><num>(c)</num><content><p>it is used as a home or other institution providing residential accommodation for children,</p></content></level><level class="para1"><num>(d)</num><content><p>it is used as a home or other institution providing residential accommodation with personal care for persons in need of personal care because of old age, disability, past or present dependence on alcohol or drugs or past or present mental disorder,</p></content></level><level class="para1"><num>(e)</num><content><p>it is used as a hospital or hospice,</p></content></level><level class="para1"><num>(f)</num><content><p>it is used as a prison or similar establishment,</p></content></level><level class="para1"><num>(g)</num><content><p>it is used as a hotel or inn or similar establishment,</p></content></level><level class="para1"><num>(h)</num><content><p>it is otherwise used, or suitable for use, as an institution that is the sole or main residence of its residents,</p></content></level><level class="para1"><num>(i)</num><intro><p>it falls within—</p></intro><level class="para2"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">Schedule 14</a> to the <ref eId="c00071" href="https://www.legislation.gov.uk/ukpga/2004/34">Housing Act 2004</ref> (buildings in England or Wales occupied by students and managed or controlled by educational establishment etc), or</p></content></level><level class="para2"><num>(ii)</num><content><p>any provision having effect in Scotland or Northern Ireland that is designated by regulations made by the Treasury as provision corresponding to <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">that Schedule</a>, or</p></content></level></level><level class="para1"><num>(j)</num><content><p>it qualifies in accordance with the next sub-paragraph as student accommodation.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A building qualifies as student accommodation in accordance with this sub-paragraph at any time if the time falls in a tax year in which—</p></intro><level class="para1"><num>(a)</num><content><p>the accommodation provided by the building includes at least 15 bedrooms,</p></content></level><level class="para1"><num>(b)</num><content><p>the accommodation is purpose-built, or is converted, for occupation by students, and</p></content></level><level class="para1"><num>(c)</num><content><p>the accommodation is occupied by students on at least 165 days.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Accommodation is to be regarded as occupied by persons as students if they occupy it wholly or mainly for undertaking a course of education (otherwise than as school pupils).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16F</num><subparagraph><num>(1)</num><content><p>A building is treated for the purposes of paragraph 16E as continuing to be suitable for use as a dwelling at any time when it has become temporarily unsuitable for use as a dwelling.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>There is an exception to this rule if—</p></intro><level class="para1"><num>(a)</num><content><p>the temporary unsuitability resulted from accidental damage to the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>the damage resulted in the building becoming unsuitable for use as a dwelling for a period of at least 90 consecutive days (“the 90 day period”).</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>This exception does not apply if the damage occurred in the course of work that—</p></intro><level class="para1"><num>(a)</num><content><p>was being done for the purpose of altering the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>itself involved, or could be expected to involve, making the building unsuitable for use as a dwelling for at least 30 consecutive days.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the exception applies, work done in the 90 day period to restore the building to suitability for use as a dwelling is not to count for the purposes of paragraph 16E as constructing or adapting the building for use as a dwelling.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>references to accidental damage include damage otherwise caused by events beyond the control of the person disposing of the interest in land,</p></content></level><level class="para1"><num>(b)</num><content><p>references to alteration of a building include its partial demolition, and</p></content></level><level class="para1"><num>(c)</num><content><p>the 90 day period does not include the day of the disposal (or later days).</p></content></level></subparagraph><subparagraph><num>(6)</num><content><p>For the purposes of this paragraph a building’s unsuitability for use as a dwelling is not regarded as temporary if paragraph 16G applies (disposal of a building that has undergone works).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16G</num><subparagraph><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person disposes of an interest in land on which a building has been suitable for use as a dwelling, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a result of qualifying works, the building has, at or before the time of completion of the disposal, ceased to exist or become unsuitable for use as a dwelling,</p></content></level><wrapUp><p>the building is to be regarded for the purposes of paragraph 16E as unsuitable for use as a dwelling throughout the works period.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of this paragraph works are “qualifying” works if—</p></intro><level class="para1"><num>(a)</num><content><p>any planning permission or development consent required for the works, or for any change of use with which they are associated, has been granted (whether before or after completion), and</p></content></level><level class="para1"><num>(b)</num><content><p>the works have been carried out in accordance with the permission or consent.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-works-period">the works period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>the period when the works were in progress, and</p></content></level><level class="para1"><num>(b)</num><content><p>such period (if any) ending immediately before the start of the works throughout which the building was, for reasons connected with the works, not used as dwelling.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>If at any time when qualifying works are in progress—</p></intro><level class="para1"><num>(a)</num><content><p>the building was undergoing any other work, or put to any other use, in relation to which planning permission or development consent was required but has not (at any time) been granted, or</p></content></level><level class="para1"><num>(b)</num><content><p>anything else was being done in contravention of a condition or requirement attached to a planning permission or development consent relating to the building,</p></content></level><wrapUp><p>the works period does not include that time.</p></wrapUp></subparagraph><subparagraph><num>(5)</num><content><p>If sub-paragraph (1) would have applied but for the fact that, at the completion of the disposal, the works are not qualifying works, the works are regarded as not affecting the building's suitability for use as a dwelling at any time before the disposal.</p></content></subparagraph></paragraph><paragraph eId="d25e16279" class="schProv1"><num>16H</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16G a building is regarded as ceasing to exist from the time when either—</p></intro><level class="para1"><num>(a)</num><content><p>it has been demolished completely to ground level, or</p></content></level><level class="para1"><num>(b)</num><content><p>it has been demolished to ground level except for a single facade (or a double facade if it is on a corner site) the retention of which is a condition or requirement of planning permission or development consent.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of paragraphs 16B to 16G the completion of the disposal of an interest in land is regarded as occurring—</p></intro><level class="para1"><num>(a)</num><content><p>at the time of the disposal, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the disposal is under a contract which is completed by a conveyance, transfer or other instrument, at the time when the instrument takes effect.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>For the purposes of paragraphs 16B to 16G—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building">building</term>” includes a part of a building,</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-development-consent">development consent</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in the United Kingdom, development consent under the <ref eId="c00072" href="https://www.legislation.gov.uk/ukpga/2008/29">Planning Act 2008</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land outside the United Kingdom, consent corresponding to development consent under <ref eId="c00073" href="https://www.legislation.gov.uk/ukpga/2008/29">that Act</ref>, and</p></content></level></hcontainer><hcontainer name="definition"><intro><p><term refersTo="#term-planning-permission">planning permission</term>“—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in England or Wales, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">section 336</a><a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">(1)</a> of the <ref eId="c00074" href="https://www.legislation.gov.uk/ukpga/1990/8">Town and Country Planning Act 1990</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land in Scotland, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">section 227</a><a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">(1)</a> of the <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1997/8">Town and Country Planning (Scotland) Act 1997</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of land in Northern Ireland, has the meaning given by <a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">Article 2</a><a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">(2)</a> of the <ref eId="c00076" href="https://www.legislation.gov.uk/nisi/1991/1220">Planning (Northern Ireland) Order 1991</ref>, and</p></content></level><level class="para1"><num>(d)</num><content><p>in the case of land outside the United Kingdom, means permission corresponding to any planning permission in relation to land anywhere in the United Kingdom.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><content><p><mod>For the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a> substitute <quotedText>“<i>Other interpretation</i>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">(1)</a>, omit the definition of “<term refersTo="#term-residential-property-gains" eId="term-residential-property-gains">residential property gains</term>” (but not the “and” at the end of that definition).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 6 of F(No.2)A 2024, omit—</p></intro><level class="para1" eId="schedule-1-paragraph-10-a"><num>(a)</num><content><p>subsection (1)(a), (c) and (e), and</p></content></level><level class="para1" eId="schedule-1-paragraph-10-b"><num>(b)</num><content><p>subsection (2)(a)(i), (b)(i), (c)(i) and (d)(i).</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-10-a"><num>(a)</num><content><p>subsection (1)(a), (c) and (e), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-10-b"><num>(b)</num><content><p>subsection (2)(a)(i), (b)(i), (c)(i) and (d)(i).</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e15597"><heading>Amendments of other Acts</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><content><p><mod>In paragraph 8(3) of Schedule A1 to IHTA 1984 (non-excluded overseas property), for “Schedule 1B to the 1992 Act” substitute <quotedText>“paragraphs 16B to 16H of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1">Schedule 1</a> to <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/2019/1">FA 2019</ref>, omit <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1/paragraph/15">paragraph 15</a>.</p></content></paragraph><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2">Schedule 2</a> to <ref eId="c00069" href="https://www.legislation.gov.uk/ukpga/2019/1">that Act</ref> (returns and payments on account: disposals of UK land etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/16">paragraph 16</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of “residential property gains”</heading><paragraph class="schProv1"><num>16A</num><subparagraph><num>(1)</num><content><p>In this Part of this Schedule “<term refersTo="#term-residential-property-gain">residential property gain</term>” means so much of a chargeable gain accruing to a person on a disposal of residential property as, in accordance with paragraph 16B, is attributable to that property.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The question whether or not a person disposes of residential property is determined in accordance with paragraphs 16C to 16G.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16B</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A the proportion of a chargeable gain attributable to residential property is equal to—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant fraction of the gain, and</p></content></level><level class="para1"><num>(b)</num><content><p>if there has been mixed use of the land to which the disposal relates on one or more days in the applicable period, the relevant fraction of the gain as adjusted, on a just and reasonable basis, to take account of the mixed use on the day or days.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>The relevant fraction is A/B where—</p></intro><hcontainer name="definition"><content><p>A is the number of days in the applicable period on which the land to which the disposal relates consists of or includes a dwelling, and</p></content></hcontainer><hcontainer name="definition"><content><p>B is the total number of days in the applicable period.</p></content></hcontainer></subparagraph><subparagraph><num>(3)</num><intro><p>There is mixed use of land on any day on which the land consists of—</p></intro><level class="para1"><num>(a)</num><content><p>one or more dwellings, and</p></content></level><level class="para1"><num>(b)</num><content><p>other land.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the disposal is of an interest in land subsisting under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling, that land is taken to consist of or include a dwelling throughout the applicable period.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>In this paragraph “<term refersTo="#term-the-applicable-period">the applicable period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the person making the disposal acquired the interest in land being disposed of or, if later, the day from which the interest in land became chargeable, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the day on which the disposal occurs.</p></content></level></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph an interest in land became “chargeable”—</p></intro><level class="para1"><num>(a)</num><intro><p>in any case where the disposal is of an interest in land in the United Kingdom—</p></intro><level class="para2"><num>(i)</num><content><p>by a person in a tax year in which the person is not UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>by a person in the overseas part of a tax year which is, as respects the person, a split year,</p></content></level><wrapUp><p>from 6 April 2015, and</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in any other case, from 31 March 1982.</p></content></level></subparagraph><subparagraph><num>(7)</num><content><p>If the interest in land disposed of by the person results from interests in land acquired by the person at different times, the person is regarded for the purposes of this paragraph as having acquired the interest disposed of at the time of the first acquisition.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16C</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A a person “disposes of residential property” if the person disposes of an interest in land in a case where—</p></intro><level class="para1"><num>(a)</num><content><p>the land consisted of or included a dwelling at any time falling on or after the date on which the applicable period begins,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest in land subsisted for the benefit of land that consisted of or included a dwelling at any time falling on or after that date, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest in land subsists under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>No account is to be taken for the purposes of this paragraph of any time falling on (or after) the day on which the disposal is made.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16D</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H an “<term refersTo="#term-interest-in-land">interest in land</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>an estate, interest, right or power in or over land, or</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over land,</p></content></level><wrapUp><p>other than an excluded interest.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>The following interests are “excluded interests”—</p></intro><level class="para1"><num>(a)</num><content><p>any interest or right held for securing the payment of money or the performance of any other obligation,</p></content></level><level class="para1"><num>(b)</num><content><p>a licence to use or occupy land,</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to land in England and Wales or Northern Ireland, a tenancy at will or an advowson, franchise or manor, and</p></content></level><level class="para1"><num>(d)</num><content><p>such other descriptions of interest or right in relation to land as may be specified in regulations made by the Treasury.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>An interest or right is not within sub-paragraph (2)(a) if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a rentcharge, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to land in Scotland, a feu duty or a payment mentioned in <a href="https://www.legislation.gov.uk/asp/2000/5/section/56">section 56</a><a href="https://www.legislation.gov.uk/asp/2000/5/section/56">(1)</a> of the <ref eId="c00070" href="https://www.legislation.gov.uk/asp/2000/5">Abolition of Feudal Tenure etc. (Scotland) Act 2000</ref>.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>The grant of an option by a person binding the person to dispose of an interest in land is (so far as it would not otherwise be the case) regarded as a disposal of an interest in land by the person for the purposes of this Schedule.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>This does not affect the operation of section 144 in relation to the grant of the option (or otherwise).</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In applying the domestic concepts of law mentioned in this paragraph to land outside the United Kingdom, this paragraph is to be read so as to produce the result most closely corresponding with that produced in relation to land in the United Kingdom.</p></content></subparagraph><subparagraph><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-franchise">franchise</term>” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls, and</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-land">land</term>” includes—</p></intro><level class="para1"><num>(a)</num><content><p>buildings and structures, and</p></content></level><level class="para1"><num>(b)</num><content><p>land under the sea or otherwise covered by water.</p></content></level></hcontainer></subparagraph></paragraph><paragraph eId="d25e15956" class="schProv1"><num>16E</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H a building is a dwelling at any time when—</p></intro><level class="para1"><num>(a)</num><content><p>it is used, or suitable for use, as a dwelling, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is in the process of being constructed or adapted for use as a dwelling,</p></content></level><wrapUp><p>and, in each case, it is not an institutional building.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><content><p>Land that at any time is, or is intended to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure) is taken to be part of the dwelling at that time.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>A building is an institutional building if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used as residential accommodation for school pupils,</p></content></level><level class="para1"><num>(b)</num><content><p>it is used as residential accommodation for members of the armed forces,</p></content></level><level class="para1"><num>(c)</num><content><p>it is used as a home or other institution providing residential accommodation for children,</p></content></level><level class="para1"><num>(d)</num><content><p>it is used as a home or other institution providing residential accommodation with personal care for persons in need of personal care because of old age, disability, past or present dependence on alcohol or drugs or past or present mental disorder,</p></content></level><level class="para1"><num>(e)</num><content><p>it is used as a hospital or hospice,</p></content></level><level class="para1"><num>(f)</num><content><p>it is used as a prison or similar establishment,</p></content></level><level class="para1"><num>(g)</num><content><p>it is used as a hotel or inn or similar establishment,</p></content></level><level class="para1"><num>(h)</num><content><p>it is otherwise used, or suitable for use, as an institution that is the sole or main residence of its residents,</p></content></level><level class="para1"><num>(i)</num><intro><p>it falls within—</p></intro><level class="para2"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">Schedule 14</a> to the <ref eId="c00071" href="https://www.legislation.gov.uk/ukpga/2004/34">Housing Act 2004</ref> (buildings in England or Wales occupied by students and managed or controlled by educational establishment etc), or</p></content></level><level class="para2"><num>(ii)</num><content><p>any provision having effect in Scotland or Northern Ireland that is designated by regulations made by the Treasury as provision corresponding to <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">that Schedule</a>, or</p></content></level></level><level class="para1"><num>(j)</num><content><p>it qualifies in accordance with the next sub-paragraph as student accommodation.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A building qualifies as student accommodation in accordance with this sub-paragraph at any time if the time falls in a tax year in which—</p></intro><level class="para1"><num>(a)</num><content><p>the accommodation provided by the building includes at least 15 bedrooms,</p></content></level><level class="para1"><num>(b)</num><content><p>the accommodation is purpose-built, or is converted, for occupation by students, and</p></content></level><level class="para1"><num>(c)</num><content><p>the accommodation is occupied by students on at least 165 days.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Accommodation is to be regarded as occupied by persons as students if they occupy it wholly or mainly for undertaking a course of education (otherwise than as school pupils).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16F</num><subparagraph><num>(1)</num><content><p>A building is treated for the purposes of paragraph 16E as continuing to be suitable for use as a dwelling at any time when it has become temporarily unsuitable for use as a dwelling.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>There is an exception to this rule if—</p></intro><level class="para1"><num>(a)</num><content><p>the temporary unsuitability resulted from accidental damage to the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>the damage resulted in the building becoming unsuitable for use as a dwelling for a period of at least 90 consecutive days (“the 90 day period”).</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>This exception does not apply if the damage occurred in the course of work that—</p></intro><level class="para1"><num>(a)</num><content><p>was being done for the purpose of altering the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>itself involved, or could be expected to involve, making the building unsuitable for use as a dwelling for at least 30 consecutive days.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the exception applies, work done in the 90 day period to restore the building to suitability for use as a dwelling is not to count for the purposes of paragraph 16E as constructing or adapting the building for use as a dwelling.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>references to accidental damage include damage otherwise caused by events beyond the control of the person disposing of the interest in land,</p></content></level><level class="para1"><num>(b)</num><content><p>references to alteration of a building include its partial demolition, and</p></content></level><level class="para1"><num>(c)</num><content><p>the 90 day period does not include the day of the disposal (or later days).</p></content></level></subparagraph><subparagraph><num>(6)</num><content><p>For the purposes of this paragraph a building’s unsuitability for use as a dwelling is not regarded as temporary if paragraph 16G applies (disposal of a building that has undergone works).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16G</num><subparagraph><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person disposes of an interest in land on which a building has been suitable for use as a dwelling, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a result of qualifying works, the building has, at or before the time of completion of the disposal, ceased to exist or become unsuitable for use as a dwelling,</p></content></level><wrapUp><p>the building is to be regarded for the purposes of paragraph 16E as unsuitable for use as a dwelling throughout the works period.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of this paragraph works are “qualifying” works if—</p></intro><level class="para1"><num>(a)</num><content><p>any planning permission or development consent required for the works, or for any change of use with which they are associated, has been granted (whether before or after completion), and</p></content></level><level class="para1"><num>(b)</num><content><p>the works have been carried out in accordance with the permission or consent.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-works-period">the works period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>the period when the works were in progress, and</p></content></level><level class="para1"><num>(b)</num><content><p>such period (if any) ending immediately before the start of the works throughout which the building was, for reasons connected with the works, not used as dwelling.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>If at any time when qualifying works are in progress—</p></intro><level class="para1"><num>(a)</num><content><p>the building was undergoing any other work, or put to any other use, in relation to which planning permission or development consent was required but has not (at any time) been granted, or</p></content></level><level class="para1"><num>(b)</num><content><p>anything else was being done in contravention of a condition or requirement attached to a planning permission or development consent relating to the building,</p></content></level><wrapUp><p>the works period does not include that time.</p></wrapUp></subparagraph><subparagraph><num>(5)</num><content><p>If sub-paragraph (1) would have applied but for the fact that, at the completion of the disposal, the works are not qualifying works, the works are regarded as not affecting the building's suitability for use as a dwelling at any time before the disposal.</p></content></subparagraph></paragraph><paragraph eId="d25e16279" class="schProv1"><num>16H</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16G a building is regarded as ceasing to exist from the time when either—</p></intro><level class="para1"><num>(a)</num><content><p>it has been demolished completely to ground level, or</p></content></level><level class="para1"><num>(b)</num><content><p>it has been demolished to ground level except for a single facade (or a double facade if it is on a corner site) the retention of which is a condition or requirement of planning permission or development consent.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of paragraphs 16B to 16G the completion of the disposal of an interest in land is regarded as occurring—</p></intro><level class="para1"><num>(a)</num><content><p>at the time of the disposal, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the disposal is under a contract which is completed by a conveyance, transfer or other instrument, at the time when the instrument takes effect.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>For the purposes of paragraphs 16B to 16G—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building">building</term>” includes a part of a building,</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-development-consent">development consent</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in the United Kingdom, development consent under the <ref eId="c00072" href="https://www.legislation.gov.uk/ukpga/2008/29">Planning Act 2008</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land outside the United Kingdom, consent corresponding to development consent under <ref eId="c00073" href="https://www.legislation.gov.uk/ukpga/2008/29">that Act</ref>, and</p></content></level></hcontainer><hcontainer name="definition"><intro><p><term refersTo="#term-planning-permission">planning permission</term>“—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in England or Wales, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">section 336</a><a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">(1)</a> of the <ref eId="c00074" href="https://www.legislation.gov.uk/ukpga/1990/8">Town and Country Planning Act 1990</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land in Scotland, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">section 227</a><a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">(1)</a> of the <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1997/8">Town and Country Planning (Scotland) Act 1997</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of land in Northern Ireland, has the meaning given by <a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">Article 2</a><a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">(2)</a> of the <ref eId="c00076" href="https://www.legislation.gov.uk/nisi/1991/1220">Planning (Northern Ireland) Order 1991</ref>, and</p></content></level><level class="para1"><num>(d)</num><content><p>in the case of land outside the United Kingdom, means permission corresponding to any planning permission in relation to land anywhere in the United Kingdom.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><content><p><mod>For the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a> substitute <quotedText>“<i>Other interpretation</i>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">(1)</a>, omit the definition of “<term refersTo="#term-residential-property-gains" eId="term-residential-property-gains">residential property gains</term>” (but not the “and” at the end of that definition).</p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 6 of F(No.2)A 2024, omit—</p></intro><level class="para1" eId="schedule-1-paragraph-10-a"><num>(a)</num><content><p>subsection (1)(a), (c) and (e), and</p></content></level><level class="para1" eId="schedule-1-paragraph-10-b"><num>(b)</num><content><p>subsection (2)(a)(i), (b)(i), (c)(i) and (d)(i).</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="schedule" eId="schedule-2"><num>Schedule 2<authorialNote class="referenceNote"><p>Section 11</p></authorialNote></num><heading>Sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref> : transitional provision</heading><part eId="schedule-2-part-1"><num>Part 1</num><heading>Transitional provision in consequence of section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e16476"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p><ref href="#schedule-2-part-1">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purpose of determining how the provisions of <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> mentioned below are to apply for the tax year 2024-25 for the purposes of the amendments made by section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref>.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16499"><heading>Allocation of amounts to times before or after 30 October 2024</heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p>Gains or losses treated as accruing to an individual under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1M">section 1M</a> of <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (temporary non-residents) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p>Foreign chargeable gains under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809J">section 809J</a> of <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (section 809I: order of remittances) in the tax year 2024-25 are to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (UK resident individuals not domiciled in UK) as remitted before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p>Chargeable gains treated as accruing to a settlor under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">section 86</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(a)</a> of <ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (attribution of gains to settlors with interest in non-resident or dual resident settlements) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><intro><p><ref href="#schedule-2-paragraph-5">This paragraph</ref> makes provision in relation to—</p></intro><level class="para1" eId="schedule-2-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> of <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (non-UK resident settlements: attribution of gains to beneficiaries) in the tax year 2024-25,</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-b"><num>(b)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (migrant settlements etc) in that tax year, and</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-c"><num>(c)</num><content><p>chargeable gains treated as accruing to a beneficiary of a relevant settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">paragraph 8</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">(1)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C">Schedule 4C</a> to <ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (attribution of Schedule 4C gains to beneficiaries) in that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received before 30 October 2024 are to be treated as accruing before that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received on or after that date are to be treated as accruing on or after that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p>The reference in sub-paragraph (1)(b) to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is to be read as including a reference to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">that section</a> as applied by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">section 90</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(6)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(a)</a> of <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (transfers between settlements).</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-2-part-2"><num>Part 2</num><heading>Anti-forestalling provisions: sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e16686"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purposes of sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref> in the cases of certain acts done before 30 October 2024.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16710"><heading>Assets transferred under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p>If an asset is transferred on or after 30 October 2024 under an unconditional contract made before that date, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><intro><p>A contract is an excluded contract if—</p></intro><level class="para1" eId="schedule-2-paragraph-7-2-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-2-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><content><p>A contract is not to be regarded as an excluded contract unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-4"><num>(4)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-7-4-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-4-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-5"><num>(5)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-6"><num>(6)</num><intro><p>If the person making the transfer makes—</p></intro><level class="para1" eId="schedule-2-paragraph-7-6-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-7-6-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-7-3">sub-paragraph (3)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-7"><num>(7)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-8"><num>(8)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> any reference to the transfer of an asset includes its conveyance.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16878"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-2-paragraph-8-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-8-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-8-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16997"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer></part><part eId="schedule-2-part-3"><num>Part 3</num><heading>Anti-forestalling provisions: sections <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref> and <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e17034"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p>in the case of business asset disposal relief, for the purposes of section <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref>, and</p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p>in the case of investors’ relief, for the purposes of section <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref>.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17076"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made before 30 October 2024, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17093"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made on or after 30 October 2024 but before 6 April 2025</heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made on or after 30 October 2024 but before 6 April 2025, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17110"><heading>Assets transferred on or after 6 April 2026 under unconditional contract made in tax year 2025-26</heading><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p>If an asset is transferred on or after 6 April 2026 under an unconditional contract made at any time in the tax year 2025-26, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17127"><heading>Paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>: supplementary provision</heading><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>A contract is an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> if—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>A contract is not to be regarded as an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-14-3-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-3-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraph <ref href="#schedule-2-paragraph-7">7</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-4"><num>(4)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00106" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-5"><num>(5)</num><intro><p>If the person making the transfer referred to in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> makes—</p></intro><level class="para1" eId="schedule-2-paragraph-14-5-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00107" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-14-5-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00108" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00109" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00110" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-14-2">sub-paragraph (2)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-6"><num>(6)</num><content><p>Any reference in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> (or this paragraph) to the transfer of an asset includes its conveyance.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00111" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17302"><heading>Business asset disposal relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-2-paragraph-15-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00112" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-15-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-2"><num>(2)</num><intro><p>If, as at 30 October 2024—</p></intro><level class="para1" eId="schedule-2-paragraph-15-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-15-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-15-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00113" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00114" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00115" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-15-5"><num>(5)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00116" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-17">17</ref>).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17453"><heading>Business asset disposal relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-2-paragraph-16-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-16-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-2"><num>(2)</num><intro><p>If, when the election is made—</p></intro><level class="para1" eId="schedule-2-paragraph-16-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-16-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, anything mentioned in sub-paragraph <ref href="#schedule-2-paragraph-16-2">(2)</ref><ref href="#schedule-2-paragraph-16-2-a">(a)</ref> or <ref href="#schedule-2-paragraph-16-2-b">(b)</ref> ceases to be as mentioned there, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-16-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-5"><num>(5)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-16-6"><num>(6)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-18">18</ref>).</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17627"><heading>Business asset disposal relief: exchanges of securities etc before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-2-paragraph-17-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00122" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00123" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-17-1-a"><num>(a)</num><content><p>the exchange takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-2"><num>(2)</num><content><p>If condition A or B is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-17-3"><num>(3)</num><intro><p>Condition A is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-17-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-17-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-17-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-4-b"><num>(b)</num><intro><p>as at 30 October 2024—</p></intro><level class="para2" eId="schedule-2-paragraph-17-4-b-i"><num>(i)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-4-b-ii"><num>(ii)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-5"><num>(5)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-17-5-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-5-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-6"><num>(6)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-17-6-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-17-6-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-6-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-17-6-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-7"><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17871"><heading>Business asset disposal relief: exchanges of securities etc on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-2-paragraph-18-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00132" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00133" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-18-1-a"><num>(a)</num><content><p>the exchange takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-2"><num>(2)</num><content><p>If the following condition is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-18-3"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1" eId="schedule-2-paragraph-18-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-18-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-18-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-4"><num>(4)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-4-b"><num>(b)</num><content><p>the relief conditions are met when the election is made,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-5"><num>(5)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-5-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-5-b"><num>(b)</num><content><p>at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, the relief conditions cease to be met,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-6"><num>(6)</num><intro><p>For the purposes of this paragraph “the relief conditions” are met if—</p></intro><level class="para1" eId="schedule-2-paragraph-18-6-a"><num>(a)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-6-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-7"><num>(7)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-18-7-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00134" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-7-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-8"><num>(8)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00135" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-8-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00136" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-18-8-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-18-8-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-18-8-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00137" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00138" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-9"><num>(9)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00139" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00140" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00141" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-18-10"><num>(10)</num><content><p>This paragraph does not apply if both the exchange and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18153"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-2-paragraph-19-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00142" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-19-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-19-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00143" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00144" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00145" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00146" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00147" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-6"><num>(6)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18278"><heading>Investors’ relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-2-paragraph-20-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-20-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-2"><num>(2)</num><content><p>If, when the election is made, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, a relevant individual ceases to hold qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-20-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-5"><num>(5)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-6"><num>(6)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18412"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-part-1"><num>Part 1</num><heading>Transitional provision in consequence of section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e16476"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p><ref href="#schedule-2-part-1">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purpose of determining how the provisions of <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> mentioned below are to apply for the tax year 2024-25 for the purposes of the amendments made by section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref>.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16499"><heading>Allocation of amounts to times before or after 30 October 2024</heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p>Gains or losses treated as accruing to an individual under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1M">section 1M</a> of <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (temporary non-residents) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p>Foreign chargeable gains under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809J">section 809J</a> of <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (section 809I: order of remittances) in the tax year 2024-25 are to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (UK resident individuals not domiciled in UK) as remitted before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p>Chargeable gains treated as accruing to a settlor under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">section 86</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(a)</a> of <ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (attribution of gains to settlors with interest in non-resident or dual resident settlements) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><intro><p><ref href="#schedule-2-paragraph-5">This paragraph</ref> makes provision in relation to—</p></intro><level class="para1" eId="schedule-2-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> of <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (non-UK resident settlements: attribution of gains to beneficiaries) in the tax year 2024-25,</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-b"><num>(b)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (migrant settlements etc) in that tax year, and</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-c"><num>(c)</num><content><p>chargeable gains treated as accruing to a beneficiary of a relevant settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">paragraph 8</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">(1)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C">Schedule 4C</a> to <ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (attribution of Schedule 4C gains to beneficiaries) in that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received before 30 October 2024 are to be treated as accruing before that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received on or after that date are to be treated as accruing on or after that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p>The reference in sub-paragraph (1)(b) to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is to be read as including a reference to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">that section</a> as applied by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">section 90</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(6)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(a)</a> of <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (transfers between settlements).</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Amendment of <ref eId="c00260" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00261" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (relevant foreign income charge on remittance basis), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-4-a"><num>(a)</num><content><p>for “applies”, in the second place it appears, substitute” applied”;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-b"><num>(b)</num><content><p><mod>after “that year” insert <quotedText>“(being a tax year before tax year 2025-26)”</quotedText>.</mod></p></content></level></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p><ref href="#schedule-2-part-1">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purpose of determining how the provisions of <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> mentioned below are to apply for the tax year 2024-25 for the purposes of the amendments made by section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref>.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p>If an asset is transferred on or after 30 October 2024 under an unconditional contract made before that date, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><intro><p>A contract is an excluded contract if—</p></intro><level class="para1" eId="schedule-2-paragraph-7-2-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-2-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><content><p>A contract is not to be regarded as an excluded contract unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-4"><num>(4)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-7-4-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-4-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-5"><num>(5)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-6"><num>(6)</num><intro><p>If the person making the transfer makes—</p></intro><level class="para1" eId="schedule-2-paragraph-7-6-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-7-6-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-7-3">sub-paragraph (3)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-7"><num>(7)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-8"><num>(8)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> any reference to the transfer of an asset includes its conveyance.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made on or after 30 October 2024 but before 6 April 2025, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-2-paragraph-15-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00112" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-15-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-2"><num>(2)</num><intro><p>If, as at 30 October 2024—</p></intro><level class="para1" eId="schedule-2-paragraph-15-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-15-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-15-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00113" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00114" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00115" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-15-5"><num>(5)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00116" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-17">17</ref>).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-2-paragraph-18-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00132" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00133" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-18-1-a"><num>(a)</num><content><p>the exchange takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-2"><num>(2)</num><content><p>If the following condition is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-18-3"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1" eId="schedule-2-paragraph-18-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-18-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-18-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-4"><num>(4)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-4-b"><num>(b)</num><content><p>the relief conditions are met when the election is made,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-5"><num>(5)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-5-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-5-b"><num>(b)</num><content><p>at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, the relief conditions cease to be met,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-6"><num>(6)</num><intro><p>For the purposes of this paragraph “the relief conditions” are met if—</p></intro><level class="para1" eId="schedule-2-paragraph-18-6-a"><num>(a)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-6-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-7"><num>(7)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-18-7-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00134" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-7-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-8"><num>(8)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00135" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-8-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00136" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-18-8-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-18-8-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-18-8-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00137" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00138" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-9"><num>(9)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00139" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00140" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00141" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-18-10"><num>(10)</num><content><p>This paragraph does not apply if both the exchange and the election occur in the same tax year.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><content><p>The amendments made by this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00251" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28532">(za)</ref> occurs (trustees cease to be resident in the United Kingdom),</p></content></level><level class="para1"><num>(b)</num><content><p>the event only occurs as a result of the death of a trustee of the settlement, and</p></content></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with the death of the trustee, the trustees become resident in the United Kingdom,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection><subsection><num>(2B)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28727">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28750">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-4">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-1-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a>,</p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-ii"><num>(ii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that paragraph</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29126"><num>(ba)</num><intro><p>the number of persons who at the time of the disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>C, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if C is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group,</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-iii"><num>(iii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the consideration for the disposal (including amounts of consideration due after the disposal).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-1-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (7)<ref href="#d25e29126">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (6)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-2-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">paragraph (b)</a>, and</p></content></level><level class="para2" eId="schedule-6-paragraph-7-2-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29231"><num>(ba)</num><intro><p>the number of persons who at the time of the deemed disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>the company, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the company is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group, and</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-2-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (6)<ref href="#d25e29231">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-7">this paragraph</ref> have effect in relation to claims made under those sections on or after 6 April 2025.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-9-paragraph-1-1"><num>(1)</num><content><p>Chapter A1 of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00255" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-2"><num>(2)</num><intro><p>In section 809B (claim for remittance basis to apply), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-2-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-c"><num>(c)</num><content><p><mod>in each of paragraphs (a), (b) and (c), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-3"><num>(3)</num><intro><p>In section 809C (claim for remittance basis by long-term UK resident), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-3-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-c"><num>(c)</num><content><p><mod>in each of paragraphs (a) and (b), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-4"><num>(4)</num><content><p><mod>In section 809D (application of remittance basis where income and gains under £2000) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-5"><num>(5)</num><content><p><mod>In section 809E (application of remittance basis without claim: other cases) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-6"><num>(6)</num><intro><p>In consequence of the amendments made by <span><ref href="#schedule-9-paragraph-1-2">sub-paragraphs (2)</ref> to <ref href="#schedule-9-paragraph-1-5">(5)</ref></span>, in section 809A—</p></intro><level class="para1" eId="schedule-9-paragraph-1-6-a"><num>(a)</num><content><p><mod>for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-6-b"><num>(b)</num><content><p><mod>after “Kingdom” insert <quotedText>“in tax years before tax year 2025-26”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00261" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (relevant foreign income charge on remittance basis), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-4-a"><num>(a)</num><content><p>for “applies”, in the second place it appears, substitute” applied”;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-b"><num>(b)</num><content><p><mod>after “that year” insert <quotedText>“(being a tax year before tax year 2025-26)”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-9-paragraph-4-a"><num>(a)</num><content><p>for “applies”, in the second place it appears, substitute” applied”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-9-paragraph-4-b"><num>(b)</num><content><p><mod>after “that year” insert <quotedText>“(being a tax year before tax year 2025-26)”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-9-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">Section 834</a> of <ref eId="c00264" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of personal representatives) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident within the meaning of IHTA 1984”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (5)</a>.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00270" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions schemes etc.) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">Chapter 3</a> (payments by registered pension schemes), in <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">section 185G</a>, in subsection (3)(a) omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><intro><p>In the following provisions of <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/5">Chapter 5</a> (registered pension schemes: tax charges) and Chapter 6 (schemes that are not registered pension schemes) omit “or domiciled”—</p></intro><level class="para1" eId="schedule-9-paragraph-15-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">section 205</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">section 206</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">section 207</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-d"><num>(d)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">section 208</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-e"><num>(e)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">section 209</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">(5)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-f"><num>(f)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">section 237A</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">(2)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-g"><num>(g)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">section 237B</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">(8)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-h"><num>(h)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">section 239</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">section 242</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-j"><num>(j)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">section 244J</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">(6)</a>.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-9-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A">Schedule 5A</a> to <ref eId="c00274" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (settlements with foreign element: information) is amended in accordance with sub-paragraphs <ref href="#schedule-9-paragraph-20-2">(2)</ref> and <ref href="#schedule-9-paragraph-20-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">paragraph 3</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> omit “is domiciled in the United Kingdom and”;</p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-b"><num>(b)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> insert <quotedText>“and is not a qualifying new resident within the meaning of Schedule D1”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/4">paragraph 4</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-3-a"><num>(a)</num><content><p><mod>for sub-paragraph (2)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>where that time was before 6 April 2025, did not fulfil the condition mentioned in sub-paragraph (3) below at that time or at any time before 6 April 2025,</p></content></level><level class="para1"><num>(ba)</num><content><p>where that time was on or after 6 April 2025, does not fulfil the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below at that time,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-b"><num>(b)</num><intro><p>in sub-paragraph (2)(c)—</p></intro><level class="para2" eId="schedule-9-paragraph-20-3-b-i"><num>(i)</num><content><p><mod>for “that condition” substitute <quotedText>“the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-20-3-b-ii"><num>(ii)</num><content><p><mod>for “the commencement day” substitute <quotedText>“6 April 2025”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-20-3-c"><num>(c)</num><content><p><mod>in the closing words of sub-paragraph (2), for “the relevant day” substitute <quotedText>“31 January after the end of the tax year in which the relevant day falls”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-d"><num>(d)</num><content><p><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e34824"><num>(3A)</num><content><p>The condition is that the person concerned is resident in the United Kingdom and is not a qualifying new resident within the meaning of Schedule D1.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-4"><num>(4)</num><content><p>Sub-paragraph <ref href="#schedule-9-paragraph-20-5">(5)</ref> applies where a settlor fulfils the condition in paragraph 4<ref href="#d25e34824">(3A)</ref> of Schedule 5A to TCGA 1992 (settlements with foreign element: information) on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-5"><num>(5)</num><content><p>For the purposes of paragraph 4(2)(c) of that Schedule, the settlor is to be treated as first fulfilling that condition on 6 April 2025.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-9-paragraph-23-1"><num>(1)</num><content><p><ref eId="c00277" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-23-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">section 667</a> (trustees’ accrued income profits treated as settlement income), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-2-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (b)</a> omit “or domiciled in the United Kingdom”.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-23-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">section 680</a> (interest on securities involving accrued income losses: foreign trustees), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-3-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-3-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (d)</a> omit “, or domiciled in the United Kingdom,”.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of section 87(2) or 89(2) of TCGA 1992 in relation to a capital payment from the trustees of a settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-1-b"><num>(b)</num><content><p>the settlement has a section 1(3) amount that is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-3-a"><num>(a)</num><content><p>the section 1(3) amount for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-3-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-3-3-b-ii"><num>(ii)</num><content><p>to which section 87(2) or 89(2) of that Act applies.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount for the tax year 2024-25 or an earlier tax year resulting from the application of section 87 or 89(2) of TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-3-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-6"><num>(6)</num><content><p>The section 1(3) amount is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-544c8e842f22544bd470af33cb08a98c-1776847074039" ukl:CommentaryRef="key-544c8e842f22544bd470af33cb08a98c"><noteRef uk:name="commentary" href="#key-544c8e842f22544bd470af33cb08a98c" class="commentary"/>paragraph 5</ins> (and no section 1(3) amounts or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-3-8-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in section 87 of TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-9"><num>(9)</num><intro><p>For the purposes of this paragraph, and <ins class="substitution first last" ukl:ChangeId="key-8c7dfbc4b972e5671ea104100e876f83-1776847074039" ukl:CommentaryRef="key-8c7dfbc4b972e5671ea104100e876f83"><noteRef uk:name="commentary" href="#key-8c7dfbc4b972e5671ea104100e876f83" class="commentary"/>paragraph 5</ins>, an individual is a qualifying individual in a tax year if the individual—</p></intro><level class="para1" eId="schedule-10-paragraph-3-9-a"><num>(a)</num><content><p>is UK resident for the purposes of income tax and capital gains tax for that tax year, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-9-b"><num>(b)</num><content><p>was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-10-paragraph-6-1"><num>(1)</num><intro><p><ref href="#schedule-10-paragraph-6">This paragraph</ref> applies—</p></intro><level class="para1" eId="schedule-10-paragraph-6-1-a"><num>(a)</num><content><p>where an individual is treated as having an amount of income as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/643A">section 643A</a> of <ref eId="c00295" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (benefits paid out of protected foreign-source income or transitional trust income) for any of the tax years 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-b"><num>(b)</num><content><p>where an individual would have been treated as having an amount of income as a result of any other provision of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5/chapter/5">Chapter 5</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5">Part 5</a> of <ref eId="c00296" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (settlements: amounts treated as income of settlor or family) in the tax year 2024-25 or an earlier tax year but was not only as a result of the application of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">section 648</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">(3)</a> of <ref eId="c00297" href="https://www.legislation.gov.uk/ukpga/2005/5">that Act</ref> (relevant foreign income treated as arising under settlement only if and when remitted), or</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-c"><num>(c)</num><intro><p>where—</p></intro><level class="para2" eId="schedule-10-paragraph-6-1-c-i"><num>(i)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/732">section 732</a> of <ref eId="c00298" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-ii"><num>(ii)</num><content><p>under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/735A">section 735A</a> of <ref eId="c00299" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (if it applied also for this purpose) that amount would be matched with relevant income that arose in the tax year 2024-25 or an earlier tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-iii"><num>(iii)</num><content><p>that amount would have been treated as relevant foreign income of the individual if it had been treated as accruing in the tax year 2024-25 and the individual had been subject to the remittance basis for that tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-6-2"><num>(2)</num><content><p>An amount of income falling within <ref href="#schedule-10-paragraph-6-1-a">paragraph (a)</ref>, <ref href="#schedule-10-paragraph-6-1-b">(b)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> of <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref> is to be treated as an amount of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-3"><num>(3)</num><content><p>An amount of income treated as qualifying overseas capital falling within <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-10-paragraph-6-1-a">(a)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-4"><num>(4)</num><content><p>For the purposes of <ref href="#schedule-10-paragraph-6">this paragraph</ref> “<term refersTo="#term-relevant-foreign-income" eId="term-relevant-foreign-income">relevant foreign income</term>” has the meaning it has in the Income Tax Acts.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-10-paragraph-9-1"><num>(1)</num><content><p>An amount of designated qualifying overseas capital is chargeable to the TRF charge for the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-2"><num>(2)</num><content><p>Amounts of TRF charge are to be charged as if they were amounts of income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-3"><num>(3)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/23">Section 23</a> of <ref eId="c00300" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (calculation of income tax liability) applies in relation to a person liable to the TRF charge as if paragraph 1(8) were included in the lists of provisions in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">section 30</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">(1)</a> of <ref eId="c00301" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (amounts of tax added at Step 7).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-4"><num>(4)</num><content><p>For the purposes of the collection and management of the TRF charge, all other enactments applying generally to income tax apply to the TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-5"><num>(5)</num><intro><p>Those enactments include—</p></intro><level class="para1" eId="schedule-10-paragraph-9-5-a"><num>(a)</num><content><p>those relating to returns of information and the supply of accounts, statements and reports,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-b"><num>(b)</num><content><p>those relating to the assessing, collecting and receiving of income tax,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-c"><num>(c)</num><content><p>those conferring or regulating a right of appeal, and</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-d"><num>(d)</num><content><p>those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-9-6"><num>(6)</num><content><p>But section 59A of TMA 1970 (payments on account of income tax) does not apply in relation to amounts of TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-7"><num>(7)</num><content><p>For the purposes of section 12B of TMA 1970 (as applied as a result of sub-paragraph (4)), the records required to be kept as a result of paragraph 8(8) are to be regarded as records that must be kept for the purposes of enabling an individual to make and deliver a correct and complete return.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-8"><num><ins class="first" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76"><noteRef uk:name="commentary" href="#key-2c99a990a7f9f8700096951e66076d76" class="commentary"/>(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76">Paragraph 8(6) is not to be taken as preventing the amendment of a return so as to alter or revoke a designation of qualifying overseas capital made in that return, provided that amendment is made in accordance with section 9ZA of TMA 1970 (taxpayer permitted to amend return within 12 months of filing date).</ins></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">section 62</a> of <ref eId="c00265" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (residence of personal representatives), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">subsection (3)</a>, for the words from “having” to the end substitute <quotedText>“UK resident if the deceased was UK resident or a long-term UK resident within the meaning of IHTA 1984 at the date of death.”</quotedText></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p>In section 7 of F(No.2)A 2005 (social security pension lump sum), in subsection (3) omit “or domiciled”.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e16476"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p><ref href="#schedule-2-part-1">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purpose of determining how the provisions of <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> mentioned below are to apply for the tax year 2024-25 for the purposes of the amendments made by section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref>.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e16499"><heading>Allocation of amounts to times before or after 30 October 2024</heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p>Gains or losses treated as accruing to an individual under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1M">section 1M</a> of <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (temporary non-residents) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p>Foreign chargeable gains under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809J">section 809J</a> of <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (section 809I: order of remittances) in the tax year 2024-25 are to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (UK resident individuals not domiciled in UK) as remitted before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p>Chargeable gains treated as accruing to a settlor under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">section 86</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(a)</a> of <ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (attribution of gains to settlors with interest in non-resident or dual resident settlements) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><intro><p><ref href="#schedule-2-paragraph-5">This paragraph</ref> makes provision in relation to—</p></intro><level class="para1" eId="schedule-2-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> of <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (non-UK resident settlements: attribution of gains to beneficiaries) in the tax year 2024-25,</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-b"><num>(b)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (migrant settlements etc) in that tax year, and</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-c"><num>(c)</num><content><p>chargeable gains treated as accruing to a beneficiary of a relevant settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">paragraph 8</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">(1)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C">Schedule 4C</a> to <ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (attribution of Schedule 4C gains to beneficiaries) in that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received before 30 October 2024 are to be treated as accruing before that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received on or after that date are to be treated as accruing on or after that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p>The reference in sub-paragraph (1)(b) to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is to be read as including a reference to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">that section</a> as applied by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">section 90</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(6)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(a)</a> of <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (transfers between settlements).</p></content></subparagraph></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-part-2"><num>Part 2</num><heading>Anti-forestalling provisions: sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e16686"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purposes of sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref> in the cases of certain acts done before 30 October 2024.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16710"><heading>Assets transferred under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p>If an asset is transferred on or after 30 October 2024 under an unconditional contract made before that date, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><intro><p>A contract is an excluded contract if—</p></intro><level class="para1" eId="schedule-2-paragraph-7-2-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-2-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><content><p>A contract is not to be regarded as an excluded contract unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-4"><num>(4)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-7-4-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-4-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-5"><num>(5)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-6"><num>(6)</num><intro><p>If the person making the transfer makes—</p></intro><level class="para1" eId="schedule-2-paragraph-7-6-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-7-6-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-7-3">sub-paragraph (3)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-7"><num>(7)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-8"><num>(8)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> any reference to the transfer of an asset includes its conveyance.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16878"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-2-paragraph-8-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-8-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-8-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16997"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-10-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-10-paragraph-21-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-10-part-3">this Part</ref> of <ref href="#schedule-10">this Schedule</ref> have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-21-2"><num>(2)</num><content><p><ref href="#schedule-10-paragraph-21-1">Sub-paragraph (1)</ref> does not apply to the modifications made by paragraphs <ref href="#schedule-10-paragraph-14">14</ref> and <ref href="#schedule-10-paragraph-18">18</ref>.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purposes of sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref> in the cases of certain acts done before 30 October 2024.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-10-paragraph-1-1"><num>(1)</num><content><p><ref href="#schedule-10-part-1">This Part</ref> of <ref href="#schedule-10">this Schedule</ref> sets out a charge on amounts of qualifying overseas capital of individuals previously subject to the remittance basis.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-2"><num>(2)</num><content><p>The charge is to be known as the temporary repatriation facility charge, and is referred to in this Schedule as the “<term refersTo="#term-trf-charge" eId="term-trf-charge">TRF charge</term>”.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-3"><num>(3)</num><content><p><span><ref href="#schedule-10-paragraph-2">Paragraphs 2</ref> to <ref href="#schedule-10-paragraph-6">6</ref></span> set out when amounts are, or are to be treated, as qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-4"><num>(4)</num><content><p>Amounts of qualifying overseas capital of an individual are subject to the TRF charge only if the individual designates them in accordance with this Part of this Schedule.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-5"><num>(5)</num><content><p>An individual may only designate qualifying overseas capital if the individual was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-6"><num>(6)</num><content><p>An individual designates qualifying overseas capital by making an election (a “designation election”) in a return for the tax year 2025-26, 2026-27 or 2027-28 (see <ref href="#schedule-10-paragraph-8">paragraph 8</ref> for further provision about designation elections).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-7"><num>(7)</num><content><p>A designation election may only be made in a return if, for the tax year to which the return relates, the individual is UK resident for the purposes of income tax and capital gains tax (see <a href="https://www.legislation.gov.uk/ukpga/2013/29/schedule/45">Schedule 45</a> to <ref eId="c00286" href="https://www.legislation.gov.uk/ukpga/2013/29">FA 2013</ref>).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-8"><num>(8)</num><intro><p>The amount of the TRF charge on qualifying overseas capital designated by an individual is—</p></intro><level class="para1" eId="schedule-10-paragraph-1-8-a"><num>(a)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2025-26 or 2026-27, the amount equal to 12% of the amount of that capital, and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-8-b"><num>(b)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2027-28, the amount equal to 15% of the amount of that capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-1-9"><num>(9)</num><content><p>Part 2 of this Schedule sets out exemptions and reliefs from income tax and capital gains tax that apply where amounts of qualifying overseas capital are designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-10"><num>(10)</num><content><p><ref href="#schedule-10-part-3">Part 3</ref> of <ref href="#schedule-10">this Schedule</ref> amends or modifies rules about the remittance of amounts where an individual has designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-11"><num>(11)</num><intro><p>For the purposes of <ref href="#schedule-10-part-1">this Part</ref> of <ref href="#schedule-10">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-10-paragraph-1-11-a"><num>(a)</num><intro><p>an individual is subject to the remittance basis for a tax year—</p></intro><level class="para2" eId="schedule-10-paragraph-1-11-a-i"><num>(i)</num><content><p>in relation to the tax years 2008-09 to 2024-25, if any of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">sections 809B</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">809D</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809E">809E</a> of <ref eId="c00287" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> apply to the individual for that year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-1-11-a-ii"><num>(ii)</num><content><p>in relation to any tax year before 2008-2009, if any income or gains of the individual for that year were subject to the remittance basis (including any income or gains that would have been regarded as arising in the tax year but were not as a result of the application of the remittance basis), and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-1-11-b"><num>(b)</num><content><p>“<term refersTo="#term-return" eId="term-return">return</term>” means a return under <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/8">section 8</a> of <ref eId="c00288" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (personal return for income tax and capital gains tax), and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-11-c"><num>(c)</num><content><p>references to an election being included in a return include an election being so included as a result of an amendment of the return.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-4" class="schProv1"><num><noteRef href="#key-b2c7030c15d614327ddf86dccff26e8c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>4</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-10-paragraph-7-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-7-1-a"><num>(a)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-b"><num>(b)</num><content><p>the amount of income does not fall within paragraph 6(1)(c), and</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-c"><num>(c)</num><content><p>the benefit by reference to which that income is treated as arising would, if it were not chargeable to income tax, be an amount of qualifying overseas capital of the individual by virtue of paragraph 3 or 5 (capital payments).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-1A"><num><ins class="first" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd"><noteRef uk:name="commentary" href="#key-a714d4c53e920634821d9d78d9c849cd" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">For the purposes of applying those paragraphs for the purposes of sub-paragraph (1)(c)—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-7-1A-a"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs have effect as if—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-7-1A-a-i"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(i)</ins></num><content><p><mod><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">for sub-paragraph (1)(a) (in each paragraph) there were substituted—</ins><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</ins></p></content></level></quotedStructure><inline name="appendText"><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">,</ins></inline></mod></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-ii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(ii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the reference in sub-paragraph (2) (in each paragraph) to “the payment” were to the benefit by reference to which the income is treated as arising,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">sub-paragraph (3)(b)(ii) (in each paragraph) were omitted, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iv"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iv)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the references in each paragraph, and in section 87A of TCGA 1992 as applied by those paragraphs, to “capital payments” were to benefits falling within sub-paragraph (1)(c) of this paragraph, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-7-1A-b"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs are to be applied after they have been applied for the purposes of determining whether any amount of a capital payment is qualifying overseas capital.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-2"><num>(2)</num><content><p>The amount is to be treated as an amount <ins class="first last" ukl:ChangeId="key-5afe54cf97ef5cab8f21e8361e836a74-1776849382513" ukl:CommentaryRef="key-5afe54cf97ef5cab8f21e8361e836a74"><noteRef uk:name="commentary" href="#key-5afe54cf97ef5cab8f21e8361e836a74" class="commentary"/>of income</ins> of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-7-3"><num>(3)</num><content><p>The amount may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-10-paragraph-12-1"><num>(1)</num><content><p>No gain is treated as accruing under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00302" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> on the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-8dff72aa92040e88a538c94dba73ba0a-1776854193920" ukl:CommentaryRef="key-8dff72aa92040e88a538c94dba73ba0a"><noteRef uk:name="commentary" href="#key-8dff72aa92040e88a538c94dba73ba0a" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision (other than paragraph 6(1)(b))</ins>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-12-2"><num>(2)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-10-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">Section 809Q</a> of <ref eId="c00311" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-2-a"><num>(a)</num><content><p><mod>before Step 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step A1</i></p><p>Find the amount (if any) of income or capital of the individual for the relevant tax year in the mixed fund immediately before the transfer that is TRF capital.</p><p>If the amount of the transfer is equal to, or less than, the amount of TRF capital, treat the transfer as containing only TRF capital.</p><p>Otherwise—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>treat so much of the transfer as does not exceed the amount of the TRF capital as being comprised of TRF capital, and</p></item><item><num>(b)</num><p>apply the following steps to the remainder of the transfer.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-15-2-b"><num>(b)</num><content><p><mod>in Steps 2 to 4, and in the first sentence in Step 5, for “transfer”, in each place it occurs, substitute <quotedText>“remainder”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-3-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-15-3-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-4"><num>(4)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e37427"><num>(9)</num><intro><p>For the purposes of this Chapter “<term refersTo="#term-trf-capital">TRF capital</term>” means any amount that—</p></intro><level class="para1"><num>(a)</num><content><p>is qualifying overseas capital (within the meaning of Part 1 of Schedule 10 to FA 2025) as a result of paragraph 2 of that Schedule, and</p></content></level><level class="para1"><num>(b)</num><content><p>is designated qualifying overseas capital for the purposes of that Part of that Schedule (and see paragraph 8(7) which provides for qualifying overseas capital to be treated as designated qualifying overseas capital from the start of the tax year to which the return in which it is designated relates).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-5"><num>(5)</num><content><p><mod>In section 809Z10 of ITA 2007 (general interpretation), after the definition of “the remittance basis user” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-trf-capital">TRF capital</term>” has the meaning given by section 809Q(9).</p></content></hcontainer></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-10-paragraph-18-1"><num>(1)</num><content><p>This following modifications have effect for the tax years 2025-26, 2026-27 and 2027-28.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-18-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00315" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> has effect as if—</p></intro><level class="para1" eId="schedule-10-paragraph-18-2-a"><num>(a)</num><content><p><mod>after section 809R there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37995"><num>809RZZA</num><heading>Annualised basis for mixed funds containing TRF capital</heading><subsection><num>(1)</num><content><p>This section applies where, at any time in a tax year, a mixed fund contains TRF capital.</p></content></subsection><subsection eId="d25e38005"><num>(2)</num><content><p>If this section applies, the composition of each transfer made from the fund in that tax year at any time is to be determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Suppose that all transfers made from the mixed fund to a TRF capital account in relation to which section 809RZA(2) applies had been a single transfer made from the fund at the end of the tax year.</p><p>Whether that section applies in relation to transfers to a TRF capital account is determined as if all transfers from the mixed fund were made at the end of the tax year but transfers to a TRF capital account were made—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>before any other transfer from the mixed fund was made, and</p></item><item><num>(b)</num><p>sequentially in the order in which the transfers to a TRF capital account were actually made.</p></item></blockList></item><item><p><i>Step 2</i></p><p>Suppose that all the condition A transfers made from the mixed fund in the tax year had been a single transfer made at the end of the tax year immediately after the single transfer mentioned in Step 1.</p></item><item><p><i>Step 3</i></p><p>Suppose that all the other transfers made from the account in the tax year had been a single offshore transfer made at the end of the tax year immediately after the single transfer mentioned in Step 2.</p></item><item><p><i>Step 4</i></p><p>Applying those suppositions—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>find under section 809Q(3) the content of the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>find under section 809R(4) the content of the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Each transfer made from the fund in the tax year, other than a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, is treated as containing the specified proportion of each kind of income or capital contained in the relevant deemed transfer.</p><p>“The specified proportion” is the amount of the transfer divided by the amount of the relevant deemed transfer.</p><p>“The relevant deemed transfer is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the transfer is a condition A transfer, the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>otherwise, the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Each transfer made from the fund in the tax year to which section 809RZA(2) is regarded as applying in accordance with Step 1 is to be treated as a transfer to which that section applies (and no other transfer in the tax year is to be regarded as a transfer in relation to which that section applies).</p></item></blockList></content></subsection><subsection><num>(3)</num><content><p>Subsection (2) applies in determining the composition of a transfer for the purposes of sections 809Q and 809R but it does not otherwise affect the date on which a transfer is considered to occur for the purposes of this Chapter.</p></content></subsection><subsection><num>(4)</num><intro><p>A transfer from the fund is a “condition A transfer” if and to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>condition A in section 809L is met, and</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the property or consideration for the service is (wholly or in part), or derives (wholly or in part, and directly or indirectly) from, the transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the transfer, or anything deriving (wholly or in part, and directly or indirectly) from the transfer, is used as mentioned in section 809L(3)(c).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>A transfer from the fund is an “other transfer” if and to the extent that it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></subsection><subsection><num>(6)</num><intro><p>Treat a transfer as an “other transfer” if and to the extent that, at the end of the tax year—</p></intro><level class="para1"><num>(a)</num><content><p>it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>on the basis of the best estimate that can reasonably be made at that time, it will not become either a condition A transfer or a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of Step 5 in subsection (2)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></section></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-18-2-b"><num>(b)</num><content><p><mod>in section 809RZD (as inserted by paragraph 17), at the end there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><content><p>If it is supposed under Steps 1 to 3 of section 809RZZA(2) that single transfers had been made in the intervening period, re-apply those steps in relation to those transfers taking account of subsection (2) and re-apply sections 809Q and 809R accordingly.</p></content></subsection><subsection><num>(5)</num><intro><p>“The intervening period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the breach occurred, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day on which the single one-off qualifying transfer was made in accordance with section 809RZC(2).</p></content></level></subsection><subsection><num>(6)</num><content><p>If more than one qualifying transfer of a sum equal to the required amount was transferred out of the TRF capital account within the 30-day grace period, the first of those transfers is assumed to be the single one-off qualifying transfer.</p></content></subsection><subsection><num>(7)</num><content><p>“The 30-day grace period” is the period of 30 days mentioned in section 809RZC(2).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-10-paragraph-21-1"><num>(1)</num><content><p>The amendments made by this Part of this Schedule have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-21-2"><num>(2)</num><content><p>Sub-paragraph (1) does not apply to the modifications made by paragraphs 14 and 18.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content><p>An individual may make an election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply to a disposal made by the individual.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">Sections 42</a> and <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/43">43</a> of <ref eId="c00330" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (procedure and time limit for claims), except <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">section 42</a><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">(1A)</a> of <ref eId="c00331" href="https://www.legislation.gov.uk/ukpga/1970/9">that Act</ref>, apply in relation to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> as they apply in relation to a claim for relief.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-3"><num>(3)</num><content><p>An election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> is irrevocable.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-4"><num>(4)</num><content><p>All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref>.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-32" class="schProv1"><num>32</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15">Schedule 15</a> to <ref eId="c00339" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pre-owned assets charge) is amended as follows.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-33" class="schProv1"><num>33</num><content><p><mod>In paragraph 11 (exemptions from charge), in sub-paragraph (5), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>would fall to be so treated but for section 102<ref href="#d25e44482">(7A)</ref> of the 1986 Act (cases where property was excluded property under the old inheritance tax regime),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">paragraph 12</a>, for “resident or domiciled outside the United Kingdom” substitute <quotedText>“non-UK resident or not a long-term UK resident”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-13-paragraph-35-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">Paragraph 12</a> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (2)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-3"><num>(3)</num><content><p>Omit sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-4"><num>(4)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><content><p>In this paragraph, “<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the same meaning as in IHTA 1984.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e16686"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purposes of sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref> in the cases of certain acts done before 30 October 2024.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e16710"><heading>Assets transferred under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p>If an asset is transferred on or after 30 October 2024 under an unconditional contract made before that date, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><intro><p>A contract is an excluded contract if—</p></intro><level class="para1" eId="schedule-2-paragraph-7-2-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-2-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><content><p>A contract is not to be regarded as an excluded contract unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-4"><num>(4)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-7-4-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-4-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-5"><num>(5)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-6"><num>(6)</num><intro><p>If the person making the transfer makes—</p></intro><level class="para1" eId="schedule-2-paragraph-7-6-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-7-6-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-7-3">sub-paragraph (3)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-7"><num>(7)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-8"><num>(8)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> any reference to the transfer of an asset includes its conveyance.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e16878"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-2-paragraph-8-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-8-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-8-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e16997"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-part-3"><num>Part 3</num><heading>Anti-forestalling provisions: sections <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref> and <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e17034"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p>in the case of business asset disposal relief, for the purposes of section <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref>, and</p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p>in the case of investors’ relief, for the purposes of section <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref>.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17076"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made before 30 October 2024, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17093"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made on or after 30 October 2024 but before 6 April 2025</heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made on or after 30 October 2024 but before 6 April 2025, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17110"><heading>Assets transferred on or after 6 April 2026 under unconditional contract made in tax year 2025-26</heading><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p>If an asset is transferred on or after 6 April 2026 under an unconditional contract made at any time in the tax year 2025-26, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17127"><heading>Paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>: supplementary provision</heading><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>A contract is an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> if—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>A contract is not to be regarded as an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-14-3-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-3-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraph <ref href="#schedule-2-paragraph-7">7</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-4"><num>(4)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00106" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-5"><num>(5)</num><intro><p>If the person making the transfer referred to in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> makes—</p></intro><level class="para1" eId="schedule-2-paragraph-14-5-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00107" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-14-5-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00108" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00109" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00110" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-14-2">sub-paragraph (2)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-6"><num>(6)</num><content><p>Any reference in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> (or this paragraph) to the transfer of an asset includes its conveyance.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00111" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17302"><heading>Business asset disposal relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-2-paragraph-15-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00112" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-15-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-2"><num>(2)</num><intro><p>If, as at 30 October 2024—</p></intro><level class="para1" eId="schedule-2-paragraph-15-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-15-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-15-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00113" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00114" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00115" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-15-5"><num>(5)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00116" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-17">17</ref>).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17453"><heading>Business asset disposal relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-2-paragraph-16-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-16-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-2"><num>(2)</num><intro><p>If, when the election is made—</p></intro><level class="para1" eId="schedule-2-paragraph-16-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-16-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, anything mentioned in sub-paragraph <ref href="#schedule-2-paragraph-16-2">(2)</ref><ref href="#schedule-2-paragraph-16-2-a">(a)</ref> or <ref href="#schedule-2-paragraph-16-2-b">(b)</ref> ceases to be as mentioned there, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-16-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-5"><num>(5)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-16-6"><num>(6)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-18">18</ref>).</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17627"><heading>Business asset disposal relief: exchanges of securities etc before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-2-paragraph-17-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00122" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00123" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-17-1-a"><num>(a)</num><content><p>the exchange takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-2"><num>(2)</num><content><p>If condition A or B is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-17-3"><num>(3)</num><intro><p>Condition A is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-17-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-17-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-17-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-4-b"><num>(b)</num><intro><p>as at 30 October 2024—</p></intro><level class="para2" eId="schedule-2-paragraph-17-4-b-i"><num>(i)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-4-b-ii"><num>(ii)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-5"><num>(5)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-17-5-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-5-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-6"><num>(6)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-17-6-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-17-6-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-6-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-17-6-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-7"><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17871"><heading>Business asset disposal relief: exchanges of securities etc on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-2-paragraph-18-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00132" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00133" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-18-1-a"><num>(a)</num><content><p>the exchange takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-2"><num>(2)</num><content><p>If the following condition is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-18-3"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1" eId="schedule-2-paragraph-18-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-18-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-18-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-4"><num>(4)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-4-b"><num>(b)</num><content><p>the relief conditions are met when the election is made,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-5"><num>(5)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-5-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-5-b"><num>(b)</num><content><p>at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, the relief conditions cease to be met,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-6"><num>(6)</num><intro><p>For the purposes of this paragraph “the relief conditions” are met if—</p></intro><level class="para1" eId="schedule-2-paragraph-18-6-a"><num>(a)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-6-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-7"><num>(7)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-18-7-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00134" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-7-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-8"><num>(8)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00135" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-8-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00136" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-18-8-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-18-8-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-18-8-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00137" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00138" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-9"><num>(9)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00139" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00140" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00141" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-18-10"><num>(10)</num><content><p>This paragraph does not apply if both the exchange and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18153"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-2-paragraph-19-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00142" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-19-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-19-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00143" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00144" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00145" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00146" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00147" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-6"><num>(6)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18278"><heading>Investors’ relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-2-paragraph-20-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-20-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-2"><num>(2)</num><content><p>If, when the election is made, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, a relevant individual ceases to hold qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-20-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-5"><num>(5)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-6"><num>(6)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18412"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Business asset disposal relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-2-paragraph-16-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-16-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-2"><num>(2)</num><intro><p>If, when the election is made—</p></intro><level class="para1" eId="schedule-2-paragraph-16-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-16-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, anything mentioned in sub-paragraph <ref href="#schedule-2-paragraph-16-2">(2)</ref><ref href="#schedule-2-paragraph-16-2-a">(a)</ref> or <ref href="#schedule-2-paragraph-16-2-b">(b)</ref> ceases to be as mentioned there, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-16-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-5"><num>(5)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-16-6"><num>(6)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-18">18</ref>).</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p>in the case of business asset disposal relief, for the purposes of section <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref>, and</p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p>in the case of investors’ relief, for the purposes of section <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref>.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p>in the case of business asset disposal relief, for the purposes of section <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref>, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p>in the case of investors’ relief, for the purposes of section <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref>.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p>If an asset is transferred on or after 6 April 2026 under an unconditional contract made at any time in the tax year 2025-26, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-2-paragraph-16-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-16-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-2"><num>(2)</num><intro><p>If, when the election is made—</p></intro><level class="para1" eId="schedule-2-paragraph-16-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-16-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, anything mentioned in sub-paragraph <ref href="#schedule-2-paragraph-16-2">(2)</ref><ref href="#schedule-2-paragraph-16-2-a">(a)</ref> or <ref href="#schedule-2-paragraph-16-2-b">(b)</ref> ceases to be as mentioned there, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-16-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-5"><num>(5)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-16-6"><num>(6)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-18">18</ref>).</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-2-paragraph-19-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00142" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-19-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-19-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00143" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00144" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00145" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00146" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00147" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-6"><num>(6)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17034"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p>in the case of business asset disposal relief, for the purposes of section <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref>, and</p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p>in the case of investors’ relief, for the purposes of section <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref>.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17076"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made before 30 October 2024, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17093"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made on or after 30 October 2024 but before 6 April 2025</heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made on or after 30 October 2024 but before 6 April 2025, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17110"><heading>Assets transferred on or after 6 April 2026 under unconditional contract made in tax year 2025-26</heading><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p>If an asset is transferred on or after 6 April 2026 under an unconditional contract made at any time in the tax year 2025-26, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17127"><heading>Paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>: supplementary provision</heading><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>A contract is an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> if—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>A contract is not to be regarded as an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-14-3-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-3-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraph <ref href="#schedule-2-paragraph-7">7</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-4"><num>(4)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00106" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-5"><num>(5)</num><intro><p>If the person making the transfer referred to in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> makes—</p></intro><level class="para1" eId="schedule-2-paragraph-14-5-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00107" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-14-5-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00108" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00109" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00110" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-14-2">sub-paragraph (2)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-6"><num>(6)</num><content><p>Any reference in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> (or this paragraph) to the transfer of an asset includes its conveyance.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00111" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17302"><heading>Business asset disposal relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-2-paragraph-15-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00112" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-15-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-2"><num>(2)</num><intro><p>If, as at 30 October 2024—</p></intro><level class="para1" eId="schedule-2-paragraph-15-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-15-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-15-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00113" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00114" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00115" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-15-5"><num>(5)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00116" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-17">17</ref>).</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17453"><heading>Business asset disposal relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-2-paragraph-16-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-16-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-2"><num>(2)</num><intro><p>If, when the election is made—</p></intro><level class="para1" eId="schedule-2-paragraph-16-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-16-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, anything mentioned in sub-paragraph <ref href="#schedule-2-paragraph-16-2">(2)</ref><ref href="#schedule-2-paragraph-16-2-a">(a)</ref> or <ref href="#schedule-2-paragraph-16-2-b">(b)</ref> ceases to be as mentioned there, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-16-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-5"><num>(5)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-16-6"><num>(6)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-18">18</ref>).</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17627"><heading>Business asset disposal relief: exchanges of securities etc before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-2-paragraph-17-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00122" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00123" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-17-1-a"><num>(a)</num><content><p>the exchange takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-2"><num>(2)</num><content><p>If condition A or B is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-17-3"><num>(3)</num><intro><p>Condition A is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-17-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-17-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-17-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-4-b"><num>(b)</num><intro><p>as at 30 October 2024—</p></intro><level class="para2" eId="schedule-2-paragraph-17-4-b-i"><num>(i)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-4-b-ii"><num>(ii)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-5"><num>(5)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-17-5-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-5-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-6"><num>(6)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-17-6-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-17-6-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-6-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-17-6-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-7"><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e17871"><heading>Business asset disposal relief: exchanges of securities etc on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-2-paragraph-18-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00132" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00133" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-18-1-a"><num>(a)</num><content><p>the exchange takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-2"><num>(2)</num><content><p>If the following condition is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-18-3"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1" eId="schedule-2-paragraph-18-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-18-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-18-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-4"><num>(4)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-4-b"><num>(b)</num><content><p>the relief conditions are met when the election is made,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-5"><num>(5)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-5-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-5-b"><num>(b)</num><content><p>at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, the relief conditions cease to be met,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-6"><num>(6)</num><intro><p>For the purposes of this paragraph “the relief conditions” are met if—</p></intro><level class="para1" eId="schedule-2-paragraph-18-6-a"><num>(a)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-6-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-7"><num>(7)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-18-7-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00134" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-7-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-8"><num>(8)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00135" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-8-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00136" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-18-8-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-18-8-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-18-8-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00137" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00138" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-9"><num>(9)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00139" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00140" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00141" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-18-10"><num>(10)</num><content><p>This paragraph does not apply if both the exchange and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e18153"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-2-paragraph-19-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00142" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-19-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-19-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00143" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00144" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00145" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00146" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00147" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-6"><num>(6)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e18278"><heading>Investors’ relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-2-paragraph-20-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-20-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-2"><num>(2)</num><content><p>If, when the election is made, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, a relevant individual ceases to hold qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-20-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-5"><num>(5)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-6"><num>(6)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e18412"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-3"><num>Schedule 3<authorialNote class="referenceNote"><p>Section 18</p></authorialNote></num><heading>Payments into decommissioning funds</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e18438"><heading>Payments into decommissioning fund treated as general decommissioning expenditure</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><intro><p>A qualifying payment into a decommissioning fund is treated for tax purposes as—</p></intro><level class="para1" eId="schedule-3-paragraph-1-1-a"><num>(a)</num><content><p>expenditure incurred in decommissioning a qualifying asset falling within <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(i)</a> of the <ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref> (allowance of expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-b"><num>(b)</num><content><p>general decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (allowances for decommissioning expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-c"><num>(c)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/330C">section 330C</a> of <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (decommissioning expenditure taken into account in calculating ring fence profits), and</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-d"><num>(d)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">section 9</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">(3)</a> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (meaning of decommissioning costs).</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><intro><p>A payment into a decommissioning fund is qualifying if—</p></intro><level class="para1" eId="schedule-3-paragraph-1-2-a"><num>(a)</num><intro><p>the relevant transferred plant or machinery to which the payment relates is—</p></intro><level class="para2" eId="schedule-3-paragraph-1-2-a-i"><num>(i)</num><content><p>an eligible CCS installation which qualifies for change of use relief under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations), or</p></content></level><level class="para2" eId="schedule-3-paragraph-1-2-a-ii"><num>(ii)</num><content><p>an eligible carbon storage network pipeline which qualifies for change of use relief under section 30B of that Act (change of use relief for carbon storage network pipelines), and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-1-2-b"><num>(b)</num><content><p>the payment has been certified in an approval notice given under section 30A(5)(b) or 30B(3)(b) of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p>For the purposes of <ref href="#schedule-3-paragraph-1-2">sub-paragraph (2)</ref>, a payment to a licensed company under an agreement to pay a required amount for the purposes of payment into the decommissioning fund is to be regarded as a payment into that fund.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-4"><num>(4)</num><content><p>But the onward payment into the fund by that licensed company is not a qualifying payment.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-5"><num>(5)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund" eId="term-decommissioning-fund">decommissioning fund</term>” is to be interpreted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">section 92</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(7)</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(a)</a> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (financing costs of decommissioning etc);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-licensed-company" eId="term-licensed-company">licensed company</term>” means a person who holds a licence under <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/7">section 7</a> of the <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (licences for carbon dioxide transport and storage);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-transferred-plant-or-machinery" eId="term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3-paragraph-2">paragraph 2</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-required-amount" eId="term-required-amount">required amount</term>” means an amount determined by the Secretary of State in accordance with regulations made under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(5A)</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(b)</a> or 30B(3A)(b) (as the case may be) of the <ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (amount required to be paid into a decommissioning fund);</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-ring-fence-trade" eId="term-ring-fence-trade">ring fence trade</term>” means activities which—</p></intro><level class="para1"><num>(a)</num><content><p>fall within the definition of “oil-related activities” in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(2)</a> of <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/274">section 274</a> of <ref eId="c00164" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>constitute a separate trade (whether as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(1)</a> of <ref eId="c00165" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/279">section 279</a> of <ref eId="c00166" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> or otherwise);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-tax-purposes" eId="term-tax-purposes">tax purposes</term>” means for the purposes of—</p></intro><level class="para1"><num>(a)</num><content><p>corporation tax (including for the purposes of the supplementary charge in respect of ring fence trades and the energy (oil and gas) profits levy);</p></content></level><level class="para1"><num>(b)</num><content><p>income tax;</p></content></level><level class="para1"><num>(c)</num><content><p>petroleum revenue tax.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18684"><heading>Meaning of “relevant transferred plant or machinery”</heading><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><intro><p>Plant or machinery is “relevant transferred plant or machinery” if it meets—</p></intro><level class="para1" eId="schedule-3-paragraph-2-1-a"><num>(a)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-2">sub-paragraphs (2)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>, or</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-b"><num>(b)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-3">sub-paragraphs (3)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-2-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-2-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-2-b-i"><num>(i)</num><content><p>is, or forms part of, an offshore installation or a submarine pipeline, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-2-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation or pipeline.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-3-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-3-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-3-b-i"><num>(i)</num><content><p>is, or forms part of, a relevant onshore installation, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-3-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-4"><num>(4)</num><intro><p>In <ref href="#schedule-3-paragraph-2-3">sub-paragraph (3)</ref> “<term refersTo="#term-relevant-onshore-installation" eId="term-relevant-onshore-installation">relevant onshore installation</term>” means any building or structure which—</p></intro><level class="para1" eId="schedule-3-paragraph-2-4-a"><num>(a)</num><content><p>falls within any of <span><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">sub-paragraphs (ii)</a> to <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(iv)</a></span> of <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(c)</a> of the <ref eId="c00167" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref>,</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-b"><num>(b)</num><content><p>is not an offshore installation, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-c"><num>(c)</num><intro><p>is or has been used for purposes connected with the winning of oil from an oil field any part of which lies within—</p></intro><level class="para2" eId="schedule-3-paragraph-2-4-c-i"><num>(i)</num><content><p>the boundaries of the territorial sea of the United Kingdom, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-4-c-ii"><num>(ii)</num><content><p>an area designated under <a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">section 1</a><a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">(7)</a> of the <ref eId="c00168" href="https://www.legislation.gov.uk/ukpga/1964/29">Continental Shelf Act 1964</ref>.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-5"><num>(5)</num><content><p>The condition in this sub-paragraph is met if ownership of the plant or machinery has been transferred to a licensed company under an agreement to pay a required amount.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-6"><num>(6)</num><intro><p>The condition in this sub-paragraph is met if the agreement to pay a relevant required amount provides that the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-6-a"><num>(a)</num><content><p>will be reused by the licensed company, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-6-b"><num>(b)</num><content><p>will not be replaced by the transferor of the plant or machinery.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-7"><num>(7)</num><content><p>Terms used in <ref href="#schedule-3-paragraph-2">this paragraph</ref> and in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00169" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">that section</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18896"><heading>Application of <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">sections 164</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">165</a> of <ref eId="c00170" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">Section 164</a> of <ref eId="c00171" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (election for special allowance) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-1-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Condition A is that R has made a qualifying payment into a decommissioning fund in the relevant chargeable period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-1-b"><num>(b)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-3-paragraph-3-1-b-i"><num>(i)</num><content><p><mod>in paragraph (ab), after “decommissioning” there were inserted <quotedText>“fund”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-3-1-b-ii"><num>(ii)</num><content><p>paragraphs (ac) and (b) were omitted, and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-3-1-c"><num>(c)</num><content><p>subsections (5A) to (7) were omitted.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">Section 165</a> of <ref eId="c00172" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (general decommissioning expenditure after ceasing ring fence trade) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-2-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The decommissioning condition is met in relation to a notional accounting period (the “relevant period”) if the former trader has made a qualifying payment into a decommissioning fund in the relevant period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-b"><num>(b)</num><content><p><mod>in subsection (2), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>ends with the day on which the trigger event described in <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00173" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations) occurs in relation to the relevant transferred plant or machinery.</p></content></level></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-c"><num>(c)</num><content><p>subsections (2A) to (2C) were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-d"><num>(d)</num><content><p>in subsection (4), in the definition of “relevant decommissioning cost”, “paragraph (a), (b) or (c) of” were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-e"><num>(e)</num><content><p>subsections (4A) to (4D) and (6) were omitted, and</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-f"><num>(f)</num><content><p><mod>in subsection (7), at the appropriate places there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund">decommissioning fund</term>” and “<term refersTo="#term-qualifying-payment">qualifying payment</term>” are to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>““<term refersTo="#term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19062"><heading>Prevention of subsequent allowance where expenditure paid out of qualifying payment</heading><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p>No allowance under <ref eId="c00174" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is to be made to a person in respect of expenditure paid out of a qualifying payment made into a decommissioning fund where a claim for an allowance in relation to that payment under <ref eId="c00175" href="https://www.legislation.gov.uk/ukpga/2001/2">that Act</ref> has been made (whoever made the claim).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19077"><heading>Application of the <ref eId="c00176" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref></heading><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><p><mod><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">Section 1</a> of the <ref eId="c00177" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> has effect in relation to a company that has transferred relevant transferred plant or machinery to a licensed company as if in subsection (5) (assumptions in determining levy profits or loss), after paragraph (c) there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content><p>any amount received from a licensed company (within the meaning of <ref href="#schedule-3">Schedule 3</ref> to FA 2025) for relevant transferred plant or machinery (within the meaning of that Schedule) that would otherwise be brought into account when calculating the amount of the profits or loss of any ring fence trade of the company for the period is left out of account,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19105"><heading>Commencement</heading><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-3">This Schedule</ref> has effect in relation to qualifying payments into a decommissioning fund made on or after the day on which this Act is passed.</p></content></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Application</heading><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><content><p>The amendments made by this Schedule have effect in relation to arrangements entered into on or after 30 October 2024.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><intro><p>A qualifying payment into a decommissioning fund is treated for tax purposes as—</p></intro><level class="para1" eId="schedule-3-paragraph-1-1-a"><num>(a)</num><content><p>expenditure incurred in decommissioning a qualifying asset falling within <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(i)</a> of the <ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref> (allowance of expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-b"><num>(b)</num><content><p>general decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (allowances for decommissioning expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-c"><num>(c)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/330C">section 330C</a> of <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (decommissioning expenditure taken into account in calculating ring fence profits), and</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-d"><num>(d)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">section 9</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">(3)</a> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (meaning of decommissioning costs).</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><intro><p>A payment into a decommissioning fund is qualifying if—</p></intro><level class="para1" eId="schedule-3-paragraph-1-2-a"><num>(a)</num><intro><p>the relevant transferred plant or machinery to which the payment relates is—</p></intro><level class="para2" eId="schedule-3-paragraph-1-2-a-i"><num>(i)</num><content><p>an eligible CCS installation which qualifies for change of use relief under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations), or</p></content></level><level class="para2" eId="schedule-3-paragraph-1-2-a-ii"><num>(ii)</num><content><p>an eligible carbon storage network pipeline which qualifies for change of use relief under section 30B of that Act (change of use relief for carbon storage network pipelines), and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-1-2-b"><num>(b)</num><content><p>the payment has been certified in an approval notice given under section 30A(5)(b) or 30B(3)(b) of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p>For the purposes of <ref href="#schedule-3-paragraph-1-2">sub-paragraph (2)</ref>, a payment to a licensed company under an agreement to pay a required amount for the purposes of payment into the decommissioning fund is to be regarded as a payment into that fund.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-4"><num>(4)</num><content><p>But the onward payment into the fund by that licensed company is not a qualifying payment.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-5"><num>(5)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund" eId="term-decommissioning-fund">decommissioning fund</term>” is to be interpreted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">section 92</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(7)</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(a)</a> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (financing costs of decommissioning etc);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-licensed-company" eId="term-licensed-company">licensed company</term>” means a person who holds a licence under <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/7">section 7</a> of the <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (licences for carbon dioxide transport and storage);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-transferred-plant-or-machinery" eId="term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3-paragraph-2">paragraph 2</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-required-amount" eId="term-required-amount">required amount</term>” means an amount determined by the Secretary of State in accordance with regulations made under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(5A)</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(b)</a> or 30B(3A)(b) (as the case may be) of the <ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (amount required to be paid into a decommissioning fund);</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-ring-fence-trade" eId="term-ring-fence-trade">ring fence trade</term>” means activities which—</p></intro><level class="para1"><num>(a)</num><content><p>fall within the definition of “oil-related activities” in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(2)</a> of <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/274">section 274</a> of <ref eId="c00164" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>constitute a separate trade (whether as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(1)</a> of <ref eId="c00165" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/279">section 279</a> of <ref eId="c00166" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> or otherwise);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-tax-purposes" eId="term-tax-purposes">tax purposes</term>” means for the purposes of—</p></intro><level class="para1"><num>(a)</num><content><p>corporation tax (including for the purposes of the supplementary charge in respect of ring fence trades and the energy (oil and gas) profits levy);</p></content></level><level class="para1"><num>(b)</num><content><p>income tax;</p></content></level><level class="para1"><num>(c)</num><content><p>petroleum revenue tax.</p></content></level></hcontainer></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-7-paragraph-1-1"><num>(1)</num><content><p>Part 10A of ITA 2007 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-2"><num>(2)</num><content><p><mod>In section 564A (introduction), in subsection (3)(b) after “section 564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-3"><num>(3)</num><intro><p>In section 564D (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “564E” substitute <quotedText>“<ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-4"><num>(4)</num><content><p><mod>After section 564D insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e29597"><num>564DA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e29601"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e29607"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e29616"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29643"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e29616">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29852">(6)</ref>),</p></content></level><level class="para1" eId="d25e29655"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29667"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29673"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e29679"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 564D or subsection <ref href="#d25e29601">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e29688"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 564D(1)(a) or subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref> of this section as has not yet been acquired as mentioned in section 564D(1)(d) or subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29655">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29725"><num>(c)</num><content><p>the customer mentioned in section 564D(1) or <ref href="#d25e29601">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 564D(1)(c) or <ref href="#d25e29601">subsection (1)</ref><ref href="#d25e29643">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29852">(6)</ref>),</p></content></level><level class="para1" eId="d25e29742"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29754"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29760"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e29601">(1)</ref><ref href="#d25e29607">(a)</ref> and <ref href="#d25e29616">(b)</ref> and <ref href="#d25e29679">(2)</ref><ref href="#d25e29688">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29667">(g)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29754">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e29816">(5)</ref> are met.</p></content></subsection><subsection eId="d25e29816"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e29852"><num>(6)</num><intro><p>Subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29673">(h)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29760">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 564H (provision not at arm’s length: exclusion of arrangements from sections 564C and 564D, this section and sections 564E to 564G).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-5"><num>(5)</num><intro><p>In section 564K (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-1-5-b-i"><num>(i)</num><content><p><mod>after “section 564D(1)(c)” insert <quotedText>“or <ref href="#d25e29597">564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29643">(d)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29725">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-6"><num>(6)</num><content><p><mod>In section 564V (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-7"><num>(7)</num><content><p><mod>After section 564W (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>564WA</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e29597">564DA</ref> applies.</p></content></subsection><subsection><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref>, any profit, gain or loss realised by the customer on the disposal of the asset is to be treated as not having been realised for income tax purposes.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30012"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref>,</p></content></level><level class="para1" eId="d25e30025"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29643">(d)</ref> and <ref href="#d25e29655">(e)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29725">(c)</ref> and <ref href="#d25e29742">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30012">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30025">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of calculating, for income tax purposes, the amount of the profit, gain or loss realised by customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30795">(2)</ref> and <ref href="#d25e30808">(3)</ref>, “<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in <ref href="#d25e29597">section 564DA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29679">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for income tax purposes.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><content><p>The amendments made by this Schedule have effect in relation to arrangements entered into on or after 30 October 2024.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><intro><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> applies to the disposal of an asset by an individual (“<term refersTo="#term-p" eId="term-p">P</term>”) where—</p></intro><level class="para1" eId="schedule-11-paragraph-1-1-a"><num>(a)</num><content><p>the asset was held by P on 5 April 2017,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-b"><num>(b)</num><content><p>the disposal is made on or after 6 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-c"><num>(c)</num><content><p>the asset was not situated in the United Kingdom at any time in the period beginning with 6 March 2024 and ending with 5 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-d"><num>(d)</num><content><p>P was not domiciled in the United Kingdom at any time in a tax year before tax year 2025-26, and</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-e"><num>(e)</num><intro><p>P has made a claim under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">section 809B</a> of <ref eId="c00317" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (claim for remittance basis) for at least one tax year that is—</p></intro><level class="para2" eId="schedule-11-paragraph-1-1-e-i"><num>(i)</num><content><p>one of the tax years from tax year 2017-18 to tax year 2024-25, and</p></content></level><level class="para2" eId="schedule-11-paragraph-1-1-e-ii"><num>(ii)</num><content><p>a tax year for which neither <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">section 809D</a> nor 809E of <ref eId="c00318" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> applied to P (remittance basis applies without claim).</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><content><p>In computing, for the purpose of <ref eId="c00319" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, the gain or loss accruing on the disposal, it is to be assumed that P acquired the asset on 5 April 2017 for a consideration equal to its market value on that date.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content><p><ref href="#schedule-11-paragraph-1-2">Sub-paragraph (2)</ref> applies notwithstanding <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">section 58</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">(1)</a> of <ref eId="c00320" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (disposals between spouses).</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-4"><num>(4)</num><content><p>Where under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">section 127</a> of <ref eId="c00321" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (including that section as applied by sections 132, 135 and 136 of that Act) an original and a new holding of shares or other securities are treated as the same asset, the condition in <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> applies to both the original and the new holding.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/835BA">Section 835BA</a> of <ref eId="c00322" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (deemed domicile) applies for the purposes of <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-d">(d)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-6"><num>(6)</num><content><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> and <ref href="#schedule-11-paragraph-2">paragraphs 2</ref> and <ref href="#schedule-11-paragraph-3">3</ref> have effect as if they were included in <ref eId="c00323" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e18438"><heading>Payments into decommissioning fund treated as general decommissioning expenditure</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><intro><p>A qualifying payment into a decommissioning fund is treated for tax purposes as—</p></intro><level class="para1" eId="schedule-3-paragraph-1-1-a"><num>(a)</num><content><p>expenditure incurred in decommissioning a qualifying asset falling within <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(i)</a> of the <ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref> (allowance of expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-b"><num>(b)</num><content><p>general decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (allowances for decommissioning expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-c"><num>(c)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/330C">section 330C</a> of <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (decommissioning expenditure taken into account in calculating ring fence profits), and</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-d"><num>(d)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">section 9</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">(3)</a> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (meaning of decommissioning costs).</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><intro><p>A payment into a decommissioning fund is qualifying if—</p></intro><level class="para1" eId="schedule-3-paragraph-1-2-a"><num>(a)</num><intro><p>the relevant transferred plant or machinery to which the payment relates is—</p></intro><level class="para2" eId="schedule-3-paragraph-1-2-a-i"><num>(i)</num><content><p>an eligible CCS installation which qualifies for change of use relief under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations), or</p></content></level><level class="para2" eId="schedule-3-paragraph-1-2-a-ii"><num>(ii)</num><content><p>an eligible carbon storage network pipeline which qualifies for change of use relief under section 30B of that Act (change of use relief for carbon storage network pipelines), and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-1-2-b"><num>(b)</num><content><p>the payment has been certified in an approval notice given under section 30A(5)(b) or 30B(3)(b) of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p>For the purposes of <ref href="#schedule-3-paragraph-1-2">sub-paragraph (2)</ref>, a payment to a licensed company under an agreement to pay a required amount for the purposes of payment into the decommissioning fund is to be regarded as a payment into that fund.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-4"><num>(4)</num><content><p>But the onward payment into the fund by that licensed company is not a qualifying payment.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-5"><num>(5)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund" eId="term-decommissioning-fund">decommissioning fund</term>” is to be interpreted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">section 92</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(7)</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(a)</a> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (financing costs of decommissioning etc);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-licensed-company" eId="term-licensed-company">licensed company</term>” means a person who holds a licence under <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/7">section 7</a> of the <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (licences for carbon dioxide transport and storage);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-transferred-plant-or-machinery" eId="term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3-paragraph-2">paragraph 2</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-required-amount" eId="term-required-amount">required amount</term>” means an amount determined by the Secretary of State in accordance with regulations made under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(5A)</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(b)</a> or 30B(3A)(b) (as the case may be) of the <ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (amount required to be paid into a decommissioning fund);</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-ring-fence-trade" eId="term-ring-fence-trade">ring fence trade</term>” means activities which—</p></intro><level class="para1"><num>(a)</num><content><p>fall within the definition of “oil-related activities” in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(2)</a> of <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/274">section 274</a> of <ref eId="c00164" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>constitute a separate trade (whether as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(1)</a> of <ref eId="c00165" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/279">section 279</a> of <ref eId="c00166" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> or otherwise);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-tax-purposes" eId="term-tax-purposes">tax purposes</term>” means for the purposes of—</p></intro><level class="para1"><num>(a)</num><content><p>corporation tax (including for the purposes of the supplementary charge in respect of ring fence trades and the energy (oil and gas) profits levy);</p></content></level><level class="para1"><num>(b)</num><content><p>income tax;</p></content></level><level class="para1"><num>(c)</num><content><p>petroleum revenue tax.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-foreign-employment-relief-claim" eId="term-foreign-employment-relief-claim">foreign employment relief claim</term>” and “qualifying year” have the same meanings as in Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income);</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><intro><p>Plant or machinery is “relevant transferred plant or machinery” if it meets—</p></intro><level class="para1" eId="schedule-3-paragraph-2-1-a"><num>(a)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-2">sub-paragraphs (2)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>, or</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-b"><num>(b)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-3">sub-paragraphs (3)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-2-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-2-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-2-b-i"><num>(i)</num><content><p>is, or forms part of, an offshore installation or a submarine pipeline, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-2-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation or pipeline.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-3-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-3-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-3-b-i"><num>(i)</num><content><p>is, or forms part of, a relevant onshore installation, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-3-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-4"><num>(4)</num><intro><p>In <ref href="#schedule-3-paragraph-2-3">sub-paragraph (3)</ref> “<term refersTo="#term-relevant-onshore-installation" eId="term-relevant-onshore-installation">relevant onshore installation</term>” means any building or structure which—</p></intro><level class="para1" eId="schedule-3-paragraph-2-4-a"><num>(a)</num><content><p>falls within any of <span><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">sub-paragraphs (ii)</a> to <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(iv)</a></span> of <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(c)</a> of the <ref eId="c00167" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref>,</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-b"><num>(b)</num><content><p>is not an offshore installation, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-c"><num>(c)</num><intro><p>is or has been used for purposes connected with the winning of oil from an oil field any part of which lies within—</p></intro><level class="para2" eId="schedule-3-paragraph-2-4-c-i"><num>(i)</num><content><p>the boundaries of the territorial sea of the United Kingdom, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-4-c-ii"><num>(ii)</num><content><p>an area designated under <a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">section 1</a><a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">(7)</a> of the <ref eId="c00168" href="https://www.legislation.gov.uk/ukpga/1964/29">Continental Shelf Act 1964</ref>.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-5"><num>(5)</num><content><p>The condition in this sub-paragraph is met if ownership of the plant or machinery has been transferred to a licensed company under an agreement to pay a required amount.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-6"><num>(6)</num><intro><p>The condition in this sub-paragraph is met if the agreement to pay a relevant required amount provides that the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-6-a"><num>(a)</num><content><p>will be reused by the licensed company, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-6-b"><num>(b)</num><content><p>will not be replaced by the transferor of the plant or machinery.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-7"><num>(7)</num><content><p>Terms used in <ref href="#schedule-3-paragraph-2">this paragraph</ref> and in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00169" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">that section</a>.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><p><mod><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">Section 1</a> of the <ref eId="c00177" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> has effect in relation to a company that has transferred relevant transferred plant or machinery to a licensed company as if in subsection (5) (assumptions in determining levy profits or loss), after paragraph (c) there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content><p>any amount received from a licensed company (within the meaning of <ref href="#schedule-3">Schedule 3</ref> to FA 2025) for relevant transferred plant or machinery (within the meaning of that Schedule) that would otherwise be brought into account when calculating the amount of the profits or loss of any ring fence trade of the company for the period is left out of account,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-26" class="schProv1"><num>26</num><content><p><mod>In section 180 (blended CFC regimes), in subsection (3), in the words before paragraph (a), for “tax charged to C under” substitute <quotedText>“C’s current tax expense so far as relating to”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-29" class="schProv1"><num>29</num><intro><p>In section 183 (qualifying foreign tax credits (substitute loss carry forward assets))—</p></intro><level class="para1" eId="schedule-4-paragraph-29-a"><num>(a)</num><intro><p>in subsection (5)—</p></intro><level class="para2" eId="schedule-4-paragraph-29-a-i"><num>(i)</num><content><p>the words from “income”, in the second place it occurs, to the end become paragraph (a), and</p></content></level><level class="para2" eId="schedule-4-paragraph-29-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>other qualifying income.</p></content></level></quotedStructure></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-29-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>For the purposes of subsection (5) “other qualifying income means”—</p></intro><level class="para1"><num>(a)</num><content><p>income identified as such for the purposes of this section in regulations made under section 262(1)(a), or</p></content></level><level class="para1"><num>(b)</num><content><p>where no income is identified as other qualifying income in any such regulations, such income as is necessary to give effect to the substitute loss carry-forward guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-substitute-loss-carry-forward-guidance">substitute loss carry-forward guidance</term>” means Chapter 4.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-4-paragraph-29-a"><num>(a)</num><intro><p>in subsection (5)—</p></intro><level class="para2" eId="schedule-4-paragraph-29-a-i"><num>(i)</num><content><p>the words from “income”, in the second place it occurs, to the end become paragraph (a), and</p></content></level><level class="para2" eId="schedule-4-paragraph-29-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>other qualifying income.</p></content></level></quotedStructure></mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-4-paragraph-29-a-i"><num>(i)</num><content><p>the words from “income”, in the second place it occurs, to the end become paragraph (a), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="schedule-4-paragraph-29-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>other qualifying income.</p></content></level></quotedStructure></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-4-paragraph-29-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>For the purposes of subsection (5) “other qualifying income means”—</p></intro><level class="para1"><num>(a)</num><content><p>income identified as such for the purposes of this section in regulations made under section 262(1)(a), or</p></content></level><level class="para1"><num>(b)</num><content><p>where no income is identified as other qualifying income in any such regulations, such income as is necessary to give effect to the substitute loss carry-forward guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-substitute-loss-carry-forward-guidance">substitute loss carry-forward guidance</term>” means Chapter 4.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 195 (substance based income exclusion), for subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Section 198 supplements the rules in sections 196 and 197 in relation to a member that is a permanent establishment.</p></content></subsection><subsection><num>(9)</num><content><p>Section 198ZA supplements the rules in sections 196 and 197 in relation to a member that is a flow-through entity.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-33" class="schProv1"><num>33</num><content><p><mod>For section 198 (eligible payroll costs and eligible tangible asset amount: permanent establishments and flow-through entities) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>198</num><heading>Eligible payroll costs and eligible tangible asset amount: permanent establishments</heading><subsection><num>(1)</num><content><p>Sections 196 and 197 apply in relation to permanent establishments with the following modifications.</p></content></subsection><subsection><num>(2)</num><content><p>In determining under section 196 the eligible payroll costs of a permanent establishment within section 232(2)(a) to (c), the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the establishment.</p></content></subsection><subsection><num>(3)</num><content><p>In determining under section 197 the eligible tangible asset amount of a permanent establishment within section 232(2)(a) to (c), the only assets to be taken into account are assets used in the business of the establishment.</p></content></subsection><subsection><num>(4)</num><content><p>Both the eligible payroll costs and the eligible tangible asset amount of a permanent establishment within section 232(2)(d) are nil.</p></content></subsection><subsection><num>(5)</num><intro><p>If but for this subsection—</p></intro><level class="para1"><num>(a)</num><content><p>an amount would be taken into account under section 196 in respect of both a permanent establishment and the main entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>an asset would be taken into account under section 197 in respect of both a permanent establishment and the main entity,</p></content></level><wrapUp><p>the amount or asset is only to be taken into account in respect of the permanent establishment.</p></wrapUp></subsection></section><section eId="d25e22355"><num>198ZA</num><heading>Eligible payroll costs: flow-through entities</heading><subsection eId="d25e22359"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period if the member has costs that would be eligible payroll costs if the member were located in that territory and were not a flow-through entity and—</p></intro><level class="para1" eId="d25e22365"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Section 196 applies for the purposes of determining a flow-through payroll amount of a flow-through entity for a territory as it applies for the purposes of determining eligible payroll costs but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in that section to the territory of the member were to the territory to which the flow-through payroll amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22730">(7)</ref> of that section were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period, the eligible payroll costs of each member of the group falling within subsection <ref href="#d25e22359">(1)</ref><ref href="#d25e22365">(a)</ref> for that period (which may be nil) are to be increased by the amount given by multiplying the flow-through payroll amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through payroll amount for that period,</p></content></level><wrapUp><p>the eligible payroll costs of that entity for that period (which may be nil) are to be increased by the amount given by multiplying that flow-through payroll amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section eId="d25e22516"><num>198ZB</num><heading>Eligible tangible asset amount: flow-through entities</heading><subsection eId="d25e22520"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity that is not the ultimate parent has a flow-through tangible asset amount for a territory for an accounting period if the member holds one or more assets in that territory and—</p></intro><level class="para1" eId="d25e22526"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Sections 197 and 197A apply for the purposes of determining a flow-through tangible asset amount of a flow-through entity for a territory as they apply for the purposes of determining an eligible tangible asset amount but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in those sections to the territory of the member were to the territory to which the flow-through tangible asset amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22746">(10)</ref> of section 197 were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through tangible asset amount for a territory for an accounting period, the eligible tangible asset amount of each member of the group falling within subsection <ref href="#d25e22520">(1)</ref><ref href="#d25e22526">(a)</ref> for that period (which may be nil) is to be increased by the amount given by multiplying the flow-through tangible asset amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through tangible asset amount for that period,</p></content></level><wrapUp><p>the eligible tangible asset amount of that entity for that period (which may be nil) is to be increased by the amount given by multiplying that flow-through tangible asset amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section><num>198ZC</num><heading>Eligible payroll costs and eligible tangible asset amount: flow-through ultimate parent</heading><subsection eId="d25e22681"><num>(1)</num><content><p>In determining for an accounting period the eligible payroll costs or eligible tangible asset amount of a flow-through entity that is the ultimate parent of a multinational group, the amount given by section 196 or 197 is to be reduced by the section 170 proportion.</p></content></subsection><subsection eId="d25e22687"><num>(2)</num><intro><p>In subsection <ref href="#d25e22681">(1)</ref>, “<term refersTo="#term-the-section-170-proportion">the section 170 proportion</term>” means the proportion of the adjusted profits of the flow-through entity for the accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where subsection (1) of 170 (adjustments for ultimate parent that is a flow-through entity) applies, is excluded under that subsection, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where that subsection does not apply as a result of the entity having not made a profit for that period, would be excluded under that subsection if the entity had adjusted profits of 100 euros.</p></content></level></subsection><subsection><num>(3)</num><content><p>In subsection <ref href="#d25e22687">(2)</ref>, “<term refersTo="#term-the-adjusted-profits">the adjusted profits</term>” means the adjusted profits before the application of section 170.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 196 (eligible payroll costs), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22730"><num>(7)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having nil eligible payroll costs (subject to the application of section <ref href="#d25e22355">198ZA</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-35" class="schProv1"><num>35</num><content><p><mod>In section 197 (eligible tangible asset amount), after subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22746"><num>(10)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having an eligible tangible asset amount of nil (subject to the application of section <ref href="#d25e22516">198ZB</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e18684"><heading>Meaning of “relevant transferred plant or machinery”</heading><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><intro><p>Plant or machinery is “relevant transferred plant or machinery” if it meets—</p></intro><level class="para1" eId="schedule-3-paragraph-2-1-a"><num>(a)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-2">sub-paragraphs (2)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>, or</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-b"><num>(b)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-3">sub-paragraphs (3)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-2-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-2-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-2-b-i"><num>(i)</num><content><p>is, or forms part of, an offshore installation or a submarine pipeline, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-2-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation or pipeline.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-3-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-3-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-3-b-i"><num>(i)</num><content><p>is, or forms part of, a relevant onshore installation, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-3-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-4"><num>(4)</num><intro><p>In <ref href="#schedule-3-paragraph-2-3">sub-paragraph (3)</ref> “<term refersTo="#term-relevant-onshore-installation" eId="term-relevant-onshore-installation">relevant onshore installation</term>” means any building or structure which—</p></intro><level class="para1" eId="schedule-3-paragraph-2-4-a"><num>(a)</num><content><p>falls within any of <span><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">sub-paragraphs (ii)</a> to <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(iv)</a></span> of <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(c)</a> of the <ref eId="c00167" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref>,</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-b"><num>(b)</num><content><p>is not an offshore installation, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-c"><num>(c)</num><intro><p>is or has been used for purposes connected with the winning of oil from an oil field any part of which lies within—</p></intro><level class="para2" eId="schedule-3-paragraph-2-4-c-i"><num>(i)</num><content><p>the boundaries of the territorial sea of the United Kingdom, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-4-c-ii"><num>(ii)</num><content><p>an area designated under <a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">section 1</a><a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">(7)</a> of the <ref eId="c00168" href="https://www.legislation.gov.uk/ukpga/1964/29">Continental Shelf Act 1964</ref>.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-5"><num>(5)</num><content><p>The condition in this sub-paragraph is met if ownership of the plant or machinery has been transferred to a licensed company under an agreement to pay a required amount.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-6"><num>(6)</num><intro><p>The condition in this sub-paragraph is met if the agreement to pay a relevant required amount provides that the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-6-a"><num>(a)</num><content><p>will be reused by the licensed company, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-6-b"><num>(b)</num><content><p>will not be replaced by the transferor of the plant or machinery.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-7"><num>(7)</num><content><p>Terms used in <ref href="#schedule-3-paragraph-2">this paragraph</ref> and in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00169" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">that section</a>.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e18896"><heading>Application of <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">sections 164</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">165</a> of <ref eId="c00170" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">Section 164</a> of <ref eId="c00171" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (election for special allowance) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-1-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Condition A is that R has made a qualifying payment into a decommissioning fund in the relevant chargeable period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-1-b"><num>(b)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-3-paragraph-3-1-b-i"><num>(i)</num><content><p><mod>in paragraph (ab), after “decommissioning” there were inserted <quotedText>“fund”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-3-1-b-ii"><num>(ii)</num><content><p>paragraphs (ac) and (b) were omitted, and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-3-1-c"><num>(c)</num><content><p>subsections (5A) to (7) were omitted.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">Section 165</a> of <ref eId="c00172" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (general decommissioning expenditure after ceasing ring fence trade) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-2-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The decommissioning condition is met in relation to a notional accounting period (the “relevant period”) if the former trader has made a qualifying payment into a decommissioning fund in the relevant period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-b"><num>(b)</num><content><p><mod>in subsection (2), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>ends with the day on which the trigger event described in <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00173" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations) occurs in relation to the relevant transferred plant or machinery.</p></content></level></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-c"><num>(c)</num><content><p>subsections (2A) to (2C) were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-d"><num>(d)</num><content><p>in subsection (4), in the definition of “relevant decommissioning cost”, “paragraph (a), (b) or (c) of” were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-e"><num>(e)</num><content><p>subsections (4A) to (4D) and (6) were omitted, and</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-f"><num>(f)</num><content><p><mod>in subsection (7), at the appropriate places there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund">decommissioning fund</term>” and “<term refersTo="#term-qualifying-payment">qualifying payment</term>” are to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>““<term refersTo="#term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e19062"><heading>Prevention of subsequent allowance where expenditure paid out of qualifying payment</heading><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p>No allowance under <ref eId="c00174" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is to be made to a person in respect of expenditure paid out of a qualifying payment made into a decommissioning fund where a claim for an allowance in relation to that payment under <ref eId="c00175" href="https://www.legislation.gov.uk/ukpga/2001/2">that Act</ref> has been made (whoever made the claim).</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e19077"><heading>Application of the <ref eId="c00176" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref></heading><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><p><mod><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">Section 1</a> of the <ref eId="c00177" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> has effect in relation to a company that has transferred relevant transferred plant or machinery to a licensed company as if in subsection (5) (assumptions in determining levy profits or loss), after paragraph (c) there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content><p>any amount received from a licensed company (within the meaning of <ref href="#schedule-3">Schedule 3</ref> to FA 2025) for relevant transferred plant or machinery (within the meaning of that Schedule) that would otherwise be brought into account when calculating the amount of the profits or loss of any ring fence trade of the company for the period is left out of account,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e19105"><heading>Commencement</heading><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-3">This Schedule</ref> has effect in relation to qualifying payments into a decommissioning fund made on or after the day on which this Act is passed.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" name="schedule" eId="schedule-4"><num>Schedule 4<authorialNote class="referenceNote"><p>Section 19</p></authorialNote></num><heading>Pillar two</heading><part eId="schedule-4-part-1"><num>Part 1</num><heading>Introduction</heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>F(No.2)A 2023 is amended in accordance with—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>Part 2 of this Schedule (which contains amendments designed to implement the UTPR within the meaning of the Pillar Two rules), and</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>Part 3 of this Schedule (which contains other amendments in relation to multinational top-up tax and amendments in relation to domestic top-up tax).</p></content></level></paragraph></part><part eId="schedule-4-part-2"><num>Part 2</num><heading>Undertaxed profits rule</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e19153"><heading>Multinational top-up tax to include undertaxed profits rule</heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>Section 121 (introduction to multinational top-up tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “IIR” to the end substitute <quotedText>“IIR and UTPR (within the meaning of the Pillar Two rules).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>In subsection (5), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19180"><heading>Expansion of chargeable persons</heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>Section 122 (chargeable persons) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>In subsection (1), omit “responsible” in both places.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-3"><num>(3)</num><content><p>In subsection (2), omit “responsible” in each place.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-4"><num>(4)</num><content><p>In subsection (3)(a), omit “responsible”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-5"><num>(5)</num><content><p>In subsection (7), omit “responsible”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19217"><heading>Charge to multinational top-up tax to include UTPR</heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p><mod>For section 123 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>123</num><heading>Charge to multinational top-up tax</heading><subsection eId="d25e19238"><num>(1)</num><intro><p>A person chargeable to tax as, or in respect of, a member of a multinational group (“the relevant member”) is charged multinational top-up tax for an accounting period if one or more members of the group have top-up amounts or additional top-up amounts for that period and—</p></intro><level class="para1" eId="d25e19244"><num>(a)</num><content><p>the relevant member is a responsible member for one or more of those members (see section 128), or</p></content></level><level class="para1" eId="d25e19250"><num>(b)</num><content><p>one or more of those members have untaxed amounts that are allocated to the relevant member (see <ref href="#d25e19372">Chapter 9A</ref>).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The amount charged is the sum of the following—</p></intro><level class="para1"><num>(a)</num><intro><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19244">(a)</ref> applies—</p></intro><level class="para2"><num>(i)</num><content><p>top-up amounts attributed to the relevant member in accordance with Chapter 7, and</p></content></level><level class="para2"><num>(ii)</num><content><p>additional top-up amounts attributed to the relevant member in accordance with that Chapter, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19250">(b)</ref> applies, the untaxed amounts allocated to the relevant member in accordance with <ref href="#d25e19372">Chapter 9A</ref>.</p></content></level></subsection><subsection eId="d25e19302"><num>(3)</num><content><p>The amount charged (which in accordance with section 254 will be expressed in the CFS currency) is to be converted to sterling using the average exchange rate for the accounting period (if the CFS currency is not sterling).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>In section 124 (how to calculate top-up amounts etc)—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p><mod>in the heading, for “and attribute them” substitute <quotedText>“etc”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p><ref href="#d25e19372">Chapter 9A</ref> makes provision for—</p></intro><level class="para1"><num>(a)</num><content><p>determining whether members of the group have untaxed amounts, and</p></content></level><level class="para1"><num>(b)</num><content><p>allocating those untaxed amounts to members of the group located in the United Kingdom, other than members that are investment entities or joint venture group members.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p><mod>In section 254 (use of currency), in subsection (4), for “step 4 in” substitute <quotedText>“<ref href="#d25e19302">subsection (3)</ref> of”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19362"><heading>New chapter to deal with UTPR</heading><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After Chapter 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e19372"><num>Chapter 9A</num><heading>Untaxed amounts</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>229A</num><heading>Meaning of potentially undertaxed</heading><subsection eId="d25e19387"><num>(1)</num><intro><p>The top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed” if—</p></intro><level class="para1"><num>(a)</num><content><p>M is the ultimate parent or is located in the same territory as the ultimate parent, or</p></content></level><level class="para1"><num>(b)</num><content><p>the ultimate parent is not a responsible member.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is not a responsible member,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the ownership interests of the ultimate parent in M are direct ownership interests, and</p></content></level><level class="para1"><num>(c)</num><content><p>every indirect ownership interest the ultimate parent has in M is derived from an ownership interest the ultimate parent has in a responsible member.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> also does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is located in a territory in which a DIIR is in force and is a responsible member, and</p></content></level><level class="para1"><num>(b)</num><content><p>M is located in the same territory as the ultimate parent.</p></content></level></subsection><subsection><num>(4)</num><content><p>This section and section <ref href="#d25e19471">229B</ref> do not apply to members of a joint venture group (but see <ref href="#d25e20224">section 229I</ref> for alternative provision).</p></content></subsection></section><section eId="d25e19471"><num>229B</num><heading>Untaxed amounts</heading><subsection><num>(1)</num><content><p>A member of a multinational group has an untaxed amount if conditions A and B are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the top-up amount and additional top-up amounts of the member are potentially undertaxed.</p></content></subsection><subsection><num>(3)</num><content><p>Condition B is that the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts is less than the sum of the member’s top-up amount and additional top-up amounts.</p></content></subsection><subsection><num>(4)</num><intro><p>The untaxed amount is the amount given by subtracting—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts, from</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the member’s top-up amount and additional top-up amounts.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Allocation of untaxed amounts</heading><section eId="d25e19517"><num>229C</num><heading>Allocation of untaxed amount to members</heading><subsection eId="d25e19521"><num>(1)</num><intro><p>An untaxed amount of a member of a multinational group is to be allocated to qualifying members of the group located in the United Kingdom by—</p></intro><level class="para1"><num>(a)</num><content><p>first, determining the amount (“the UK proportion”) of the untaxed amount to be allocated to the group in the United Kingdom in accordance with <ref href="#d25e19586">section 229D</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>then, allocating an amount of the UK proportion to each qualifying member located in the United Kingdom in accordance with <ref href="#d25e19776">section 229E</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>But no allocation is to be made under <ref href="#d25e19521">subsection (1)</ref> if in section <ref href="#d25e19586">229D</ref><ref href="#d25e19590">(1)</ref> the results of both Step <ref href="#d25e19608">2</ref> and Step <ref href="#d25e19822">5</ref> are nil.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of this Chapter, a member of a multinational group is qualifying unless it is—</p></intro><level class="para1"><num>(a)</num><content><p>an investment entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of a joint venture group.</p></content></level></subsection></section><section eId="d25e19586"><num>229D</num><heading>Amount allocated to the United Kingdom</heading><subsection eId="d25e19590"><num>(1)</num><content><p>Take the following steps to determine the UK proportion of an untaxed amount of a member of a multinational group—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of qualifying members of the group located in the United Kingdom for the accounting period to which the untaxed amount relates (“<term refersTo="#term-the-relevant-period">the relevant period</term>”).</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees in the relevant period of qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in the United Kingdom for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The UK proportion of the untaxed amount is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19616">Step 3</ref>;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19640">Step 6</ref>;</p></item><item><num>(c)</num><p>in any other case, the untaxed amount multiplied by the result of <ref href="#d25e19648">Step 7</ref>.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of <ref href="#d25e19780">subsection (1)</ref>—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>A qualifying undertaxed profits tax applies in a territory in relation to an untaxed amount if—</p></intro><level class="para1"><num>(a)</num><content><p>a qualifying undertaxed profits tax is in force in that territory for the relevant period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of that tax result in a proportion of the untaxed amount (however described for the purposes of that tax) that is greater than nil being allocated to the territory.</p></content></level></subsection><subsection><num>(4)</num><content><p>See sections <ref href="#d25e19975">229G</ref> and <ref href="#d25e20104">229H</ref> for how to determine the number of employees and the value of tangible fixed assets of a qualifying member of a multinational group.</p></content></subsection></section><section eId="d25e19776"><num>229E</num><heading>Allocation to qualifying members</heading><subsection eId="d25e19780"><num>(1)</num><content><p>Take the following steps to determine how much of an untaxed amount is to be allocated to each qualifying member located in the United Kingdom—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of the member in the accounting period (“<term refersTo="#term-the-relevant-period">the relevant period</term>”) to which the untaxed amount relates.</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees for the relevant period of qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the member for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets for the relevant period of the qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The untaxed amount to be allocated to the member is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the UK proportion multiplied by the result of Step 3;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the UK proportion multiplied by the result of Step 6;</p></item><item><num>(c)</num><p>in any other case, the UK proportion multiplied by the result of Step 7.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of subsection (1)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 5 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 2 is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 2 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 5 is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>This section is subject to <ref href="#d25e19921">section 229F</ref>.</p></content></subsection></section><section eId="d25e19921"><num>229F</num><heading>Election to make one member of a group liable for untaxed amounts</heading><subsection><num>(1)</num><intro><p>The filing member of the group may elect for an accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e19776">section 229E</ref> does not apply, and</p></content></level><level class="para1"><num>(b)</num><content><p>instead, a member of the group specified in the election is to be allocated the whole of the UK proportion of each untaxed amount that would be otherwise be allocated between the qualifying members of the group located in the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A member of the group may only be specified in the election if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is located in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member has consented to the election.</p></content></level></subsection><subsection><num>(3)</num><content><p>Paragraph 2 of Schedule 15 (annual elections) applies to an election under this section, and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>How to determine number of employees and tangible fixed assets values</heading><section eId="d25e19975"><num>229G</num><heading>Number of employees</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, the number of employees of a qualifying member of a multinational group in an accounting period is the full-time equivalent employee number for that member for that period.</p></content></subsection><subsection><num>(2)</num><content><p>To determine the full-time equivalent employee number for a member of a multinational group for an accounting period take the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of full-time employees of that member that were full-time employees for the whole of that period.</p></item><item><p><i>Step 2</i></p><p>Determine, for each employee of that member for that period who is not a full-time employee for the whole of that period (whether they were part-time employees or were not employed for the whole of the period), such fraction as is just and reasonable.</p></item><item><p><i>Step 3</i></p><p>Add together the number determined under Step 1 and the fractions determined under Step 2.</p><p>If the member was a member of the group throughout the whole of the period, the result of this Step is the full-time equivalent employee number.</p></item><item><p><i>Step 4</i></p><p>Where the member was not a member of the group for the whole period, make such adjustments to the result of Step 3 as is just and reasonable to arrive at a full-time equivalent employee number that reflects the number of employees of the member in the period for which it was a member of the group.</p><p>For the purpose of this Step, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></item></blockList></content></subsection><subsection eId="d25e20030"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-employee">employee</term>”, in relation to a member of a multinational group, means a person whose employment costs are met by that member (whether or not the person’s activities are carried on in the territory of the member) as recorded in appropriate financial statements of the member and who—</p></intro><level class="para1"><num>(a)</num><content><p>is regarded as an employee under the law of the territory in which the member is located, or</p></content></level><level class="para1"><num>(b)</num><content><p>participates in the ordinary operating activities of the member of the group (including on a part-time basis).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of <ref href="#d25e20030">subsection (3)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection eId="d25e20060"><num>(5)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), where a member of a multinational group is a flow-through entity, employees of the entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as employees of members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(6)</num><content><p><ref href="#d25e20060">Subsection (5)</ref> does not apply to employees of a flow-through entity that are regarded for the purposes of this section as employees of a permanent establishment of the entity.</p></content></subsection><subsection><num>(7)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the reference in <ref href="#d25e20030">subsection (3)</ref> to employment costs recorded in financial statements is to the employment costs that would have been so recorded had such statements been prepared (and those costs are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection></section><section eId="d25e20104"><num>229H</num><heading>Value of tangible fixed assets</heading><subsection eId="d25e20108"><num>(1)</num><intro><p>To determine the value of tangible fixed assets of a qualifying member of a multinational group for an accounting period—</p></intro><level class="para1" eId="d25e20114"><num>(a)</num><intro><p>add together—</p></intro><level class="para2"><num>(i)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the start of the period, as those values are recorded in the member’s financial statements, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the end of the period, as those values are recorded in the member’s financial statements, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>divide the result of <ref href="#d25e20114">paragraph (a)</ref> by 2.</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e20108">subsection (1)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection><num>(3)</num><content><p>In each case the value of a tangible fixed asset is to include accumulated depreciation, depletion or impairment.</p></content></subsection><subsection eId="d25e20156"><num>(4)</num><content><p>If the member is not a member of the group at the start of the period, or at the end of the period, the sum of the values of its tangible fixed assets at that time is to be treated as nil.</p></content></subsection><subsection><num>(5)</num><content><p>For the purpose of <ref href="#d25e20156">subsection (4)</ref>, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></content></subsection><subsection><num>(6)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the values to be used are those that would have been recorded in those accounts had they been prepared (and those values are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection><subsection eId="d25e20177"><num>(7)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), tangible fixed assets held by a member of the group that is a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as held by members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are to be ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(8)</num><content><p><ref href="#d25e20177">Subsection (7)</ref> does not apply to assets of a flow-through entity that are held by a permanent establishment of the entity.</p></content></subsection><subsection><num>(9)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-tangible-fixed-assets">tangible fixed assets</term>” means all tangible assets wherever located, other than cash or cash equivalents or financial assets.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Joint ventures</heading><section eId="d25e20224"><num>229I</num><heading>Joint ventures</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent of a multinational group is not subject to Pillar Two IIR tax for an accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>the group includes a joint venture group, and</p></content></level><level class="para1"><num>(c)</num><content><p>the members of the joint venture group are undertaxed in relation to the multinational group for that period.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The members of a joint venture group are undertaxed in relation to a multinational group if—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed to responsible members of the multinational group under Chapter 7 in respect of members of the joint venture group’s top-up amount and additional top-up amounts, is less than</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of such amounts in respect of the joint venture group that would be attributed under that Chapter to the ultimate parent of the multinational group if it were subject to Pillar Two IIR tax.</p></content></level></subsection><subsection><num>(3)</num><content><p>The amount given by subtracting the amounts mentioned in paragraph (a) of subsection (2) from the amounts mentioned in paragraph (b) of that subsection is an untaxed amount of the joint venture group in relation to the multinational group.</p></content></subsection><subsection><num>(4)</num><content><p>Sections <ref href="#d25e19517">229C</ref> to <ref href="#d25e19921">229F</ref> (allocation of untaxed amounts) apply for the purposes of allocating an untaxed amount of a joint venture group in relation to a multinational group to qualifying members of that multinational group as they apply to the allocation of an untaxed amount of a member of the multinational group to those members.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>References to responsible members</heading><section><num>229J</num><heading>References to responsible members</heading><subsection><num>(1)</num><intro><p>For the purpose of determining untaxed amounts of a member of a multinational group who is located in a territory in which a DIIR is in force, references in this Chapter to a responsible member are to be interpreted as if section 128 (responsible members) had effect with the following modifications—</p></intro><level class="para1"><num>(a)</num><content><p>in subsection (2) omit “that are not located in the territory the ultimate parent is located in”;</p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (3)(c), at the beginning insert <quotedText>“the intermediate parent,”</quotedText>;</mod></p></content></level><level class="para1"><num>(c)</num><content><p>in subsection (4) omit “that are not located in the territory it is located in”;</p></content></level><level class="para1"><num>(d)</num><content><p><mod>in subsection (5)(b), at the beginning insert <quotedText>“it or”</quotedText>;</mod></p></content></level><level class="para1"><num>(e)</num><content><p>in subsection (6) omit “that are not located in the same territory it is located in”;</p></content></level><wrapUp><p>but this is subject to subsection <ref href="#d25e20345">(2)</ref>.</p></wrapUp></subsection><subsection eId="d25e20345"><num>(2)</num><intro><p>For the purpose of determining whether the top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed”, a member of the group which—</p></intro><level class="para1"><num>(a)</num><content><p>is located in the same territory as M, and</p></content></level><level class="para1"><num>(b)</num><content><p>would apart from this subsection be a responsible member,</p></content></level><wrapUp><p>is to be regarded for all purposes of this Chapter as not being a responsible member unless a DIIR is in force for the accounting period in that territory.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-diir">DIIR</term>” means a tax which—</p></intro><level class="para1"><num>(a)</num><content><p>implements, in a Pillar Two territory, rules relating to top-up tax under the IIR (within the meaning of the Pillar Two rules), and</p></content></level><level class="para1"><num>(b)</num><content><p>is designed so that tax charged under it is not limited to tax in respect of members who are located outside that territory.</p></content></level></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20389"><heading>Transition into regime</heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>Schedule 16 (transitional provision) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><content><p><mod>In Chapter 1 of Part 2, in the Chapter heading, for “Transitional” substitute <quotedText>“General transitional”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p><mod>In Chapter 2 of Part 2, in the Chapter heading, after “Application” insert <quotedText>“of Chapter 1”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><content><p><mod>After Part 2 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2A</num><heading>UTPR transitional safe harbour election</heading><hcontainer name="crossheading" class="schGroup7"><heading>Election</heading><paragraph class="schProv1"><num>12A</num><subparagraph><num>(1)</num><intro><p>The filing member of a multinational group may elect for an accounting period that in the territory of the ultimate parent—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group located in the territory has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group whose joint venture parent is located in the territory has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>An election may only be made for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the minimum corporate tax rate for the territory of the ultimate parent is equal to, or in excess of, 20%, and</p></content></level><level class="para1"><num>(b)</num><intro><p>the accounting period—</p></intro><level class="para2"><num>(i)</num><content><p>commenced on or before 31 December 2025 and ends before 31 December 2026, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not longer than 12 months.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>The “minimum corporate tax rate” for a territory means—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a territory in which corporate income tax may be imposed by subdivisions of that territory as well as by a national authority, the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>the nominal national rate that generally applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the lowest nominal rate that generally applies that is imposed by a subdivision of that territory (and where one or more subdivisions do not impose corporate income tax, that rate will be zero), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>otherwise, the nominal rate that generally applies.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p><mod>In Schedule 16A at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2</num><heading>Untaxed amounts: international expansion of groups</heading><hcontainer name="crossheading" class="schGroup7"><heading>No untaxed amounts for groups in initial phase of international expansion</heading><paragraph class="schProv1"><num>7</num><subparagraph><num>(1)</num><intro><p>This paragraph applies to a multinational group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>it meets the international expansion condition for that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the accounting period is the first accounting period in which the group came within the scope of Chapter 9A, or any of the following 4 accounting periods.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If this paragraph applies to a multinational group for an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>A multinational group meets the international expansion condition for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the group does not have members located in more than 6 territories, and</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the values of tangible fixed assets of qualifying members of the group, other than members located in the reference territory, for that period does not exceed 50 million euros.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>the value of tangible fixed assets of a qualifying member of a multinational group is to be determined in accordance with <ref href="#d25e20104">section 229H</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>the “reference territory” is the territory for which the sum of the values of tangible fixed assets of qualifying members of the group located in that territory is greatest.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>The first accounting period in which a multinational group comes within the scope of Chapter 9A is the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period for which it meets Condition A in section 129(2) (annual revenue exceeds 750 million euros), and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period beginning on or after the day on which <ref href="#d25e19517">section 229C</ref> (allocation of untaxed amount to members) comes into force for any purpose.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20632"><heading>Consequential amendments: IIR and qualifying undertaxed profits tax</heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><intro><p>In section 128 (responsible members)—</p></intro><level class="para1" eId="schedule-4-paragraph-7-1-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(i), after “equivalent to” insert <quotedText>“the IIR provisions of”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-7-1-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>In this section the “<term refersTo="#term-iir-provisions-of-multinational-top-up-tax">IIR provisions of multinational top-up tax</term>” means the provisions of this Part relating to the charging of top-up amounts and additional top-up amounts (but not untaxed amounts).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><content><p><mod>In section 257 (meaning of qualifying undertaxed profits tax), in subsection (1), after “it is” insert <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>multinational top-up tax (see, in particular, <ref href="#d25e19372">Chapter 9A</ref>), or</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20695"><heading>Other consequential amendments etc</heading><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 241 (Pillar Two territories), in subsection (2), for “equivalent to this Part—” substitute <quotedText>“which implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules)—”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p><mod>In Schedule 17 (index of defined expressions), in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“<term refersTo="#term-qualifying-member-(in-chapter-9a-of-part-3)">qualifying member (in Chapter 9A of Part 3)</term>”.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><content><p><mod>In Schedule 15 (elections), in paragraph 2(1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ha)</num><content><p><ref href="#d25e19921">section 229F</ref>;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><content><p><mod>In section 272 (domestic top-up tax for members of groups), in subsection (4), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(c)</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p><mod>In section 273 (domestic top-up tax for single entities), in subsection (4), after paragraph (z) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>z1</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20770"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><content><p>The amendments made by this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024.</p></content></paragraph></hcontainer></part><part eId="schedule-4-part-3"><num>Part 3</num><heading>Others</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e20784"><heading>Permanent establishments as excluded entities</heading><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 127 (excluded entities), in each of subsections (5), (6) and (7), in paragraph (a), for “it” substitute <quotedText>“the entity or, in the case of a permanent establishment, the main entity”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20796"><heading>Use of substituted values</heading><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p><mod>After section 137 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>137A</num><heading>Use of substituted values</heading><subsection><num>(1)</num><intro><p>Where any provision of this Part requires the substitution of a value recorded in the underlying profits accounts of a member of a multinational group for an accounting period, the substituted value—</p></intro><level class="para1"><num>(a)</num><content><p>is to be used for all purposes of this Part instead of the value recorded in the accounts (for example, where the carrying value of an asset has been substituted and the value of that asset is relevant to the member’s deferred tax expense, that substituted value is to be used in connection with determining that expense), and</p></content></level><level class="para1"><num>(b)</num><content><p>is to be updated (for example, in making adjustments for depreciation for subsequent accounting periods),</p></content></level><wrapUp><p>in each case, in accordance with the accounting standard used in determining the underlying profits of the member.</p></wrapUp></subsection><subsection eId="d25e20837"><num>(2)</num><content><p>But where the value in question is the value of an asset, no adjustments for impairment are to be made to it.</p></content></subsection><subsection eId="d25e20843"><num>(3)</num><content><p>Where the impaired value of an asset recorded in the underlying profits accounts for any accounting period is less than the substituted value of the asset for that period, use the value from the underlying profits accounts instead for that period and all subsequent periods (and <ref href="#d25e20837">subsection (2)</ref> does not apply in relation to that value).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><intro><p>In section 197 (eligible tangible asset amount), in <ref href="#d25e20843">subsection (3)</ref>—</p></intro><level class="para1" eId="schedule-4-paragraph-12-2-a"><num>(a)</num><content><p><mod>after “means” insert <quotedText>“values”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-12-2-b"><num>(b)</num><content><p><mod>after “parent” insert <quotedText>“(and not values as substituted as a result of any other provision of this Part)”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20879"><heading>Flow-through entities</heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-4-paragraph-13-1"><num>(1)</num><content><p>Section 168 (underlying profits of transparent and reverse hybrid entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-2"><num>(2)</num><content><p>In the heading omit “and reverse hybrid”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20905"><num>(2A)</num><intro><p>Subject to <ref href="#d25e20941">subsection (2C)</ref>, a member of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M if that member—</p></intro><level class="para1"><num>(a)</num><content><p>is a non-FTE entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>holds an ownership interest in M which is not held through a non-FTE entity.</p></content></level></subsection><subsection><num>(2B)</num><content><p>In subsection <ref href="#d25e20905">(2A)</ref> “<term refersTo="#term-non-fte-entity">non-FTE entity</term>” means an entity that is not a flow-through entity.</p></content></subsection><subsection eId="d25e20941"><num>(2C)</num><content><p>If no member of the group is a reference entity in relation to M by virtue of subsection <ref href="#d25e20905">(2A)</ref>, the ultimate parent of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-4"><num>(4)</num><content><p><mod>In subsection (3) for the words from “each” to the end substitute “any member of the group (“<term refersTo="#term-r" eId="term-r">R</term>”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>which is a reference entity in relation to M, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to which condition A or B is met.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-13-5-a"><num>(a)</num><content><p><mod>in each place, for “O” substitute <quotedText>“R”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-b"><num>(b)</num><content><p><mod>for “proportional” substitute <quotedText>“percentage”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-c"><num>(c)</num><content><p>omit “(subject to subsection (7))”.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-13-6"><num>(6)</num><content><p><mod>For subsections (5) and (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Condition A is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is direct,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest, and</p></content></level><level class="para1"><num>(c)</num><content><p>M is regarded as tax transparent in the territory in which R is located.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Condition B is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is indirect,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest,</p></content></level><level class="para1"><num>(c)</num><content><p>M and each entity through which the ownership interest is held are regarded as tax transparent in the territory in which R is located, and</p></content></level><level class="para1"><num>(d)</num><content><p>no entity through which R holds the ownership interest is a reference entity in relation to M.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-7"><num>(7)</num><content><p>Omit subsection (7).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-8"><num>(8)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21079"><num>(9)</num><intro><p>Where every ownership interest in M held by a member of the group is a flow-through ownership interest, and an individual or entity (“the investor”) that is not a member of the group has an ownership interest in M which is held—</p></intro><level class="para1"><num>(a)</num><content><p>directly, or</p></content></level><level class="para1"><num>(b)</num><content><p>through a direct ownership interest in an entity in which a member of the group which is a reference entity in relation to M has an ownership interest,</p></content></level><wrapUp><p>a proportion of M’s underlying profits, equal to the percentage ownership interest the investor has in M, is to be excluded from the adjusted profits of M.</p></wrapUp></subsection><subsection><num>(9A)</num><content><p>Where M is the main entity in relation to a permanent establishment falling within paragraph (a), (b) or (c) of section 232(2), any reduction of M’s underlying profits by virtue of subsection <ref href="#d25e21079">(9)</ref> is to be applied before any attribution of M’s underlying profits to a permanent establishment in accordance with section 159.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-9"><num>(9)</num><content><p>In subsection (10) omit “or an individual”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-10"><num>(10)</num><content><p><mod>After subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10A)</num><intro><p>For the purposes of subsections (5), (6) and (9), an ownership interest in M held by a member of the group is a flow-through ownership interest if (and so far as)—</p></intro><level class="para1"><num>(a)</num><content><p>M is regarded, otherwise than by virtue of section 169(2), as tax transparent in the territory in which M was created,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest is held directly and M is treated by virtue of section 169(2) as being regarded as tax transparent to the extent of the interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest is derived from a direct ownership interest in M to which paragraph (b) applies.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-11"><num>(11)</num><content><p>Omit subsections (11) and (12).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 169 (certain non tax resident entities to be treated as flow-through entities), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-14-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “created” insert <quotedText>“in”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-14-b"><num>(b)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-14-b-i"><num>(i)</num><content><p><mod>after “is” insert <quotedText>“regarded as”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-14-b-ii"><num>(ii)</num><content><p><mod>for “its owners” substitute <quotedText>“holders of direct ownership interests in the member”</quotedText>.</mod></p></content></level></level></paragraph><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (2A) omit “and reverse hybrid”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-4-paragraph-16-1"><num>(1)</num><content><p>Section 178 (reallocation of tax expense) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “hybrid, transparent and reverse hybrid” substitute <quotedText>“hybrid and transparent”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-3"><num>(3)</num><content><p><mod>After subsection (1B) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1C)</num><intro><p>Subsection (1D) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a multinational group (“<term refersTo="#term-m">M</term>”) is a flow-through entity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>any of the following are not regarded as tax transparent in the territory in which a member of the group (“<term refersTo="#term-r">R</term>”), which is a reference entity in relation to M (within the meaning of section 168<ref href="#d25e20905">(2A)</ref>), is located—</p></intro><level class="para2"><num>(i)</num><content><p>M;</p></content></level><level class="para2"><num>(ii)</num><content><p>any member of the group through which R’s ownership interest in M is held.</p></content></level></level></subsection><subsection><num>(1D)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>R, or any member of the group (“<term refersTo="#term-x">X</term>”) which has an ownership interest in R, has an amount of qualifying current tax expense,</p></content></level><level class="para1"><num>(b)</num><content><p>that amount is in respect of profits not included in R’s, or as the case may be X’s, underlying profits, and</p></content></level><level class="para1"><num>(c)</num><content><p>had those profits had been included in R’s, or as the case may be X’s, underlying profits a corresponding amount of profits would have been allocated to M under section 167 (ignoring for this purpose subsection (1)(a) of that section) or 168,</p></content></level><wrapUp><p>that qualifying current tax expense is to be allocated to M (and is to be regarded as qualifying current tax expense of M for the purposes of section 175(2)(a)).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), after “(1A))” insert <quotedText>“or to M (under subsection (1D))”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 240 (location of flow-through entities and permanent establishments), in subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-17-a"><num>(a)</num><content><p><mod>before “would” insert <quotedText>“is the ultimate parent of a multinational group, or”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-17-b"><num>(b)</num><content><p><mod>for “it is located in that territory” substitute <quotedText>“the entity is treated as located in the territory in which it is created”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21323"><heading>Tax equity partnerships</heading><paragraph eId="schedule-4-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In section 174 (amount of covered tax balance), in subsection (1), in Step 4, for “covered tax balance expense” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In sections 175 and 176, in the headings, for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-4-paragraph-20-1"><num>(1)</num><content><p>Section 176D (tax credits etc allocated under tax equity partnerships) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-2"><num>(2)</num><content><p><mod>In subsection (1), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>“<term refersTo="#term-flow-through-tax-benefits">Flow-through tax benefits</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>tax credits, other than qualifying refundable tax credits and marketable transferable tax credits, and</p></content></level><level class="para1"><num>(b)</num><content><p>the value of amounts of tax deductible losses,</p></content></level><wrapUp><p>that are made available to be used by an investor in a tax equity partnership arrangement under that arrangement (whether or not those credits or losses are used by the investor).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-4"><num>(4)</num><intro><p>In subsection (3)(b)—</p></intro><level class="para1" eId="schedule-4-paragraph-20-4-a"><num>(a)</num><content><p><mod>for “176D” substitute <quotedText>“176E”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-20-4-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“and the arrangement”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-20-5"><num>(5)</num><content><p><mod>In subsection (7), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-6"><num>(6)</num><content><p><mod>For subsection (11) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21433"><num>(11)</num><intro><p>An election under subsection (3)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the first accounting period for which it is to have effect, which must be the first relevant period,</p></content></level><level class="para1"><num>(b)</num><content><p>must be made no later than the date by which the information return or overseas return notification in respect of the first relevant period is due,</p></content></level><level class="para1"><num>(c)</num><content><p>must be included in an information return submitted to HMRC or a qualifying authority in respect of the first relevant period,</p></content></level><level class="para1"><num>(d)</num><content><p>has effect for the first relevant period and each subsequent accounting period, and</p></content></level><level class="para1"><num>(e)</num><content><p>cannot be revoked.</p></content></level></subsection><subsection><num>(12)</num><intro><p>In subsection <ref href="#d25e21433">(11)</ref>, “<term refersTo="#term-the-first-relevant-period">the first relevant period</term>” means the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period in which the member is an investor in the tax equity partnership arrangement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period for which the Pillar Two rules apply to the member.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-7"><num>(7)</num><content><p>Where a person became an investor in a tax equity partnership arrangement in an accounting period that began before 31 December 2024, section 176D(11) of F(No.2)A 2023 (as inserted by <ref href="#schedule-4-paragraph-20-6">sub-paragraph (6)</ref>) has effect in relation to the arrangement as if “the first relevant period” were the first accounting period beginning on or after that date.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-8"><num>(8)</num><content><p>In sub-paragraph <ref href="#schedule-4-paragraph-20-7">(7)</ref>, “<term refersTo="#term-investor-in-a-tax-equity-partnership-arrangement" eId="term-investor-in-a-tax-equity-partnership-arrangement">investor in a tax equity partnership arrangement</term>” has the same meaning as in section 176D of F(No.2)A 2023.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-4-paragraph-21-1"><num>(1)</num><content><p>Section 176E (flow-through tax benefits: proportional amortisation method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-2"><num>(2)</num><intro><p>In subsection (1), in Step 2—</p></intro><level class="para1" eId="schedule-4-paragraph-21-2-a"><num>(a)</num><content><p><mod>for “flow-through through tax benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-21-2-b"><num>(b)</num><content><p><mod>after “expected” insert <quotedText>“(as at the end of the accounting period)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-21-3"><num>(3)</num><content><p><mod>Also in subsection (1), in Step 7, for “flow-through benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-4"><num>(4)</num><content><p><mod>In subsection (2), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><content><p>Subsections <ref href="#d25e21585">(4)</ref> to <ref href="#d25e21624">(6)</ref> apply in relation to an investor, an arrangement and an accounting period if flow-through tax benefits were provided to the investor under the arrangement in at least one earlier accounting period.</p></content></subsection><subsection eId="d25e21585"><num>(4)</num><content><p>Where the result of Step 3 in subsection (1) would (but for this subsection) be greater than N, this section has effect as if the result of Step 3 were N.</p></content></subsection><subsection eId="d25e21591"><num>(5)</num><intro><p>To find N—</p></intro><level class="para1" eId="d25e21597"><num>(a)</num><content><p>identify the amount that was the result of Step 3 in subsection (1) in each earlier accounting period in which flow-through tax benefits were provided to the investor under the arrangement,</p></content></level><level class="para1" eId="d25e21603"><num>(b)</num><content><p>add together all the amounts identified under <ref href="#d25e21597">paragraph (a)</ref>, and</p></content></level><level class="para1"><num>(c)</num><content><p>subtract the result of <ref href="#d25e21603">paragraph (b)</ref> from the result of Step 1 in subsection (1).</p></content></level><wrapUp><p>The result is N, unless the result is below nil, in which case N is nil.</p></wrapUp></subsection><subsection eId="d25e21624"><num>(6)</num><content><p>A reference in <ref href="#d25e21591">subsection (5)</ref><ref href="#d25e21597">(a)</ref> to the result of Step 3 in subsection (1) in an earlier accounting period, where <ref href="#d25e21585">subsection (4)</ref> had effect in relation to the earlier period, is to the result of that Step as modified under <ref href="#d25e21585">subsection (4)</ref>.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-4-paragraph-22-1"><num>(1)</num><content><p>Section 176F (flow-through tax benefits: subtraction method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-2"><num>(2)</num><content><p><mod>In Step 2, in paragraph (a), for the words from “other than” to the end substitute <quotedText startQuote="“">other than tax credits—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>that were made available in the accounting period, and</p></item><item><num>(ii)</num><p>that are not qualifying refundable tax credits or marketable transferable tax credits;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-3"><num>(3)</num><content><p><mod>In Step 3, for “under arrangement” substitute <quotedText>“under the arrangement”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-23" class="schProv1"><num>23</num><content><p><mod>After section 176F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>176G</num><heading>Clawback of earlier qualifying flow-through tax benefits</heading><subsection><num>(1)</num><intro><p>This section applies to an investor in a tax equity partnership arrangement if—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying flow-through tax benefits are excluded under section 176D(1) from the investor’s covered tax balance for an accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the investor has an excess return from the arrangement in a later accounting period (“the later period”).</p></content></level></subsection><subsection eId="d25e21712"><num>(2)</num><content><p>For the purpose of determining the investor’s covered tax balance for the later period, the investor’s qualifying current tax expense for that period is to be adjusted (after the steps in section 174(1) have been taken) by subtracting the clawback amount.</p></content></subsection><subsection><num>(3)</num><content><p>“The clawback amount” is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the total amount of the qualifying flow-through tax benefits provided to the investor under the arrangement in accounting periods before the later period.</p></item><item><p><i>Step 2</i></p><p>Subtract from the result of Step 1 the total of any amounts subtracted under <ref href="#d25e21712">subsection (2)</ref> from the investor’s qualifying current tax expense for accounting periods before the later period.</p></item><item><p><i>Step 3</i></p><p>Compare the result of Step 2 with the amount of the investor’s excess return from the arrangement in the later period.</p><p>Whichever is less is the clawback amount.</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, an investor has an “excess return” from an arrangement in an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>where section 176E applies, if the result of Step 6 in section 176E(1) exceeds the amount of the flow-through tax benefits provided under the arrangement in the accounting period, in which case the amount of the excess return is the amount of the excess;</p></content></level><level class="para1"><num>(b)</num><content><p>where section 176F applies and the investor did not have an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than nil, in which case the amount of the excess return is the amount by which it is less than nil;</p></content></level><level class="para1"><num>(c)</num><content><p>where section 176F applies and the investor had an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than it was in the last accounting period in which the investor had an excess return from the arrangement, in which case the amount of the excess return is the amount of the difference.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-24" class="schProv1"><num>24</num><content><p>In Schedule 15 (elections), in paragraph 2(1) (annual elections), omit paragraph (za).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21785"><heading>Blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-4-paragraph-25-1"><num>(1)</num><content><p>Section 180 (blended CFC regimes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-25-2"><num>(2)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-25-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “the effective tax rate of” substitute <quotedText>“a single effective tax rate of all”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is a member of the multinational group,</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different subsets of (one or more) members of the multinational group located in the territory where the CFC entity is located (“local blending subsets”), and</p></content></level><level class="para2"><num>(iii)</num><content><p>the CFC entity is a member of a local blending subset,</p></content></level><wrapUp><p>the effective tax rate of the local blending subset of which the CFC entity is a member, calculated on the assumptions set out in paragraph (a)(i) and (ii) (“the relevant assumptions”);</p></wrapUp></level><level class="para1"><num>(ab)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is not a member of the multinational group, or is a member of the multinational group but not a member of any local blending subset, and</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different local blending subsets,</p></content></level><wrapUp><p>the effective tax rate, calculated on the relevant assumptions, of the local blending subset whose members have collectively the highest attributable income of C in relation to the CFC entity (as mentioned in subsection (5)(a));</p></wrapUp></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-c"><num>(c)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-25-2-c-i"><num>(i)</num><content><p><mod>for “where it is not located in such a territory,” substitute <quotedText>“where no applicable effective tax rate can be determined under paragraphs (a) to (ab)”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-25-2-c-ii"><num>(ii)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>But this is subject to section 180A.</p></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-25-3"><num>(3)</num><content><p><mod>After section 180 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>180A</num><heading>Section 180: further provision</heading><subsection><num>(1)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 3 of Schedule 16 for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of the multinational group (as defined in paragraph 8 of Schedule 16)).</p></content></subsection><subsection><num>(2)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 10 of Schedule 16 (application in the case of joint venture group) for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of that multinational group (as defined in paragraph 8 of Schedule 16).</p></content></subsection><subsection><num>(3)</num><content><p>Subsection (4) has effect where the filing member of a particular multinational group mentioned in section 180(8)(a) has made one or more separate elections under any of paragraphs 1, 4, 5 and 6 of Schedule 16A for the relevant period in respect of the territory mentioned in section 180(8)(a).</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of section 180, the effective tax rate of any member or set of members to which a particular election mentioned in subsection (4) relates is to be the rate (expressed as a percentage) given by dividing—</p></intro><level class="para1"><num>(a)</num><content><p>the aggregate tax expense of that member or set of members used to determine the effective tax rate for the purposes of the qualifying domestic top-up tax applying in the territory for the accounting period, together with any amounts of qualifying domestic top-up tax paid of that member or set of members, by</p></content></level><level class="para1"><num>(b)</num><content><p>the income of that member or set of members determined for the purposes of the qualifying domestic top-up tax.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “relevant period” is to be interpreted in accordance with section 180(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21949"><heading>No allocation of deferred tax assets and liabilities under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-26" class="schProv1"><num>26</num><content><p><mod>In section 180 (blended CFC regimes), in subsection (3), in the words before paragraph (a), for “tax charged to C under” substitute <quotedText>“C’s current tax expense so far as relating to”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21961"><heading>Cross-border allocation of current tax under cross-crediting regimes</heading><paragraph eId="schedule-4-paragraph-27" class="schProv1"><num>27</num><content><p><mod>After section 181 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e21974"><num>181A</num><heading>Cross-border allocation of current tax under cross-crediting regime</heading><subsection><num>(1)</num><content><p>Qualifying current tax expense is to be allocated between standard members of a multinational group in a territory in which a cross-crediting regime applies and standard members of the group in another territory in accordance with the cross-crediting regime methodology.</p></content></subsection><subsection><num>(2)</num><content><p>A cross-crediting regime applies in a territory if, under the law of that territory, taxes paid with respect to one source of income arising in another territory give rise to foreign tax credits which can be used against another source of income arising in a further territory.</p></content></subsection><subsection eId="d25e21990"><num>(3)</num><intro><p>The “<term refersTo="#term-cross-crediting-regime-methodology">cross-crediting regime methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the cross-crediting regime methodology, or</p></content></level><level class="para1" eId="d25e22005"><num>(b)</num><content><p>where no cross-crediting regime methodology is identified in any such regulations, the methodology described in the cross-crediting guidance.</p></content></level></subsection><subsection><num>(4)</num><content><p>The “<term refersTo="#term-cross-crediting-guidance">cross-crediting guidance</term>” means Chapter 3.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(5)</num><content><p>Where <ref href="#d25e21990">subsection (3)</ref><ref href="#d25e22005">(b)</ref> applies, the cross-crediting guidance has effect as cross-crediting regime methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(6)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the cross-crediting regime methodology.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22037"><heading>Cross-border allocation of deferred tax</heading><paragraph eId="schedule-4-paragraph-28" class="schProv1"><num>28</num><content><p><mod>After section <ref href="#d25e21974">181A</ref> (as inserted by <ref href="#schedule-4-paragraph-27">paragraph 27</ref>) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Cross-border allocation of deferred tax expense</heading><section><num>181B</num><heading>Cross-border allocation of deferred tax assets and liabilities</heading><subsection><num>(1)</num><content><p>Deferred tax assets and liabilities are to be allocated between standard members of a multinational group in one territory and standard members of the group in another territory in accordance with the deferred taxes methodology.</p></content></subsection><subsection eId="d25e22069"><num>(2)</num><intro><p>The “<term refersTo="#term-deferred-taxes-methodology">deferred taxes methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the deferred taxes methodology, or</p></content></level><level class="para1" eId="d25e22084"><num>(b)</num><content><p>where no deferred taxes methodology is identified in any such regulations, the methodology described in the cross-border deferred taxes guidance.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-cross-border-deferred-taxes-guidance">cross-border deferred taxes guidance</term>” means Chapter 4.2 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(4)</num><content><p>Where <ref href="#d25e22069">subsection (2)</ref><ref href="#d25e22084">(b)</ref> applies, the cross-border deferred taxes guidance has effect as deferred taxes methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(5)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the deferred taxes methodology.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22116"><heading>Extension of qualifying foreign tax credits</heading><paragraph eId="schedule-4-paragraph-29" class="schProv1"><num>29</num><intro><p>In section 183 (qualifying foreign tax credits (substitute loss carry forward assets))—</p></intro><level class="para1" eId="schedule-4-paragraph-29-a"><num>(a)</num><intro><p>in subsection (5)—</p></intro><level class="para2" eId="schedule-4-paragraph-29-a-i"><num>(i)</num><content><p>the words from “income”, in the second place it occurs, to the end become paragraph (a), and</p></content></level><level class="para2" eId="schedule-4-paragraph-29-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>other qualifying income.</p></content></level></quotedStructure></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-29-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>For the purposes of subsection (5) “other qualifying income means”—</p></intro><level class="para1"><num>(a)</num><content><p>income identified as such for the purposes of this section in regulations made under section 262(1)(a), or</p></content></level><level class="para1"><num>(b)</num><content><p>where no income is identified as other qualifying income in any such regulations, such income as is necessary to give effect to the substitute loss carry-forward guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-substitute-loss-carry-forward-guidance">substitute loss carry-forward guidance</term>” means Chapter 4.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22187"><heading>Deferred tax recapture</heading><paragraph eId="schedule-4-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 184 (recaptured deferred tax liabilities) after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>This section is to be applied in accordance with, and is subject to, the DTL recapture methodology.</p></content></subsection><subsection eId="d25e22203"><num>(6)</num><intro><p>The DTL recapture methodology means provisions about the treatment of deferred tax liabilities—</p></intro><level class="para1"><num>(a)</num><content><p>set out in regulations made under section 262(1)(a) and identified in those regulations as the DTL recapture methodology, or</p></content></level><level class="para1" eId="d25e22215"><num>(b)</num><content><p>where no such provisions are identified in any such regulations, set out in the DTL recapture guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-dtl-recapture-guidance">DTL recapture guidance</term>” means the guidance in Chapter 1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(8)</num><content><p>Where subsection <ref href="#d25e22203">(6)</ref><ref href="#d25e22215">(b)</ref> applies, the DTL recapture guidance has effect as DTL recapture methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(9)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the DTL recapture methodology.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22247"><heading>Existing deferred tax assets and liabilities arising under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-31" class="schProv1"><num>31</num><content><p><mod>In section 185 (inclusion of existing deferred tax assets and liabilities on entry into regime), after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Subsection <ref href="#d25e22266">(9)</ref> applies to a deferred tax asset or deferred tax liability of a member of a qualifying multinational group that arises under a blended CFC regime.</p></content></subsection><subsection eId="d25e22266"><num>(9)</num><content><p>A deferred tax asset or deferred tax liability to which this subsection applies is to be ignored in determining the member’s deferred tax expense.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22272"><heading>Substance based income exclusion: permanent establishments and flow-through entities</heading><paragraph eId="schedule-4-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 195 (substance based income exclusion), for subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Section 198 supplements the rules in sections 196 and 197 in relation to a member that is a permanent establishment.</p></content></subsection><subsection><num>(9)</num><content><p>Section 198ZA supplements the rules in sections 196 and 197 in relation to a member that is a flow-through entity.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-33" class="schProv1"><num>33</num><content><p><mod>For section 198 (eligible payroll costs and eligible tangible asset amount: permanent establishments and flow-through entities) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>198</num><heading>Eligible payroll costs and eligible tangible asset amount: permanent establishments</heading><subsection><num>(1)</num><content><p>Sections 196 and 197 apply in relation to permanent establishments with the following modifications.</p></content></subsection><subsection><num>(2)</num><content><p>In determining under section 196 the eligible payroll costs of a permanent establishment within section 232(2)(a) to (c), the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the establishment.</p></content></subsection><subsection><num>(3)</num><content><p>In determining under section 197 the eligible tangible asset amount of a permanent establishment within section 232(2)(a) to (c), the only assets to be taken into account are assets used in the business of the establishment.</p></content></subsection><subsection><num>(4)</num><content><p>Both the eligible payroll costs and the eligible tangible asset amount of a permanent establishment within section 232(2)(d) are nil.</p></content></subsection><subsection><num>(5)</num><intro><p>If but for this subsection—</p></intro><level class="para1"><num>(a)</num><content><p>an amount would be taken into account under section 196 in respect of both a permanent establishment and the main entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>an asset would be taken into account under section 197 in respect of both a permanent establishment and the main entity,</p></content></level><wrapUp><p>the amount or asset is only to be taken into account in respect of the permanent establishment.</p></wrapUp></subsection></section><section eId="d25e22355"><num>198ZA</num><heading>Eligible payroll costs: flow-through entities</heading><subsection eId="d25e22359"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period if the member has costs that would be eligible payroll costs if the member were located in that territory and were not a flow-through entity and—</p></intro><level class="para1" eId="d25e22365"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Section 196 applies for the purposes of determining a flow-through payroll amount of a flow-through entity for a territory as it applies for the purposes of determining eligible payroll costs but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in that section to the territory of the member were to the territory to which the flow-through payroll amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22730">(7)</ref> of that section were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period, the eligible payroll costs of each member of the group falling within subsection <ref href="#d25e22359">(1)</ref><ref href="#d25e22365">(a)</ref> for that period (which may be nil) are to be increased by the amount given by multiplying the flow-through payroll amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through payroll amount for that period,</p></content></level><wrapUp><p>the eligible payroll costs of that entity for that period (which may be nil) are to be increased by the amount given by multiplying that flow-through payroll amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section eId="d25e22516"><num>198ZB</num><heading>Eligible tangible asset amount: flow-through entities</heading><subsection eId="d25e22520"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity that is not the ultimate parent has a flow-through tangible asset amount for a territory for an accounting period if the member holds one or more assets in that territory and—</p></intro><level class="para1" eId="d25e22526"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Sections 197 and 197A apply for the purposes of determining a flow-through tangible asset amount of a flow-through entity for a territory as they apply for the purposes of determining an eligible tangible asset amount but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in those sections to the territory of the member were to the territory to which the flow-through tangible asset amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22746">(10)</ref> of section 197 were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through tangible asset amount for a territory for an accounting period, the eligible tangible asset amount of each member of the group falling within subsection <ref href="#d25e22520">(1)</ref><ref href="#d25e22526">(a)</ref> for that period (which may be nil) is to be increased by the amount given by multiplying the flow-through tangible asset amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through tangible asset amount for that period,</p></content></level><wrapUp><p>the eligible tangible asset amount of that entity for that period (which may be nil) is to be increased by the amount given by multiplying that flow-through tangible asset amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section><num>198ZC</num><heading>Eligible payroll costs and eligible tangible asset amount: flow-through ultimate parent</heading><subsection eId="d25e22681"><num>(1)</num><content><p>In determining for an accounting period the eligible payroll costs or eligible tangible asset amount of a flow-through entity that is the ultimate parent of a multinational group, the amount given by section 196 or 197 is to be reduced by the section 170 proportion.</p></content></subsection><subsection eId="d25e22687"><num>(2)</num><intro><p>In subsection <ref href="#d25e22681">(1)</ref>, “<term refersTo="#term-the-section-170-proportion">the section 170 proportion</term>” means the proportion of the adjusted profits of the flow-through entity for the accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where subsection (1) of 170 (adjustments for ultimate parent that is a flow-through entity) applies, is excluded under that subsection, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where that subsection does not apply as a result of the entity having not made a profit for that period, would be excluded under that subsection if the entity had adjusted profits of 100 euros.</p></content></level></subsection><subsection><num>(3)</num><content><p>In subsection <ref href="#d25e22687">(2)</ref>, “<term refersTo="#term-the-adjusted-profits">the adjusted profits</term>” means the adjusted profits before the application of section 170.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 196 (eligible payroll costs), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22730"><num>(7)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having nil eligible payroll costs (subject to the application of section <ref href="#d25e22355">198ZA</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-35" class="schProv1"><num>35</num><content><p><mod>In section 197 (eligible tangible asset amount), after subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22746"><num>(10)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having an eligible tangible asset amount of nil (subject to the application of section <ref href="#d25e22516">198ZB</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22755"><heading>Eligible payroll costs</heading><paragraph eId="schedule-4-paragraph-36" class="schProv1"><num>36</num><intro><p>In section 196 (eligible payroll costs)—</p></intro><level class="para1" eId="schedule-4-paragraph-36-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (b);</p></content></level><level class="para1" eId="schedule-4-paragraph-36-b"><num>(b)</num><content><p><mod>in subsection (b) of subsection (3), for the words from “acting” to “group” substitute <quotedText>“participating in the ordinary operating activities of the member”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22779"><heading>Additional top-up amounts</heading><paragraph eId="schedule-4-paragraph-37" class="schProv1"><num>37</num><content><p><mod>In section 203 (additional top-up amounts where covered taxes less than expected), in subsections (4)(b), (5)(b), (6)(b) and (7)(b), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-4-paragraph-38-1"><num>(1)</num><content><p>Section 206 (additional top-up amounts where recalculations required) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-38-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-2-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “members” insert <quotedText>“(“the current members”)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “those members would have for a prior period” substitute <quotedText>“the standard members of the group in the territory in a prior period would have for that period”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-3-b"><num>(b)</num><content><p><mod>in the words after paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-4-a"><num>(a)</num><content><p><mod>in Step 1, for “those members would have had for the prior period” substitute <quotedText>“the standard members of the group in the territory for the prior period would have had for that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-b"><num>(b)</num><content><p><mod>in Step 3, after “nil” insert <quotedText>“(and if there are no such results, the result of this step is nil)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-c"><num>(c)</num><intro><p>in Step 4—</p></intro><level class="para2" eId="schedule-4-paragraph-38-4-c-i"><num>(i)</num><content><p><mod>before “members” insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-4-c-ii"><num>(ii)</num><content><p><mod>for “Step 2” substitute <quotedText>“Step 3”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-5-a"><num>(a)</num><content><p><mod>for “those members” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-5-b"><num>(b)</num><content><p><mod>for “in accordance with subsections (5) to (8)” substitute <quotedText>“as follows”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-6"><num>(6)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-6-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-6-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-6-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-6-b"><num>(b)</num><content><p><mod>in paragraph (b), for “members for the members’ territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-6-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-7"><num>(7)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-7-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-7-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-7-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-7-b"><num>(b)</num><content><p><mod>in paragraph (b), for “standard members in the territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-8"><num>(8)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-8-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-ii"><num>(ii)</num><content><p><mod>before “period”, in the first place it occurs, insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-iii"><num>(iii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-8-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-9"><num>(9)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-9-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-a-ii"><num>(ii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-c"><num>(c)</num><content><p><mod>in the words after paragraph (b) for the words from “amount”, in the second place it occurs, to the end substitute <quotedText>“relevant amount.”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-10"><num>(10)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9)</num><intro><p>The relevant amount is the amount given by multiplying—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of the amounts of qualifying domestic top-up tax accrued by the current members in the current period, by</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount given by dividing—</p></intro><level class="para2"><num>(i)</num><content><p>the collective additional amount under this section, by</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of that collective additional amount, any collective additional amount under section 203 and the total top-up amount for the current period.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23179"><heading>Joint ventures</heading><paragraph eId="schedule-4-paragraph-39" class="schProv1"><num>39</num><intro><p>In section 226 (joint venture group), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-39-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “group” insert <quotedText>“for an accounting period of that entity”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-b"><num>(b)</num><content><p><mod>in paragraph (a), after “entity” insert <quotedText>“for all or any part of that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-c"><num>(c)</num><content><p><mod>in paragraph (b), after “entity” insert <quotedText>“at any time in that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-d"><num>(d)</num><content><p><mod>in paragraph (c), for “qualifying multinational group” substitute <quotedText>“multinational group that meets condition A in section 129(2) for that accounting period (revenue threshold exceeded in at least 2 of previous 4 accounting periods)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-e"><num>(e)</num><content><p><mod>in paragraph (f), for “of which the entity is a member” substitute <quotedText>“referred to in paragraph (a)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-4-paragraph-40-1"><num>(1)</num><content><p>Section 227 (application of Part to joint venture groups) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-2-a"><num>(a)</num><intro><p>in the words before paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-40-2-a-i"><num>(i)</num><content><p><mod>after “but” insert <quotedText>“in their application by virtue of this subsection”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-ii"><num>(ii)</num><content><p><mod>after “Part”, in the second place it occurs, insert <quotedText>“, this Chapter other than this section and section 226”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-iii"><num>(iii)</num><content><p><mod>for “apply” substitute <quotedText>“have effect”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-40-2-b"><num>(b)</num><content><p><mod>in paragraph (c), for “the multinational” substitute <quotedText>“each respective multinational”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-40-3"><num>(3)</num><content><p><mod>In subsection (2), for “Part,” substitute <quotedText>“Part (in its application by virtue of subsection (1)),”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-4-a"><num>(a)</num><content><p><mod>after “But” insert <quotedText>“(in the application of this Part by virtue of subsection (1))”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-40-4-b"><num>(b)</num><content><p><mod>for “that” substitute <quotedText>“the joint venture”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-41" class="schProv1"><num>41</num><subparagraph eId="schedule-4-paragraph-41-1"><num>(1)</num><content><p>Section 266 (qualifying entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-2"><num>(2)</num><content><p><mod>In subsection (1), after “An entity” insert <quotedText>“which is not a member of a joint venture group”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-3"><num>(3)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23349"><num>(1A)</num><intro><p>A member of a joint venture group is a qualifying entity for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is not a DTT excluded entity,</p></content></level><level class="para1"><num>(b)</num><content><p>the member meets condition A for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>the revenue condition is met in relation to the group for that period.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of subsection <ref href="#d25e23349">(1A)</ref> the “revenue condition” is met in relation to a joint venture group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>a single entity which directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meets Condition A and Condition B for that period, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the members of a group (the “relevant group”) whose ultimate parent directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meet Condition C for that period and—</p></intro><level class="para2"><num>(i)</num><content><p>all of those members are located in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the relevant group is a multinational group (see section 126 in Part 3), and at least one of the members is located in a Pillar Two territory.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23406"><heading>Domestic top-up tax</heading><paragraph eId="schedule-4-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-4-paragraph-42-1"><num>(1)</num><content><p>Section 270 (amount charged) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-2"><num>(2)</num><content><p><mod>Before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>Where a person is chargeable to domestic top-up tax for an accounting period as, or in respect of, a qualifying entity which is a member of a group, the amount (if any) the person must pay is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine (in accordance with section 272)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>whether the entity has a top-up amount for that period, and</p></item><item><num>(b)</num><p>the extent of any such amount.</p></item></blockList></item><item><p><i>Step 2</i></p><p>If the result of <ref href="#d25e23433">Step 1</ref> is not expressed in sterling, convert the result of that Step to sterling.</p></item></blockList></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-42-3-a"><num>(a)</num><content><p><mod>in the words before Step 1, for “as a qualifying entity or in respect of a qualifying entity” substitute <quotedText>“as or in respect of a qualifying entity which is not a member of a group”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-42-3-b"><num>(b)</num><content><p><mod>in Step 1, after “Determine” insert <quotedText>“(in accordance with section 273)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-4-paragraph-43-1"><num>(1)</num><content><p>Section 272 (determining top-up amounts of entity that is a member of a group) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-2"><num>(2)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p><mod>Part 3 has effect for those purposes as if the following sections were substituted for section 193—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>193</num><heading>Determination of top-up amounts of entity that is a member of a group</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e23537">(2)</ref> sets out (for the purposes of Step 1 of section 270(A1)) how to determine in relation to an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>whether an entity which is a standard member of a group has a top-up amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, what the amount is.</p></content></level></subsection><subsection eId="d25e23537"><num>(2)</num><content><p>Take the following Steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine for the period (in accordance with section 272) the sum of any top-up amounts and additional top-up amounts of standard members of the group (the “total top-up amount”).</p></item><item><p><i>Step 2</i></p><p>Determine for each such member—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the adjusted profits (if any);</p></item><item><num>(b)</num><p>the covered tax balance.</p></item></blockList></item><item><p><i>Step 3</i></p><p>For each standard member of the group in relation to which a positive amount of adjusted profits is determined under <ref href="#d25e23552">Step 2</ref>, determine the “effective tax rate” by dividing the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23565">(b)</ref> (covered tax balance) by the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23561">(a)</ref> (adjusted profits).</p></item><item><p><i>Step 4</i></p><p>For any standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>determine that member’s “top-up tax percentage” by subtracting the member’s effective tax rate from 15%, and</p></item><item><num>(b)</num><p>proceed to <ref href="#d25e23613">Step 5</ref>.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Calculate for the member an amount (an “allocation key amount”) by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s top-up tax percentage (see <ref href="#d25e23590">Step 4</ref>(a)), by</p></item><item><num>(b)</num><p>the member’s adjusted profits.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Determine the sum (the “group allocation key amount”) of all the allocation key amounts calculated under <ref href="#d25e23613">Step 5</ref> for members of the group.</p></item><item><p><i>Step 7</i></p><p>Determine the “allocation key ratio” for each standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%, by dividing—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s allocation key amount (see <ref href="#d25e23613">Step 5</ref>), by</p></item><item><num>(b)</num><p>the group allocation key amount (see <ref href="#d25e23633">Step 6</ref>).</p></item></blockList></item><item><p><i>Step 8</i></p><p>Determine each such member’s top-up amount by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of any top-up amounts and additional top-up amounts of standard members of the group for the period (see <ref href="#d25e23544">Step 1</ref>), by</p></item><item><num>(b)</num><p>the member’s allocation key ratio (see <ref href="#d25e23644">Step 7</ref>).</p></item></blockList></item><item><p><i>Step 9</i></p><p>If none of the standard members falls within <ref href="#d25e23569">Step 3</ref>, or none of them has an effective tax rate of less than 15%, each standard member has a top-up amount equal to—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the total top-up amount, divided by</p></item><item><num>(b)</num><p>the number of the standard members.</p></item></blockList></item></blockList></content></subsection></section><section><num>193A</num><heading>Section 193: supplementary</heading><subsection><num>(1)</num><content><p>Section 193 and subsection (2) of this section apply to joint venture groups and their members as they apply to groups and their members.</p></content></subsection><subsection><num>(2)</num><content><p>Section 193 has effect in relation to a qualifying entity that is a standard member of a group as if the total top-up amount referred to in that section included any top-up amounts or additional top-up amounts of qualifying investment entities determined under sections 220 to 224.</p></content></subsection><subsection><num>(3)</num><intro><p>See also subsections (9) to (11) of section 272, which—</p></intro><level class="para1"><num>(a)</num><content><p>define “<term refersTo="#term-qualifying-investment-entity">qualifying investment entity</term>” in relation to a qualifying entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>make further provision about top-up amounts (for the purposes of domestic top-up tax).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-3"><num>(3)</num><content><p>In subsection (8) omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23759"><heading>Domestic top-up tax: excluded entities</heading><paragraph eId="schedule-4-paragraph-44" class="schProv1"><num>44</num><content><p><mod>In section 267 (DTT excluded entities), after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>A company is a DTT excluded entity if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a qualifying asset holding company for the purposes of Schedule 2 to FA 2022, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not a member of a multinational group.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23787"><heading>De minimis rule</heading><paragraph eId="schedule-4-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-4-paragraph-45-1"><num>(1)</num><intro><p>In section 199 (election to treat total top-up amount as nil)—</p></intro><level class="para1" eId="schedule-4-paragraph-45-1-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-45-1-a-i"><num>(i)</num><content><p><mod>for “total top-up amount” substitute <quotedText>“top-up amounts of the relevant members”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-45-1-a-ii"><num>(ii)</num><content><p><mod>for “is” substitute <quotedText>“are”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-45-1-b"><num>(b)</num><content><p><mod>in subsections (2)(a), (3), (4), (6)(a) and (6)(b), for “standard” substitute <quotedText>“relevant”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-c"><num>(c)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23840"><num>(2A)</num><intro><p>In this section, a member of a multinational group is a “relevant” member if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a standard member of the group, or</p></content></level><level class="para1"><num>(b)</num><content><p>a minority owned member of the group.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-d"><num>(d)</num><content><p><mod>in the heading, for “total top-up amount” substitute <quotedText>“certain top-up amounts”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-45-2"><num>(2)</num><content><p><mod>In section 228 (minority owned members), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>But neither subsection (3) nor (4) applies to the reference to “standard member” in section 199<ref href="#d25e23840">(2A)</ref> (election to treat top-up amounts of relevant members as nil).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23885"><heading>Transitional safe harbour</heading><paragraph eId="schedule-4-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-4-paragraph-46-1"><num>(1)</num><content><p>Part 2 of Schedule 16 (transitional safe harbour) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-2"><num>(2)</num><intro><p>In paragraph 3 (election)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (1), after “election” insert <quotedText>“under this paragraph”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2)(c), for “the election” substitute <quotedText>“a transitional safe harbour election”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-c"><num>(c)</num><content><p><mod>in sub-paragraph (7), for “the information” substitute <quotedText>“all relevant information”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-d"><num>(d)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(7A)</num><content><p>For the purposes of sub-paragraph (7), “<term refersTo="#term-all-relevant-information">all relevant information</term>” means all of the information described in paragraphs (a) to (d) of paragraph 4(3).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-e"><num>(e)</num><content><p><mod>after sub-paragraph (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(10)</num><content><p>An election under this paragraph may not be made in respect of the nominal territory of a stateless member of a multinational group.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-3"><num>(3)</num><intro><p>In paragraph 4 (qualified financial statements), in sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for “statement” substitute <quotedText>“statements”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>after “parent” insert <quotedText>“provided the statements are prepared in accordance with acceptable accounting standards or an authorised accounting standard”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-46-3-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>financial statements of members of the group provided—</p></intro><level class="para2"><num>(i)</num><content><p>they are prepared in accordance with acceptable accounting standards or an authorised accounting standard, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the information contained in those statements is reliable and is maintained in a manner that is consistent with its use under the accounting standard used in preparing those statements.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-4"><num>(4)</num><content><p><mod>In paragraph 4, after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>But see also <ref href="#d25e24052">paragraph 4A</ref> in cases where those accounts or statements reflect purchase price accounting adjustments.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-5"><num>(5)</num><content><p><mod>In paragraph 4, in sub-paragraph (3), in paragraph (d), after “income” insert <quotedText>“exclusion”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-6"><num>(6)</num><content><p><mod>After paragraph 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Accounts or statements reflecting purchase price accounting adjustments</heading><paragraph eId="d25e24052" class="schProv1"><num>4A</num><subparagraph><num>(1)</num><intro><p>This paragraph applies in relation to accounts or financial statements (“the relevant statements”) in relation to a multinational group in a territory that—</p></intro><level class="para1"><num>(a)</num><content><p>fall within paragraph (a) or (b) of paragraph 4(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>reflect purchase price accounting adjustments.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a country-by-country report has been submitted in respect of the group in that territory in respect of a period commencing on or after 1 January 2023 and concluding before the commencement of the accounting period for which the transitional safe harbour election is being made,</p></content></level><level class="para1"><num>(b)</num><content><p>the financial accounts used for the preparation of that report did not reflect purchase price accounting adjustments, and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no requirement to reflect purchase price adjustments in the relevant statements under the law of the territory that applies in relation to the preparation of those statements,</p></content></level><wrapUp><p>the relevant statements are not qualified financial statements.</p></wrapUp></subparagraph><subparagraph><num>(3)</num><intro><p>Sub-paragraph <ref href="#d25e24121">(4)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant statements are qualified financial statements, and</p></content></level><level class="para1"><num>(b)</num><content><p>an impairment of goodwill in relation to a transaction entered into on or after 1 December 2021 is reflected in a member’s profit (loss) before income tax.</p></content></level></subparagraph><subparagraph eId="d25e24121"><num>(4)</num><intro><p>Adjust the profit (loss) before income tax of the member so that it does not reflect that impairment for the purposes of determining—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the condition in sub-paragraph <ref href="#d25e24142">(5)</ref> is not met, whether the simplified effective tax rate test is met (see paragraph 8), and</p></content></level><level class="para1"><num>(b)</num><content><p>in any case, whether the routine profits test is met (see paragraph 9).</p></content></level></subparagraph><subparagraph eId="d25e24142"><num>(5)</num><intro><p>The condition in this sub-paragraph is that the relevant statements reflect—</p></intro><level class="para1"><num>(a)</num><content><p>a reversal of deferred tax liability in relation to the goodwill, or</p></content></level><level class="para1"><num>(b)</num><content><p>the recognition or increase of a deferred tax asset in relation to it.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-7"><num>(7)</num><intro><p>In paragraph 5 (qualifying income tax expense)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-7-a"><num>(a)</num><content><p>the existing text becomes sub-paragraph (1), and</p></content></level><level class="para1" eId="schedule-4-paragraph-46-7-b"><num>(b)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><content><p>For the purposes of this Part of this Schedule, any amount of qualifying income tax expense that is in respect of profits of a permanent establishment and that is incurred in the territory of the permanent establishment is to be regarded as the expense of that permanent establishment (rather than of the main entity).</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24185"><heading>Transitional safe harbour: arbitrage arrangements</heading><paragraph eId="schedule-4-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-4-paragraph-47-1"><num>(1)</num><content><p><mod>In Schedule 16, after paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Deduction and non-inclusion arrangements and duplicate loss arrangements</heading><paragraph class="schProv1"><num>6A</num><subparagraph eId="d25e24206"><num>(1)</num><content><p>Where the aggregate profit (loss) before income tax of the standard members of a multinational group in a territory reflects disqualified expense, the aggregate profit (loss) before income tax is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24212"><num>(2)</num><intro><p>Disqualified expense means any expense or loss of a member of a multinational group reflected in the financial statements of the member arising as a result of qualifying arrangements that involve another member of the group—</p></intro><level class="para1" eId="d25e24218"><num>(a)</num><intro><p>to the extent that the expense or loss is a result of the member directly or indirectly being provided credit by the other member or the other member otherwise making an investment in the member under the arrangements and—</p></intro><level class="para2"><num>(i)</num><content><p>the credit or investment is not reflected as an increase in the revenue, or a gain, in the financial statements of the other member that corresponds to the expense or loss, or</p></content></level><level class="para2" eId="d25e24230"><num>(ii)</num><content><p>it is not reasonable to expect that the credit or investment will be reflected as an increase in the taxable income of the other member over the life of the arrangements that corresponds to the expense or loss, or</p></content></level></level><level class="para1" eId="d25e24236"><num>(b)</num><intro><p>to the extent that—</p></intro><level class="para2" eId="d25e24242"><num>(i)</num><content><p>the expense or loss is also included as an expense or loss in the financial statements of another member of the group, or</p></content></level><level class="para2" eId="d25e24248"><num>(ii)</num><content><p>the expense or loss is mirrored by an amount that can be deducted from the taxable income of another member of the group that is located in a different territory to the member.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>an expense or a loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref> if it is solely referable to the provision of qualifying tier one capital,</p></content></level><level class="para1"><num>(b)</num><content><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> to the extent it is offset against revenue that is included in the financial statements of each member whose financial statements reflect the expense or loss, and</p></content></level><level class="para1"><num>(c)</num><intro><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24248">(ii)</ref> to the extent that it is offset against revenue or income that is included in both—</p></intro><level class="para2"><num>(i)</num><content><p>the financial statements that reflect the expense or loss, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the taxable income from which the amount that mirrors the expense or loss can be deducted.</p></content></level></level></subparagraph><subparagraph><num>(4)</num><intro><p>An expense or loss included in the financial statements of a member of a multinational group is to be ignored to the extent that the expense or loss is included in the financial statements of another member of the group as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>the other member having a direct or indirect ownership interest in the member, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member being regarded as tax transparent in the territory in which the other member is located.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Where as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> more than one standard member in a territory has disqualified expense in respect of the same expense or loss, <ref href="#d25e24206">sub-paragraph (1)</ref> applies to all but one of those amounts of disqualified expense.</p></content></subparagraph><subparagraph eId="d25e24343"><num>(6)</num><intro><p>For the purposes of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref><ref href="#d25e24230">(ii)</ref>, ignore any increase in the taxable income of the other member—</p></intro><level class="para1" eId="d25e24356"><num>(a)</num><content><p>that is offset by a devalued tax attribute, or</p></content></level><level class="para1"><num>(b)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the payment that gives rise to the expense or loss in question also results in a taxable deduction or loss of a further member of the group located in the same territory as the other member, and</p></content></level><level class="para2"><num>(ii)</num><content><p>that deduction or loss is not reflected in the aggregate profit (loss) before income tax for that territory for the purposes of determining whether an election under paragraph 3 that applies in relation to that further member can be made.</p></content></level></level></subparagraph><subparagraph><num>(7)</num><intro><p>For the purposes of <ref href="#d25e24343">sub-paragraph (6)</ref><ref href="#d25e24356">(a)</ref>, a “<term refersTo="#term-devalued-tax-attribute">devalued tax attribute</term>” means a tax attribute of a member of a multinational group—</p></intro><level class="para1"><num>(a)</num><content><p>whose value is reflected in financial statements of the member at less than the amount of the attribute multiplied by the tax rate that applies to the member, or</p></content></level><level class="para1"><num>(b)</num><content><p>whose value would be so reflected if the qualifying arrangements that result in disqualified expense or disqualified tax expense (see paragraph <ref href="#d25e24472">6B</ref>) were ignored.</p></content></level></subparagraph><subparagraph><num>(8)</num><intro><p>For the purposes of this paragraph and paragraph <ref href="#d25e24472">6B</ref>, arrangements are “qualifying” if—</p></intro><level class="para1"><num>(a)</num><content><p>they were entered into on or after 16 December 2022, or</p></content></level><level class="para1"><num>(b)</num><intro><p>they were entered into before that date, but—</p></intro><level class="para2"><num>(i)</num><content><p>the arrangements are amended on or after that date (including by way of a substitution of one or more of the parties),</p></content></level><level class="para2"><num>(ii)</num><content><p>the performance of rights or obligations under the arrangements is altered on or after that date (for example where payments under the arrangements are reduced or ceased), or</p></content></level><level class="para2"><num>(iii)</num><content><p>the accounting treatment of the arrangements is varied on or after that date.</p></content></level></level></subparagraph><subparagraph><num>(9)</num><intro><p>In this paragraph and in paragraph <ref href="#d25e24472">6B</ref> reference to the financial statements of a member of a multinational group is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an accounting period in which an election under paragraph 3 that applies in relation to the member was made, or for the purposes of determining whether such an election can be made, to the financial statements, or financial accounts, that form the basis of qualified financial statements in relation to the member for the purposes of this Part of this Schedule, or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, to the underlying profits accounts of that member (see section 136).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Duplicate tax recognition arrangements</heading><paragraph eId="d25e24472" class="schProv1"><num>6B</num><subparagraph><num>(1)</num><content><p>Where the aggregate qualifying income tax expense of the standard members of a multinational group in a territory reflects disqualified tax expense, the aggregate qualifying income tax expense is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24482"><num>(2)</num><intro><p>Disqualified tax expense means any qualifying income tax expense of a member of a multinational group reflected in the financial statements of the member that, as a result of qualifying arrangements, is also reflected in—</p></intro><level class="para1" eId="d25e24488"><num>(a)</num><content><p>the covered tax balance of one or more other members of the group, or</p></content></level><level class="para1" eId="d25e24494"><num>(b)</num><content><p>the qualifying income tax expense of one or more other members of the group.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>But qualifying income tax expense is not to be regarded as disqualified tax expense—</p></intro><level class="para1"><num>(a)</num><content><p>if the income to which the tax expense relates is reflected in the financial statements of each member of the group falling within <ref href="#d25e24482">sub-paragraph (2)</ref><ref href="#d25e24488">(a)</ref> and <ref href="#d25e24494">(b)</ref> to at least the same extent to which the tax expense is reflected in the covered tax balance, or qualifying income tax expense, of each of those members;</p></content></level><level class="para1"><num>(b)</num><content><p>to the extent that the duplication of the tax expense would not arise if the adjustments that would have been made in determining the member’s covered tax balance (and that are not required to be made for the purpose of determining the member’s qualifying income tax expense) had been made.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-2"><num>(2)</num><intro><p>The amendment made by <ref href="#schedule-4-paragraph-47-1">sub-paragraph (1)</ref> has effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-47-2-a"><num>(a)</num><content><p>disqualified expense accruing on or after 14 March 2024, and</p></content></level><level class="para1" eId="schedule-4-paragraph-47-2-b"><num>(b)</num><content><p>disqualified tax expense attributable to profits accruing on or after 14 March 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-47-3"><num>(3)</num><content><p><mod>In paragraph 4 (qualified financial statements and basis of calculations), in sub-paragraph (4), in the words after paragraph (b) for “paragraph 6” substitute <quotedText>“paragraphs 6 to 6B”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-4"><num>(4)</num><content><p><mod>In section 155 (qualifying tier one capital), in subsection (3), for “section” substitute <quotedText>“Part”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-5"><num>(5)</num><content><p><mod>In Schedule 17, in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">qualifying tier one capital</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">section 155(3)</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24581"><heading>Substance based income exclusion: removal of provision for election</heading><paragraph eId="schedule-4-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-4-paragraph-48-1"><num>(1)</num><content><p>In section 195 (substance based income exclusion) omit subsections (2) and (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-48-2"><num>(2)</num><content><p>Accordingly, in paragraph 2 (annual elections) of Schedule 15 (multinational top-up tax: elections), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24600"><heading>Inclusion ratio</heading><paragraph eId="schedule-4-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-4-paragraph-49-1"><num>(1)</num><content><p>Section 201 (inclusion ratio) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-2"><num>(2)</num><content><p><mod>In subsection (1), in Step 2, at the end insert <quotedText>“, but excluding ownership interests in respect of which an amount has been excluded from the relevant member’s adjusted profits.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-3"><num>(3)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-50" class="schProv1"><num>50</num><subparagraph eId="schedule-4-paragraph-50-1"><num>(1)</num><content><p>Section 223 (adjustments) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-50-2"><num>(2)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “group,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “profits” insert <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-3"><num>(3)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-3-a"><num>(a)</num><content><p><mod>in paragraph (a), after “made,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-3-b"><num>(b)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-4"><num>(4)</num><content><p><mod>In subsection (9), after “201(2)” insert <quotedText>“and (3)”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24705"><heading>Specification of territories and taxes</heading><paragraph eId="schedule-4-paragraph-51" class="schProv1"><num>51</num><subparagraph eId="schedule-4-paragraph-51-1"><num>(1)</num><intro><p>In section 241 (Pillar Two territories)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-1-a"><num>(a)</num><content><p><mod>in subsection (1), before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a territory to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-c-i"><num>(i)</num><content><p><mod>after “Regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a territory in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a territory made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-e"><num>(e)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the territory was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a territory previously specified ceases to have effect” substitute <quotedText>“for the specification of a territory to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>A territory outside the United Kingdom is to be treated as a Pillar Two territory for the purposes of any accounting period that concluded before the first regulations under this section have been made, if it is a territory in which a tax applies for that accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>that is a Qualified IIR for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>that it is reasonable to conclude is likely to be a Qualified IIR for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-2"><num>(2)</num><intro><p>In section 256 (qualifying domestic top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-2-a"><num>(a)</num><content><p><mod>in subsection (1)(b), for “a” substitute <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-c-i"><num>(i)</num><content><p><mod>after “regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a tax in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a tax made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-e"><num>(e)</num><intro><p>in subsection (4)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the tax was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a tax previously specified ceases to have effect” substitute <quotedText>“for the specification of a tax to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>A tax (other than domestic top-up tax which is always a qualifying domestic top-up tax) is to be treated as a qualifying domestic top-up tax for the purposes of any accounting period that concluded before the first regulations under this section have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that it is likely to be a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-3"><num>(3)</num><intro><p>In Schedule 16A (qualifying domestic top-up tax safe harbour election)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-3-a"><num>(a)</num><intro><p>in paragraph 1(3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-a-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “may only be made” substitute <quotedText>“is only valid”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-ii"><num>(ii)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the accreditation applies to the accounting period, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-3-b"><num>(b)</num><intro><p>in paragraph 2—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-b-i"><num>(i)</num><content><p>the existing text becomes sub-paragraph (1),</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-ii"><num>(ii)</num><content><p><mod>in that sub-paragraph, before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>Regulations may provide for the accreditation of a tax by specification in a notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subparagraph><subparagraph><num>(1B)</num><content><p>Regulations, or a notice, must identify the accounting periods to which the accreditation applies.</p></content></subparagraph><subparagraph><num>(1C)</num><content><p>Regulations under this paragraph may provide for the accreditation of a tax to have effect from a time before the tax was specified (but may not provide for the accreditation of a tax to cease to have effect in relation to accounting periods commencing before the regulations are made).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iv"><num>(iv)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e25105"><num>(2)</num><intro><p>A qualifying domestic top-up tax is to be treated as accredited for the purposes of any accounting period that concluded before the first regulations under this paragraph have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>the tax falls within Chapter 5.5 to 5.7 of the QDMTT safe harbour guidance, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that the tax is likely to fall within Chapter 5.5 to 5.7 of that guidance.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>For the purposes of sub-paragraph <ref href="#d25e25105">(2)</ref> the “<term refersTo="#term-qdmtt-safe-harbour-guidance">QDMTT safe harbour guidance</term>” means Chapter 5 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023, published by the OECD on 17 July 2023.</p></content></subparagraph></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-4"><num>(4)</num><content><p>The amendments made by sub-paragraphs <ref href="#schedule-4-paragraph-51-1">(1)</ref><ref href="#schedule-4-paragraph-51-1-f">(f)</ref>, <ref href="#schedule-4-paragraph-51-2">(2)</ref><ref href="#schedule-4-paragraph-51-2-f">(f)</ref> and <ref href="#schedule-4-paragraph-51-3">(3)</ref><ref href="#schedule-4-paragraph-51-3-b">(b)</ref><ref href="#schedule-4-paragraph-51-3-b-i">(i)</ref> and <ref href="#schedule-4-paragraph-51-3-b-iv">(iv)</ref> are treated as having come into force on 7 November 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25162"><heading>Filing etc not required before 30 June 2026</heading><paragraph eId="schedule-4-paragraph-52" class="schProv1"><num>52</num><subparagraph eId="schedule-4-paragraph-52-1"><num>(1)</num><content><p>Schedule 14 (administration) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-2"><num>(2)</num><content><p><mod>In paragraph 10, after sub-paragraph (11) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(12)</num><content><p>Where (ignoring this sub-paragraph) the date by which an information return or overseas return notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-3"><num>(3)</num><content><p><mod>In paragraph 13, after sub-paragraph (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(11)</num><content><p>Where (ignoring this sub-paragraph) the date by which a self assessment return or below-threshold notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is instead 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-4"><num>(4)</num><content><p><mod>In paragraph 32, after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(3A)</num><content><p>Where (ignoring this sub-paragraph) the date on which an amount of multinational top-up tax must be paid falls before 30 June 2026, the date on which it must be paid is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25214"><heading>Minor amendments</heading><paragraph eId="schedule-4-paragraph-53" class="schProv1"><num>53</num><content><p>In section 141 (general exclusion of dividends), in subsection (9) omit paragraph (b) and the “or” preceding it.</p></content></paragraph><paragraph eId="schedule-4-paragraph-54" class="schProv1"><num>54</num><intro><p>In section 148A (transferable tax credits), in subsection (5)(a)—</p></intro><level class="para1" eId="schedule-4-paragraph-54-a"><num>(a)</num><content><p><mod>in sub-paragraph (i), for “before the end of 15 months” substitute <quotedText>“in the period beginning with the day on which the credit was granted and ending 15 months after the end”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-54-b"><num>(b)</num><content><p><mod>in sub-paragraph (ii), for “before the end of 15 months of the accounting period in which they are granted” substitute <quotedText>“in that period”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-55" class="schProv1"><num>55</num><content><p><mod>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (9)(b), for the words from “the ultimate parent’s“ to the end substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>the entity is regarded as tax transparent in the territory in which the ultimate parent is located, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the ultimate parent’s interest in that entity is held directly or through one or more entities all of which are regarded as tax transparent in that territory.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-56" class="schProv1"><num>56</num><intro><p>In section 171 (ultimate parent subject to qualifying dividend regime)—</p></intro><level class="para1" eId="schedule-4-paragraph-56-a"><num>(a)</num><content><p>in subsection (2)(b), omit “adjusted”, and</p></content></level><level class="para1" eId="schedule-4-paragraph-56-b"><num>(b)</num><content><p><mod>in subsection (6), for “underlying”, in each place it occurs, substitute <quotedText>“adjusted”</quotedText></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 176B (value of non-marketable transferable tax credits: originator), in subsection (3), after “the”, in the fourth place it occurs, insert <quotedText>“end of the”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-58" class="schProv1"><num>58</num><intro><p>In section 176C (value of non-marketable transferable tax credits: purchaser)—</p></intro><level class="para1" eId="schedule-4-paragraph-58-a"><num>(a)</num><content><p><mod>in subsection (4)(b), for “underlying” substitute <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-58-b"><num>(b)</num><content><p>in subsection (5)(a)(ii) omit “reflected”;</p></content></level><level class="para1" eId="schedule-4-paragraph-58-c"><num>(c)</num><content><p><mod>in subsection (6) for “underlying” substitute <quotedText>“adjusted”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-59" class="schProv1"><num>59</num><content><p><mod>In section 176D (tax credits etc allocated under tax equity partnerships), in subsection (10), for “the amount multiplied” substitute <quotedText>“that amount”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-60" class="schProv1"><num>60</num><intro><p>In section 211 (transfer of assets or liabilities to a member of a multinational group)—</p></intro><level class="para1" eId="schedule-4-paragraph-60-a"><num>(a)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-60-a-i"><num>(i)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-60-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the transferor and the transferee are not members of the same type located in the same territory, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-60-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>For the purposes of subsection (2) two members of a multinational group are of the same type if—</p></intro><level class="para1"><num>(a)</num><content><p>they are both standard members of the group,</p></content></level><level class="para1"><num>(b)</num><content><p>they are both investment entities, or</p></content></level><level class="para1"><num>(c)</num><content><p>they are both members of the same minority subgroup (see section 228).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 212 (meaning of “<term refersTo="#term-qualifying-reorganisation" eId="term-qualifying-reorganisation">qualifying reorganisation</term>”), in subsection (4), after “is”, in the third place it occurs, insert <quotedText>“no greater than”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-62" class="schProv1"><num>62</num><content><p>In section 215 (undistributed income amount), in subsection (2)(c) omit “the made a loss”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-63" class="schProv1"><num>63</num><content><p><mod>In section 216 (election where assets and liabilities adjusted to fair value for tax purposes), in subsection (7)(a), before “immediately after” insert <quotedText>“or liability”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-64" class="schProv1"><num>64</num><content><p><mod>In section 217 (post filing adjustments of covered taxes), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>In the case of a prior accounting period for which there is no information return, overseas information return or self-assessment return, the reference to covered taxes being reflected in such a return is to the covered taxes as would have been reflected in such a return had there been one.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-65" class="schProv1"><num>65</num><content><p><mod>In section 217(8), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the aggregate covered tax balance of the standard members of the group in the territory of the member for the prior period is not reduced by 1 million euros or more, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 220 (top-up amount of investment entity)—</p></intro><level class="para1" eId="schedule-4-paragraph-66-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-66-a-i"><num>(i)</num><content><p><mod>in Step 8, after “entity” insert <quotedText>“, unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9), and</quotedText></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-66-a-ii"><num>(ii)</num><content><p><mod>after that Step insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 9</i></p><p>Where this Step applies, the top-up amount for the entity is the sum of—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the result of Step 8, and</p></item><item><num>(b)</num><p>the positive undistributed income amount for the entity for the period multiplied by 15%.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-66-b"><num>(b)</num><content><p>omit subsection (2).</p></content></level></paragraph><paragraph eId="schedule-4-paragraph-67" class="schProv1"><num>67</num><content><p><mod>In section 222 (investment entity effective tax rate), in Step 9 for “Step 1” substitute <quotedText>“Step 2”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-68" class="schProv1"><num>68</num><content><p>In section 242 (ownership interests and controlling interests), in subsection (5)(a) omit “financial”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-69" class="schProv1"><num>69</num><content><p><mod>In section 255 (Pillar Two rules), in subsection (6), for “3(1)” substitute <quotedText>“3 of Schedule 16”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-70" class="schProv1"><num>70</num><intro><p>In Schedule 14 (administration of multinational top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-70-a"><num>(a)</num><content><p><mod>in paragraph 2(12), for “entity” substitute <quotedText>“member”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-70-b"><num>(b)</num><content><p><mod>in paragraph 7(6), for “or Revenue” substitute <quotedText>“of Revenue”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-71" class="schProv1"><num>71</num><content><p>In Schedule 16A (multinational top-up tax: safe harbours), in paragraph 4(1)(b) omit “members of the group that are”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25563"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-72" class="schProv1"><num>72</num><subparagraph eId="schedule-4-paragraph-72-1"><num>(1)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2023—</p></intro><level class="para1" eId="schedule-4-paragraph-72-1-a"><num>(a)</num><content><p><ref href="#schedule-4-paragraph-11">paragraph 11</ref> (permanent establishments as excluded entities);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-b"><num>(b)</num><content><p><ref href="#schedule-4-paragraph-39">paragraph 39</ref><ref href="#schedule-4-paragraph-39-d">(d)</ref> (joint venture conditions);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-c"><num>(c)</num><content><p><ref href="#schedule-4-paragraph-48">paragraph 48</ref> (removal of requirement for SBIE election);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-d"><num>(d)</num><content><p><ref href="#schedule-4-paragraph-51">paragraph 51</ref> (specification of territories and taxes);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-e"><num>(e)</num><content><p><ref href="#schedule-4-paragraph-52">paragraph 52</ref> (filing etc not required before 30 June 2026);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-f"><num>(f)</num><content><p><ref href="#schedule-4-paragraph-66">paragraph 66</ref> (top-up amount of investment entity).</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-2"><num>(2)</num><content><p><ref href="#schedule-4-paragraph-47">Paragraph 47</ref> has effect in relation to relation to accounting periods commencing on or after 31 December 2023, subject to sub-paragraph <ref href="#schedule-4-paragraph-47-2">(2)</ref> of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-3"><num>(3)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024—</p></intro><level class="para1" eId="schedule-4-paragraph-72-3-a"><num>(a)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-18">18</ref> to <ref href="#schedule-4-paragraph-24">24</ref> (tax equity partnerships);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-3-b"><num>(b)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-39-a">(a)</ref> to <ref href="#schedule-4-paragraph-39-c">(c)</ref> of <ref href="#schedule-4-paragraph-39">paragraph 39</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-4"><num>(4)</num><intro><p>The other provisions of this Part of this Schedule have effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-72-4-a"><num>(a)</num><content><p>where a retrospection election has been made in relation to a multinational group, a group, or a qualifying entity that is not a member of a group, accounting periods of that multinational group, group or entity commencing on or after 31 December 2023, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-4-b"><num>(b)</num><content><p>otherwise, accounting periods commencing on or after 31 December 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-5"><num>(5)</num><intro><p>A retrospection election—</p></intro><level class="para1" eId="schedule-4-paragraph-72-5-a"><num>(a)</num><intro><p>is to be made—</p></intro><level class="para2" eId="schedule-4-paragraph-72-5-a-i"><num>(i)</num><content><p>in the case of a multinational group or group, by the filing member, or</p></content></level><level class="para2" eId="schedule-4-paragraph-72-5-a-ii"><num>(ii)</num><content><p>in the case of a qualifying entity that is not a member of a group, by that entity,</p></content></level></level><level class="para1" eId="schedule-4-paragraph-72-5-b"><num>(b)</num><content><p>must be made on or before the day on which the self-assessment return or below-threshold notification for the first accounting period of the multinational group, group or entity commencing on or after 31 December 2023 is made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-5-c"><num>(c)</num><content><p>may not be revoked.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-6"><num>(6)</num><intro><p>But <ref href="#schedule-4-paragraph-72-7">sub-paragraph (7)</ref> applies where any member, or former member, of a multinational group or group is, or would be on either or both of the relevant assumptions—</p></intro><level class="para1" eId="schedule-4-paragraph-72-6-a"><num>(a)</num><content><p>a person chargeable to domestic top-up tax that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the person’s membership of the multinational group or group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-6-b"><num>(b)</num><content><p>a qualifying entity that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the entity’s membership of the multinational group or group in respect of which a person is chargeable to domestic top-up tax.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-7"><num>(7)</num><content><p>Where this sub-paragraph applies, a retrospection election may not be made without the written consent of each such person.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-8"><num>(8)</num><intro><p>For the purposes of sub-paragraph <ref href="#schedule-4-paragraph-72-6">(6)</ref>, the relevant assumptions are—</p></intro><level class="para1" eId="schedule-4-paragraph-72-8-a"><num>(a)</num><content><p>that the retrospection election had been made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-8-b"><num>(b)</num><content><p>that no election under section 271 of F(No.2)A 2023 had been made.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-9"><num>(9)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-9-a"><num>(a)</num><content><p>the filing member of a multinational group is not a responsible member of that multinational group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-9-b"><num>(b)</num><content><p>there is more than one responsible member of that multinational group,</p></content></level><wrapUp><p>a retrospection election may not be made without the written consent of each responsible member.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-72-10"><num>(10)</num><intro><p>Sub-paragraph <ref href="#schedule-4-paragraph-72-11">(11)</ref> applies where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-10-a"><num>(a)</num><content><p>the filing member of a multinational group or group has made a retrospection election,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-b"><num>(b)</num><content><p>at the time the election was made it was reasonable for the filing member to consider that the consent of a person was not required,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-c"><num>(c)</num><content><p>that consent was not given,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-d"><num>(d)</num><content><p>the filing member becomes aware that the consent of that person was, or may have been, required, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-e"><num>(e)</num><content><p>the written consent of that person is given within the period of 60 days beginning with the day on which the condition in paragraph <ref href="#schedule-4-paragraph-72-10-d">(d)</ref> is first met.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-11"><num>(11)</num><content><p>The consent of that person is to be treated as having been given before the election was made.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-12"><num>(12)</num><content><p>References in this paragraph to a “group”, other than in the expression “multinational group”, are to a group for the purposes of Part 4 of F(No.2)A 2023 (domestic top-up tax).</p></content></subparagraph></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-part-1"><num>Part 1</num><heading>Introduction</heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>F(No.2)A 2023 is amended in accordance with—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>Part 2 of this Schedule (which contains amendments designed to implement the UTPR within the meaning of the Pillar Two rules), and</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>Part 3 of this Schedule (which contains other amendments in relation to multinational top-up tax and amendments in relation to domestic top-up tax).</p></content></level></paragraph></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>F(No.2)A 2023 is amended in accordance with—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>Part 2 of this Schedule (which contains amendments designed to implement the UTPR within the meaning of the Pillar Two rules), and</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>Part 3 of this Schedule (which contains other amendments in relation to multinational top-up tax and amendments in relation to domestic top-up tax).</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>Part 2 of this Schedule (which contains amendments designed to implement the UTPR within the meaning of the Pillar Two rules), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>Part 3 of this Schedule (which contains other amendments in relation to multinational top-up tax and amendments in relation to domestic top-up tax).</p></content></level>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-4-part-2"><num>Part 2</num><heading>Undertaxed profits rule</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e19153"><heading>Multinational top-up tax to include undertaxed profits rule</heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>Section 121 (introduction to multinational top-up tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “IIR” to the end substitute <quotedText>“IIR and UTPR (within the meaning of the Pillar Two rules).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>In subsection (5), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19180"><heading>Expansion of chargeable persons</heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>Section 122 (chargeable persons) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>In subsection (1), omit “responsible” in both places.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-3"><num>(3)</num><content><p>In subsection (2), omit “responsible” in each place.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-4"><num>(4)</num><content><p>In subsection (3)(a), omit “responsible”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-5"><num>(5)</num><content><p>In subsection (7), omit “responsible”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19217"><heading>Charge to multinational top-up tax to include UTPR</heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p><mod>For section 123 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>123</num><heading>Charge to multinational top-up tax</heading><subsection eId="d25e19238"><num>(1)</num><intro><p>A person chargeable to tax as, or in respect of, a member of a multinational group (“the relevant member”) is charged multinational top-up tax for an accounting period if one or more members of the group have top-up amounts or additional top-up amounts for that period and—</p></intro><level class="para1" eId="d25e19244"><num>(a)</num><content><p>the relevant member is a responsible member for one or more of those members (see section 128), or</p></content></level><level class="para1" eId="d25e19250"><num>(b)</num><content><p>one or more of those members have untaxed amounts that are allocated to the relevant member (see <ref href="#d25e19372">Chapter 9A</ref>).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The amount charged is the sum of the following—</p></intro><level class="para1"><num>(a)</num><intro><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19244">(a)</ref> applies—</p></intro><level class="para2"><num>(i)</num><content><p>top-up amounts attributed to the relevant member in accordance with Chapter 7, and</p></content></level><level class="para2"><num>(ii)</num><content><p>additional top-up amounts attributed to the relevant member in accordance with that Chapter, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19250">(b)</ref> applies, the untaxed amounts allocated to the relevant member in accordance with <ref href="#d25e19372">Chapter 9A</ref>.</p></content></level></subsection><subsection eId="d25e19302"><num>(3)</num><content><p>The amount charged (which in accordance with section 254 will be expressed in the CFS currency) is to be converted to sterling using the average exchange rate for the accounting period (if the CFS currency is not sterling).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>In section 124 (how to calculate top-up amounts etc)—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p><mod>in the heading, for “and attribute them” substitute <quotedText>“etc”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p><ref href="#d25e19372">Chapter 9A</ref> makes provision for—</p></intro><level class="para1"><num>(a)</num><content><p>determining whether members of the group have untaxed amounts, and</p></content></level><level class="para1"><num>(b)</num><content><p>allocating those untaxed amounts to members of the group located in the United Kingdom, other than members that are investment entities or joint venture group members.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p><mod>In section 254 (use of currency), in subsection (4), for “step 4 in” substitute <quotedText>“<ref href="#d25e19302">subsection (3)</ref> of”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19362"><heading>New chapter to deal with UTPR</heading><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After Chapter 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e19372"><num>Chapter 9A</num><heading>Untaxed amounts</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>229A</num><heading>Meaning of potentially undertaxed</heading><subsection eId="d25e19387"><num>(1)</num><intro><p>The top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed” if—</p></intro><level class="para1"><num>(a)</num><content><p>M is the ultimate parent or is located in the same territory as the ultimate parent, or</p></content></level><level class="para1"><num>(b)</num><content><p>the ultimate parent is not a responsible member.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is not a responsible member,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the ownership interests of the ultimate parent in M are direct ownership interests, and</p></content></level><level class="para1"><num>(c)</num><content><p>every indirect ownership interest the ultimate parent has in M is derived from an ownership interest the ultimate parent has in a responsible member.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> also does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is located in a territory in which a DIIR is in force and is a responsible member, and</p></content></level><level class="para1"><num>(b)</num><content><p>M is located in the same territory as the ultimate parent.</p></content></level></subsection><subsection><num>(4)</num><content><p>This section and section <ref href="#d25e19471">229B</ref> do not apply to members of a joint venture group (but see <ref href="#d25e20224">section 229I</ref> for alternative provision).</p></content></subsection></section><section eId="d25e19471"><num>229B</num><heading>Untaxed amounts</heading><subsection><num>(1)</num><content><p>A member of a multinational group has an untaxed amount if conditions A and B are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the top-up amount and additional top-up amounts of the member are potentially undertaxed.</p></content></subsection><subsection><num>(3)</num><content><p>Condition B is that the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts is less than the sum of the member’s top-up amount and additional top-up amounts.</p></content></subsection><subsection><num>(4)</num><intro><p>The untaxed amount is the amount given by subtracting—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts, from</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the member’s top-up amount and additional top-up amounts.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Allocation of untaxed amounts</heading><section eId="d25e19517"><num>229C</num><heading>Allocation of untaxed amount to members</heading><subsection eId="d25e19521"><num>(1)</num><intro><p>An untaxed amount of a member of a multinational group is to be allocated to qualifying members of the group located in the United Kingdom by—</p></intro><level class="para1"><num>(a)</num><content><p>first, determining the amount (“the UK proportion”) of the untaxed amount to be allocated to the group in the United Kingdom in accordance with <ref href="#d25e19586">section 229D</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>then, allocating an amount of the UK proportion to each qualifying member located in the United Kingdom in accordance with <ref href="#d25e19776">section 229E</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>But no allocation is to be made under <ref href="#d25e19521">subsection (1)</ref> if in section <ref href="#d25e19586">229D</ref><ref href="#d25e19590">(1)</ref> the results of both Step <ref href="#d25e19608">2</ref> and Step <ref href="#d25e19822">5</ref> are nil.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of this Chapter, a member of a multinational group is qualifying unless it is—</p></intro><level class="para1"><num>(a)</num><content><p>an investment entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of a joint venture group.</p></content></level></subsection></section><section eId="d25e19586"><num>229D</num><heading>Amount allocated to the United Kingdom</heading><subsection eId="d25e19590"><num>(1)</num><content><p>Take the following steps to determine the UK proportion of an untaxed amount of a member of a multinational group—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of qualifying members of the group located in the United Kingdom for the accounting period to which the untaxed amount relates (“<term refersTo="#term-the-relevant-period">the relevant period</term>”).</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees in the relevant period of qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in the United Kingdom for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The UK proportion of the untaxed amount is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19616">Step 3</ref>;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19640">Step 6</ref>;</p></item><item><num>(c)</num><p>in any other case, the untaxed amount multiplied by the result of <ref href="#d25e19648">Step 7</ref>.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of <ref href="#d25e19780">subsection (1)</ref>—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>A qualifying undertaxed profits tax applies in a territory in relation to an untaxed amount if—</p></intro><level class="para1"><num>(a)</num><content><p>a qualifying undertaxed profits tax is in force in that territory for the relevant period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of that tax result in a proportion of the untaxed amount (however described for the purposes of that tax) that is greater than nil being allocated to the territory.</p></content></level></subsection><subsection><num>(4)</num><content><p>See sections <ref href="#d25e19975">229G</ref> and <ref href="#d25e20104">229H</ref> for how to determine the number of employees and the value of tangible fixed assets of a qualifying member of a multinational group.</p></content></subsection></section><section eId="d25e19776"><num>229E</num><heading>Allocation to qualifying members</heading><subsection eId="d25e19780"><num>(1)</num><content><p>Take the following steps to determine how much of an untaxed amount is to be allocated to each qualifying member located in the United Kingdom—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of the member in the accounting period (“<term refersTo="#term-the-relevant-period">the relevant period</term>”) to which the untaxed amount relates.</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees for the relevant period of qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the member for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets for the relevant period of the qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The untaxed amount to be allocated to the member is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the UK proportion multiplied by the result of Step 3;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the UK proportion multiplied by the result of Step 6;</p></item><item><num>(c)</num><p>in any other case, the UK proportion multiplied by the result of Step 7.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of subsection (1)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 5 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 2 is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 2 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 5 is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>This section is subject to <ref href="#d25e19921">section 229F</ref>.</p></content></subsection></section><section eId="d25e19921"><num>229F</num><heading>Election to make one member of a group liable for untaxed amounts</heading><subsection><num>(1)</num><intro><p>The filing member of the group may elect for an accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e19776">section 229E</ref> does not apply, and</p></content></level><level class="para1"><num>(b)</num><content><p>instead, a member of the group specified in the election is to be allocated the whole of the UK proportion of each untaxed amount that would be otherwise be allocated between the qualifying members of the group located in the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A member of the group may only be specified in the election if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is located in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member has consented to the election.</p></content></level></subsection><subsection><num>(3)</num><content><p>Paragraph 2 of Schedule 15 (annual elections) applies to an election under this section, and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>How to determine number of employees and tangible fixed assets values</heading><section eId="d25e19975"><num>229G</num><heading>Number of employees</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, the number of employees of a qualifying member of a multinational group in an accounting period is the full-time equivalent employee number for that member for that period.</p></content></subsection><subsection><num>(2)</num><content><p>To determine the full-time equivalent employee number for a member of a multinational group for an accounting period take the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of full-time employees of that member that were full-time employees for the whole of that period.</p></item><item><p><i>Step 2</i></p><p>Determine, for each employee of that member for that period who is not a full-time employee for the whole of that period (whether they were part-time employees or were not employed for the whole of the period), such fraction as is just and reasonable.</p></item><item><p><i>Step 3</i></p><p>Add together the number determined under Step 1 and the fractions determined under Step 2.</p><p>If the member was a member of the group throughout the whole of the period, the result of this Step is the full-time equivalent employee number.</p></item><item><p><i>Step 4</i></p><p>Where the member was not a member of the group for the whole period, make such adjustments to the result of Step 3 as is just and reasonable to arrive at a full-time equivalent employee number that reflects the number of employees of the member in the period for which it was a member of the group.</p><p>For the purpose of this Step, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></item></blockList></content></subsection><subsection eId="d25e20030"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-employee">employee</term>”, in relation to a member of a multinational group, means a person whose employment costs are met by that member (whether or not the person’s activities are carried on in the territory of the member) as recorded in appropriate financial statements of the member and who—</p></intro><level class="para1"><num>(a)</num><content><p>is regarded as an employee under the law of the territory in which the member is located, or</p></content></level><level class="para1"><num>(b)</num><content><p>participates in the ordinary operating activities of the member of the group (including on a part-time basis).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of <ref href="#d25e20030">subsection (3)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection eId="d25e20060"><num>(5)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), where a member of a multinational group is a flow-through entity, employees of the entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as employees of members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(6)</num><content><p><ref href="#d25e20060">Subsection (5)</ref> does not apply to employees of a flow-through entity that are regarded for the purposes of this section as employees of a permanent establishment of the entity.</p></content></subsection><subsection><num>(7)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the reference in <ref href="#d25e20030">subsection (3)</ref> to employment costs recorded in financial statements is to the employment costs that would have been so recorded had such statements been prepared (and those costs are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection></section><section eId="d25e20104"><num>229H</num><heading>Value of tangible fixed assets</heading><subsection eId="d25e20108"><num>(1)</num><intro><p>To determine the value of tangible fixed assets of a qualifying member of a multinational group for an accounting period—</p></intro><level class="para1" eId="d25e20114"><num>(a)</num><intro><p>add together—</p></intro><level class="para2"><num>(i)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the start of the period, as those values are recorded in the member’s financial statements, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the end of the period, as those values are recorded in the member’s financial statements, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>divide the result of <ref href="#d25e20114">paragraph (a)</ref> by 2.</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e20108">subsection (1)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection><num>(3)</num><content><p>In each case the value of a tangible fixed asset is to include accumulated depreciation, depletion or impairment.</p></content></subsection><subsection eId="d25e20156"><num>(4)</num><content><p>If the member is not a member of the group at the start of the period, or at the end of the period, the sum of the values of its tangible fixed assets at that time is to be treated as nil.</p></content></subsection><subsection><num>(5)</num><content><p>For the purpose of <ref href="#d25e20156">subsection (4)</ref>, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></content></subsection><subsection><num>(6)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the values to be used are those that would have been recorded in those accounts had they been prepared (and those values are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection><subsection eId="d25e20177"><num>(7)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), tangible fixed assets held by a member of the group that is a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as held by members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are to be ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(8)</num><content><p><ref href="#d25e20177">Subsection (7)</ref> does not apply to assets of a flow-through entity that are held by a permanent establishment of the entity.</p></content></subsection><subsection><num>(9)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-tangible-fixed-assets">tangible fixed assets</term>” means all tangible assets wherever located, other than cash or cash equivalents or financial assets.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Joint ventures</heading><section eId="d25e20224"><num>229I</num><heading>Joint ventures</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent of a multinational group is not subject to Pillar Two IIR tax for an accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>the group includes a joint venture group, and</p></content></level><level class="para1"><num>(c)</num><content><p>the members of the joint venture group are undertaxed in relation to the multinational group for that period.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The members of a joint venture group are undertaxed in relation to a multinational group if—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed to responsible members of the multinational group under Chapter 7 in respect of members of the joint venture group’s top-up amount and additional top-up amounts, is less than</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of such amounts in respect of the joint venture group that would be attributed under that Chapter to the ultimate parent of the multinational group if it were subject to Pillar Two IIR tax.</p></content></level></subsection><subsection><num>(3)</num><content><p>The amount given by subtracting the amounts mentioned in paragraph (a) of subsection (2) from the amounts mentioned in paragraph (b) of that subsection is an untaxed amount of the joint venture group in relation to the multinational group.</p></content></subsection><subsection><num>(4)</num><content><p>Sections <ref href="#d25e19517">229C</ref> to <ref href="#d25e19921">229F</ref> (allocation of untaxed amounts) apply for the purposes of allocating an untaxed amount of a joint venture group in relation to a multinational group to qualifying members of that multinational group as they apply to the allocation of an untaxed amount of a member of the multinational group to those members.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>References to responsible members</heading><section><num>229J</num><heading>References to responsible members</heading><subsection><num>(1)</num><intro><p>For the purpose of determining untaxed amounts of a member of a multinational group who is located in a territory in which a DIIR is in force, references in this Chapter to a responsible member are to be interpreted as if section 128 (responsible members) had effect with the following modifications—</p></intro><level class="para1"><num>(a)</num><content><p>in subsection (2) omit “that are not located in the territory the ultimate parent is located in”;</p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (3)(c), at the beginning insert <quotedText>“the intermediate parent,”</quotedText>;</mod></p></content></level><level class="para1"><num>(c)</num><content><p>in subsection (4) omit “that are not located in the territory it is located in”;</p></content></level><level class="para1"><num>(d)</num><content><p><mod>in subsection (5)(b), at the beginning insert <quotedText>“it or”</quotedText>;</mod></p></content></level><level class="para1"><num>(e)</num><content><p>in subsection (6) omit “that are not located in the same territory it is located in”;</p></content></level><wrapUp><p>but this is subject to subsection <ref href="#d25e20345">(2)</ref>.</p></wrapUp></subsection><subsection eId="d25e20345"><num>(2)</num><intro><p>For the purpose of determining whether the top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed”, a member of the group which—</p></intro><level class="para1"><num>(a)</num><content><p>is located in the same territory as M, and</p></content></level><level class="para1"><num>(b)</num><content><p>would apart from this subsection be a responsible member,</p></content></level><wrapUp><p>is to be regarded for all purposes of this Chapter as not being a responsible member unless a DIIR is in force for the accounting period in that territory.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-diir">DIIR</term>” means a tax which—</p></intro><level class="para1"><num>(a)</num><content><p>implements, in a Pillar Two territory, rules relating to top-up tax under the IIR (within the meaning of the Pillar Two rules), and</p></content></level><level class="para1"><num>(b)</num><content><p>is designed so that tax charged under it is not limited to tax in respect of members who are located outside that territory.</p></content></level></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20389"><heading>Transition into regime</heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>Schedule 16 (transitional provision) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><content><p><mod>In Chapter 1 of Part 2, in the Chapter heading, for “Transitional” substitute <quotedText>“General transitional”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p><mod>In Chapter 2 of Part 2, in the Chapter heading, after “Application” insert <quotedText>“of Chapter 1”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><content><p><mod>After Part 2 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2A</num><heading>UTPR transitional safe harbour election</heading><hcontainer name="crossheading" class="schGroup7"><heading>Election</heading><paragraph class="schProv1"><num>12A</num><subparagraph><num>(1)</num><intro><p>The filing member of a multinational group may elect for an accounting period that in the territory of the ultimate parent—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group located in the territory has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group whose joint venture parent is located in the territory has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>An election may only be made for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the minimum corporate tax rate for the territory of the ultimate parent is equal to, or in excess of, 20%, and</p></content></level><level class="para1"><num>(b)</num><intro><p>the accounting period—</p></intro><level class="para2"><num>(i)</num><content><p>commenced on or before 31 December 2025 and ends before 31 December 2026, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not longer than 12 months.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>The “minimum corporate tax rate” for a territory means—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a territory in which corporate income tax may be imposed by subdivisions of that territory as well as by a national authority, the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>the nominal national rate that generally applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the lowest nominal rate that generally applies that is imposed by a subdivision of that territory (and where one or more subdivisions do not impose corporate income tax, that rate will be zero), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>otherwise, the nominal rate that generally applies.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p><mod>In Schedule 16A at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2</num><heading>Untaxed amounts: international expansion of groups</heading><hcontainer name="crossheading" class="schGroup7"><heading>No untaxed amounts for groups in initial phase of international expansion</heading><paragraph class="schProv1"><num>7</num><subparagraph><num>(1)</num><intro><p>This paragraph applies to a multinational group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>it meets the international expansion condition for that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the accounting period is the first accounting period in which the group came within the scope of Chapter 9A, or any of the following 4 accounting periods.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If this paragraph applies to a multinational group for an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>A multinational group meets the international expansion condition for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the group does not have members located in more than 6 territories, and</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the values of tangible fixed assets of qualifying members of the group, other than members located in the reference territory, for that period does not exceed 50 million euros.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>the value of tangible fixed assets of a qualifying member of a multinational group is to be determined in accordance with <ref href="#d25e20104">section 229H</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>the “reference territory” is the territory for which the sum of the values of tangible fixed assets of qualifying members of the group located in that territory is greatest.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>The first accounting period in which a multinational group comes within the scope of Chapter 9A is the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period for which it meets Condition A in section 129(2) (annual revenue exceeds 750 million euros), and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period beginning on or after the day on which <ref href="#d25e19517">section 229C</ref> (allocation of untaxed amount to members) comes into force for any purpose.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20632"><heading>Consequential amendments: IIR and qualifying undertaxed profits tax</heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><intro><p>In section 128 (responsible members)—</p></intro><level class="para1" eId="schedule-4-paragraph-7-1-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(i), after “equivalent to” insert <quotedText>“the IIR provisions of”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-7-1-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>In this section the “<term refersTo="#term-iir-provisions-of-multinational-top-up-tax">IIR provisions of multinational top-up tax</term>” means the provisions of this Part relating to the charging of top-up amounts and additional top-up amounts (but not untaxed amounts).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><content><p><mod>In section 257 (meaning of qualifying undertaxed profits tax), in subsection (1), after “it is” insert <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>multinational top-up tax (see, in particular, <ref href="#d25e19372">Chapter 9A</ref>), or</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20695"><heading>Other consequential amendments etc</heading><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 241 (Pillar Two territories), in subsection (2), for “equivalent to this Part—” substitute <quotedText>“which implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules)—”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p><mod>In Schedule 17 (index of defined expressions), in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“<term refersTo="#term-qualifying-member-(in-chapter-9a-of-part-3)">qualifying member (in Chapter 9A of Part 3)</term>”.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><content><p><mod>In Schedule 15 (elections), in paragraph 2(1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ha)</num><content><p><ref href="#d25e19921">section 229F</ref>;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><content><p><mod>In section 272 (domestic top-up tax for members of groups), in subsection (4), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(c)</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p><mod>In section 273 (domestic top-up tax for single entities), in subsection (4), after paragraph (z) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>z1</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20770"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><content><p>The amendments made by this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024.</p></content></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e19153"><heading>Multinational top-up tax to include undertaxed profits rule</heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>Section 121 (introduction to multinational top-up tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “IIR” to the end substitute <quotedText>“IIR and UTPR (within the meaning of the Pillar Two rules).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>In subsection (5), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Amendments of <ref eId="c00256" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00257" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">section 1A</a> (territorial scope), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">section 1K</a> (annual exempt amount), omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>, for “Non-UK domiciled individuals” substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-2-5-a"><num>(a)</num><content><p><mod>for the heading, substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-2-5-b-i"><num>(i)</num><content><p><mod>for “a tax year” substitute <quotedText>“tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>for “is”, in each place it occurs, substitute <quotedText>“was”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-2-6"><num>(6)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/16ZA">Section 16ZA</a> (losses: non-UK domiciled individuals) is omitted.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> (UK resident individuals not domiciled in UK)—</p></intro><level class="para1" eId="schedule-9-paragraph-2-7-a"><num>(a)</num><content><p><mod>in the heading, for “not domiciled in the UK” substitute <quotedText>“to whom the remittance basis applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(1)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/2">paragraphs 2</a>, <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/3">3</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/4">4</a>.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>Section 122 (chargeable persons) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>In subsection (1), omit “responsible” in both places.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-3"><num>(3)</num><content><p>In subsection (2), omit “responsible” in each place.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-4"><num>(4)</num><content><p>In subsection (3)(a), omit “responsible”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-5"><num>(5)</num><content><p>In subsection (7), omit “responsible”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-7-paragraph-2-1"><num>(1)</num><content><p>Chapter 6 of Part 6 of CTA 2009 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-2"><num>(2)</num><content><p><mod>In section 501 (introduction), in subsection (3)(b) after “section 504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-3"><num>(3)</num><intro><p>In section 504 (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “505” substitute <quotedText>“<ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-4"><num>(4)</num><content><p><mod>After section 504 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e30211"><num>504A</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e30215"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e30221"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e30230"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30257"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e30230">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in <ref href="#d25e30466">subsection (6)</ref>),</p></content></level><level class="para1" eId="d25e30269"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30281"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30287"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e30293"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 504 or subsection <ref href="#d25e30215">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e30302"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 504(1)(a) or subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref> of this section as has not yet been acquired as mentioned in section 504(1)(d) or subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30269">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30339"><num>(c)</num><content><p>the customer mentioned in section 504(1) or <ref href="#d25e30215">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 504(1)(c) or <ref href="#d25e30215">subsection (1)</ref><ref href="#d25e30257">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e30466">(6)</ref>),</p></content></level><level class="para1" eId="d25e30356"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30368"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30374"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e30215">(1)</ref><ref href="#d25e30221">(a)</ref> and <ref href="#d25e30230">(b)</ref> and <ref href="#d25e30293">(2)</ref><ref href="#d25e30302">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30281">(g)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30368">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e30430">(5)</ref> are met.</p></content></subsection><subsection eId="d25e30430"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e30466"><num>(6)</num><intro><p>Subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30287">(h)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30374">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 508 (provision not at arm’s length: exclusion of arrangements from sections 503 and 504, this section and sections 505 to 507).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-5"><num>(5)</num><intro><p>In section 510 (application of Part 5 of CTA 2009 to alternative finance arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-5-a"><num>(a)</num><intro><p>in subsection (2)(a)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-a-i"><num>(i)</num><content><p><mod>for “first owner” substitute <quotedText>“financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-ii"><num>(ii)</num><content><p><mod>for the “first owner’s” substitute <quotedText>“financier’s”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-iii"><num>(iii)</num><content><p><mod>for “eventual owner” substitute <quotedText>“customer”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-5-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-b-i"><num>(i)</num><content><p>omit the definitions of “the eventual owner” and “the first owner”;</p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>before the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30211">504A</ref> (see subsection <ref href="#d25e30215">(1)</ref> or <ref href="#d25e30293">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-iii"><num>(iii)</num><content><p><mod>after the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-financier">the financier</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30211">504A</ref> (see subsection <ref href="#d25e30215">(1)</ref> or <ref href="#d25e30293">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-6"><num>(6)</num><intro><p>In section 512 (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-6-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-6-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-6-b-i"><num>(i)</num><content><p><mod>after “section 504(1)(c)” insert <quotedText>“or <ref href="#d25e30211">504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30257">(d)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30339">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-6-c"><num>(c)</num><content><p><mod>in subsection (4), after “504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-7"><num>(7)</num><content><p><mod>In section 514 (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-8"><num>(8)</num><intro><p>In section 515 (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-8-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of the Corporation Tax Acts as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 504 or <ref href="#d25e30211">504A</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-9"><num>(9)</num><content><p><mod>After section 515 (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>515A</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e30211">section 504A</ref> applies.</p></content></subsection><subsection eId="d25e30795"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection eId="d25e30808"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30814"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref>,</p></content></level><level class="para1" eId="d25e30827"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30257">(d)</ref> and <ref href="#d25e30269">(e)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30339">(c)</ref> and <ref href="#d25e30356">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30814">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30827">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of the Corporation Tax Acts, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30795">(2)</ref> and <ref href="#d25e30808">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e30211">section 504A</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e30211">section 504A</ref><ref href="#d25e30293">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of the Corporation Tax Acts.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content><p>If an individual falling within <ref href="#schedule-8-paragraph-5-2">sub-paragraph (2)</ref> would otherwise be a qualifying new resident for tax year 2025-26 for the purposes of Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income), the individual is to be treated as not being a qualifying new resident for that year for the purposes of that Chapter.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-5-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2022-23, and</p></content></level><level class="para1" eId="schedule-8-paragraph-5-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that year or for tax year 2023-24 or 2024-25.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00257" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">section 1A</a> (territorial scope), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">section 1K</a> (annual exempt amount), omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>, for “Non-UK domiciled individuals” substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-2-5-a"><num>(a)</num><content><p><mod>for the heading, substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-2-5-b-i"><num>(i)</num><content><p><mod>for “a tax year” substitute <quotedText>“tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>for “is”, in each place it occurs, substitute <quotedText>“was”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-2-6"><num>(6)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/16ZA">Section 16ZA</a> (losses: non-UK domiciled individuals) is omitted.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> (UK resident individuals not domiciled in UK)—</p></intro><level class="para1" eId="schedule-9-paragraph-2-7-a"><num>(a)</num><content><p><mod>in the heading, for “not domiciled in the UK” substitute <quotedText>“to whom the remittance basis applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(1)</a> for “applies” <ins class="first last" ukl:ChangeId="key-e186ed2d4fbf334b149d0a8898182cb6-1776849212143" ukl:CommentaryRef="key-e186ed2d4fbf334b149d0a8898182cb6"><noteRef uk:name="commentary" href="#key-e186ed2d4fbf334b149d0a8898182cb6" class="commentary"/>, in the second place it occurs,</ins> substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/2">paragraphs 2</a>, <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/3">3</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/4">4</a>.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00262" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">Section 809L</a> (meaning of “<term refersTo="#term-remitted-to-the-united-kingdom" eId="term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>”) is amended in accordance with sub-paragraphs to <ref href="#schedule-9-paragraph-5-3">(3)</ref> to <ref href="#schedule-9-paragraph-5-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>omit the “or” at the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (a)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33726"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-5-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33776"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-6"><num>(6)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-6-a"><num>(a)</num><content><p><mod>for “or (b)”, in each place it occurs, substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-6-b"><num>(b)</num><content><p><mod>after “property”, in the second place it occurs, insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-7"><num>(7)</num><content><p><mod>At the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert <quotedText>“and cases where the property is used to secure the debt.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-8"><num>(8)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9A)</num><intro><p>For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes—</p></intro><level class="para1"><num>(a)</num><content><p>sending, or otherwise effecting a transfer of, the property to the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom.</p></content></level></subsection><subsection eId="d25e33847"><num>(9B)</num><content><p>Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992.</p></content></subsection><subsection><num>(9C)</num><content><p>But subsection <ref href="#d25e33847">(9B)</ref> does not apply where the intangible property is a debt other than a judgment debt.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-9"><num>(9)</num><intro><p>In section 809N (section 809L: gift recipients, qualifying property and enjoyment)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-9-a"><num>(a)</num><content><p><mod>in subsection (7)(c), after “(b)” insert <quotedText>“, <ref href="#d25e33726">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-9-b"><num>(b)</num><intro><p>in subsection (9)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-9-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-10"><num>(10)</num><intro><p>In section 809O (section 809L: dealings where there is a connected operation)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-10-a"><num>(a)</num><content><p><mod>in each of subsections (2), (3), (4) and (5) after “(b)” insert <quotedText>“, <ref href="#d25e33776">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-10-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-10-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the property being dealt with as mentioned in section 809L(5)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-11"><num>(11)</num><intro><p>In section 809P (section 809L: amount remitted)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-11-a"><num>(a)</num><content><p><mod>in subsections (6) and (8), for “or (b)” substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-11-b"><num>(b)</num><content><p><mod>in subsection (12), after “previously remitted”, in each place it occurs, insert <quotedText>“that has been charged to income tax or capital gains tax”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 55C of ITA 2007 (election to reduce personal allowance), in subsection (3)(b), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident”</quotedText>.</mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e19180"><heading>Expansion of chargeable persons</heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>Section 122 (chargeable persons) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>In subsection (1), omit “responsible” in both places.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-3"><num>(3)</num><content><p>In subsection (2), omit “responsible” in each place.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-4"><num>(4)</num><content><p>In subsection (3)(a), omit “responsible”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-5"><num>(5)</num><content><p>In subsection (7), omit “responsible”.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Making Tax Digital</heading><paragraph eId="schedule-9-paragraph-27" class="schProv1"><num>27</num><content><p>In the <ref eId="c00284" href="https://www.legislation.gov.uk/uksi/2021/1076">Income Tax (Digital Requirements) Regulations 2021</ref> (<ref eId="c00285" href="http://www.legislation.gov.uk/id/uksi/2021/1076">S.I. 2021/1076</ref>) omit regulation 26.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p><mod>For section 123 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>123</num><heading>Charge to multinational top-up tax</heading><subsection eId="d25e19238"><num>(1)</num><intro><p>A person chargeable to tax as, or in respect of, a member of a multinational group (“the relevant member”) is charged multinational top-up tax for an accounting period if one or more members of the group have top-up amounts or additional top-up amounts for that period and—</p></intro><level class="para1" eId="d25e19244"><num>(a)</num><content><p>the relevant member is a responsible member for one or more of those members (see section 128), or</p></content></level><level class="para1" eId="d25e19250"><num>(b)</num><content><p>one or more of those members have untaxed amounts that are allocated to the relevant member (see <ref href="#d25e19372">Chapter 9A</ref>).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The amount charged is the sum of the following—</p></intro><level class="para1"><num>(a)</num><intro><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19244">(a)</ref> applies—</p></intro><level class="para2"><num>(i)</num><content><p>top-up amounts attributed to the relevant member in accordance with Chapter 7, and</p></content></level><level class="para2"><num>(ii)</num><content><p>additional top-up amounts attributed to the relevant member in accordance with that Chapter, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19250">(b)</ref> applies, the untaxed amounts allocated to the relevant member in accordance with <ref href="#d25e19372">Chapter 9A</ref>.</p></content></level></subsection><subsection eId="d25e19302"><num>(3)</num><content><p>The amount charged (which in accordance with section 254 will be expressed in the CFS currency) is to be converted to sterling using the average exchange rate for the accounting period (if the CFS currency is not sterling).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>In section 124 (how to calculate top-up amounts etc)—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p><mod>in the heading, for “and attribute them” substitute <quotedText>“etc”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p><ref href="#d25e19372">Chapter 9A</ref> makes provision for—</p></intro><level class="para1"><num>(a)</num><content><p>determining whether members of the group have untaxed amounts, and</p></content></level><level class="para1"><num>(b)</num><content><p>allocating those untaxed amounts to members of the group located in the United Kingdom, other than members that are investment entities or joint venture group members.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p><mod>In section 254 (use of currency), in subsection (4), for “step 4 in” substitute <quotedText>“<ref href="#d25e19302">subsection (3)</ref> of”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><intro><p>In section 128 (responsible members)—</p></intro><level class="para1" eId="schedule-4-paragraph-7-1-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(i), after “equivalent to” insert <quotedText>“the IIR provisions of”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-7-1-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>In this section the “<term refersTo="#term-iir-provisions-of-multinational-top-up-tax">IIR provisions of multinational top-up tax</term>” means the provisions of this Part relating to the charging of top-up amounts and additional top-up amounts (but not untaxed amounts).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><content><p><mod>In section 257 (meaning of qualifying undertaxed profits tax), in subsection (1), after “it is” insert <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>multinational top-up tax (see, in particular, <ref href="#d25e19372">Chapter 9A</ref>), or</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-4-paragraph-13-1"><num>(1)</num><content><p>Section 168 (underlying profits of transparent and reverse hybrid entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-2"><num>(2)</num><content><p>In the heading omit “and reverse hybrid”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20905"><num>(2A)</num><intro><p>Subject to <ref href="#d25e20941">subsection (2C)</ref>, a member of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M if that member—</p></intro><level class="para1"><num>(a)</num><content><p>is a non-FTE entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>holds an ownership interest in M which is not held through a non-FTE entity.</p></content></level></subsection><subsection><num>(2B)</num><content><p>In subsection <ref href="#d25e20905">(2A)</ref> “<term refersTo="#term-non-fte-entity">non-FTE entity</term>” means an entity that is not a flow-through entity.</p></content></subsection><subsection eId="d25e20941"><num>(2C)</num><content><p>If no member of the group is a reference entity in relation to M by virtue of subsection <ref href="#d25e20905">(2A)</ref>, the ultimate parent of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-4"><num>(4)</num><content><p><mod>In subsection (3) for the words from “each” to the end substitute “any member of the group (“<term refersTo="#term-r" eId="term-r">R</term>”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>which is a reference entity in relation to M, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to which condition A or B is met.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-13-5-a"><num>(a)</num><content><p><mod>in each place, for “O” substitute <quotedText>“R”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-b"><num>(b)</num><content><p><mod>for “proportional” substitute <quotedText>“percentage”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-c"><num>(c)</num><content><p>omit “(subject to subsection (7))”.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-13-6"><num>(6)</num><content><p><mod>For subsections (5) and (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Condition A is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is direct,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest, and</p></content></level><level class="para1"><num>(c)</num><content><p>M is regarded as tax transparent in the territory in which R is located.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Condition B is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is indirect,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest,</p></content></level><level class="para1"><num>(c)</num><content><p>M and each entity through which the ownership interest is held are regarded as tax transparent in the territory in which R is located, and</p></content></level><level class="para1"><num>(d)</num><content><p>no entity through which R holds the ownership interest is a reference entity in relation to M.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-7"><num>(7)</num><content><p>Omit subsection (7).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-8"><num>(8)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21079"><num>(9)</num><intro><p>Where every ownership interest in M held by a member of the group is a flow-through ownership interest, and an individual or entity (“the investor”) that is not a member of the group has an ownership interest in M which is held—</p></intro><level class="para1"><num>(a)</num><content><p>directly, or</p></content></level><level class="para1"><num>(b)</num><content><p>through a direct ownership interest in an entity in which a member of the group which is a reference entity in relation to M has an ownership interest,</p></content></level><wrapUp><p>a proportion of M’s underlying profits, equal to the percentage ownership interest the investor has in M, is to be excluded from the adjusted profits of M.</p></wrapUp></subsection><subsection><num>(9A)</num><content><p>Where M is the main entity in relation to a permanent establishment falling within paragraph (a), (b) or (c) of section 232(2), any reduction of M’s underlying profits by virtue of subsection <ref href="#d25e21079">(9)</ref> is to be applied before any attribution of M’s underlying profits to a permanent establishment in accordance with section 159.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-9"><num>(9)</num><content><p>In subsection (10) omit “or an individual”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-10"><num>(10)</num><content><p><mod>After subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10A)</num><intro><p>For the purposes of subsections (5), (6) and (9), an ownership interest in M held by a member of the group is a flow-through ownership interest if (and so far as)—</p></intro><level class="para1"><num>(a)</num><content><p>M is regarded, otherwise than by virtue of section 169(2), as tax transparent in the territory in which M was created,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest is held directly and M is treated by virtue of section 169(2) as being regarded as tax transparent to the extent of the interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest is derived from a direct ownership interest in M to which paragraph (b) applies.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-11"><num>(11)</num><content><p>Omit subsections (11) and (12).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-relief-claim" eId="term-foreign-employment-relief-claim">foreign employment relief claim</term>” and “qualifying year” have the same meanings as in Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-section-26a-requirement" eId="term-the-section-26a-requirement">the section 26A requirement</term>” means the requirement of section 26A of ITEPA 2003 (requirement for 3-year period of non-residence).</p></content></hcontainer></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-the-section-26a-requirement" eId="term-the-section-26a-requirement">the section 26A requirement</term>” means the requirement of section 26A of ITEPA 2003 (requirement for 3-year period of non-residence).</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/1A">Chapter 1A</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00263" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (exemption for persons not domiciled in United Kingdom) is repealed.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In <ref eId="c00271" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref> omit section 200 (domicile for tax purposes of overseas electors).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-9-paragraph-21-1"><num>(1)</num><content><p><ref eId="c00275" href="https://www.legislation.gov.uk/ukpga/2005/7">FA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">section 28</a> (vulnerable person’s liability: VQTI), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-21-2-a"><num>(a)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (a)</a> insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-21-2-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (c)</a> and the “and” before it.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-21-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1">Schedule 1</a> (non-UK resident vulnerable person), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(a)</a> omit “and domiciled”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-9-paragraph-24-1"><num>(1)</num><content><p><mod>In section 22 of F(No.2)A 1931 (Treasury power to issue securities with a FOTRA condition), in subsection (1)(b) for “neither domiciled nor” substitute <quotedText>“not”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-2"><num>(2)</num><content><p>In section 154 of FA 1996 (FOTRA securities), omit subsection (1).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-3"><num>(3)</num><intro><p>Any security issued with a FOTRA domicile condition is treated in relation to times on or after 6 April 2025 as if—</p></intro><level class="para1" eId="schedule-9-paragraph-24-3-a"><num>(a)</num><content><p>it were a security issued with the post-1996 Act FOTRA conditions (and with no other FOTRA condition), and</p></content></level><level class="para1" eId="schedule-9-paragraph-24-3-b"><num>(b)</num><content><p>the post-1996 Act FOTRA conditions had been authorised in relation to the issue of that security by virtue of section 22 of F(No.2)A 1931.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-24-4"><num>(4)</num><intro><p>In <ref href="#schedule-9-paragraph-24-3">sub-paragraph (3)</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-condition" eId="term-a-fotra-condition">a FOTRA condition</term>” means a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-domicile-condition" eId="term-a-fotra-domicile-condition">a FOTRA domicile condition</term>”, in relation to a security, means a FOTRA condition requiring the security to be in the beneficial ownership of persons who are not domiciled in the United Kingdom for an exemption from taxation to apply;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-post-1996-act-fotra-conditions" eId="term-the-post-1996-act-fotra-conditions">the post-1996 Act FOTRA conditions</term>” means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued.</p></content></hcontainer></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-27" class="schProv1"><num>27</num><content><p>In the <ref eId="c00284" href="https://www.legislation.gov.uk/uksi/2021/1076">Income Tax (Digital Requirements) Regulations 2021</ref> (<ref eId="c00285" href="http://www.legislation.gov.uk/id/uksi/2021/1076">S.I. 2021/1076</ref>) omit regulation 26.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809I">Section 809I</a> of <ref eId="c00309" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis charge: income and gains treated as remitted) does not apply for a tax year in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content><p>the tax year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><intro><p>the individual—</p></intro><level class="para2" eId="schedule-10-paragraph-14-b-i"><num>(i)</num><content><p>makes a designation of qualifying overseas capital for that tax year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-14-b-ii"><num>(ii)</num><content><p>has made such a designation for a previous tax year, and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-14-c"><num>(c)</num><content><p>that section has not applied in relation to that individual for the tax year 2024-25 or an earlier tax year.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content><p>the tax year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><intro><p>the individual—</p></intro><level class="para2" eId="schedule-10-paragraph-14-b-i"><num>(i)</num><content><p>makes a designation of qualifying overseas capital for that tax year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-14-b-ii"><num>(ii)</num><content><p>has made such a designation for a previous tax year, and</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-10-paragraph-14-b-i"><num>(i)</num><content><p>makes a designation of qualifying overseas capital for that tax year, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-10-paragraph-14-b-ii"><num>(ii)</num><content><p>has made such a designation for a previous tax year, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-10-paragraph-14-c"><num>(c)</num><content><p>that section has not applied in relation to that individual for the tax year 2024-25 or an earlier tax year.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00314" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37644"><num>809RZA</num><heading>Transfers into TRF capital account</heading><subsection eId="d25e37648"><num>(1)</num><intro><p>Subsection (2) applies to a transfer made from a mixed fund if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made from a mixed fund that contains TRF capital,</p></content></level><level class="para1"><num>(b)</num><content><p>the transfer is to a TRF capital account, and</p></content></level><level class="para1" eId="d25e37666"><num>(c)</num><content><p>the amount of the transfer does not exceed the amount of TRF capital in the mixed fund at the time of the transfer.</p></content></level></subsection><subsection eId="d25e37672"><num>(2)</num><content><p>The transfer is to be treated as a transfer of TRF capital.</p></content></subsection><subsection><num>(3)</num><intro><p>Where subsection (2) would apply to a transfer but does not because of paragraph (c) of subsection (1)—</p></intro><level class="para1"><num>(a)</num><content><p>that transfer is to be treated as two separate transfers occurring one immediately after the other, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first of those transfers is to be treated as being in the amount of TRF capital in the mixed fund (and accordingly subsection (2) will apply to that deemed transfer but not the second, which may result in the TRF capital account ceasing to be a TRF capital account).</p></content></level></subsection><subsection><num>(4)</num><content><p>Section 809RZB makes provision about the nomination of an account as a TRF capital account (and see sections 809RZC and 809RZD for the effect of making a transfer that contains amounts that are not TRF capital).</p></content></subsection></section><section eId="d25e37705"><num>809RZB</num><heading>TRF capital account</heading><subsection eId="d25e37709"><num>(1)</num><content><p>An individual may by notice to the Commissioners nominate an account to be a TRF capital account (and more than one nomination may have effect at any time).</p></content></subsection><subsection><num>(2)</num><content><p>The notice must specify the qualifying date for the account.</p></content></subsection><subsection><num>(3)</num><content><p>“The qualifying date” for the account is the first date on which there is paid into the account sums falling within subsection (4) which (in total) are more than £10 at a time when the credit balance of the account was £10 or less.</p></content></subsection><subsection eId="d25e37727"><num>(4)</num><content><p>A sum falls within this subsection if it is TRF capital.</p></content></subsection><subsection eId="d25e37733"><num>(5)</num><content><p>The individual may withdraw the nomination by giving a further notice to the Commissioners, specifying the date with effect from which the nomination is withdrawn.</p></content></subsection><subsection><num>(6)</num><content><p>A notice under subsection (1) or (5) must be in writing and include such information as the Commissioners may reasonably require.</p></content></subsection><subsection><num>(7)</num><intro><p>A notice under subsection (1) or (5) must be given no later than—</p></intro><level class="para1"><num>(a)</num><intro><p>31 January in the tax year following the tax year in which falls, as the case may be—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying date for the account, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn, or</p></content></level></level><level class="para1"><num>(b)</num><content><p>such later date as the Commissioners may allow.</p></content></level></subsection><subsection eId="d25e37775"><num>(8)</num><intro><p>If an individual nominates an account under this section, the account is a “TRF capital account” of the individual throughout the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the qualifying date, and</p></content></level><level class="para1" eId="d25e37787"><num>(b)</num><intro><p>ending with the date before the earliest of the following dates—</p></intro><level class="para2" eId="d25e37793"><num>(i)</num><content><p>the date on which the account is closed or ceases to be an ordinary bank account held by and for the benefit of the individual (alone or jointly with others);</p></content></level><level class="para2" eId="d25e37799"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn under this section;</p></content></level><level class="para2" eId="d25e37805"><num>(iii)</num><content><p>6 April in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></level></level></subsection><subsection><num>(9)</num><intro><p>The account is not to be a TRF capital account at all if—</p></intro><level class="para1"><num>(a)</num><content><p>at any time on the qualifying date, the account is not an ordinary bank account held by and for the benefit of the individual (alone or jointly with others), or</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before the qualifying date, the account has a credit balance of more than £10.</p></content></level></subsection><subsection><num>(10)</num><content><p>Where the account has a credit balance immediately before the qualifying date (which must be £10 or less), that balance is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection><num>(11)</num><content><p>Where interest is payable on TRF capital held in the TRF capital account, any such interest paid into the account is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e37842"><num>(12)</num><content><p>The account is not to be a TRF capital account at all if the qualifying date falls in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></subsection><subsection><num>(13)</num><content><p>Subsection (8)(b)(iii) or (12) (as relevant) is to be ignored if the breach occurs on or after a date falling within subsection (8)(b)(i) or (ii).</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section an account is an “ordinary bank account” if it is a cash account in a bank (whether a current or savings account) where sums standing to the credit of the account from time to time represent a debt owed by the bank to the account-holder.</p></content></subsection><subsection><num>(15)</num><content><p>In this section, and in sections 809RZC and 809RZD, a reference to anything “paid into” an account includes anything credited to the account by whatever means.</p></content></subsection></section><section eId="d25e37869"><num>809RZC</num><heading>Breaches of the TRF deposit rule</heading><subsection><num>(1)</num><content><p>There is a breach of the TRF deposit rule if one or more prohibited sums are paid into a TRF capital account on the qualifying date or any day after the qualifying date.</p></content></subsection><subsection eId="d25e37879"><num>(2)</num><content><p>A breach of the TRF deposit rule is remedied if, within 30 days beginning with the day on which the prohibited sums are paid into the account, the required amount is transferred out of the account by way of a single one-off qualifying transfer.</p></content></subsection><subsection><num>(3)</num><content><p>A transfer is “qualifying” if it does not result in the remittance of any amount to the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>“The required amount” is an amount equal to the total of the prohibited sums paid into the TRF capital account on the day of the breach.</p></content></subsection><subsection><num>(5)</num><content><p>If there are 2 days in a tax year on which one or more breaches of the TRF deposit rule occur, subsection (2) does not apply to any breach on any subsequent day in the tax year (and accordingly any breach occurring on any day after the second day in the tax year on which there has been a breach cannot be remedied).</p></content></subsection><subsection><num>(6)</num><content><p>A “prohibited sum” is anything other than a sum that is TRF capital.</p></content></subsection></section><section eId="d25e37912"><num>809RZD</num><heading>Effect where 30-day deadline is met</heading><subsection><num>(1)</num><content><p>This section applies if the required amount in relation to a breach of the TRF deposit rule was transferred out of the account in accordance with section 809RZC(2).</p></content></subsection><subsection eId="d25e37922"><num>(2)</num><intro><p>Sections 809Q and 809R have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the intervening transactions had never taken place, and</p></content></level><level class="para1"><num>(b)</num><content><p>each prohibited sum represented by the required amount had instead been transferred directly (at the time that sum was paid into the TRF capital account) into the account or other property into which the required amount was transferred by virtue of the single one-off qualifying transfer.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Each of the following is an “intervening transaction”—</p></intro><level class="para1"><num>(a)</num><content><p>each payment into the TRF capital account of a prohibited sum represented by the required amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the single one-off qualifying transfer out of the TRF capital account.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-20" class="schProv1"><num>20</num><content><p>Sections 397 to 398 of ITTOIA 2005 (which have been repealed and only have effect in relation to distributions made before tax year 2016-17) do not apply in relation to any amount of designated qualifying overseas capital.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00335" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> is amended as follows.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 169 (certain non tax resident entities to be treated as flow-through entities), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-14-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “created” insert <quotedText>“in”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-14-b"><num>(b)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-14-b-i"><num>(i)</num><content><p><mod>after “is” insert <quotedText>“regarded as”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-14-b-ii"><num>(ii)</num><content><p><mod>for “its owners” substitute <quotedText>“holders of direct ownership interests in the member”</quotedText>.</mod></p></content></level></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-14-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “created” insert <quotedText>“in”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-14-b"><num>(b)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-14-b-i"><num>(i)</num><content><p><mod>after “is” insert <quotedText>“regarded as”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-14-b-ii"><num>(ii)</num><content><p><mod>for “its owners” substitute <quotedText>“holders of direct ownership interests in the member”</quotedText>.</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-4-paragraph-14-b-i"><num>(i)</num><content><p><mod>after “is” insert <quotedText>“regarded as”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-4-paragraph-14-b-ii"><num>(ii)</num><content><p><mod>for “its owners” substitute <quotedText>“holders of direct ownership interests in the member”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>In <ref eId="c00272" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> omit section 835B (domicile for income tax purposes of overseas electors).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">section 5</a> (meaning of estate), for <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">subsection (1B)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>An interest in possession falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>the person became beneficially entitled to it on or after 9 December 2009 by virtue of a disposition that was prevented from being a transfer of value by section 10 (no gratuitous benefit), and</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>has been a long-term UK resident at any time on or after 6 April 2025 while beneficially entitled to it, or</p></content></level><level class="para2"><num>(ii)</num><content><p>became beneficially entitled to it at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (2A) omit “and reverse hybrid”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-3" class="schProv1"><num>3</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">section 6</a> (excluded property), omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">subsection (3)</a>.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-4-paragraph-16-1"><num>(1)</num><content><p>Section 178 (reallocation of tax expense) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “hybrid, transparent and reverse hybrid” substitute <quotedText>“hybrid and transparent”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-3"><num>(3)</num><content><p><mod>After subsection (1B) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1C)</num><intro><p>Subsection (1D) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a multinational group (“<term refersTo="#term-m">M</term>”) is a flow-through entity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>any of the following are not regarded as tax transparent in the territory in which a member of the group (“<term refersTo="#term-r">R</term>”), which is a reference entity in relation to M (within the meaning of section 168<ref href="#d25e20905">(2A)</ref>), is located—</p></intro><level class="para2"><num>(i)</num><content><p>M;</p></content></level><level class="para2"><num>(ii)</num><content><p>any member of the group through which R’s ownership interest in M is held.</p></content></level></level></subsection><subsection><num>(1D)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>R, or any member of the group (“<term refersTo="#term-x">X</term>”) which has an ownership interest in R, has an amount of qualifying current tax expense,</p></content></level><level class="para1"><num>(b)</num><content><p>that amount is in respect of profits not included in R’s, or as the case may be X’s, underlying profits, and</p></content></level><level class="para1"><num>(c)</num><content><p>had those profits had been included in R’s, or as the case may be X’s, underlying profits a corresponding amount of profits would have been allocated to M under section 167 (ignoring for this purpose subsection (1)(a) of that section) or 168,</p></content></level><wrapUp><p>that qualifying current tax expense is to be allocated to M (and is to be regarded as qualifying current tax expense of M for the purposes of section 175(2)(a)).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), after “(1A))” insert <quotedText>“or to M (under subsection (1D))”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">section 8D</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">(9)</a>, omit the definitions of “tax year” and “the tax year 2017-18”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 240 (location of flow-through entities and permanent establishments), in subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-17-a"><num>(a)</num><content><p><mod>before “would” insert <quotedText>“is the ultimate parent of a multinational group, or”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-17-b"><num>(b)</num><content><p><mod>for “it is located in that territory” substitute <quotedText>“the entity is treated as located in the territory in which it is created”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-17-a"><num>(a)</num><content><p><mod>before “would” insert <quotedText>“is the ultimate parent of a multinational group, or”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-17-b"><num>(b)</num><content><p><mod>for “it is located in that territory” substitute <quotedText>“the entity is treated as located in the territory in which it is created”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-5" class="schProv1"><num>5</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">(3)</a>, omit the definition of “tax year”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">section 18</a> (transfers between spouses or civil partners), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">subsection (2)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident,”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-7" class="schProv1"><num>7</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">section 28A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">subsection (3)</a>.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-13-paragraph-8-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">Section 53</a> (exceptions from charge under section 52) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>Tax shall not be chargeable under section 52 above if—</p></intro><level class="para1"><num>(a)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(c)</num><content><p>the person whose interest comes to an end became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the person’s interest in possession in it comes to an end, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-13-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">Section 54</a> (exceptions from charge on death) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(2B)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(e)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsection (2B)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is entitled to an interest in possession in settled property dies,</p></content></level><level class="para1"><num>(b)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(c)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(d)</num><content><p>the person became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(e)</num><intro><p>immediately before the person’s death, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level></level><wrapUp><p>the value of the settled property shall be left out of account in determining for the purposes of this Act the value of the person’s estate immediately before their death.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>Where a person became beneficially entitled to an interest in possession in settled property on or after 22 March 2006, subsection (2C) applies in relation to the interest only if it is—</p></intro><level class="para1"><num>(a)</num><content><p>an immediate post-death interest,</p></content></level><level class="para1"><num>(b)</num><content><p>a disabled person’s interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>a transitional serial interest,</p></content></level><wrapUp><p>or falls within section 5(1B) (certain interests acquired with no gratuitous benefit).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-13-paragraph-10-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">Section 64</a> (charge at ten-year anniversary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1B)</a>, for the words from the beginning to “ten-year anniversary falls” substitute <quotedText>“Where the settlor of property comprised in a settlement meets the condition in subsection <ref href="#d25e43250">(1BZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-3"><num>(3)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43250"><num>(1BZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident immediately before the ten-year anniversary,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before their death, or</p></content></level><level class="para1"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1BA)</a>, for “subsection (1B)” substitute <quotedText>“subsection <ref href="#d25e43250">(1BZA)</ref>(c)”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-13-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">Section 65</a> (exit charges etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7A)</a>, for the words from “becomes excluded property” to the end, substitute <quotedText>“is invested in a holding in an authorised unit trust or a share in an open-ended investment company and thereby becomes excluded property by virtue of section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-4"><num>(4)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7B)</a>.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7C)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (8)</a>, for the words from the beginning to “subsection (8A))”, substitute <quotedText>“If the condition in <ref href="#d25e43378">subsection (8ZA)</ref> is met in relation to property comprised in a settlement”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-7"><num>(7)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43378"><num>(8ZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1" eId="d25e43396"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-8"><num>(8)</num><content><p><mod>In subsection (8A), for “subsection (8)” substitute <quotedText>“<ref href="#d25e43378">subsection (8ZA)</ref><ref href="#d25e43396">(c)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-13-paragraph-12-1"><num>(1)</num><content><p>Section 74A (arrangements involving acquisition of interest in settled property etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-12-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-12-2-a"><num>(a)</num><content><p>in paragraph (b)(i), omit “domiciled in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-12-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><intro><p>the individual—</p></intro><level class="para2"><num>(i)</num><content><p>is a long-term UK resident at any time on or after 6 April 2025 during the course of the arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>acquired the interest, or became able to acquire it, at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>Condition A is that the relevant settled property is excluded property at any time during the course of the arrangements.</p><p>Ignore for this purpose—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7537">(8)</ref> (as it has effect on and after 6 April 2025);</p></content></level><level class="para1"><num>(b)</num><content><p>section 48(3D) (as it had effect before 6 April 2025).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-13" class="schProv1"><num>13</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">section 75A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">subsection (4)</a>.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 80 (initial interest of settlor or spouse), in subsection (1), after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-15" class="schProv1"><num>15</num><intro><p>In section 81 (property moving between settlements), in subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-15-a"><num>(a)</num><content><p><mod>after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-15-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“(but held on the trusts of the second)”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-13-paragraph-15-a"><num>(a)</num><content><p><mod>after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-13-paragraph-15-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“(but held on the trusts of the second)”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-16" class="schProv1"><num>16</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/81B">section 81B</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>81B</num><heading>Excluded property: property to which section 80 applies</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>property is treated under section 80(1) as becoming comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the property would, apart from this section, be excluded property by virtue of meeting the condition in any of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> of section <ref href="#d25e7426">48ZA</ref> (excluded property: long-term residence and domicile tests).</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter, except sections 78 and 79, the property is excluded property only if the condition in any of those subsections (whether or not the same one) is met by reference to the actual settlor and the actual settlement.</p></content></subsection><subsection><num>(3)</num><content><p>Section 65(8) (no exit charge where property invested in Treasury securities thereby becomes excluded property) applies in relation to the property only if the condition in section 65<ref href="#d25e43378">(8ZA)</ref> is met by reference to the actual settlor.</p></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-the-actual-settlor">the actual settlor</term>” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1); and “<term refersTo="#term-the-actual-settlement">the actual settlement</term>” means that settlement.</p></content></subsection><subsection><num>(5)</num><content><p>This section does not apply in relation to property that is a holding in an authorised unit trust or a share in an open-ended investment company if the occasion first referred to in section 80(1) occurred before 22 July 2020.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-17" class="schProv1"><num>17</num><content><p>Omit sections 82 and 82A (excluded property: property to which section 81 applies).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">section 94</a> (close companies: charge on participators), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">(b)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">section 136</a> (transfers within three years before death: transactions of close companies), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-20" class="schProv1"><num>20</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">section 155</a> (visiting forces etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">subsections (2)</a> and (5B), omit “or domicile”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-13-paragraph-21-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">Section 157</a> (non-residents’ bank accounts) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-13-paragraph-21-2-a"><num>(a)</num><content><p>omit “is not domiciled and not resident in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-21-2-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“is neither resident in the United Kingdom nor a long-term UK resident”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-21-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (3)</a>, for the words from “if the settlor” to the end, substitute <quotedText startQuote="“">if—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the trustees are resident in the United Kingdom immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is alive and is a long-term UK resident immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(c)</num><content><p>the settlor died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-22" class="schProv1"><num>22</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">section 218</a> (non-resident trustees), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">(a)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-23" class="schProv1"><num>23</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> (persons treated as domiciled in United Kingdom).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-13-paragraph-24-1"><num>(1)</num><content><p>Section 267ZA (election to be treated as domiciled in the United Kingdom) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-2"><num>(2)</num><content><p><mod>In subsections (3) and (4), for “on or after 6 April 2013 and” substitute <quotedText>“before 6 April 2025 but”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-3"><num>(3)</num><content><p>Omit subsection (5).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-4"><num>(4)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-13-paragraph-24-4-a"><num>(a)</num><content><p><mod>for “is or was domiciled” substitute <quotedText>“was domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-24-4-b"><num>(b)</num><content><p><mod>after “section 267” insert <quotedText>“(deemed domicile)”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-25" class="schProv1"><num>25</num><content><p><mod>In section 267ZB (section 267ZA: further provision about election) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>), in subsection (4)(a), for “6 April 2013 or a later date” substitute <quotedText>“5 April 2025 or an earlier date”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-26" class="schProv1"><num>26</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZA">sections 267ZA</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZB">267ZB</a> (election to be treated as domiciled in the United Kingdom).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-27" class="schProv1"><num>27</num><content><p><mod>Before <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267A">section 267A</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e43858"><num>267ZC</num><heading>Election to be treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>A person (“<term refersTo="#term-p">P</term>”) who would not otherwise be a long-term UK resident is treated as one for the purposes of this Act at any time when an election under this section has effect.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under this section may be made—</p></intro><level class="para1"><num>(a)</num><content><p>if condition A or B is met, by P;</p></content></level><level class="para1"><num>(b)</num><content><p>if condition B is met, by P’s personal representatives.</p></content></level></subsection><subsection><num>(3)</num><content><p>Condition A is that, at any time within the period of 7 years ending with the date on which the election is made, P had a spouse or civil partner who was a long-term UK resident.</p></content></subsection><subsection eId="d25e43895"><num>(4)</num><intro><p>Condition B is that a person (“<term refersTo="#term-the-deceased">the deceased</term>”) dies and, at any time within the period of 7 years ending with the date of their death, the deceased was—</p></intro><level class="para1"><num>(a)</num><content><p>a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>the spouse or civil partner of P.</p></content></level></subsection></section><section><num>267ZD</num><heading>Further provision about elections under <ref href="#d25e43858">section 267ZC</ref></heading><subsection eId="d25e43925"><num>(1)</num><intro><p>An election under <ref href="#d25e43858">section 267ZC</ref>—</p></intro><level class="para1" eId="d25e43934"><num>(a)</num><content><p>must be made by notice in writing to HMRC, and</p></content></level><level class="para1"><num>(b)</num><content><p>has effect from such date as is, in accordance with <ref href="#d25e43949">subsection (2)</ref>, specified in the notice.</p></content></level></subsection><subsection eId="d25e43949"><num>(2)</num><intro><p>The date specified in a notice under <ref href="#d25e43925">subsection (1)</ref><ref href="#d25e43934">(a)</ref> (“<term refersTo="#term-the-specified-date">the specified date</term>”) must—</p></intro><level class="para1"><num>(a)</num><content><p>be after 5 April 2025,</p></content></level><level class="para1"><num>(b)</num><intro><p>be within the period of 7 years ending with—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a lifetime election, the date on which the election is made;</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a death election, the date of the deceased's death, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>meet the condition in <ref href="#d25e43996">subsection (3)</ref>.</p></content></level></subsection><subsection eId="d25e43996"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a lifetime election—</p></intro><level class="para2"><num>(i)</num><content><p>the person making the election was, on the specified date, married to or in a civil partnership with the spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the spouse or civil partner was, on the specified date, a long-term UK resident;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>in the case of a death election—</p></intro><level class="para2"><num>(i)</num><content><p>the person who is, by virtue of the election, to be treated as a long-term UK resident was, on the specified date, married to or in a civil partnership with the deceased, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the deceased was, on the specified date, a long-term UK resident.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>A death election may only be made within—</p></intro><level class="para1"><num>(a)</num><content><p>the period of 2 years beginning with the date of the deceased’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>such longer period as an officer of Revenue and Customs may in the particular case allow.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e44086">(6)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an election is made under <ref href="#d25e43858">section 267ZC</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>a disposition is made, or another event occurs, during the period beginning with the date on which the election first has effect and ending with the date on which the election is made, and</p></content></level><level class="para1"><num>(c)</num><content><p>the effect of the election is that the disposition or event gives rise to a transfer of value.</p></content></level></subsection><subsection eId="d25e44086"><num>(6)</num><intro><p>This Act applies with the following modifications in relation to the transfer of value—</p></intro><level class="para1"><num>(a)</num><content><p>subsections (1) and (6)(c) of section 216 (delivery of accounts) have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>sections 226 (payment: general rules) and 233 (interest on unpaid tax) have effect as if the transfer were made at the time when the election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>An election under <ref href="#d25e43858">section 267ZC</ref> cannot be revoked.</p></content></subsection><subsection><num>(8)</num><content><p>If a person who made a lifetime election is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.</p></content></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-death-election">death election</term>” means an election made under <ref href="#d25e43858">section 267ZC</ref> in circumstances where Condition B in <ref href="#d25e43895">subsection (4)</ref> of that section is met;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-lifetime-election">lifetime election</term>” means any other election made under <ref href="#d25e43858">section 267ZC</ref>.</p></content></hcontainer></subsection></section><section eId="d25e44152"><num>267ZE</num><heading>Subject of domicile election treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>This section applies where an election under section 267ZA has effect in relation to a person immediately before 6 April 2025 (whether the election was made before or after that date).</p></content></subsection><subsection eId="d25e44162"><num>(2)</num><intro><p>The person is treated for the purposes of this Act (so far as would not otherwise be the case)—</p></intro><level class="para1"><num>(a)</num><content><p>as being a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>as having been one at all times on and after 6 April 2025.</p></content></level></subsection><subsection eId="d25e44180"><num>(3)</num><content><p>But if the person is not resident in the United Kingdom for a relevant lapse period beginning at any time after the election is made, <ref href="#d25e44162">subsection (2)</ref> ceases to apply to them at the end of that period.</p></content></subsection><subsection><num>(4)</num><intro><p>In <ref href="#d25e44180">subsection (3)</ref> “<term refersTo="#term-relevant-lapse-period">relevant lapse period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the election was made before 30 October 2024, a period of 4 successive tax years;</p></content></level><level class="para1"><num>(b)</num><content><p>if the election was made on or after that date, a period of 10 successive tax years.</p></content></level></subsection></section><section><num>267ZF</num><heading>Double taxation conventions operating by reference to deemed domicile</heading><subsection><num>(1)</num><content><p>This section applies to a case in which the application of any arrangements having effect under section 158 (double taxation conventions) depends (to any extent) on whether a person is treated as domiciled in the United Kingdom for the purposes of inheritance tax.</p></content></subsection><subsection><num>(2)</num><content><p>The person is treated as domiciled in the United Kingdom for the purposes of inheritance tax if they are a long-term UK resident.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 276ZC to 267ZE (persons treated as long-term resident by virtue of election) are to be disregarded in applying this section in relation to any arrangements that are specified in an Order in Council made under section 158 of IHTA 1984 before 17 July 2013 (other than by way of amendment by an Order made on or after that date).</p></content></subsection><subsection><num>(4)</num><content><p>Nothing in this section affects the interpretation of any such arrangements as are mentioned in section 158(6) (certain pre-1975 arrangements).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-13-paragraph-28-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">Section 272</a> (general interpretation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-2"><num>(2)</num><content><p>The existing text becomes subsection (1).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-28-3-a"><num>(a)</num><content><p><mod>in the definition of “excluded property”, for “6 and 48” substitute <quotedText>“6, 48 and 48ZA”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-3-b"><num>(b)</num><content><p>omit the definition of “formerly domiciled resident”.</p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-4"><num>(4)</num><intro><p>Also in subsection (1), in the definition of “foreign-owned”—</p></intro><level class="para1" eId="schedule-13-paragraph-28-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">paragraph (a)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-4-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>if the property is comprised in a settlement, in the case of which the settlor—</p></intro><level class="para2"><num>(i)</num><content><p>is alive and is at that time not a long-term UK resident,</p></content></level><level class="para2"><num>(ii)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para2"><num>(iii)</num><content><p>died before 6 April 2025 and was domiciled outside the United Kingdom when the property became comprised in the settlement,</p></content></level><wrapUp><p>and <ref href="#d25e7426">section 48ZA</ref><ref href="#d25e7549">(9)</ref> (accumulation of income) applies for the purposes of this paragraph as it applies for the purposes of section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7462">(4)</ref>.</p></wrapUp></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-5"><num>(5)</num><content><p><mod>Also in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the meaning given by sections <ref href="#d25e7165">6A</ref> to <ref href="#d25e7358">6C</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-tax-year">tax year</term>” means a year beginning with 6 April and ending with the following 5 April;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-tax-year-2025-26">the tax year 2025-26</term>” means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-6"><num>(6)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>A reference in this Act to a settlor’s being alive or dying is to be read, in relation to a settlor who is a body corporate, as a reference (respectively) to the body’s being in existence or ceasing to exist.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-13-paragraph-29-1"><num>(1)</num><content><p>Schedule A1 (non-excluded overseas property) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-2"><num>(2)</num><content><p><mod>In paragraph 1, for “48(3)(a)” substitute <quotedText>“48ZA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-3"><num>(3)</num><content><p><mod>In paragraph 5(2)(a), for “or 48(3)(a), (3A) or (4)” substitute <quotedText>“, section 48(4) or section 48ZA”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4">Schedule 4</a> (maintenance funds for historic buildings etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">paragraph 10</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">(8)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e19217"><heading>Charge to multinational top-up tax to include UTPR</heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p><mod>For section 123 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>123</num><heading>Charge to multinational top-up tax</heading><subsection eId="d25e19238"><num>(1)</num><intro><p>A person chargeable to tax as, or in respect of, a member of a multinational group (“the relevant member”) is charged multinational top-up tax for an accounting period if one or more members of the group have top-up amounts or additional top-up amounts for that period and—</p></intro><level class="para1" eId="d25e19244"><num>(a)</num><content><p>the relevant member is a responsible member for one or more of those members (see section 128), or</p></content></level><level class="para1" eId="d25e19250"><num>(b)</num><content><p>one or more of those members have untaxed amounts that are allocated to the relevant member (see <ref href="#d25e19372">Chapter 9A</ref>).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The amount charged is the sum of the following—</p></intro><level class="para1"><num>(a)</num><intro><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19244">(a)</ref> applies—</p></intro><level class="para2"><num>(i)</num><content><p>top-up amounts attributed to the relevant member in accordance with Chapter 7, and</p></content></level><level class="para2"><num>(ii)</num><content><p>additional top-up amounts attributed to the relevant member in accordance with that Chapter, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19250">(b)</ref> applies, the untaxed amounts allocated to the relevant member in accordance with <ref href="#d25e19372">Chapter 9A</ref>.</p></content></level></subsection><subsection eId="d25e19302"><num>(3)</num><content><p>The amount charged (which in accordance with section 254 will be expressed in the CFS currency) is to be converted to sterling using the average exchange rate for the accounting period (if the CFS currency is not sterling).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>In section 124 (how to calculate top-up amounts etc)—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p><mod>in the heading, for “and attribute them” substitute <quotedText>“etc”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p><ref href="#d25e19372">Chapter 9A</ref> makes provision for—</p></intro><level class="para1"><num>(a)</num><content><p>determining whether members of the group have untaxed amounts, and</p></content></level><level class="para1"><num>(b)</num><content><p>allocating those untaxed amounts to members of the group located in the United Kingdom, other than members that are investment entities or joint venture group members.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p><mod>In section 254 (use of currency), in subsection (4), for “step 4 in” substitute <quotedText>“<ref href="#d25e19302">subsection (3)</ref> of”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e19362"><heading>New chapter to deal with UTPR</heading><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After Chapter 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e19372"><num>Chapter 9A</num><heading>Untaxed amounts</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>229A</num><heading>Meaning of potentially undertaxed</heading><subsection eId="d25e19387"><num>(1)</num><intro><p>The top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed” if—</p></intro><level class="para1"><num>(a)</num><content><p>M is the ultimate parent or is located in the same territory as the ultimate parent, or</p></content></level><level class="para1"><num>(b)</num><content><p>the ultimate parent is not a responsible member.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is not a responsible member,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the ownership interests of the ultimate parent in M are direct ownership interests, and</p></content></level><level class="para1"><num>(c)</num><content><p>every indirect ownership interest the ultimate parent has in M is derived from an ownership interest the ultimate parent has in a responsible member.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> also does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is located in a territory in which a DIIR is in force and is a responsible member, and</p></content></level><level class="para1"><num>(b)</num><content><p>M is located in the same territory as the ultimate parent.</p></content></level></subsection><subsection><num>(4)</num><content><p>This section and section <ref href="#d25e19471">229B</ref> do not apply to members of a joint venture group (but see <ref href="#d25e20224">section 229I</ref> for alternative provision).</p></content></subsection></section><section eId="d25e19471"><num>229B</num><heading>Untaxed amounts</heading><subsection><num>(1)</num><content><p>A member of a multinational group has an untaxed amount if conditions A and B are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the top-up amount and additional top-up amounts of the member are potentially undertaxed.</p></content></subsection><subsection><num>(3)</num><content><p>Condition B is that the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts is less than the sum of the member’s top-up amount and additional top-up amounts.</p></content></subsection><subsection><num>(4)</num><intro><p>The untaxed amount is the amount given by subtracting—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts, from</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the member’s top-up amount and additional top-up amounts.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Allocation of untaxed amounts</heading><section eId="d25e19517"><num>229C</num><heading>Allocation of untaxed amount to members</heading><subsection eId="d25e19521"><num>(1)</num><intro><p>An untaxed amount of a member of a multinational group is to be allocated to qualifying members of the group located in the United Kingdom by—</p></intro><level class="para1"><num>(a)</num><content><p>first, determining the amount (“the UK proportion”) of the untaxed amount to be allocated to the group in the United Kingdom in accordance with <ref href="#d25e19586">section 229D</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>then, allocating an amount of the UK proportion to each qualifying member located in the United Kingdom in accordance with <ref href="#d25e19776">section 229E</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>But no allocation is to be made under <ref href="#d25e19521">subsection (1)</ref> if in section <ref href="#d25e19586">229D</ref><ref href="#d25e19590">(1)</ref> the results of both Step <ref href="#d25e19608">2</ref> and Step <ref href="#d25e19822">5</ref> are nil.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of this Chapter, a member of a multinational group is qualifying unless it is—</p></intro><level class="para1"><num>(a)</num><content><p>an investment entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of a joint venture group.</p></content></level></subsection></section><section eId="d25e19586"><num>229D</num><heading>Amount allocated to the United Kingdom</heading><subsection eId="d25e19590"><num>(1)</num><content><p>Take the following steps to determine the UK proportion of an untaxed amount of a member of a multinational group—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of qualifying members of the group located in the United Kingdom for the accounting period to which the untaxed amount relates (“<term refersTo="#term-the-relevant-period">the relevant period</term>”).</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees in the relevant period of qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in the United Kingdom for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The UK proportion of the untaxed amount is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19616">Step 3</ref>;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19640">Step 6</ref>;</p></item><item><num>(c)</num><p>in any other case, the untaxed amount multiplied by the result of <ref href="#d25e19648">Step 7</ref>.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of <ref href="#d25e19780">subsection (1)</ref>—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>A qualifying undertaxed profits tax applies in a territory in relation to an untaxed amount if—</p></intro><level class="para1"><num>(a)</num><content><p>a qualifying undertaxed profits tax is in force in that territory for the relevant period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of that tax result in a proportion of the untaxed amount (however described for the purposes of that tax) that is greater than nil being allocated to the territory.</p></content></level></subsection><subsection><num>(4)</num><content><p>See sections <ref href="#d25e19975">229G</ref> and <ref href="#d25e20104">229H</ref> for how to determine the number of employees and the value of tangible fixed assets of a qualifying member of a multinational group.</p></content></subsection></section><section eId="d25e19776"><num>229E</num><heading>Allocation to qualifying members</heading><subsection eId="d25e19780"><num>(1)</num><content><p>Take the following steps to determine how much of an untaxed amount is to be allocated to each qualifying member located in the United Kingdom—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of the member in the accounting period (“<term refersTo="#term-the-relevant-period">the relevant period</term>”) to which the untaxed amount relates.</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees for the relevant period of qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the member for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets for the relevant period of the qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The untaxed amount to be allocated to the member is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the UK proportion multiplied by the result of Step 3;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the UK proportion multiplied by the result of Step 6;</p></item><item><num>(c)</num><p>in any other case, the UK proportion multiplied by the result of Step 7.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of subsection (1)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 5 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 2 is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 2 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 5 is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>This section is subject to <ref href="#d25e19921">section 229F</ref>.</p></content></subsection></section><section eId="d25e19921"><num>229F</num><heading>Election to make one member of a group liable for untaxed amounts</heading><subsection><num>(1)</num><intro><p>The filing member of the group may elect for an accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e19776">section 229E</ref> does not apply, and</p></content></level><level class="para1"><num>(b)</num><content><p>instead, a member of the group specified in the election is to be allocated the whole of the UK proportion of each untaxed amount that would be otherwise be allocated between the qualifying members of the group located in the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A member of the group may only be specified in the election if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is located in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member has consented to the election.</p></content></level></subsection><subsection><num>(3)</num><content><p>Paragraph 2 of Schedule 15 (annual elections) applies to an election under this section, and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>How to determine number of employees and tangible fixed assets values</heading><section eId="d25e19975"><num>229G</num><heading>Number of employees</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, the number of employees of a qualifying member of a multinational group in an accounting period is the full-time equivalent employee number for that member for that period.</p></content></subsection><subsection><num>(2)</num><content><p>To determine the full-time equivalent employee number for a member of a multinational group for an accounting period take the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of full-time employees of that member that were full-time employees for the whole of that period.</p></item><item><p><i>Step 2</i></p><p>Determine, for each employee of that member for that period who is not a full-time employee for the whole of that period (whether they were part-time employees or were not employed for the whole of the period), such fraction as is just and reasonable.</p></item><item><p><i>Step 3</i></p><p>Add together the number determined under Step 1 and the fractions determined under Step 2.</p><p>If the member was a member of the group throughout the whole of the period, the result of this Step is the full-time equivalent employee number.</p></item><item><p><i>Step 4</i></p><p>Where the member was not a member of the group for the whole period, make such adjustments to the result of Step 3 as is just and reasonable to arrive at a full-time equivalent employee number that reflects the number of employees of the member in the period for which it was a member of the group.</p><p>For the purpose of this Step, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></item></blockList></content></subsection><subsection eId="d25e20030"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-employee">employee</term>”, in relation to a member of a multinational group, means a person whose employment costs are met by that member (whether or not the person’s activities are carried on in the territory of the member) as recorded in appropriate financial statements of the member and who—</p></intro><level class="para1"><num>(a)</num><content><p>is regarded as an employee under the law of the territory in which the member is located, or</p></content></level><level class="para1"><num>(b)</num><content><p>participates in the ordinary operating activities of the member of the group (including on a part-time basis).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of <ref href="#d25e20030">subsection (3)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection eId="d25e20060"><num>(5)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), where a member of a multinational group is a flow-through entity, employees of the entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as employees of members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(6)</num><content><p><ref href="#d25e20060">Subsection (5)</ref> does not apply to employees of a flow-through entity that are regarded for the purposes of this section as employees of a permanent establishment of the entity.</p></content></subsection><subsection><num>(7)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the reference in <ref href="#d25e20030">subsection (3)</ref> to employment costs recorded in financial statements is to the employment costs that would have been so recorded had such statements been prepared (and those costs are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection></section><section eId="d25e20104"><num>229H</num><heading>Value of tangible fixed assets</heading><subsection eId="d25e20108"><num>(1)</num><intro><p>To determine the value of tangible fixed assets of a qualifying member of a multinational group for an accounting period—</p></intro><level class="para1" eId="d25e20114"><num>(a)</num><intro><p>add together—</p></intro><level class="para2"><num>(i)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the start of the period, as those values are recorded in the member’s financial statements, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the end of the period, as those values are recorded in the member’s financial statements, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>divide the result of <ref href="#d25e20114">paragraph (a)</ref> by 2.</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e20108">subsection (1)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection><num>(3)</num><content><p>In each case the value of a tangible fixed asset is to include accumulated depreciation, depletion or impairment.</p></content></subsection><subsection eId="d25e20156"><num>(4)</num><content><p>If the member is not a member of the group at the start of the period, or at the end of the period, the sum of the values of its tangible fixed assets at that time is to be treated as nil.</p></content></subsection><subsection><num>(5)</num><content><p>For the purpose of <ref href="#d25e20156">subsection (4)</ref>, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></content></subsection><subsection><num>(6)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the values to be used are those that would have been recorded in those accounts had they been prepared (and those values are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection><subsection eId="d25e20177"><num>(7)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), tangible fixed assets held by a member of the group that is a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as held by members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are to be ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(8)</num><content><p><ref href="#d25e20177">Subsection (7)</ref> does not apply to assets of a flow-through entity that are held by a permanent establishment of the entity.</p></content></subsection><subsection><num>(9)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-tangible-fixed-assets">tangible fixed assets</term>” means all tangible assets wherever located, other than cash or cash equivalents or financial assets.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Joint ventures</heading><section eId="d25e20224"><num>229I</num><heading>Joint ventures</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent of a multinational group is not subject to Pillar Two IIR tax for an accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>the group includes a joint venture group, and</p></content></level><level class="para1"><num>(c)</num><content><p>the members of the joint venture group are undertaxed in relation to the multinational group for that period.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The members of a joint venture group are undertaxed in relation to a multinational group if—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed to responsible members of the multinational group under Chapter 7 in respect of members of the joint venture group’s top-up amount and additional top-up amounts, is less than</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of such amounts in respect of the joint venture group that would be attributed under that Chapter to the ultimate parent of the multinational group if it were subject to Pillar Two IIR tax.</p></content></level></subsection><subsection><num>(3)</num><content><p>The amount given by subtracting the amounts mentioned in paragraph (a) of subsection (2) from the amounts mentioned in paragraph (b) of that subsection is an untaxed amount of the joint venture group in relation to the multinational group.</p></content></subsection><subsection><num>(4)</num><content><p>Sections <ref href="#d25e19517">229C</ref> to <ref href="#d25e19921">229F</ref> (allocation of untaxed amounts) apply for the purposes of allocating an untaxed amount of a joint venture group in relation to a multinational group to qualifying members of that multinational group as they apply to the allocation of an untaxed amount of a member of the multinational group to those members.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>References to responsible members</heading><section><num>229J</num><heading>References to responsible members</heading><subsection><num>(1)</num><intro><p>For the purpose of determining untaxed amounts of a member of a multinational group who is located in a territory in which a DIIR is in force, references in this Chapter to a responsible member are to be interpreted as if section 128 (responsible members) had effect with the following modifications—</p></intro><level class="para1"><num>(a)</num><content><p>in subsection (2) omit “that are not located in the territory the ultimate parent is located in”;</p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (3)(c), at the beginning insert <quotedText>“the intermediate parent,”</quotedText>;</mod></p></content></level><level class="para1"><num>(c)</num><content><p>in subsection (4) omit “that are not located in the territory it is located in”;</p></content></level><level class="para1"><num>(d)</num><content><p><mod>in subsection (5)(b), at the beginning insert <quotedText>“it or”</quotedText>;</mod></p></content></level><level class="para1"><num>(e)</num><content><p>in subsection (6) omit “that are not located in the same territory it is located in”;</p></content></level><wrapUp><p>but this is subject to subsection <ref href="#d25e20345">(2)</ref>.</p></wrapUp></subsection><subsection eId="d25e20345"><num>(2)</num><intro><p>For the purpose of determining whether the top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed”, a member of the group which—</p></intro><level class="para1"><num>(a)</num><content><p>is located in the same territory as M, and</p></content></level><level class="para1"><num>(b)</num><content><p>would apart from this subsection be a responsible member,</p></content></level><wrapUp><p>is to be regarded for all purposes of this Chapter as not being a responsible member unless a DIIR is in force for the accounting period in that territory.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-diir">DIIR</term>” means a tax which—</p></intro><level class="para1"><num>(a)</num><content><p>implements, in a Pillar Two territory, rules relating to top-up tax under the IIR (within the meaning of the Pillar Two rules), and</p></content></level><level class="para1"><num>(b)</num><content><p>is designed so that tax charged under it is not limited to tax in respect of members who are located outside that territory.</p></content></level></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e20389"><heading>Transition into regime</heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>Schedule 16 (transitional provision) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><content><p><mod>In Chapter 1 of Part 2, in the Chapter heading, for “Transitional” substitute <quotedText>“General transitional”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p><mod>In Chapter 2 of Part 2, in the Chapter heading, after “Application” insert <quotedText>“of Chapter 1”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><content><p><mod>After Part 2 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2A</num><heading>UTPR transitional safe harbour election</heading><hcontainer name="crossheading" class="schGroup7"><heading>Election</heading><paragraph class="schProv1"><num>12A</num><subparagraph><num>(1)</num><intro><p>The filing member of a multinational group may elect for an accounting period that in the territory of the ultimate parent—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group located in the territory has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group whose joint venture parent is located in the territory has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>An election may only be made for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the minimum corporate tax rate for the territory of the ultimate parent is equal to, or in excess of, 20%, and</p></content></level><level class="para1"><num>(b)</num><intro><p>the accounting period—</p></intro><level class="para2"><num>(i)</num><content><p>commenced on or before 31 December 2025 and ends before 31 December 2026, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not longer than 12 months.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>The “minimum corporate tax rate” for a territory means—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a territory in which corporate income tax may be imposed by subdivisions of that territory as well as by a national authority, the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>the nominal national rate that generally applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the lowest nominal rate that generally applies that is imposed by a subdivision of that territory (and where one or more subdivisions do not impose corporate income tax, that rate will be zero), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>otherwise, the nominal rate that generally applies.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p><mod>In Schedule 16A at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2</num><heading>Untaxed amounts: international expansion of groups</heading><hcontainer name="crossheading" class="schGroup7"><heading>No untaxed amounts for groups in initial phase of international expansion</heading><paragraph class="schProv1"><num>7</num><subparagraph><num>(1)</num><intro><p>This paragraph applies to a multinational group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>it meets the international expansion condition for that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the accounting period is the first accounting period in which the group came within the scope of Chapter 9A, or any of the following 4 accounting periods.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If this paragraph applies to a multinational group for an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>A multinational group meets the international expansion condition for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the group does not have members located in more than 6 territories, and</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the values of tangible fixed assets of qualifying members of the group, other than members located in the reference territory, for that period does not exceed 50 million euros.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>the value of tangible fixed assets of a qualifying member of a multinational group is to be determined in accordance with <ref href="#d25e20104">section 229H</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>the “reference territory” is the territory for which the sum of the values of tangible fixed assets of qualifying members of the group located in that territory is greatest.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>The first accounting period in which a multinational group comes within the scope of Chapter 9A is the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period for which it meets Condition A in section 129(2) (annual revenue exceeds 750 million euros), and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period beginning on or after the day on which <ref href="#d25e19517">section 229C</ref> (allocation of untaxed amount to members) comes into force for any purpose.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e20632"><heading>Consequential amendments: IIR and qualifying undertaxed profits tax</heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><intro><p>In section 128 (responsible members)—</p></intro><level class="para1" eId="schedule-4-paragraph-7-1-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(i), after “equivalent to” insert <quotedText>“the IIR provisions of”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-7-1-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>In this section the “<term refersTo="#term-iir-provisions-of-multinational-top-up-tax">IIR provisions of multinational top-up tax</term>” means the provisions of this Part relating to the charging of top-up amounts and additional top-up amounts (but not untaxed amounts).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><content><p><mod>In section 257 (meaning of qualifying undertaxed profits tax), in subsection (1), after “it is” insert <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>multinational top-up tax (see, in particular, <ref href="#d25e19372">Chapter 9A</ref>), or</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" class="schGroup7" eId="d25e20695"><heading>Other consequential amendments etc</heading><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 241 (Pillar Two territories), in subsection (2), for “equivalent to this Part—” substitute <quotedText>“which implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules)—”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p><mod>In Schedule 17 (index of defined expressions), in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“<term refersTo="#term-qualifying-member-(in-chapter-9a-of-part-3)">qualifying member (in Chapter 9A of Part 3)</term>”.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><content><p><mod>In Schedule 15 (elections), in paragraph 2(1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ha)</num><content><p><ref href="#d25e19921">section 229F</ref>;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><content><p><mod>In section 272 (domestic top-up tax for members of groups), in subsection (4), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(c)</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p><mod>In section 273 (domestic top-up tax for single entities), in subsection (4), after paragraph (z) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>z1</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e20770"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><content><p>The amendments made by this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024.</p></content></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-4-part-3"><num>Part 3</num><heading>Others</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e20784"><heading>Permanent establishments as excluded entities</heading><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 127 (excluded entities), in each of subsections (5), (6) and (7), in paragraph (a), for “it” substitute <quotedText>“the entity or, in the case of a permanent establishment, the main entity”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20796"><heading>Use of substituted values</heading><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p><mod>After section 137 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>137A</num><heading>Use of substituted values</heading><subsection><num>(1)</num><intro><p>Where any provision of this Part requires the substitution of a value recorded in the underlying profits accounts of a member of a multinational group for an accounting period, the substituted value—</p></intro><level class="para1"><num>(a)</num><content><p>is to be used for all purposes of this Part instead of the value recorded in the accounts (for example, where the carrying value of an asset has been substituted and the value of that asset is relevant to the member’s deferred tax expense, that substituted value is to be used in connection with determining that expense), and</p></content></level><level class="para1"><num>(b)</num><content><p>is to be updated (for example, in making adjustments for depreciation for subsequent accounting periods),</p></content></level><wrapUp><p>in each case, in accordance with the accounting standard used in determining the underlying profits of the member.</p></wrapUp></subsection><subsection eId="d25e20837"><num>(2)</num><content><p>But where the value in question is the value of an asset, no adjustments for impairment are to be made to it.</p></content></subsection><subsection eId="d25e20843"><num>(3)</num><content><p>Where the impaired value of an asset recorded in the underlying profits accounts for any accounting period is less than the substituted value of the asset for that period, use the value from the underlying profits accounts instead for that period and all subsequent periods (and <ref href="#d25e20837">subsection (2)</ref> does not apply in relation to that value).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><intro><p>In section 197 (eligible tangible asset amount), in <ref href="#d25e20843">subsection (3)</ref>—</p></intro><level class="para1" eId="schedule-4-paragraph-12-2-a"><num>(a)</num><content><p><mod>after “means” insert <quotedText>“values”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-12-2-b"><num>(b)</num><content><p><mod>after “parent” insert <quotedText>“(and not values as substituted as a result of any other provision of this Part)”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20879"><heading>Flow-through entities</heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-4-paragraph-13-1"><num>(1)</num><content><p>Section 168 (underlying profits of transparent and reverse hybrid entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-2"><num>(2)</num><content><p>In the heading omit “and reverse hybrid”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20905"><num>(2A)</num><intro><p>Subject to <ref href="#d25e20941">subsection (2C)</ref>, a member of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M if that member—</p></intro><level class="para1"><num>(a)</num><content><p>is a non-FTE entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>holds an ownership interest in M which is not held through a non-FTE entity.</p></content></level></subsection><subsection><num>(2B)</num><content><p>In subsection <ref href="#d25e20905">(2A)</ref> “<term refersTo="#term-non-fte-entity">non-FTE entity</term>” means an entity that is not a flow-through entity.</p></content></subsection><subsection eId="d25e20941"><num>(2C)</num><content><p>If no member of the group is a reference entity in relation to M by virtue of subsection <ref href="#d25e20905">(2A)</ref>, the ultimate parent of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-4"><num>(4)</num><content><p><mod>In subsection (3) for the words from “each” to the end substitute “any member of the group (“<term refersTo="#term-r" eId="term-r">R</term>”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>which is a reference entity in relation to M, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to which condition A or B is met.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-13-5-a"><num>(a)</num><content><p><mod>in each place, for “O” substitute <quotedText>“R”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-b"><num>(b)</num><content><p><mod>for “proportional” substitute <quotedText>“percentage”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-c"><num>(c)</num><content><p>omit “(subject to subsection (7))”.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-13-6"><num>(6)</num><content><p><mod>For subsections (5) and (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Condition A is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is direct,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest, and</p></content></level><level class="para1"><num>(c)</num><content><p>M is regarded as tax transparent in the territory in which R is located.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Condition B is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is indirect,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest,</p></content></level><level class="para1"><num>(c)</num><content><p>M and each entity through which the ownership interest is held are regarded as tax transparent in the territory in which R is located, and</p></content></level><level class="para1"><num>(d)</num><content><p>no entity through which R holds the ownership interest is a reference entity in relation to M.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-7"><num>(7)</num><content><p>Omit subsection (7).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-8"><num>(8)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21079"><num>(9)</num><intro><p>Where every ownership interest in M held by a member of the group is a flow-through ownership interest, and an individual or entity (“the investor”) that is not a member of the group has an ownership interest in M which is held—</p></intro><level class="para1"><num>(a)</num><content><p>directly, or</p></content></level><level class="para1"><num>(b)</num><content><p>through a direct ownership interest in an entity in which a member of the group which is a reference entity in relation to M has an ownership interest,</p></content></level><wrapUp><p>a proportion of M’s underlying profits, equal to the percentage ownership interest the investor has in M, is to be excluded from the adjusted profits of M.</p></wrapUp></subsection><subsection><num>(9A)</num><content><p>Where M is the main entity in relation to a permanent establishment falling within paragraph (a), (b) or (c) of section 232(2), any reduction of M’s underlying profits by virtue of subsection <ref href="#d25e21079">(9)</ref> is to be applied before any attribution of M’s underlying profits to a permanent establishment in accordance with section 159.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-9"><num>(9)</num><content><p>In subsection (10) omit “or an individual”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-10"><num>(10)</num><content><p><mod>After subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10A)</num><intro><p>For the purposes of subsections (5), (6) and (9), an ownership interest in M held by a member of the group is a flow-through ownership interest if (and so far as)—</p></intro><level class="para1"><num>(a)</num><content><p>M is regarded, otherwise than by virtue of section 169(2), as tax transparent in the territory in which M was created,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest is held directly and M is treated by virtue of section 169(2) as being regarded as tax transparent to the extent of the interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest is derived from a direct ownership interest in M to which paragraph (b) applies.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-11"><num>(11)</num><content><p>Omit subsections (11) and (12).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 169 (certain non tax resident entities to be treated as flow-through entities), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-14-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “created” insert <quotedText>“in”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-14-b"><num>(b)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-14-b-i"><num>(i)</num><content><p><mod>after “is” insert <quotedText>“regarded as”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-14-b-ii"><num>(ii)</num><content><p><mod>for “its owners” substitute <quotedText>“holders of direct ownership interests in the member”</quotedText>.</mod></p></content></level></level></paragraph><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (2A) omit “and reverse hybrid”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-4-paragraph-16-1"><num>(1)</num><content><p>Section 178 (reallocation of tax expense) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “hybrid, transparent and reverse hybrid” substitute <quotedText>“hybrid and transparent”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-3"><num>(3)</num><content><p><mod>After subsection (1B) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1C)</num><intro><p>Subsection (1D) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a multinational group (“<term refersTo="#term-m">M</term>”) is a flow-through entity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>any of the following are not regarded as tax transparent in the territory in which a member of the group (“<term refersTo="#term-r">R</term>”), which is a reference entity in relation to M (within the meaning of section 168<ref href="#d25e20905">(2A)</ref>), is located—</p></intro><level class="para2"><num>(i)</num><content><p>M;</p></content></level><level class="para2"><num>(ii)</num><content><p>any member of the group through which R’s ownership interest in M is held.</p></content></level></level></subsection><subsection><num>(1D)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>R, or any member of the group (“<term refersTo="#term-x">X</term>”) which has an ownership interest in R, has an amount of qualifying current tax expense,</p></content></level><level class="para1"><num>(b)</num><content><p>that amount is in respect of profits not included in R’s, or as the case may be X’s, underlying profits, and</p></content></level><level class="para1"><num>(c)</num><content><p>had those profits had been included in R’s, or as the case may be X’s, underlying profits a corresponding amount of profits would have been allocated to M under section 167 (ignoring for this purpose subsection (1)(a) of that section) or 168,</p></content></level><wrapUp><p>that qualifying current tax expense is to be allocated to M (and is to be regarded as qualifying current tax expense of M for the purposes of section 175(2)(a)).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), after “(1A))” insert <quotedText>“or to M (under subsection (1D))”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 240 (location of flow-through entities and permanent establishments), in subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-17-a"><num>(a)</num><content><p><mod>before “would” insert <quotedText>“is the ultimate parent of a multinational group, or”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-17-b"><num>(b)</num><content><p><mod>for “it is located in that territory” substitute <quotedText>“the entity is treated as located in the territory in which it is created”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21323"><heading>Tax equity partnerships</heading><paragraph eId="schedule-4-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In section 174 (amount of covered tax balance), in subsection (1), in Step 4, for “covered tax balance expense” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In sections 175 and 176, in the headings, for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-4-paragraph-20-1"><num>(1)</num><content><p>Section 176D (tax credits etc allocated under tax equity partnerships) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-2"><num>(2)</num><content><p><mod>In subsection (1), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>“<term refersTo="#term-flow-through-tax-benefits">Flow-through tax benefits</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>tax credits, other than qualifying refundable tax credits and marketable transferable tax credits, and</p></content></level><level class="para1"><num>(b)</num><content><p>the value of amounts of tax deductible losses,</p></content></level><wrapUp><p>that are made available to be used by an investor in a tax equity partnership arrangement under that arrangement (whether or not those credits or losses are used by the investor).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-4"><num>(4)</num><intro><p>In subsection (3)(b)—</p></intro><level class="para1" eId="schedule-4-paragraph-20-4-a"><num>(a)</num><content><p><mod>for “176D” substitute <quotedText>“176E”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-20-4-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“and the arrangement”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-20-5"><num>(5)</num><content><p><mod>In subsection (7), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-6"><num>(6)</num><content><p><mod>For subsection (11) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21433"><num>(11)</num><intro><p>An election under subsection (3)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the first accounting period for which it is to have effect, which must be the first relevant period,</p></content></level><level class="para1"><num>(b)</num><content><p>must be made no later than the date by which the information return or overseas return notification in respect of the first relevant period is due,</p></content></level><level class="para1"><num>(c)</num><content><p>must be included in an information return submitted to HMRC or a qualifying authority in respect of the first relevant period,</p></content></level><level class="para1"><num>(d)</num><content><p>has effect for the first relevant period and each subsequent accounting period, and</p></content></level><level class="para1"><num>(e)</num><content><p>cannot be revoked.</p></content></level></subsection><subsection><num>(12)</num><intro><p>In subsection <ref href="#d25e21433">(11)</ref>, “<term refersTo="#term-the-first-relevant-period">the first relevant period</term>” means the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period in which the member is an investor in the tax equity partnership arrangement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period for which the Pillar Two rules apply to the member.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-7"><num>(7)</num><content><p>Where a person became an investor in a tax equity partnership arrangement in an accounting period that began before 31 December 2024, section 176D(11) of F(No.2)A 2023 (as inserted by <ref href="#schedule-4-paragraph-20-6">sub-paragraph (6)</ref>) has effect in relation to the arrangement as if “the first relevant period” were the first accounting period beginning on or after that date.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-8"><num>(8)</num><content><p>In sub-paragraph <ref href="#schedule-4-paragraph-20-7">(7)</ref>, “<term refersTo="#term-investor-in-a-tax-equity-partnership-arrangement" eId="term-investor-in-a-tax-equity-partnership-arrangement">investor in a tax equity partnership arrangement</term>” has the same meaning as in section 176D of F(No.2)A 2023.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-4-paragraph-21-1"><num>(1)</num><content><p>Section 176E (flow-through tax benefits: proportional amortisation method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-2"><num>(2)</num><intro><p>In subsection (1), in Step 2—</p></intro><level class="para1" eId="schedule-4-paragraph-21-2-a"><num>(a)</num><content><p><mod>for “flow-through through tax benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-21-2-b"><num>(b)</num><content><p><mod>after “expected” insert <quotedText>“(as at the end of the accounting period)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-21-3"><num>(3)</num><content><p><mod>Also in subsection (1), in Step 7, for “flow-through benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-4"><num>(4)</num><content><p><mod>In subsection (2), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><content><p>Subsections <ref href="#d25e21585">(4)</ref> to <ref href="#d25e21624">(6)</ref> apply in relation to an investor, an arrangement and an accounting period if flow-through tax benefits were provided to the investor under the arrangement in at least one earlier accounting period.</p></content></subsection><subsection eId="d25e21585"><num>(4)</num><content><p>Where the result of Step 3 in subsection (1) would (but for this subsection) be greater than N, this section has effect as if the result of Step 3 were N.</p></content></subsection><subsection eId="d25e21591"><num>(5)</num><intro><p>To find N—</p></intro><level class="para1" eId="d25e21597"><num>(a)</num><content><p>identify the amount that was the result of Step 3 in subsection (1) in each earlier accounting period in which flow-through tax benefits were provided to the investor under the arrangement,</p></content></level><level class="para1" eId="d25e21603"><num>(b)</num><content><p>add together all the amounts identified under <ref href="#d25e21597">paragraph (a)</ref>, and</p></content></level><level class="para1"><num>(c)</num><content><p>subtract the result of <ref href="#d25e21603">paragraph (b)</ref> from the result of Step 1 in subsection (1).</p></content></level><wrapUp><p>The result is N, unless the result is below nil, in which case N is nil.</p></wrapUp></subsection><subsection eId="d25e21624"><num>(6)</num><content><p>A reference in <ref href="#d25e21591">subsection (5)</ref><ref href="#d25e21597">(a)</ref> to the result of Step 3 in subsection (1) in an earlier accounting period, where <ref href="#d25e21585">subsection (4)</ref> had effect in relation to the earlier period, is to the result of that Step as modified under <ref href="#d25e21585">subsection (4)</ref>.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-4-paragraph-22-1"><num>(1)</num><content><p>Section 176F (flow-through tax benefits: subtraction method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-2"><num>(2)</num><content><p><mod>In Step 2, in paragraph (a), for the words from “other than” to the end substitute <quotedText startQuote="“">other than tax credits—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>that were made available in the accounting period, and</p></item><item><num>(ii)</num><p>that are not qualifying refundable tax credits or marketable transferable tax credits;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-3"><num>(3)</num><content><p><mod>In Step 3, for “under arrangement” substitute <quotedText>“under the arrangement”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-23" class="schProv1"><num>23</num><content><p><mod>After section 176F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>176G</num><heading>Clawback of earlier qualifying flow-through tax benefits</heading><subsection><num>(1)</num><intro><p>This section applies to an investor in a tax equity partnership arrangement if—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying flow-through tax benefits are excluded under section 176D(1) from the investor’s covered tax balance for an accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the investor has an excess return from the arrangement in a later accounting period (“the later period”).</p></content></level></subsection><subsection eId="d25e21712"><num>(2)</num><content><p>For the purpose of determining the investor’s covered tax balance for the later period, the investor’s qualifying current tax expense for that period is to be adjusted (after the steps in section 174(1) have been taken) by subtracting the clawback amount.</p></content></subsection><subsection><num>(3)</num><content><p>“The clawback amount” is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the total amount of the qualifying flow-through tax benefits provided to the investor under the arrangement in accounting periods before the later period.</p></item><item><p><i>Step 2</i></p><p>Subtract from the result of Step 1 the total of any amounts subtracted under <ref href="#d25e21712">subsection (2)</ref> from the investor’s qualifying current tax expense for accounting periods before the later period.</p></item><item><p><i>Step 3</i></p><p>Compare the result of Step 2 with the amount of the investor’s excess return from the arrangement in the later period.</p><p>Whichever is less is the clawback amount.</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, an investor has an “excess return” from an arrangement in an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>where section 176E applies, if the result of Step 6 in section 176E(1) exceeds the amount of the flow-through tax benefits provided under the arrangement in the accounting period, in which case the amount of the excess return is the amount of the excess;</p></content></level><level class="para1"><num>(b)</num><content><p>where section 176F applies and the investor did not have an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than nil, in which case the amount of the excess return is the amount by which it is less than nil;</p></content></level><level class="para1"><num>(c)</num><content><p>where section 176F applies and the investor had an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than it was in the last accounting period in which the investor had an excess return from the arrangement, in which case the amount of the excess return is the amount of the difference.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-24" class="schProv1"><num>24</num><content><p>In Schedule 15 (elections), in paragraph 2(1) (annual elections), omit paragraph (za).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21785"><heading>Blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-4-paragraph-25-1"><num>(1)</num><content><p>Section 180 (blended CFC regimes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-25-2"><num>(2)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-25-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “the effective tax rate of” substitute <quotedText>“a single effective tax rate of all”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is a member of the multinational group,</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different subsets of (one or more) members of the multinational group located in the territory where the CFC entity is located (“local blending subsets”), and</p></content></level><level class="para2"><num>(iii)</num><content><p>the CFC entity is a member of a local blending subset,</p></content></level><wrapUp><p>the effective tax rate of the local blending subset of which the CFC entity is a member, calculated on the assumptions set out in paragraph (a)(i) and (ii) (“the relevant assumptions”);</p></wrapUp></level><level class="para1"><num>(ab)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is not a member of the multinational group, or is a member of the multinational group but not a member of any local blending subset, and</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different local blending subsets,</p></content></level><wrapUp><p>the effective tax rate, calculated on the relevant assumptions, of the local blending subset whose members have collectively the highest attributable income of C in relation to the CFC entity (as mentioned in subsection (5)(a));</p></wrapUp></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-c"><num>(c)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-25-2-c-i"><num>(i)</num><content><p><mod>for “where it is not located in such a territory,” substitute <quotedText>“where no applicable effective tax rate can be determined under paragraphs (a) to (ab)”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-25-2-c-ii"><num>(ii)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>But this is subject to section 180A.</p></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-25-3"><num>(3)</num><content><p><mod>After section 180 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>180A</num><heading>Section 180: further provision</heading><subsection><num>(1)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 3 of Schedule 16 for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of the multinational group (as defined in paragraph 8 of Schedule 16)).</p></content></subsection><subsection><num>(2)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 10 of Schedule 16 (application in the case of joint venture group) for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of that multinational group (as defined in paragraph 8 of Schedule 16).</p></content></subsection><subsection><num>(3)</num><content><p>Subsection (4) has effect where the filing member of a particular multinational group mentioned in section 180(8)(a) has made one or more separate elections under any of paragraphs 1, 4, 5 and 6 of Schedule 16A for the relevant period in respect of the territory mentioned in section 180(8)(a).</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of section 180, the effective tax rate of any member or set of members to which a particular election mentioned in subsection (4) relates is to be the rate (expressed as a percentage) given by dividing—</p></intro><level class="para1"><num>(a)</num><content><p>the aggregate tax expense of that member or set of members used to determine the effective tax rate for the purposes of the qualifying domestic top-up tax applying in the territory for the accounting period, together with any amounts of qualifying domestic top-up tax paid of that member or set of members, by</p></content></level><level class="para1"><num>(b)</num><content><p>the income of that member or set of members determined for the purposes of the qualifying domestic top-up tax.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “relevant period” is to be interpreted in accordance with section 180(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21949"><heading>No allocation of deferred tax assets and liabilities under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-26" class="schProv1"><num>26</num><content><p><mod>In section 180 (blended CFC regimes), in subsection (3), in the words before paragraph (a), for “tax charged to C under” substitute <quotedText>“C’s current tax expense so far as relating to”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21961"><heading>Cross-border allocation of current tax under cross-crediting regimes</heading><paragraph eId="schedule-4-paragraph-27" class="schProv1"><num>27</num><content><p><mod>After section 181 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e21974"><num>181A</num><heading>Cross-border allocation of current tax under cross-crediting regime</heading><subsection><num>(1)</num><content><p>Qualifying current tax expense is to be allocated between standard members of a multinational group in a territory in which a cross-crediting regime applies and standard members of the group in another territory in accordance with the cross-crediting regime methodology.</p></content></subsection><subsection><num>(2)</num><content><p>A cross-crediting regime applies in a territory if, under the law of that territory, taxes paid with respect to one source of income arising in another territory give rise to foreign tax credits which can be used against another source of income arising in a further territory.</p></content></subsection><subsection eId="d25e21990"><num>(3)</num><intro><p>The “<term refersTo="#term-cross-crediting-regime-methodology">cross-crediting regime methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the cross-crediting regime methodology, or</p></content></level><level class="para1" eId="d25e22005"><num>(b)</num><content><p>where no cross-crediting regime methodology is identified in any such regulations, the methodology described in the cross-crediting guidance.</p></content></level></subsection><subsection><num>(4)</num><content><p>The “<term refersTo="#term-cross-crediting-guidance">cross-crediting guidance</term>” means Chapter 3.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(5)</num><content><p>Where <ref href="#d25e21990">subsection (3)</ref><ref href="#d25e22005">(b)</ref> applies, the cross-crediting guidance has effect as cross-crediting regime methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(6)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the cross-crediting regime methodology.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22037"><heading>Cross-border allocation of deferred tax</heading><paragraph eId="schedule-4-paragraph-28" class="schProv1"><num>28</num><content><p><mod>After section <ref href="#d25e21974">181A</ref> (as inserted by <ref href="#schedule-4-paragraph-27">paragraph 27</ref>) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Cross-border allocation of deferred tax expense</heading><section><num>181B</num><heading>Cross-border allocation of deferred tax assets and liabilities</heading><subsection><num>(1)</num><content><p>Deferred tax assets and liabilities are to be allocated between standard members of a multinational group in one territory and standard members of the group in another territory in accordance with the deferred taxes methodology.</p></content></subsection><subsection eId="d25e22069"><num>(2)</num><intro><p>The “<term refersTo="#term-deferred-taxes-methodology">deferred taxes methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the deferred taxes methodology, or</p></content></level><level class="para1" eId="d25e22084"><num>(b)</num><content><p>where no deferred taxes methodology is identified in any such regulations, the methodology described in the cross-border deferred taxes guidance.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-cross-border-deferred-taxes-guidance">cross-border deferred taxes guidance</term>” means Chapter 4.2 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(4)</num><content><p>Where <ref href="#d25e22069">subsection (2)</ref><ref href="#d25e22084">(b)</ref> applies, the cross-border deferred taxes guidance has effect as deferred taxes methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(5)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the deferred taxes methodology.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22116"><heading>Extension of qualifying foreign tax credits</heading><paragraph eId="schedule-4-paragraph-29" class="schProv1"><num>29</num><intro><p>In section 183 (qualifying foreign tax credits (substitute loss carry forward assets))—</p></intro><level class="para1" eId="schedule-4-paragraph-29-a"><num>(a)</num><intro><p>in subsection (5)—</p></intro><level class="para2" eId="schedule-4-paragraph-29-a-i"><num>(i)</num><content><p>the words from “income”, in the second place it occurs, to the end become paragraph (a), and</p></content></level><level class="para2" eId="schedule-4-paragraph-29-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>other qualifying income.</p></content></level></quotedStructure></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-29-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>For the purposes of subsection (5) “other qualifying income means”—</p></intro><level class="para1"><num>(a)</num><content><p>income identified as such for the purposes of this section in regulations made under section 262(1)(a), or</p></content></level><level class="para1"><num>(b)</num><content><p>where no income is identified as other qualifying income in any such regulations, such income as is necessary to give effect to the substitute loss carry-forward guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-substitute-loss-carry-forward-guidance">substitute loss carry-forward guidance</term>” means Chapter 4.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22187"><heading>Deferred tax recapture</heading><paragraph eId="schedule-4-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 184 (recaptured deferred tax liabilities) after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>This section is to be applied in accordance with, and is subject to, the DTL recapture methodology.</p></content></subsection><subsection eId="d25e22203"><num>(6)</num><intro><p>The DTL recapture methodology means provisions about the treatment of deferred tax liabilities—</p></intro><level class="para1"><num>(a)</num><content><p>set out in regulations made under section 262(1)(a) and identified in those regulations as the DTL recapture methodology, or</p></content></level><level class="para1" eId="d25e22215"><num>(b)</num><content><p>where no such provisions are identified in any such regulations, set out in the DTL recapture guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-dtl-recapture-guidance">DTL recapture guidance</term>” means the guidance in Chapter 1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(8)</num><content><p>Where subsection <ref href="#d25e22203">(6)</ref><ref href="#d25e22215">(b)</ref> applies, the DTL recapture guidance has effect as DTL recapture methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(9)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the DTL recapture methodology.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22247"><heading>Existing deferred tax assets and liabilities arising under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-31" class="schProv1"><num>31</num><content><p><mod>In section 185 (inclusion of existing deferred tax assets and liabilities on entry into regime), after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Subsection <ref href="#d25e22266">(9)</ref> applies to a deferred tax asset or deferred tax liability of a member of a qualifying multinational group that arises under a blended CFC regime.</p></content></subsection><subsection eId="d25e22266"><num>(9)</num><content><p>A deferred tax asset or deferred tax liability to which this subsection applies is to be ignored in determining the member’s deferred tax expense.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22272"><heading>Substance based income exclusion: permanent establishments and flow-through entities</heading><paragraph eId="schedule-4-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 195 (substance based income exclusion), for subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Section 198 supplements the rules in sections 196 and 197 in relation to a member that is a permanent establishment.</p></content></subsection><subsection><num>(9)</num><content><p>Section 198ZA supplements the rules in sections 196 and 197 in relation to a member that is a flow-through entity.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-33" class="schProv1"><num>33</num><content><p><mod>For section 198 (eligible payroll costs and eligible tangible asset amount: permanent establishments and flow-through entities) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>198</num><heading>Eligible payroll costs and eligible tangible asset amount: permanent establishments</heading><subsection><num>(1)</num><content><p>Sections 196 and 197 apply in relation to permanent establishments with the following modifications.</p></content></subsection><subsection><num>(2)</num><content><p>In determining under section 196 the eligible payroll costs of a permanent establishment within section 232(2)(a) to (c), the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the establishment.</p></content></subsection><subsection><num>(3)</num><content><p>In determining under section 197 the eligible tangible asset amount of a permanent establishment within section 232(2)(a) to (c), the only assets to be taken into account are assets used in the business of the establishment.</p></content></subsection><subsection><num>(4)</num><content><p>Both the eligible payroll costs and the eligible tangible asset amount of a permanent establishment within section 232(2)(d) are nil.</p></content></subsection><subsection><num>(5)</num><intro><p>If but for this subsection—</p></intro><level class="para1"><num>(a)</num><content><p>an amount would be taken into account under section 196 in respect of both a permanent establishment and the main entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>an asset would be taken into account under section 197 in respect of both a permanent establishment and the main entity,</p></content></level><wrapUp><p>the amount or asset is only to be taken into account in respect of the permanent establishment.</p></wrapUp></subsection></section><section eId="d25e22355"><num>198ZA</num><heading>Eligible payroll costs: flow-through entities</heading><subsection eId="d25e22359"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period if the member has costs that would be eligible payroll costs if the member were located in that territory and were not a flow-through entity and—</p></intro><level class="para1" eId="d25e22365"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Section 196 applies for the purposes of determining a flow-through payroll amount of a flow-through entity for a territory as it applies for the purposes of determining eligible payroll costs but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in that section to the territory of the member were to the territory to which the flow-through payroll amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22730">(7)</ref> of that section were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period, the eligible payroll costs of each member of the group falling within subsection <ref href="#d25e22359">(1)</ref><ref href="#d25e22365">(a)</ref> for that period (which may be nil) are to be increased by the amount given by multiplying the flow-through payroll amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through payroll amount for that period,</p></content></level><wrapUp><p>the eligible payroll costs of that entity for that period (which may be nil) are to be increased by the amount given by multiplying that flow-through payroll amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section eId="d25e22516"><num>198ZB</num><heading>Eligible tangible asset amount: flow-through entities</heading><subsection eId="d25e22520"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity that is not the ultimate parent has a flow-through tangible asset amount for a territory for an accounting period if the member holds one or more assets in that territory and—</p></intro><level class="para1" eId="d25e22526"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Sections 197 and 197A apply for the purposes of determining a flow-through tangible asset amount of a flow-through entity for a territory as they apply for the purposes of determining an eligible tangible asset amount but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in those sections to the territory of the member were to the territory to which the flow-through tangible asset amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22746">(10)</ref> of section 197 were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through tangible asset amount for a territory for an accounting period, the eligible tangible asset amount of each member of the group falling within subsection <ref href="#d25e22520">(1)</ref><ref href="#d25e22526">(a)</ref> for that period (which may be nil) is to be increased by the amount given by multiplying the flow-through tangible asset amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through tangible asset amount for that period,</p></content></level><wrapUp><p>the eligible tangible asset amount of that entity for that period (which may be nil) is to be increased by the amount given by multiplying that flow-through tangible asset amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section><num>198ZC</num><heading>Eligible payroll costs and eligible tangible asset amount: flow-through ultimate parent</heading><subsection eId="d25e22681"><num>(1)</num><content><p>In determining for an accounting period the eligible payroll costs or eligible tangible asset amount of a flow-through entity that is the ultimate parent of a multinational group, the amount given by section 196 or 197 is to be reduced by the section 170 proportion.</p></content></subsection><subsection eId="d25e22687"><num>(2)</num><intro><p>In subsection <ref href="#d25e22681">(1)</ref>, “<term refersTo="#term-the-section-170-proportion">the section 170 proportion</term>” means the proportion of the adjusted profits of the flow-through entity for the accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where subsection (1) of 170 (adjustments for ultimate parent that is a flow-through entity) applies, is excluded under that subsection, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where that subsection does not apply as a result of the entity having not made a profit for that period, would be excluded under that subsection if the entity had adjusted profits of 100 euros.</p></content></level></subsection><subsection><num>(3)</num><content><p>In subsection <ref href="#d25e22687">(2)</ref>, “<term refersTo="#term-the-adjusted-profits">the adjusted profits</term>” means the adjusted profits before the application of section 170.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 196 (eligible payroll costs), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22730"><num>(7)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having nil eligible payroll costs (subject to the application of section <ref href="#d25e22355">198ZA</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-35" class="schProv1"><num>35</num><content><p><mod>In section 197 (eligible tangible asset amount), after subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22746"><num>(10)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having an eligible tangible asset amount of nil (subject to the application of section <ref href="#d25e22516">198ZB</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22755"><heading>Eligible payroll costs</heading><paragraph eId="schedule-4-paragraph-36" class="schProv1"><num>36</num><intro><p>In section 196 (eligible payroll costs)—</p></intro><level class="para1" eId="schedule-4-paragraph-36-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (b);</p></content></level><level class="para1" eId="schedule-4-paragraph-36-b"><num>(b)</num><content><p><mod>in subsection (b) of subsection (3), for the words from “acting” to “group” substitute <quotedText>“participating in the ordinary operating activities of the member”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22779"><heading>Additional top-up amounts</heading><paragraph eId="schedule-4-paragraph-37" class="schProv1"><num>37</num><content><p><mod>In section 203 (additional top-up amounts where covered taxes less than expected), in subsections (4)(b), (5)(b), (6)(b) and (7)(b), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-4-paragraph-38-1"><num>(1)</num><content><p>Section 206 (additional top-up amounts where recalculations required) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-38-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-2-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “members” insert <quotedText>“(“the current members”)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “those members would have for a prior period” substitute <quotedText>“the standard members of the group in the territory in a prior period would have for that period”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-3-b"><num>(b)</num><content><p><mod>in the words after paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-4-a"><num>(a)</num><content><p><mod>in Step 1, for “those members would have had for the prior period” substitute <quotedText>“the standard members of the group in the territory for the prior period would have had for that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-b"><num>(b)</num><content><p><mod>in Step 3, after “nil” insert <quotedText>“(and if there are no such results, the result of this step is nil)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-c"><num>(c)</num><intro><p>in Step 4—</p></intro><level class="para2" eId="schedule-4-paragraph-38-4-c-i"><num>(i)</num><content><p><mod>before “members” insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-4-c-ii"><num>(ii)</num><content><p><mod>for “Step 2” substitute <quotedText>“Step 3”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-5-a"><num>(a)</num><content><p><mod>for “those members” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-5-b"><num>(b)</num><content><p><mod>for “in accordance with subsections (5) to (8)” substitute <quotedText>“as follows”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-6"><num>(6)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-6-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-6-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-6-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-6-b"><num>(b)</num><content><p><mod>in paragraph (b), for “members for the members’ territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-6-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-7"><num>(7)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-7-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-7-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-7-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-7-b"><num>(b)</num><content><p><mod>in paragraph (b), for “standard members in the territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-8"><num>(8)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-8-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-ii"><num>(ii)</num><content><p><mod>before “period”, in the first place it occurs, insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-iii"><num>(iii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-8-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-9"><num>(9)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-9-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-a-ii"><num>(ii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-c"><num>(c)</num><content><p><mod>in the words after paragraph (b) for the words from “amount”, in the second place it occurs, to the end substitute <quotedText>“relevant amount.”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-10"><num>(10)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9)</num><intro><p>The relevant amount is the amount given by multiplying—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of the amounts of qualifying domestic top-up tax accrued by the current members in the current period, by</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount given by dividing—</p></intro><level class="para2"><num>(i)</num><content><p>the collective additional amount under this section, by</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of that collective additional amount, any collective additional amount under section 203 and the total top-up amount for the current period.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23179"><heading>Joint ventures</heading><paragraph eId="schedule-4-paragraph-39" class="schProv1"><num>39</num><intro><p>In section 226 (joint venture group), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-39-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “group” insert <quotedText>“for an accounting period of that entity”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-b"><num>(b)</num><content><p><mod>in paragraph (a), after “entity” insert <quotedText>“for all or any part of that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-c"><num>(c)</num><content><p><mod>in paragraph (b), after “entity” insert <quotedText>“at any time in that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-d"><num>(d)</num><content><p><mod>in paragraph (c), for “qualifying multinational group” substitute <quotedText>“multinational group that meets condition A in section 129(2) for that accounting period (revenue threshold exceeded in at least 2 of previous 4 accounting periods)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-e"><num>(e)</num><content><p><mod>in paragraph (f), for “of which the entity is a member” substitute <quotedText>“referred to in paragraph (a)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-4-paragraph-40-1"><num>(1)</num><content><p>Section 227 (application of Part to joint venture groups) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-2-a"><num>(a)</num><intro><p>in the words before paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-40-2-a-i"><num>(i)</num><content><p><mod>after “but” insert <quotedText>“in their application by virtue of this subsection”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-ii"><num>(ii)</num><content><p><mod>after “Part”, in the second place it occurs, insert <quotedText>“, this Chapter other than this section and section 226”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-iii"><num>(iii)</num><content><p><mod>for “apply” substitute <quotedText>“have effect”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-40-2-b"><num>(b)</num><content><p><mod>in paragraph (c), for “the multinational” substitute <quotedText>“each respective multinational”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-40-3"><num>(3)</num><content><p><mod>In subsection (2), for “Part,” substitute <quotedText>“Part (in its application by virtue of subsection (1)),”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-4-a"><num>(a)</num><content><p><mod>after “But” insert <quotedText>“(in the application of this Part by virtue of subsection (1))”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-40-4-b"><num>(b)</num><content><p><mod>for “that” substitute <quotedText>“the joint venture”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-41" class="schProv1"><num>41</num><subparagraph eId="schedule-4-paragraph-41-1"><num>(1)</num><content><p>Section 266 (qualifying entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-2"><num>(2)</num><content><p><mod>In subsection (1), after “An entity” insert <quotedText>“which is not a member of a joint venture group”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-3"><num>(3)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23349"><num>(1A)</num><intro><p>A member of a joint venture group is a qualifying entity for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is not a DTT excluded entity,</p></content></level><level class="para1"><num>(b)</num><content><p>the member meets condition A for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>the revenue condition is met in relation to the group for that period.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of subsection <ref href="#d25e23349">(1A)</ref> the “revenue condition” is met in relation to a joint venture group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>a single entity which directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meets Condition A and Condition B for that period, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the members of a group (the “relevant group”) whose ultimate parent directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meet Condition C for that period and—</p></intro><level class="para2"><num>(i)</num><content><p>all of those members are located in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the relevant group is a multinational group (see section 126 in Part 3), and at least one of the members is located in a Pillar Two territory.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23406"><heading>Domestic top-up tax</heading><paragraph eId="schedule-4-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-4-paragraph-42-1"><num>(1)</num><content><p>Section 270 (amount charged) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-2"><num>(2)</num><content><p><mod>Before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>Where a person is chargeable to domestic top-up tax for an accounting period as, or in respect of, a qualifying entity which is a member of a group, the amount (if any) the person must pay is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine (in accordance with section 272)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>whether the entity has a top-up amount for that period, and</p></item><item><num>(b)</num><p>the extent of any such amount.</p></item></blockList></item><item><p><i>Step 2</i></p><p>If the result of <ref href="#d25e23433">Step 1</ref> is not expressed in sterling, convert the result of that Step to sterling.</p></item></blockList></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-42-3-a"><num>(a)</num><content><p><mod>in the words before Step 1, for “as a qualifying entity or in respect of a qualifying entity” substitute <quotedText>“as or in respect of a qualifying entity which is not a member of a group”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-42-3-b"><num>(b)</num><content><p><mod>in Step 1, after “Determine” insert <quotedText>“(in accordance with section 273)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-4-paragraph-43-1"><num>(1)</num><content><p>Section 272 (determining top-up amounts of entity that is a member of a group) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-2"><num>(2)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p><mod>Part 3 has effect for those purposes as if the following sections were substituted for section 193—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>193</num><heading>Determination of top-up amounts of entity that is a member of a group</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e23537">(2)</ref> sets out (for the purposes of Step 1 of section 270(A1)) how to determine in relation to an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>whether an entity which is a standard member of a group has a top-up amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, what the amount is.</p></content></level></subsection><subsection eId="d25e23537"><num>(2)</num><content><p>Take the following Steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine for the period (in accordance with section 272) the sum of any top-up amounts and additional top-up amounts of standard members of the group (the “total top-up amount”).</p></item><item><p><i>Step 2</i></p><p>Determine for each such member—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the adjusted profits (if any);</p></item><item><num>(b)</num><p>the covered tax balance.</p></item></blockList></item><item><p><i>Step 3</i></p><p>For each standard member of the group in relation to which a positive amount of adjusted profits is determined under <ref href="#d25e23552">Step 2</ref>, determine the “effective tax rate” by dividing the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23565">(b)</ref> (covered tax balance) by the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23561">(a)</ref> (adjusted profits).</p></item><item><p><i>Step 4</i></p><p>For any standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>determine that member’s “top-up tax percentage” by subtracting the member’s effective tax rate from 15%, and</p></item><item><num>(b)</num><p>proceed to <ref href="#d25e23613">Step 5</ref>.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Calculate for the member an amount (an “allocation key amount”) by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s top-up tax percentage (see <ref href="#d25e23590">Step 4</ref>(a)), by</p></item><item><num>(b)</num><p>the member’s adjusted profits.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Determine the sum (the “group allocation key amount”) of all the allocation key amounts calculated under <ref href="#d25e23613">Step 5</ref> for members of the group.</p></item><item><p><i>Step 7</i></p><p>Determine the “allocation key ratio” for each standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%, by dividing—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s allocation key amount (see <ref href="#d25e23613">Step 5</ref>), by</p></item><item><num>(b)</num><p>the group allocation key amount (see <ref href="#d25e23633">Step 6</ref>).</p></item></blockList></item><item><p><i>Step 8</i></p><p>Determine each such member’s top-up amount by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of any top-up amounts and additional top-up amounts of standard members of the group for the period (see <ref href="#d25e23544">Step 1</ref>), by</p></item><item><num>(b)</num><p>the member’s allocation key ratio (see <ref href="#d25e23644">Step 7</ref>).</p></item></blockList></item><item><p><i>Step 9</i></p><p>If none of the standard members falls within <ref href="#d25e23569">Step 3</ref>, or none of them has an effective tax rate of less than 15%, each standard member has a top-up amount equal to—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the total top-up amount, divided by</p></item><item><num>(b)</num><p>the number of the standard members.</p></item></blockList></item></blockList></content></subsection></section><section><num>193A</num><heading>Section 193: supplementary</heading><subsection><num>(1)</num><content><p>Section 193 and subsection (2) of this section apply to joint venture groups and their members as they apply to groups and their members.</p></content></subsection><subsection><num>(2)</num><content><p>Section 193 has effect in relation to a qualifying entity that is a standard member of a group as if the total top-up amount referred to in that section included any top-up amounts or additional top-up amounts of qualifying investment entities determined under sections 220 to 224.</p></content></subsection><subsection><num>(3)</num><intro><p>See also subsections (9) to (11) of section 272, which—</p></intro><level class="para1"><num>(a)</num><content><p>define “<term refersTo="#term-qualifying-investment-entity">qualifying investment entity</term>” in relation to a qualifying entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>make further provision about top-up amounts (for the purposes of domestic top-up tax).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-3"><num>(3)</num><content><p>In subsection (8) omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23759"><heading>Domestic top-up tax: excluded entities</heading><paragraph eId="schedule-4-paragraph-44" class="schProv1"><num>44</num><content><p><mod>In section 267 (DTT excluded entities), after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>A company is a DTT excluded entity if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a qualifying asset holding company for the purposes of Schedule 2 to FA 2022, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not a member of a multinational group.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23787"><heading>De minimis rule</heading><paragraph eId="schedule-4-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-4-paragraph-45-1"><num>(1)</num><intro><p>In section 199 (election to treat total top-up amount as nil)—</p></intro><level class="para1" eId="schedule-4-paragraph-45-1-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-45-1-a-i"><num>(i)</num><content><p><mod>for “total top-up amount” substitute <quotedText>“top-up amounts of the relevant members”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-45-1-a-ii"><num>(ii)</num><content><p><mod>for “is” substitute <quotedText>“are”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-45-1-b"><num>(b)</num><content><p><mod>in subsections (2)(a), (3), (4), (6)(a) and (6)(b), for “standard” substitute <quotedText>“relevant”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-c"><num>(c)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23840"><num>(2A)</num><intro><p>In this section, a member of a multinational group is a “relevant” member if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a standard member of the group, or</p></content></level><level class="para1"><num>(b)</num><content><p>a minority owned member of the group.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-d"><num>(d)</num><content><p><mod>in the heading, for “total top-up amount” substitute <quotedText>“certain top-up amounts”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-45-2"><num>(2)</num><content><p><mod>In section 228 (minority owned members), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>But neither subsection (3) nor (4) applies to the reference to “standard member” in section 199<ref href="#d25e23840">(2A)</ref> (election to treat top-up amounts of relevant members as nil).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23885"><heading>Transitional safe harbour</heading><paragraph eId="schedule-4-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-4-paragraph-46-1"><num>(1)</num><content><p>Part 2 of Schedule 16 (transitional safe harbour) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-2"><num>(2)</num><intro><p>In paragraph 3 (election)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (1), after “election” insert <quotedText>“under this paragraph”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2)(c), for “the election” substitute <quotedText>“a transitional safe harbour election”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-c"><num>(c)</num><content><p><mod>in sub-paragraph (7), for “the information” substitute <quotedText>“all relevant information”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-d"><num>(d)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(7A)</num><content><p>For the purposes of sub-paragraph (7), “<term refersTo="#term-all-relevant-information">all relevant information</term>” means all of the information described in paragraphs (a) to (d) of paragraph 4(3).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-e"><num>(e)</num><content><p><mod>after sub-paragraph (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(10)</num><content><p>An election under this paragraph may not be made in respect of the nominal territory of a stateless member of a multinational group.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-3"><num>(3)</num><intro><p>In paragraph 4 (qualified financial statements), in sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for “statement” substitute <quotedText>“statements”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>after “parent” insert <quotedText>“provided the statements are prepared in accordance with acceptable accounting standards or an authorised accounting standard”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-46-3-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>financial statements of members of the group provided—</p></intro><level class="para2"><num>(i)</num><content><p>they are prepared in accordance with acceptable accounting standards or an authorised accounting standard, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the information contained in those statements is reliable and is maintained in a manner that is consistent with its use under the accounting standard used in preparing those statements.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-4"><num>(4)</num><content><p><mod>In paragraph 4, after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>But see also <ref href="#d25e24052">paragraph 4A</ref> in cases where those accounts or statements reflect purchase price accounting adjustments.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-5"><num>(5)</num><content><p><mod>In paragraph 4, in sub-paragraph (3), in paragraph (d), after “income” insert <quotedText>“exclusion”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-6"><num>(6)</num><content><p><mod>After paragraph 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Accounts or statements reflecting purchase price accounting adjustments</heading><paragraph eId="d25e24052" class="schProv1"><num>4A</num><subparagraph><num>(1)</num><intro><p>This paragraph applies in relation to accounts or financial statements (“the relevant statements”) in relation to a multinational group in a territory that—</p></intro><level class="para1"><num>(a)</num><content><p>fall within paragraph (a) or (b) of paragraph 4(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>reflect purchase price accounting adjustments.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a country-by-country report has been submitted in respect of the group in that territory in respect of a period commencing on or after 1 January 2023 and concluding before the commencement of the accounting period for which the transitional safe harbour election is being made,</p></content></level><level class="para1"><num>(b)</num><content><p>the financial accounts used for the preparation of that report did not reflect purchase price accounting adjustments, and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no requirement to reflect purchase price adjustments in the relevant statements under the law of the territory that applies in relation to the preparation of those statements,</p></content></level><wrapUp><p>the relevant statements are not qualified financial statements.</p></wrapUp></subparagraph><subparagraph><num>(3)</num><intro><p>Sub-paragraph <ref href="#d25e24121">(4)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant statements are qualified financial statements, and</p></content></level><level class="para1"><num>(b)</num><content><p>an impairment of goodwill in relation to a transaction entered into on or after 1 December 2021 is reflected in a member’s profit (loss) before income tax.</p></content></level></subparagraph><subparagraph eId="d25e24121"><num>(4)</num><intro><p>Adjust the profit (loss) before income tax of the member so that it does not reflect that impairment for the purposes of determining—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the condition in sub-paragraph <ref href="#d25e24142">(5)</ref> is not met, whether the simplified effective tax rate test is met (see paragraph 8), and</p></content></level><level class="para1"><num>(b)</num><content><p>in any case, whether the routine profits test is met (see paragraph 9).</p></content></level></subparagraph><subparagraph eId="d25e24142"><num>(5)</num><intro><p>The condition in this sub-paragraph is that the relevant statements reflect—</p></intro><level class="para1"><num>(a)</num><content><p>a reversal of deferred tax liability in relation to the goodwill, or</p></content></level><level class="para1"><num>(b)</num><content><p>the recognition or increase of a deferred tax asset in relation to it.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-7"><num>(7)</num><intro><p>In paragraph 5 (qualifying income tax expense)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-7-a"><num>(a)</num><content><p>the existing text becomes sub-paragraph (1), and</p></content></level><level class="para1" eId="schedule-4-paragraph-46-7-b"><num>(b)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><content><p>For the purposes of this Part of this Schedule, any amount of qualifying income tax expense that is in respect of profits of a permanent establishment and that is incurred in the territory of the permanent establishment is to be regarded as the expense of that permanent establishment (rather than of the main entity).</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24185"><heading>Transitional safe harbour: arbitrage arrangements</heading><paragraph eId="schedule-4-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-4-paragraph-47-1"><num>(1)</num><content><p><mod>In Schedule 16, after paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Deduction and non-inclusion arrangements and duplicate loss arrangements</heading><paragraph class="schProv1"><num>6A</num><subparagraph eId="d25e24206"><num>(1)</num><content><p>Where the aggregate profit (loss) before income tax of the standard members of a multinational group in a territory reflects disqualified expense, the aggregate profit (loss) before income tax is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24212"><num>(2)</num><intro><p>Disqualified expense means any expense or loss of a member of a multinational group reflected in the financial statements of the member arising as a result of qualifying arrangements that involve another member of the group—</p></intro><level class="para1" eId="d25e24218"><num>(a)</num><intro><p>to the extent that the expense or loss is a result of the member directly or indirectly being provided credit by the other member or the other member otherwise making an investment in the member under the arrangements and—</p></intro><level class="para2"><num>(i)</num><content><p>the credit or investment is not reflected as an increase in the revenue, or a gain, in the financial statements of the other member that corresponds to the expense or loss, or</p></content></level><level class="para2" eId="d25e24230"><num>(ii)</num><content><p>it is not reasonable to expect that the credit or investment will be reflected as an increase in the taxable income of the other member over the life of the arrangements that corresponds to the expense or loss, or</p></content></level></level><level class="para1" eId="d25e24236"><num>(b)</num><intro><p>to the extent that—</p></intro><level class="para2" eId="d25e24242"><num>(i)</num><content><p>the expense or loss is also included as an expense or loss in the financial statements of another member of the group, or</p></content></level><level class="para2" eId="d25e24248"><num>(ii)</num><content><p>the expense or loss is mirrored by an amount that can be deducted from the taxable income of another member of the group that is located in a different territory to the member.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>an expense or a loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref> if it is solely referable to the provision of qualifying tier one capital,</p></content></level><level class="para1"><num>(b)</num><content><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> to the extent it is offset against revenue that is included in the financial statements of each member whose financial statements reflect the expense or loss, and</p></content></level><level class="para1"><num>(c)</num><intro><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24248">(ii)</ref> to the extent that it is offset against revenue or income that is included in both—</p></intro><level class="para2"><num>(i)</num><content><p>the financial statements that reflect the expense or loss, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the taxable income from which the amount that mirrors the expense or loss can be deducted.</p></content></level></level></subparagraph><subparagraph><num>(4)</num><intro><p>An expense or loss included in the financial statements of a member of a multinational group is to be ignored to the extent that the expense or loss is included in the financial statements of another member of the group as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>the other member having a direct or indirect ownership interest in the member, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member being regarded as tax transparent in the territory in which the other member is located.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Where as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> more than one standard member in a territory has disqualified expense in respect of the same expense or loss, <ref href="#d25e24206">sub-paragraph (1)</ref> applies to all but one of those amounts of disqualified expense.</p></content></subparagraph><subparagraph eId="d25e24343"><num>(6)</num><intro><p>For the purposes of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref><ref href="#d25e24230">(ii)</ref>, ignore any increase in the taxable income of the other member—</p></intro><level class="para1" eId="d25e24356"><num>(a)</num><content><p>that is offset by a devalued tax attribute, or</p></content></level><level class="para1"><num>(b)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the payment that gives rise to the expense or loss in question also results in a taxable deduction or loss of a further member of the group located in the same territory as the other member, and</p></content></level><level class="para2"><num>(ii)</num><content><p>that deduction or loss is not reflected in the aggregate profit (loss) before income tax for that territory for the purposes of determining whether an election under paragraph 3 that applies in relation to that further member can be made.</p></content></level></level></subparagraph><subparagraph><num>(7)</num><intro><p>For the purposes of <ref href="#d25e24343">sub-paragraph (6)</ref><ref href="#d25e24356">(a)</ref>, a “<term refersTo="#term-devalued-tax-attribute">devalued tax attribute</term>” means a tax attribute of a member of a multinational group—</p></intro><level class="para1"><num>(a)</num><content><p>whose value is reflected in financial statements of the member at less than the amount of the attribute multiplied by the tax rate that applies to the member, or</p></content></level><level class="para1"><num>(b)</num><content><p>whose value would be so reflected if the qualifying arrangements that result in disqualified expense or disqualified tax expense (see paragraph <ref href="#d25e24472">6B</ref>) were ignored.</p></content></level></subparagraph><subparagraph><num>(8)</num><intro><p>For the purposes of this paragraph and paragraph <ref href="#d25e24472">6B</ref>, arrangements are “qualifying” if—</p></intro><level class="para1"><num>(a)</num><content><p>they were entered into on or after 16 December 2022, or</p></content></level><level class="para1"><num>(b)</num><intro><p>they were entered into before that date, but—</p></intro><level class="para2"><num>(i)</num><content><p>the arrangements are amended on or after that date (including by way of a substitution of one or more of the parties),</p></content></level><level class="para2"><num>(ii)</num><content><p>the performance of rights or obligations under the arrangements is altered on or after that date (for example where payments under the arrangements are reduced or ceased), or</p></content></level><level class="para2"><num>(iii)</num><content><p>the accounting treatment of the arrangements is varied on or after that date.</p></content></level></level></subparagraph><subparagraph><num>(9)</num><intro><p>In this paragraph and in paragraph <ref href="#d25e24472">6B</ref> reference to the financial statements of a member of a multinational group is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an accounting period in which an election under paragraph 3 that applies in relation to the member was made, or for the purposes of determining whether such an election can be made, to the financial statements, or financial accounts, that form the basis of qualified financial statements in relation to the member for the purposes of this Part of this Schedule, or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, to the underlying profits accounts of that member (see section 136).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Duplicate tax recognition arrangements</heading><paragraph eId="d25e24472" class="schProv1"><num>6B</num><subparagraph><num>(1)</num><content><p>Where the aggregate qualifying income tax expense of the standard members of a multinational group in a territory reflects disqualified tax expense, the aggregate qualifying income tax expense is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24482"><num>(2)</num><intro><p>Disqualified tax expense means any qualifying income tax expense of a member of a multinational group reflected in the financial statements of the member that, as a result of qualifying arrangements, is also reflected in—</p></intro><level class="para1" eId="d25e24488"><num>(a)</num><content><p>the covered tax balance of one or more other members of the group, or</p></content></level><level class="para1" eId="d25e24494"><num>(b)</num><content><p>the qualifying income tax expense of one or more other members of the group.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>But qualifying income tax expense is not to be regarded as disqualified tax expense—</p></intro><level class="para1"><num>(a)</num><content><p>if the income to which the tax expense relates is reflected in the financial statements of each member of the group falling within <ref href="#d25e24482">sub-paragraph (2)</ref><ref href="#d25e24488">(a)</ref> and <ref href="#d25e24494">(b)</ref> to at least the same extent to which the tax expense is reflected in the covered tax balance, or qualifying income tax expense, of each of those members;</p></content></level><level class="para1"><num>(b)</num><content><p>to the extent that the duplication of the tax expense would not arise if the adjustments that would have been made in determining the member’s covered tax balance (and that are not required to be made for the purpose of determining the member’s qualifying income tax expense) had been made.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-2"><num>(2)</num><intro><p>The amendment made by <ref href="#schedule-4-paragraph-47-1">sub-paragraph (1)</ref> has effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-47-2-a"><num>(a)</num><content><p>disqualified expense accruing on or after 14 March 2024, and</p></content></level><level class="para1" eId="schedule-4-paragraph-47-2-b"><num>(b)</num><content><p>disqualified tax expense attributable to profits accruing on or after 14 March 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-47-3"><num>(3)</num><content><p><mod>In paragraph 4 (qualified financial statements and basis of calculations), in sub-paragraph (4), in the words after paragraph (b) for “paragraph 6” substitute <quotedText>“paragraphs 6 to 6B”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-4"><num>(4)</num><content><p><mod>In section 155 (qualifying tier one capital), in subsection (3), for “section” substitute <quotedText>“Part”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-5"><num>(5)</num><content><p><mod>In Schedule 17, in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">qualifying tier one capital</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">section 155(3)</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24581"><heading>Substance based income exclusion: removal of provision for election</heading><paragraph eId="schedule-4-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-4-paragraph-48-1"><num>(1)</num><content><p>In section 195 (substance based income exclusion) omit subsections (2) and (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-48-2"><num>(2)</num><content><p>Accordingly, in paragraph 2 (annual elections) of Schedule 15 (multinational top-up tax: elections), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24600"><heading>Inclusion ratio</heading><paragraph eId="schedule-4-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-4-paragraph-49-1"><num>(1)</num><content><p>Section 201 (inclusion ratio) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-2"><num>(2)</num><content><p><mod>In subsection (1), in Step 2, at the end insert <quotedText>“, but excluding ownership interests in respect of which an amount has been excluded from the relevant member’s adjusted profits.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-3"><num>(3)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-50" class="schProv1"><num>50</num><subparagraph eId="schedule-4-paragraph-50-1"><num>(1)</num><content><p>Section 223 (adjustments) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-50-2"><num>(2)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “group,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “profits” insert <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-3"><num>(3)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-3-a"><num>(a)</num><content><p><mod>in paragraph (a), after “made,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-3-b"><num>(b)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-4"><num>(4)</num><content><p><mod>In subsection (9), after “201(2)” insert <quotedText>“and (3)”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24705"><heading>Specification of territories and taxes</heading><paragraph eId="schedule-4-paragraph-51" class="schProv1"><num>51</num><subparagraph eId="schedule-4-paragraph-51-1"><num>(1)</num><intro><p>In section 241 (Pillar Two territories)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-1-a"><num>(a)</num><content><p><mod>in subsection (1), before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a territory to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-c-i"><num>(i)</num><content><p><mod>after “Regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a territory in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a territory made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-e"><num>(e)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the territory was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a territory previously specified ceases to have effect” substitute <quotedText>“for the specification of a territory to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>A territory outside the United Kingdom is to be treated as a Pillar Two territory for the purposes of any accounting period that concluded before the first regulations under this section have been made, if it is a territory in which a tax applies for that accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>that is a Qualified IIR for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>that it is reasonable to conclude is likely to be a Qualified IIR for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-2"><num>(2)</num><intro><p>In section 256 (qualifying domestic top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-2-a"><num>(a)</num><content><p><mod>in subsection (1)(b), for “a” substitute <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-c-i"><num>(i)</num><content><p><mod>after “regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a tax in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a tax made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-e"><num>(e)</num><intro><p>in subsection (4)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the tax was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a tax previously specified ceases to have effect” substitute <quotedText>“for the specification of a tax to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>A tax (other than domestic top-up tax which is always a qualifying domestic top-up tax) is to be treated as a qualifying domestic top-up tax for the purposes of any accounting period that concluded before the first regulations under this section have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that it is likely to be a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-3"><num>(3)</num><intro><p>In Schedule 16A (qualifying domestic top-up tax safe harbour election)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-3-a"><num>(a)</num><intro><p>in paragraph 1(3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-a-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “may only be made” substitute <quotedText>“is only valid”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-ii"><num>(ii)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the accreditation applies to the accounting period, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-3-b"><num>(b)</num><intro><p>in paragraph 2—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-b-i"><num>(i)</num><content><p>the existing text becomes sub-paragraph (1),</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-ii"><num>(ii)</num><content><p><mod>in that sub-paragraph, before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>Regulations may provide for the accreditation of a tax by specification in a notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subparagraph><subparagraph><num>(1B)</num><content><p>Regulations, or a notice, must identify the accounting periods to which the accreditation applies.</p></content></subparagraph><subparagraph><num>(1C)</num><content><p>Regulations under this paragraph may provide for the accreditation of a tax to have effect from a time before the tax was specified (but may not provide for the accreditation of a tax to cease to have effect in relation to accounting periods commencing before the regulations are made).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iv"><num>(iv)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e25105"><num>(2)</num><intro><p>A qualifying domestic top-up tax is to be treated as accredited for the purposes of any accounting period that concluded before the first regulations under this paragraph have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>the tax falls within Chapter 5.5 to 5.7 of the QDMTT safe harbour guidance, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that the tax is likely to fall within Chapter 5.5 to 5.7 of that guidance.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>For the purposes of sub-paragraph <ref href="#d25e25105">(2)</ref> the “<term refersTo="#term-qdmtt-safe-harbour-guidance">QDMTT safe harbour guidance</term>” means Chapter 5 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023, published by the OECD on 17 July 2023.</p></content></subparagraph></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-4"><num>(4)</num><content><p>The amendments made by sub-paragraphs <ref href="#schedule-4-paragraph-51-1">(1)</ref><ref href="#schedule-4-paragraph-51-1-f">(f)</ref>, <ref href="#schedule-4-paragraph-51-2">(2)</ref><ref href="#schedule-4-paragraph-51-2-f">(f)</ref> and <ref href="#schedule-4-paragraph-51-3">(3)</ref><ref href="#schedule-4-paragraph-51-3-b">(b)</ref><ref href="#schedule-4-paragraph-51-3-b-i">(i)</ref> and <ref href="#schedule-4-paragraph-51-3-b-iv">(iv)</ref> are treated as having come into force on 7 November 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25162"><heading>Filing etc not required before 30 June 2026</heading><paragraph eId="schedule-4-paragraph-52" class="schProv1"><num>52</num><subparagraph eId="schedule-4-paragraph-52-1"><num>(1)</num><content><p>Schedule 14 (administration) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-2"><num>(2)</num><content><p><mod>In paragraph 10, after sub-paragraph (11) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(12)</num><content><p>Where (ignoring this sub-paragraph) the date by which an information return or overseas return notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-3"><num>(3)</num><content><p><mod>In paragraph 13, after sub-paragraph (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(11)</num><content><p>Where (ignoring this sub-paragraph) the date by which a self assessment return or below-threshold notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is instead 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-4"><num>(4)</num><content><p><mod>In paragraph 32, after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(3A)</num><content><p>Where (ignoring this sub-paragraph) the date on which an amount of multinational top-up tax must be paid falls before 30 June 2026, the date on which it must be paid is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25214"><heading>Minor amendments</heading><paragraph eId="schedule-4-paragraph-53" class="schProv1"><num>53</num><content><p>In section 141 (general exclusion of dividends), in subsection (9) omit paragraph (b) and the “or” preceding it.</p></content></paragraph><paragraph eId="schedule-4-paragraph-54" class="schProv1"><num>54</num><intro><p>In section 148A (transferable tax credits), in subsection (5)(a)—</p></intro><level class="para1" eId="schedule-4-paragraph-54-a"><num>(a)</num><content><p><mod>in sub-paragraph (i), for “before the end of 15 months” substitute <quotedText>“in the period beginning with the day on which the credit was granted and ending 15 months after the end”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-54-b"><num>(b)</num><content><p><mod>in sub-paragraph (ii), for “before the end of 15 months of the accounting period in which they are granted” substitute <quotedText>“in that period”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-55" class="schProv1"><num>55</num><content><p><mod>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (9)(b), for the words from “the ultimate parent’s“ to the end substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>the entity is regarded as tax transparent in the territory in which the ultimate parent is located, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the ultimate parent’s interest in that entity is held directly or through one or more entities all of which are regarded as tax transparent in that territory.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-56" class="schProv1"><num>56</num><intro><p>In section 171 (ultimate parent subject to qualifying dividend regime)—</p></intro><level class="para1" eId="schedule-4-paragraph-56-a"><num>(a)</num><content><p>in subsection (2)(b), omit “adjusted”, and</p></content></level><level class="para1" eId="schedule-4-paragraph-56-b"><num>(b)</num><content><p><mod>in subsection (6), for “underlying”, in each place it occurs, substitute <quotedText>“adjusted”</quotedText></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 176B (value of non-marketable transferable tax credits: originator), in subsection (3), after “the”, in the fourth place it occurs, insert <quotedText>“end of the”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-58" class="schProv1"><num>58</num><intro><p>In section 176C (value of non-marketable transferable tax credits: purchaser)—</p></intro><level class="para1" eId="schedule-4-paragraph-58-a"><num>(a)</num><content><p><mod>in subsection (4)(b), for “underlying” substitute <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-58-b"><num>(b)</num><content><p>in subsection (5)(a)(ii) omit “reflected”;</p></content></level><level class="para1" eId="schedule-4-paragraph-58-c"><num>(c)</num><content><p><mod>in subsection (6) for “underlying” substitute <quotedText>“adjusted”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-59" class="schProv1"><num>59</num><content><p><mod>In section 176D (tax credits etc allocated under tax equity partnerships), in subsection (10), for “the amount multiplied” substitute <quotedText>“that amount”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-60" class="schProv1"><num>60</num><intro><p>In section 211 (transfer of assets or liabilities to a member of a multinational group)—</p></intro><level class="para1" eId="schedule-4-paragraph-60-a"><num>(a)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-60-a-i"><num>(i)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-60-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the transferor and the transferee are not members of the same type located in the same territory, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-60-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>For the purposes of subsection (2) two members of a multinational group are of the same type if—</p></intro><level class="para1"><num>(a)</num><content><p>they are both standard members of the group,</p></content></level><level class="para1"><num>(b)</num><content><p>they are both investment entities, or</p></content></level><level class="para1"><num>(c)</num><content><p>they are both members of the same minority subgroup (see section 228).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 212 (meaning of “<term refersTo="#term-qualifying-reorganisation" eId="term-qualifying-reorganisation">qualifying reorganisation</term>”), in subsection (4), after “is”, in the third place it occurs, insert <quotedText>“no greater than”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-62" class="schProv1"><num>62</num><content><p>In section 215 (undistributed income amount), in subsection (2)(c) omit “the made a loss”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-63" class="schProv1"><num>63</num><content><p><mod>In section 216 (election where assets and liabilities adjusted to fair value for tax purposes), in subsection (7)(a), before “immediately after” insert <quotedText>“or liability”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-64" class="schProv1"><num>64</num><content><p><mod>In section 217 (post filing adjustments of covered taxes), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>In the case of a prior accounting period for which there is no information return, overseas information return or self-assessment return, the reference to covered taxes being reflected in such a return is to the covered taxes as would have been reflected in such a return had there been one.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-65" class="schProv1"><num>65</num><content><p><mod>In section 217(8), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the aggregate covered tax balance of the standard members of the group in the territory of the member for the prior period is not reduced by 1 million euros or more, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 220 (top-up amount of investment entity)—</p></intro><level class="para1" eId="schedule-4-paragraph-66-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-66-a-i"><num>(i)</num><content><p><mod>in Step 8, after “entity” insert <quotedText>“, unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9), and</quotedText></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-66-a-ii"><num>(ii)</num><content><p><mod>after that Step insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 9</i></p><p>Where this Step applies, the top-up amount for the entity is the sum of—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the result of Step 8, and</p></item><item><num>(b)</num><p>the positive undistributed income amount for the entity for the period multiplied by 15%.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-66-b"><num>(b)</num><content><p>omit subsection (2).</p></content></level></paragraph><paragraph eId="schedule-4-paragraph-67" class="schProv1"><num>67</num><content><p><mod>In section 222 (investment entity effective tax rate), in Step 9 for “Step 1” substitute <quotedText>“Step 2”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-68" class="schProv1"><num>68</num><content><p>In section 242 (ownership interests and controlling interests), in subsection (5)(a) omit “financial”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-69" class="schProv1"><num>69</num><content><p><mod>In section 255 (Pillar Two rules), in subsection (6), for “3(1)” substitute <quotedText>“3 of Schedule 16”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-70" class="schProv1"><num>70</num><intro><p>In Schedule 14 (administration of multinational top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-70-a"><num>(a)</num><content><p><mod>in paragraph 2(12), for “entity” substitute <quotedText>“member”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-70-b"><num>(b)</num><content><p><mod>in paragraph 7(6), for “or Revenue” substitute <quotedText>“of Revenue”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-71" class="schProv1"><num>71</num><content><p>In Schedule 16A (multinational top-up tax: safe harbours), in paragraph 4(1)(b) omit “members of the group that are”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25563"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-72" class="schProv1"><num>72</num><subparagraph eId="schedule-4-paragraph-72-1"><num>(1)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2023—</p></intro><level class="para1" eId="schedule-4-paragraph-72-1-a"><num>(a)</num><content><p><ref href="#schedule-4-paragraph-11">paragraph 11</ref> (permanent establishments as excluded entities);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-b"><num>(b)</num><content><p><ref href="#schedule-4-paragraph-39">paragraph 39</ref><ref href="#schedule-4-paragraph-39-d">(d)</ref> (joint venture conditions);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-c"><num>(c)</num><content><p><ref href="#schedule-4-paragraph-48">paragraph 48</ref> (removal of requirement for SBIE election);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-d"><num>(d)</num><content><p><ref href="#schedule-4-paragraph-51">paragraph 51</ref> (specification of territories and taxes);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-e"><num>(e)</num><content><p><ref href="#schedule-4-paragraph-52">paragraph 52</ref> (filing etc not required before 30 June 2026);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-f"><num>(f)</num><content><p><ref href="#schedule-4-paragraph-66">paragraph 66</ref> (top-up amount of investment entity).</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-2"><num>(2)</num><content><p><ref href="#schedule-4-paragraph-47">Paragraph 47</ref> has effect in relation to relation to accounting periods commencing on or after 31 December 2023, subject to sub-paragraph <ref href="#schedule-4-paragraph-47-2">(2)</ref> of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-3"><num>(3)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024—</p></intro><level class="para1" eId="schedule-4-paragraph-72-3-a"><num>(a)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-18">18</ref> to <ref href="#schedule-4-paragraph-24">24</ref> (tax equity partnerships);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-3-b"><num>(b)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-39-a">(a)</ref> to <ref href="#schedule-4-paragraph-39-c">(c)</ref> of <ref href="#schedule-4-paragraph-39">paragraph 39</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-4"><num>(4)</num><intro><p>The other provisions of this Part of this Schedule have effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-72-4-a"><num>(a)</num><content><p>where a retrospection election has been made in relation to a multinational group, a group, or a qualifying entity that is not a member of a group, accounting periods of that multinational group, group or entity commencing on or after 31 December 2023, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-4-b"><num>(b)</num><content><p>otherwise, accounting periods commencing on or after 31 December 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-5"><num>(5)</num><intro><p>A retrospection election—</p></intro><level class="para1" eId="schedule-4-paragraph-72-5-a"><num>(a)</num><intro><p>is to be made—</p></intro><level class="para2" eId="schedule-4-paragraph-72-5-a-i"><num>(i)</num><content><p>in the case of a multinational group or group, by the filing member, or</p></content></level><level class="para2" eId="schedule-4-paragraph-72-5-a-ii"><num>(ii)</num><content><p>in the case of a qualifying entity that is not a member of a group, by that entity,</p></content></level></level><level class="para1" eId="schedule-4-paragraph-72-5-b"><num>(b)</num><content><p>must be made on or before the day on which the self-assessment return or below-threshold notification for the first accounting period of the multinational group, group or entity commencing on or after 31 December 2023 is made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-5-c"><num>(c)</num><content><p>may not be revoked.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-6"><num>(6)</num><intro><p>But <ref href="#schedule-4-paragraph-72-7">sub-paragraph (7)</ref> applies where any member, or former member, of a multinational group or group is, or would be on either or both of the relevant assumptions—</p></intro><level class="para1" eId="schedule-4-paragraph-72-6-a"><num>(a)</num><content><p>a person chargeable to domestic top-up tax that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the person’s membership of the multinational group or group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-6-b"><num>(b)</num><content><p>a qualifying entity that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the entity’s membership of the multinational group or group in respect of which a person is chargeable to domestic top-up tax.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-7"><num>(7)</num><content><p>Where this sub-paragraph applies, a retrospection election may not be made without the written consent of each such person.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-8"><num>(8)</num><intro><p>For the purposes of sub-paragraph <ref href="#schedule-4-paragraph-72-6">(6)</ref>, the relevant assumptions are—</p></intro><level class="para1" eId="schedule-4-paragraph-72-8-a"><num>(a)</num><content><p>that the retrospection election had been made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-8-b"><num>(b)</num><content><p>that no election under section 271 of F(No.2)A 2023 had been made.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-9"><num>(9)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-9-a"><num>(a)</num><content><p>the filing member of a multinational group is not a responsible member of that multinational group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-9-b"><num>(b)</num><content><p>there is more than one responsible member of that multinational group,</p></content></level><wrapUp><p>a retrospection election may not be made without the written consent of each responsible member.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-72-10"><num>(10)</num><intro><p>Sub-paragraph <ref href="#schedule-4-paragraph-72-11">(11)</ref> applies where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-10-a"><num>(a)</num><content><p>the filing member of a multinational group or group has made a retrospection election,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-b"><num>(b)</num><content><p>at the time the election was made it was reasonable for the filing member to consider that the consent of a person was not required,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-c"><num>(c)</num><content><p>that consent was not given,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-d"><num>(d)</num><content><p>the filing member becomes aware that the consent of that person was, or may have been, required, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-e"><num>(e)</num><content><p>the written consent of that person is given within the period of 60 days beginning with the day on which the condition in paragraph <ref href="#schedule-4-paragraph-72-10-d">(d)</ref> is first met.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-11"><num>(11)</num><content><p>The consent of that person is to be treated as having been given before the election was made.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-12"><num>(12)</num><content><p>References in this paragraph to a “group”, other than in the expression “multinational group”, are to a group for the purposes of Part 4 of F(No.2)A 2023 (domestic top-up tax).</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-uk-ets-authority" eId="term-uk-ets-authority">UK ETS authority</term>” has the meaning given by Article 14 of the Greenhouse Gas Emissions Trading Scheme Order 2020 (<ref eId="c00065" href="http://www.legislation.gov.uk/id/uksi/2020/1265">S.I. 2020/1265</ref>).</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 127 (excluded entities), in each of subsections (5), (6) and (7), in paragraph (a), for “it” substitute <quotedText>“the entity or, in the case of a permanent establishment, the main entity”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-13-paragraph-45-1"><num>(1)</num><content><p><ref href="#schedule-13-part-1">Part 1</ref> of <ref href="#schedule-13">this Schedule</ref>, other than <ref href="#schedule-13-paragraph-26">paragraph 26</ref>, comes into force on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-2"><num>(2)</num><content><p><ref href="#schedule-13-paragraph-26">Paragraph 26</ref> (repeal of sections 267ZA and 267ZB) comes into force on 6 April 2032.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-12">paragraph 12</ref> to section 74A of IHTA 1984 (arrangements involving acquisition of interest in settled property etc) have effect where the relevant time (as defined in section 74C(5) of that Act) is on or after 6 April 2025 (even if the arrangements were entered into before that date).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-4"><num>(4)</num><content><p>The amendment made by <ref href="#schedule-13-paragraph-19">paragraph 19</ref> to section 136 of IHTA 1984 (transactions of close companies) has effect in relation to relevant transactions (within the meaning of that section) on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-5"><num>(5)</num><content><p>The amendments made by <span><ref href="#schedule-13-paragraph-37">paragraphs 37</ref> to <ref href="#schedule-13-paragraph-43">43</ref></span> to the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00344" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>) have effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-6"><num>(6)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-44">paragraph 44</ref> to the Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00345" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>) have effect in relation to chargeable events (within the meaning of regulation 2 of those Regulations) occurring on or after 6 April 2025.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-48" class="schProv1"><num>48</num><content><p>The insertion of section 272(2) of IHTA 1984 by <ref href="#schedule-13-paragraph-28">paragraph 28</ref><ref href="#schedule-13-paragraph-28-6">(6)</ref> of this Schedule (meaning of references to dying or being alive in the case of corporate settlors) is to be disregarded in construing section 201(1)(d) of IHTA 1984 in relation to property that became comprised in the settlement before 6 April 2025.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e20784"><heading>Permanent establishments as excluded entities</heading><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 127 (excluded entities), in each of subsections (5), (6) and (7), in paragraph (a), for “it” substitute <quotedText>“the entity or, in the case of a permanent establishment, the main entity”</quotedText>.</mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e20796"><heading>Use of substituted values</heading><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p><mod>After section 137 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>137A</num><heading>Use of substituted values</heading><subsection><num>(1)</num><intro><p>Where any provision of this Part requires the substitution of a value recorded in the underlying profits accounts of a member of a multinational group for an accounting period, the substituted value—</p></intro><level class="para1"><num>(a)</num><content><p>is to be used for all purposes of this Part instead of the value recorded in the accounts (for example, where the carrying value of an asset has been substituted and the value of that asset is relevant to the member’s deferred tax expense, that substituted value is to be used in connection with determining that expense), and</p></content></level><level class="para1"><num>(b)</num><content><p>is to be updated (for example, in making adjustments for depreciation for subsequent accounting periods),</p></content></level><wrapUp><p>in each case, in accordance with the accounting standard used in determining the underlying profits of the member.</p></wrapUp></subsection><subsection eId="d25e20837"><num>(2)</num><content><p>But where the value in question is the value of an asset, no adjustments for impairment are to be made to it.</p></content></subsection><subsection eId="d25e20843"><num>(3)</num><content><p>Where the impaired value of an asset recorded in the underlying profits accounts for any accounting period is less than the substituted value of the asset for that period, use the value from the underlying profits accounts instead for that period and all subsequent periods (and <ref href="#d25e20837">subsection (2)</ref> does not apply in relation to that value).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><intro><p>In section 197 (eligible tangible asset amount), in <ref href="#d25e20843">subsection (3)</ref>—</p></intro><level class="para1" eId="schedule-4-paragraph-12-2-a"><num>(a)</num><content><p><mod>after “means” insert <quotedText>“values”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-12-2-b"><num>(b)</num><content><p><mod>after “parent” insert <quotedText>“(and not values as substituted as a result of any other provision of this Part)”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e20879"><heading>Flow-through entities</heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-4-paragraph-13-1"><num>(1)</num><content><p>Section 168 (underlying profits of transparent and reverse hybrid entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-2"><num>(2)</num><content><p>In the heading omit “and reverse hybrid”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20905"><num>(2A)</num><intro><p>Subject to <ref href="#d25e20941">subsection (2C)</ref>, a member of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M if that member—</p></intro><level class="para1"><num>(a)</num><content><p>is a non-FTE entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>holds an ownership interest in M which is not held through a non-FTE entity.</p></content></level></subsection><subsection><num>(2B)</num><content><p>In subsection <ref href="#d25e20905">(2A)</ref> “<term refersTo="#term-non-fte-entity">non-FTE entity</term>” means an entity that is not a flow-through entity.</p></content></subsection><subsection eId="d25e20941"><num>(2C)</num><content><p>If no member of the group is a reference entity in relation to M by virtue of subsection <ref href="#d25e20905">(2A)</ref>, the ultimate parent of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-4"><num>(4)</num><content><p><mod>In subsection (3) for the words from “each” to the end substitute “any member of the group (“<term refersTo="#term-r" eId="term-r">R</term>”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>which is a reference entity in relation to M, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to which condition A or B is met.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-13-5-a"><num>(a)</num><content><p><mod>in each place, for “O” substitute <quotedText>“R”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-b"><num>(b)</num><content><p><mod>for “proportional” substitute <quotedText>“percentage”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-c"><num>(c)</num><content><p>omit “(subject to subsection (7))”.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-13-6"><num>(6)</num><content><p><mod>For subsections (5) and (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Condition A is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is direct,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest, and</p></content></level><level class="para1"><num>(c)</num><content><p>M is regarded as tax transparent in the territory in which R is located.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Condition B is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is indirect,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest,</p></content></level><level class="para1"><num>(c)</num><content><p>M and each entity through which the ownership interest is held are regarded as tax transparent in the territory in which R is located, and</p></content></level><level class="para1"><num>(d)</num><content><p>no entity through which R holds the ownership interest is a reference entity in relation to M.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-7"><num>(7)</num><content><p>Omit subsection (7).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-8"><num>(8)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21079"><num>(9)</num><intro><p>Where every ownership interest in M held by a member of the group is a flow-through ownership interest, and an individual or entity (“the investor”) that is not a member of the group has an ownership interest in M which is held—</p></intro><level class="para1"><num>(a)</num><content><p>directly, or</p></content></level><level class="para1"><num>(b)</num><content><p>through a direct ownership interest in an entity in which a member of the group which is a reference entity in relation to M has an ownership interest,</p></content></level><wrapUp><p>a proportion of M’s underlying profits, equal to the percentage ownership interest the investor has in M, is to be excluded from the adjusted profits of M.</p></wrapUp></subsection><subsection><num>(9A)</num><content><p>Where M is the main entity in relation to a permanent establishment falling within paragraph (a), (b) or (c) of section 232(2), any reduction of M’s underlying profits by virtue of subsection <ref href="#d25e21079">(9)</ref> is to be applied before any attribution of M’s underlying profits to a permanent establishment in accordance with section 159.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-9"><num>(9)</num><content><p>In subsection (10) omit “or an individual”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-10"><num>(10)</num><content><p><mod>After subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10A)</num><intro><p>For the purposes of subsections (5), (6) and (9), an ownership interest in M held by a member of the group is a flow-through ownership interest if (and so far as)—</p></intro><level class="para1"><num>(a)</num><content><p>M is regarded, otherwise than by virtue of section 169(2), as tax transparent in the territory in which M was created,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest is held directly and M is treated by virtue of section 169(2) as being regarded as tax transparent to the extent of the interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest is derived from a direct ownership interest in M to which paragraph (b) applies.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-11"><num>(11)</num><content><p>Omit subsections (11) and (12).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 169 (certain non tax resident entities to be treated as flow-through entities), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-14-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “created” insert <quotedText>“in”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-14-b"><num>(b)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-14-b-i"><num>(i)</num><content><p><mod>after “is” insert <quotedText>“regarded as”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-14-b-ii"><num>(ii)</num><content><p><mod>for “its owners” substitute <quotedText>“holders of direct ownership interests in the member”</quotedText>.</mod></p></content></level></level></paragraph><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (2A) omit “and reverse hybrid”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-4-paragraph-16-1"><num>(1)</num><content><p>Section 178 (reallocation of tax expense) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “hybrid, transparent and reverse hybrid” substitute <quotedText>“hybrid and transparent”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-3"><num>(3)</num><content><p><mod>After subsection (1B) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1C)</num><intro><p>Subsection (1D) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a multinational group (“<term refersTo="#term-m">M</term>”) is a flow-through entity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>any of the following are not regarded as tax transparent in the territory in which a member of the group (“<term refersTo="#term-r">R</term>”), which is a reference entity in relation to M (within the meaning of section 168<ref href="#d25e20905">(2A)</ref>), is located—</p></intro><level class="para2"><num>(i)</num><content><p>M;</p></content></level><level class="para2"><num>(ii)</num><content><p>any member of the group through which R’s ownership interest in M is held.</p></content></level></level></subsection><subsection><num>(1D)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>R, or any member of the group (“<term refersTo="#term-x">X</term>”) which has an ownership interest in R, has an amount of qualifying current tax expense,</p></content></level><level class="para1"><num>(b)</num><content><p>that amount is in respect of profits not included in R’s, or as the case may be X’s, underlying profits, and</p></content></level><level class="para1"><num>(c)</num><content><p>had those profits had been included in R’s, or as the case may be X’s, underlying profits a corresponding amount of profits would have been allocated to M under section 167 (ignoring for this purpose subsection (1)(a) of that section) or 168,</p></content></level><wrapUp><p>that qualifying current tax expense is to be allocated to M (and is to be regarded as qualifying current tax expense of M for the purposes of section 175(2)(a)).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), after “(1A))” insert <quotedText>“or to M (under subsection (1D))”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 240 (location of flow-through entities and permanent establishments), in subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-17-a"><num>(a)</num><content><p><mod>before “would” insert <quotedText>“is the ultimate parent of a multinational group, or”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-17-b"><num>(b)</num><content><p><mod>for “it is located in that territory” substitute <quotedText>“the entity is treated as located in the territory in which it is created”</quotedText>.</mod></p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Disposals of deeply discounted securities</heading><paragraph eId="schedule-9-paragraph-22" class="schProv1"><num>22</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">section 459</a> of <ref eId="c00276" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (application of transfer of assets abroad legislation to disposals of deeply discounted securities), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">subsection (1)</a> omit “or domiciled”.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In section 174 (amount of covered tax balance), in subsection (1), in Step 4, for “covered tax balance expense” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-27" class="schProv1"><num>27</num><content><p><mod>After section 181 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e21974"><num>181A</num><heading>Cross-border allocation of current tax under cross-crediting regime</heading><subsection><num>(1)</num><content><p>Qualifying current tax expense is to be allocated between standard members of a multinational group in a territory in which a cross-crediting regime applies and standard members of the group in another territory in accordance with the cross-crediting regime methodology.</p></content></subsection><subsection><num>(2)</num><content><p>A cross-crediting regime applies in a territory if, under the law of that territory, taxes paid with respect to one source of income arising in another territory give rise to foreign tax credits which can be used against another source of income arising in a further territory.</p></content></subsection><subsection eId="d25e21990"><num>(3)</num><intro><p>The “<term refersTo="#term-cross-crediting-regime-methodology">cross-crediting regime methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the cross-crediting regime methodology, or</p></content></level><level class="para1" eId="d25e22005"><num>(b)</num><content><p>where no cross-crediting regime methodology is identified in any such regulations, the methodology described in the cross-crediting guidance.</p></content></level></subsection><subsection><num>(4)</num><content><p>The “<term refersTo="#term-cross-crediting-guidance">cross-crediting guidance</term>” means Chapter 3.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(5)</num><content><p>Where <ref href="#d25e21990">subsection (3)</ref><ref href="#d25e22005">(b)</ref> applies, the cross-crediting guidance has effect as cross-crediting regime methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(6)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the cross-crediting regime methodology.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 184 (recaptured deferred tax liabilities) after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>This section is to be applied in accordance with, and is subject to, the DTL recapture methodology.</p></content></subsection><subsection eId="d25e22203"><num>(6)</num><intro><p>The DTL recapture methodology means provisions about the treatment of deferred tax liabilities—</p></intro><level class="para1"><num>(a)</num><content><p>set out in regulations made under section 262(1)(a) and identified in those regulations as the DTL recapture methodology, or</p></content></level><level class="para1" eId="d25e22215"><num>(b)</num><content><p>where no such provisions are identified in any such regulations, set out in the DTL recapture guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-dtl-recapture-guidance">DTL recapture guidance</term>” means the guidance in Chapter 1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(8)</num><content><p>Where subsection <ref href="#d25e22203">(6)</ref><ref href="#d25e22215">(b)</ref> applies, the DTL recapture guidance has effect as DTL recapture methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(9)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the DTL recapture methodology.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-4-paragraph-42-1"><num>(1)</num><content><p>Section 270 (amount charged) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-2"><num>(2)</num><content><p><mod>Before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>Where a person is chargeable to domestic top-up tax for an accounting period as, or in respect of, a qualifying entity which is a member of a group, the amount (if any) the person must pay is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine (in accordance with section 272)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>whether the entity has a top-up amount for that period, and</p></item><item><num>(b)</num><p>the extent of any such amount.</p></item></blockList></item><item><p><i>Step 2</i></p><p>If the result of <ref href="#d25e23433">Step 1</ref> is not expressed in sterling, convert the result of that Step to sterling.</p></item></blockList></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-42-3-a"><num>(a)</num><content><p><mod>in the words before Step 1, for “as a qualifying entity or in respect of a qualifying entity” substitute <quotedText>“as or in respect of a qualifying entity which is not a member of a group”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-42-3-b"><num>(b)</num><content><p><mod>in Step 1, after “Determine” insert <quotedText>“(in accordance with section 273)”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-53" class="schProv1"><num>53</num><content><p>In section 141 (general exclusion of dividends), in subsection (9) omit paragraph (b) and the “or” preceding it.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00188" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>In section 202 (overview of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/202">subsection (5)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><content><p>In section 250A (replacement domestic items relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/250A">subsection (7)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>In section 252 (restrictions on relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/252">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>Omit Chapter 6 of Part 4 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-6"><num>(6)</num><intro><p>In section 748 (assets held for purposes of property business)—</p></intro><level class="para1" eId="schedule-5-paragraph-5-6-a"><num>(a)</num><content><p><mod>for <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (1), “<term refersTo="#term-property-business">property business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a UK property business, or</p></content></level><level class="para1"><num>(b)</num><content><p>an overseas property business.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-5-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (5)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-7"><num>(7)</num><content><p>In Schedule 4 (index of defined expressions) omit the entry for “commercial letting of furnished holiday accommodation (in Chapter 6 of Part 4)”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-6-paragraph-8-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/312C">section 312C</a> of <ref eId="c00252" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref>, after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>The participation requirement is not infringed by reason of the exclusion of directors of the company from participating in an award.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-8-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-8">this paragraph</ref> has effect in relation to qualifying bonus payments made on or after 30 October 2024.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-9-paragraph-19-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">Section 275</a> of <ref eId="c00273" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (location of assets) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (1)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">paragraph (l)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (3A)</a>.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-22" class="schProv1"><num>22</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">section 459</a> of <ref eId="c00276" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (application of transfer of assets abroad legislation to disposals of deeply discounted securities), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">subsection (1)</a> omit “or domiciled”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-25" class="schProv1"><num>25</num><content><p>In section 614 of the Income and Corporation Taxes Act 1988 (exemptions and reliefs in respect of income from investments etc. of certain pension schemes), in subsections (4) and (5), omit “not domiciled and”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In sections 175 and 176, in the headings, for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-4-paragraph-43-1"><num>(1)</num><content><p>Section 272 (determining top-up amounts of entity that is a member of a group) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-2"><num>(2)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p><mod>Part 3 has effect for those purposes as if the following sections were substituted for section 193—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>193</num><heading>Determination of top-up amounts of entity that is a member of a group</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e23537">(2)</ref> sets out (for the purposes of Step 1 of section 270(A1)) how to determine in relation to an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>whether an entity which is a standard member of a group has a top-up amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, what the amount is.</p></content></level></subsection><subsection eId="d25e23537"><num>(2)</num><content><p>Take the following Steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine for the period (in accordance with section 272) the sum of any top-up amounts and additional top-up amounts of standard members of the group (the “total top-up amount”).</p></item><item><p><i>Step 2</i></p><p>Determine for each such member—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the adjusted profits (if any);</p></item><item><num>(b)</num><p>the covered tax balance.</p></item></blockList></item><item><p><i>Step 3</i></p><p>For each standard member of the group in relation to which a positive amount of adjusted profits is determined under <ref href="#d25e23552">Step 2</ref>, determine the “effective tax rate” by dividing the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23565">(b)</ref> (covered tax balance) by the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23561">(a)</ref> (adjusted profits).</p></item><item><p><i>Step 4</i></p><p>For any standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>determine that member’s “top-up tax percentage” by subtracting the member’s effective tax rate from 15%, and</p></item><item><num>(b)</num><p>proceed to <ref href="#d25e23613">Step 5</ref>.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Calculate for the member an amount (an “allocation key amount”) by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s top-up tax percentage (see <ref href="#d25e23590">Step 4</ref>(a)), by</p></item><item><num>(b)</num><p>the member’s adjusted profits.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Determine the sum (the “group allocation key amount”) of all the allocation key amounts calculated under <ref href="#d25e23613">Step 5</ref> for members of the group.</p></item><item><p><i>Step 7</i></p><p>Determine the “allocation key ratio” for each standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%, by dividing—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s allocation key amount (see <ref href="#d25e23613">Step 5</ref>), by</p></item><item><num>(b)</num><p>the group allocation key amount (see <ref href="#d25e23633">Step 6</ref>).</p></item></blockList></item><item><p><i>Step 8</i></p><p>Determine each such member’s top-up amount by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of any top-up amounts and additional top-up amounts of standard members of the group for the period (see <ref href="#d25e23544">Step 1</ref>), by</p></item><item><num>(b)</num><p>the member’s allocation key ratio (see <ref href="#d25e23644">Step 7</ref>).</p></item></blockList></item><item><p><i>Step 9</i></p><p>If none of the standard members falls within <ref href="#d25e23569">Step 3</ref>, or none of them has an effective tax rate of less than 15%, each standard member has a top-up amount equal to—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the total top-up amount, divided by</p></item><item><num>(b)</num><p>the number of the standard members.</p></item></blockList></item></blockList></content></subsection></section><section><num>193A</num><heading>Section 193: supplementary</heading><subsection><num>(1)</num><content><p>Section 193 and subsection (2) of this section apply to joint venture groups and their members as they apply to groups and their members.</p></content></subsection><subsection><num>(2)</num><content><p>Section 193 has effect in relation to a qualifying entity that is a standard member of a group as if the total top-up amount referred to in that section included any top-up amounts or additional top-up amounts of qualifying investment entities determined under sections 220 to 224.</p></content></subsection><subsection><num>(3)</num><intro><p>See also subsections (9) to (11) of section 272, which—</p></intro><level class="para1"><num>(a)</num><content><p>define “<term refersTo="#term-qualifying-investment-entity">qualifying investment entity</term>” in relation to a qualifying entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>make further provision about top-up amounts (for the purposes of domestic top-up tax).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-3"><num>(3)</num><content><p>In subsection (8) omit paragraph (e).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-54" class="schProv1"><num>54</num><intro><p>In section 148A (transferable tax credits), in subsection (5)(a)—</p></intro><level class="para1" eId="schedule-4-paragraph-54-a"><num>(a)</num><content><p><mod>in sub-paragraph (i), for “before the end of 15 months” substitute <quotedText>“in the period beginning with the day on which the credit was granted and ending 15 months after the end”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-54-b"><num>(b)</num><content><p><mod>in sub-paragraph (ii), for “before the end of 15 months of the accounting period in which they are granted” substitute <quotedText>“in that period”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-54-a"><num>(a)</num><content><p><mod>in sub-paragraph (i), for “before the end of 15 months” substitute <quotedText>“in the period beginning with the day on which the credit was granted and ending 15 months after the end”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-54-b"><num>(b)</num><content><p><mod>in sub-paragraph (ii), for “before the end of 15 months of the accounting period in which they are granted” substitute <quotedText>“in that period”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-4-paragraph-20-1"><num>(1)</num><content><p>Section 176D (tax credits etc allocated under tax equity partnerships) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-2"><num>(2)</num><content><p><mod>In subsection (1), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>“<term refersTo="#term-flow-through-tax-benefits">Flow-through tax benefits</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>tax credits, other than qualifying refundable tax credits and marketable transferable tax credits, and</p></content></level><level class="para1"><num>(b)</num><content><p>the value of amounts of tax deductible losses,</p></content></level><wrapUp><p>that are made available to be used by an investor in a tax equity partnership arrangement under that arrangement (whether or not those credits or losses are used by the investor).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-4"><num>(4)</num><intro><p>In subsection (3)(b)—</p></intro><level class="para1" eId="schedule-4-paragraph-20-4-a"><num>(a)</num><content><p><mod>for “176D” substitute <quotedText>“176E”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-20-4-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“and the arrangement”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-20-5"><num>(5)</num><content><p><mod>In subsection (7), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-6"><num>(6)</num><content><p><mod>For subsection (11) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21433"><num>(11)</num><intro><p>An election under subsection (3)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the first accounting period for which it is to have effect, which must be the first relevant period,</p></content></level><level class="para1"><num>(b)</num><content><p>must be made no later than the date by which the information return or overseas return notification in respect of the first relevant period is due,</p></content></level><level class="para1"><num>(c)</num><content><p>must be included in an information return submitted to HMRC or a qualifying authority in respect of the first relevant period,</p></content></level><level class="para1"><num>(d)</num><content><p>has effect for the first relevant period and each subsequent accounting period, and</p></content></level><level class="para1"><num>(e)</num><content><p>cannot be revoked.</p></content></level></subsection><subsection><num>(12)</num><intro><p>In subsection <ref href="#d25e21433">(11)</ref>, “<term refersTo="#term-the-first-relevant-period">the first relevant period</term>” means the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period in which the member is an investor in the tax equity partnership arrangement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period for which the Pillar Two rules apply to the member.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-7"><num>(7)</num><content><p>Where a person became an investor in a tax equity partnership arrangement in an accounting period that began before 31 December 2024, section 176D(11) of F(No.2)A 2023 (as inserted by <ref href="#schedule-4-paragraph-20-6">sub-paragraph (6)</ref>) has effect in relation to the arrangement as if “the first relevant period” were the first accounting period beginning on or after that date.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-8"><num>(8)</num><content><p>In sub-paragraph <ref href="#schedule-4-paragraph-20-7">(7)</ref>, “<term refersTo="#term-investor-in-a-tax-equity-partnership-arrangement" eId="term-investor-in-a-tax-equity-partnership-arrangement">investor in a tax equity partnership arrangement</term>” has the same meaning as in section 176D of F(No.2)A 2023.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-55" class="schProv1"><num>55</num><content><p><mod>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (9)(b), for the words from “the ultimate parent’s“ to the end substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>the entity is regarded as tax transparent in the territory in which the ultimate parent is located, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the ultimate parent’s interest in that entity is held directly or through one or more entities all of which are regarded as tax transparent in that territory.</p></content></level></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-4-paragraph-21-1"><num>(1)</num><content><p>Section 176E (flow-through tax benefits: proportional amortisation method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-2"><num>(2)</num><intro><p>In subsection (1), in Step 2—</p></intro><level class="para1" eId="schedule-4-paragraph-21-2-a"><num>(a)</num><content><p><mod>for “flow-through through tax benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-21-2-b"><num>(b)</num><content><p><mod>after “expected” insert <quotedText>“(as at the end of the accounting period)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-21-3"><num>(3)</num><content><p><mod>Also in subsection (1), in Step 7, for “flow-through benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-4"><num>(4)</num><content><p><mod>In subsection (2), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><content><p>Subsections <ref href="#d25e21585">(4)</ref> to <ref href="#d25e21624">(6)</ref> apply in relation to an investor, an arrangement and an accounting period if flow-through tax benefits were provided to the investor under the arrangement in at least one earlier accounting period.</p></content></subsection><subsection eId="d25e21585"><num>(4)</num><content><p>Where the result of Step 3 in subsection (1) would (but for this subsection) be greater than N, this section has effect as if the result of Step 3 were N.</p></content></subsection><subsection eId="d25e21591"><num>(5)</num><intro><p>To find N—</p></intro><level class="para1" eId="d25e21597"><num>(a)</num><content><p>identify the amount that was the result of Step 3 in subsection (1) in each earlier accounting period in which flow-through tax benefits were provided to the investor under the arrangement,</p></content></level><level class="para1" eId="d25e21603"><num>(b)</num><content><p>add together all the amounts identified under <ref href="#d25e21597">paragraph (a)</ref>, and</p></content></level><level class="para1"><num>(c)</num><content><p>subtract the result of <ref href="#d25e21603">paragraph (b)</ref> from the result of Step 1 in subsection (1).</p></content></level><wrapUp><p>The result is N, unless the result is below nil, in which case N is nil.</p></wrapUp></subsection><subsection eId="d25e21624"><num>(6)</num><content><p>A reference in <ref href="#d25e21591">subsection (5)</ref><ref href="#d25e21597">(a)</ref> to the result of Step 3 in subsection (1) in an earlier accounting period, where <ref href="#d25e21585">subsection (4)</ref> had effect in relation to the earlier period, is to the result of that Step as modified under <ref href="#d25e21585">subsection (4)</ref>.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-56" class="schProv1"><num>56</num><intro><p>In section 171 (ultimate parent subject to qualifying dividend regime)—</p></intro><level class="para1" eId="schedule-4-paragraph-56-a"><num>(a)</num><content><p>in subsection (2)(b), omit “adjusted”, and</p></content></level><level class="para1" eId="schedule-4-paragraph-56-b"><num>(b)</num><content><p><mod>in subsection (6), for “underlying”, in each place it occurs, substitute <quotedText>“adjusted”</quotedText></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-56-a"><num>(a)</num><content><p>in subsection (2)(b), omit “adjusted”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-56-b"><num>(b)</num><content><p><mod>in subsection (6), for “underlying”, in each place it occurs, substitute <quotedText>“adjusted”</quotedText></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-4-paragraph-22-1"><num>(1)</num><content><p>Section 176F (flow-through tax benefits: subtraction method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-2"><num>(2)</num><content><p><mod>In Step 2, in paragraph (a), for the words from “other than” to the end substitute <quotedText startQuote="“">other than tax credits—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>that were made available in the accounting period, and</p></item><item><num>(ii)</num><p>that are not qualifying refundable tax credits or marketable transferable tax credits;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-3"><num>(3)</num><content><p><mod>In Step 3, for “under arrangement” substitute <quotedText>“under the arrangement”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 176B (value of non-marketable transferable tax credits: originator), in subsection (3), after “the”, in the fourth place it occurs, insert <quotedText>“end of the”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-23" class="schProv1"><num>23</num><content><p><mod>After section 176F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>176G</num><heading>Clawback of earlier qualifying flow-through tax benefits</heading><subsection><num>(1)</num><intro><p>This section applies to an investor in a tax equity partnership arrangement if—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying flow-through tax benefits are excluded under section 176D(1) from the investor’s covered tax balance for an accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the investor has an excess return from the arrangement in a later accounting period (“the later period”).</p></content></level></subsection><subsection eId="d25e21712"><num>(2)</num><content><p>For the purpose of determining the investor’s covered tax balance for the later period, the investor’s qualifying current tax expense for that period is to be adjusted (after the steps in section 174(1) have been taken) by subtracting the clawback amount.</p></content></subsection><subsection><num>(3)</num><content><p>“The clawback amount” is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the total amount of the qualifying flow-through tax benefits provided to the investor under the arrangement in accounting periods before the later period.</p></item><item><p><i>Step 2</i></p><p>Subtract from the result of Step 1 the total of any amounts subtracted under <ref href="#d25e21712">subsection (2)</ref> from the investor’s qualifying current tax expense for accounting periods before the later period.</p></item><item><p><i>Step 3</i></p><p>Compare the result of Step 2 with the amount of the investor’s excess return from the arrangement in the later period.</p><p>Whichever is less is the clawback amount.</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, an investor has an “excess return” from an arrangement in an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>where section 176E applies, if the result of Step 6 in section 176E(1) exceeds the amount of the flow-through tax benefits provided under the arrangement in the accounting period, in which case the amount of the excess return is the amount of the excess;</p></content></level><level class="para1"><num>(b)</num><content><p>where section 176F applies and the investor did not have an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than nil, in which case the amount of the excess return is the amount by which it is less than nil;</p></content></level><level class="para1"><num>(c)</num><content><p>where section 176F applies and the investor had an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than it was in the last accounting period in which the investor had an excess return from the arrangement, in which case the amount of the excess return is the amount of the difference.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-58" class="schProv1"><num>58</num><intro><p>In section 176C (value of non-marketable transferable tax credits: purchaser)—</p></intro><level class="para1" eId="schedule-4-paragraph-58-a"><num>(a)</num><content><p><mod>in subsection (4)(b), for “underlying” substitute <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-58-b"><num>(b)</num><content><p>in subsection (5)(a)(ii) omit “reflected”;</p></content></level><level class="para1" eId="schedule-4-paragraph-58-c"><num>(c)</num><content><p><mod>in subsection (6) for “underlying” substitute <quotedText>“adjusted”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-58-a"><num>(a)</num><content><p><mod>in subsection (4)(b), for “underlying” substitute <quotedText>“adjusted”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-58-b"><num>(b)</num><content><p>in subsection (5)(a)(ii) omit “reflected”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-58-c"><num>(c)</num><content><p><mod>in subsection (6) for “underlying” substitute <quotedText>“adjusted”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-24" class="schProv1"><num>24</num><content><p>In Schedule 15 (elections), in paragraph 2(1) (annual elections), omit paragraph (za).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-59" class="schProv1"><num>59</num><content><p><mod>In section 176D (tax credits etc allocated under tax equity partnerships), in subsection (10), for “the amount multiplied” substitute <quotedText>“that amount”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-60" class="schProv1"><num>60</num><intro><p>In section 211 (transfer of assets or liabilities to a member of a multinational group)—</p></intro><level class="para1" eId="schedule-4-paragraph-60-a"><num>(a)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-60-a-i"><num>(i)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-60-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the transferor and the transferee are not members of the same type located in the same territory, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-60-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>For the purposes of subsection (2) two members of a multinational group are of the same type if—</p></intro><level class="para1"><num>(a)</num><content><p>they are both standard members of the group,</p></content></level><level class="para1"><num>(b)</num><content><p>they are both investment entities, or</p></content></level><level class="para1"><num>(c)</num><content><p>they are both members of the same minority subgroup (see section 228).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-4-paragraph-60-a"><num>(a)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-60-a-i"><num>(i)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-60-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the transferor and the transferee are not members of the same type located in the same territory, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-4-paragraph-60-a-i"><num>(i)</num><content><p>omit the “and” after paragraph (b), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="schedule-4-paragraph-60-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the transferor and the transferee are not members of the same type located in the same territory, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-4-paragraph-60-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>For the purposes of subsection (2) two members of a multinational group are of the same type if—</p></intro><level class="para1"><num>(a)</num><content><p>they are both standard members of the group,</p></content></level><level class="para1"><num>(b)</num><content><p>they are both investment entities, or</p></content></level><level class="para1"><num>(c)</num><content><p>they are both members of the same minority subgroup (see section 228).</p></content></level></subsection></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 212 (meaning of “<term refersTo="#term-qualifying-reorganisation" eId="term-qualifying-reorganisation">qualifying reorganisation</term>”), in subsection (4), after “is”, in the third place it occurs, insert <quotedText>“no greater than”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-62" class="schProv1"><num>62</num><content><p>In section 215 (undistributed income amount), in subsection (2)(c) omit “the made a loss”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-63" class="schProv1"><num>63</num><content><p><mod>In section 216 (election where assets and liabilities adjusted to fair value for tax purposes), in subsection (7)(a), before “immediately after” insert <quotedText>“or liability”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-64" class="schProv1"><num>64</num><content><p><mod>In section 217 (post filing adjustments of covered taxes), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>In the case of a prior accounting period for which there is no information return, overseas information return or self-assessment return, the reference to covered taxes being reflected in such a return is to the covered taxes as would have been reflected in such a return had there been one.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-65" class="schProv1"><num>65</num><content><p><mod>In section 217(8), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the aggregate covered tax balance of the standard members of the group in the territory of the member for the prior period is not reduced by 1 million euros or more, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 220 (top-up amount of investment entity)—</p></intro><level class="para1" eId="schedule-4-paragraph-66-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-66-a-i"><num>(i)</num><content><p><mod>in Step 8, after “entity” insert <quotedText>“, unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9), and</quotedText></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-66-a-ii"><num>(ii)</num><content><p><mod>after that Step insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 9</i></p><p>Where this Step applies, the top-up amount for the entity is the sum of—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the result of Step 8, and</p></item><item><num>(b)</num><p>the positive undistributed income amount for the entity for the period multiplied by 15%.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-66-b"><num>(b)</num><content><p>omit subsection (2).</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-4-paragraph-66-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-66-a-i"><num>(i)</num><content><p><mod>in Step 8, after “entity” insert <quotedText>“, unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9), and</quotedText></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-66-a-ii"><num>(ii)</num><content><p><mod>after that Step insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 9</i></p><p>Where this Step applies, the top-up amount for the entity is the sum of—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the result of Step 8, and</p></item><item><num>(b)</num><p>the positive undistributed income amount for the entity for the period multiplied by 15%.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-4-paragraph-66-a-i"><num>(i)</num><content><p><mod>in Step 8, after “entity” insert <quotedText>“, unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9), and</quotedText></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="schedule-4-paragraph-66-a-ii"><num>(ii)</num><content><p><mod>after that Step insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 9</i></p><p>Where this Step applies, the top-up amount for the entity is the sum of—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the result of Step 8, and</p></item><item><num>(b)</num><p>the positive undistributed income amount for the entity for the period multiplied by 15%.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-66-b"><num>(b)</num><content><p>omit subsection (2).</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-67" class="schProv1"><num>67</num><content><p><mod>In section 222 (investment entity effective tax rate), in Step 9 for “Step 1” substitute <quotedText>“Step 2”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-68" class="schProv1"><num>68</num><content><p>In section 242 (ownership interests and controlling interests), in subsection (5)(a) omit “financial”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-69" class="schProv1"><num>69</num><content><p><mod>In section 255 (Pillar Two rules), in subsection (6), for “3(1)” substitute <quotedText>“3 of Schedule 16”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-70" class="schProv1"><num>70</num><intro><p>In Schedule 14 (administration of multinational top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-70-a"><num>(a)</num><content><p><mod>in paragraph 2(12), for “entity” substitute <quotedText>“member”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-70-b"><num>(b)</num><content><p><mod>in paragraph 7(6), for “or Revenue” substitute <quotedText>“of Revenue”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-70-a"><num>(a)</num><content><p><mod>in paragraph 2(12), for “entity” substitute <quotedText>“member”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-70-b"><num>(b)</num><content><p><mod>in paragraph 7(6), for “or Revenue” substitute <quotedText>“of Revenue”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-71" class="schProv1"><num>71</num><content><p>In Schedule 16A (multinational top-up tax: safe harbours), in paragraph 4(1)(b) omit “members of the group that are”.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e21323"><heading>Tax equity partnerships</heading><paragraph eId="schedule-4-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In section 174 (amount of covered tax balance), in subsection (1), in Step 4, for “covered tax balance expense” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In sections 175 and 176, in the headings, for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-4-paragraph-20-1"><num>(1)</num><content><p>Section 176D (tax credits etc allocated under tax equity partnerships) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-2"><num>(2)</num><content><p><mod>In subsection (1), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>“<term refersTo="#term-flow-through-tax-benefits">Flow-through tax benefits</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>tax credits, other than qualifying refundable tax credits and marketable transferable tax credits, and</p></content></level><level class="para1"><num>(b)</num><content><p>the value of amounts of tax deductible losses,</p></content></level><wrapUp><p>that are made available to be used by an investor in a tax equity partnership arrangement under that arrangement (whether or not those credits or losses are used by the investor).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-4"><num>(4)</num><intro><p>In subsection (3)(b)—</p></intro><level class="para1" eId="schedule-4-paragraph-20-4-a"><num>(a)</num><content><p><mod>for “176D” substitute <quotedText>“176E”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-20-4-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“and the arrangement”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-20-5"><num>(5)</num><content><p><mod>In subsection (7), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-6"><num>(6)</num><content><p><mod>For subsection (11) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21433"><num>(11)</num><intro><p>An election under subsection (3)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the first accounting period for which it is to have effect, which must be the first relevant period,</p></content></level><level class="para1"><num>(b)</num><content><p>must be made no later than the date by which the information return or overseas return notification in respect of the first relevant period is due,</p></content></level><level class="para1"><num>(c)</num><content><p>must be included in an information return submitted to HMRC or a qualifying authority in respect of the first relevant period,</p></content></level><level class="para1"><num>(d)</num><content><p>has effect for the first relevant period and each subsequent accounting period, and</p></content></level><level class="para1"><num>(e)</num><content><p>cannot be revoked.</p></content></level></subsection><subsection><num>(12)</num><intro><p>In subsection <ref href="#d25e21433">(11)</ref>, “<term refersTo="#term-the-first-relevant-period">the first relevant period</term>” means the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period in which the member is an investor in the tax equity partnership arrangement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period for which the Pillar Two rules apply to the member.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-7"><num>(7)</num><content><p>Where a person became an investor in a tax equity partnership arrangement in an accounting period that began before 31 December 2024, section 176D(11) of F(No.2)A 2023 (as inserted by <ref href="#schedule-4-paragraph-20-6">sub-paragraph (6)</ref>) has effect in relation to the arrangement as if “the first relevant period” were the first accounting period beginning on or after that date.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-8"><num>(8)</num><content><p>In sub-paragraph <ref href="#schedule-4-paragraph-20-7">(7)</ref>, “<term refersTo="#term-investor-in-a-tax-equity-partnership-arrangement" eId="term-investor-in-a-tax-equity-partnership-arrangement">investor in a tax equity partnership arrangement</term>” has the same meaning as in section 176D of F(No.2)A 2023.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-4-paragraph-21-1"><num>(1)</num><content><p>Section 176E (flow-through tax benefits: proportional amortisation method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-2"><num>(2)</num><intro><p>In subsection (1), in Step 2—</p></intro><level class="para1" eId="schedule-4-paragraph-21-2-a"><num>(a)</num><content><p><mod>for “flow-through through tax benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-21-2-b"><num>(b)</num><content><p><mod>after “expected” insert <quotedText>“(as at the end of the accounting period)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-21-3"><num>(3)</num><content><p><mod>Also in subsection (1), in Step 7, for “flow-through benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-4"><num>(4)</num><content><p><mod>In subsection (2), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><content><p>Subsections <ref href="#d25e21585">(4)</ref> to <ref href="#d25e21624">(6)</ref> apply in relation to an investor, an arrangement and an accounting period if flow-through tax benefits were provided to the investor under the arrangement in at least one earlier accounting period.</p></content></subsection><subsection eId="d25e21585"><num>(4)</num><content><p>Where the result of Step 3 in subsection (1) would (but for this subsection) be greater than N, this section has effect as if the result of Step 3 were N.</p></content></subsection><subsection eId="d25e21591"><num>(5)</num><intro><p>To find N—</p></intro><level class="para1" eId="d25e21597"><num>(a)</num><content><p>identify the amount that was the result of Step 3 in subsection (1) in each earlier accounting period in which flow-through tax benefits were provided to the investor under the arrangement,</p></content></level><level class="para1" eId="d25e21603"><num>(b)</num><content><p>add together all the amounts identified under <ref href="#d25e21597">paragraph (a)</ref>, and</p></content></level><level class="para1"><num>(c)</num><content><p>subtract the result of <ref href="#d25e21603">paragraph (b)</ref> from the result of Step 1 in subsection (1).</p></content></level><wrapUp><p>The result is N, unless the result is below nil, in which case N is nil.</p></wrapUp></subsection><subsection eId="d25e21624"><num>(6)</num><content><p>A reference in <ref href="#d25e21591">subsection (5)</ref><ref href="#d25e21597">(a)</ref> to the result of Step 3 in subsection (1) in an earlier accounting period, where <ref href="#d25e21585">subsection (4)</ref> had effect in relation to the earlier period, is to the result of that Step as modified under <ref href="#d25e21585">subsection (4)</ref>.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-4-paragraph-22-1"><num>(1)</num><content><p>Section 176F (flow-through tax benefits: subtraction method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-2"><num>(2)</num><content><p><mod>In Step 2, in paragraph (a), for the words from “other than” to the end substitute <quotedText startQuote="“">other than tax credits—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>that were made available in the accounting period, and</p></item><item><num>(ii)</num><p>that are not qualifying refundable tax credits or marketable transferable tax credits;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-3"><num>(3)</num><content><p><mod>In Step 3, for “under arrangement” substitute <quotedText>“under the arrangement”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-23" class="schProv1"><num>23</num><content><p><mod>After section 176F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>176G</num><heading>Clawback of earlier qualifying flow-through tax benefits</heading><subsection><num>(1)</num><intro><p>This section applies to an investor in a tax equity partnership arrangement if—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying flow-through tax benefits are excluded under section 176D(1) from the investor’s covered tax balance for an accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the investor has an excess return from the arrangement in a later accounting period (“the later period”).</p></content></level></subsection><subsection eId="d25e21712"><num>(2)</num><content><p>For the purpose of determining the investor’s covered tax balance for the later period, the investor’s qualifying current tax expense for that period is to be adjusted (after the steps in section 174(1) have been taken) by subtracting the clawback amount.</p></content></subsection><subsection><num>(3)</num><content><p>“The clawback amount” is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the total amount of the qualifying flow-through tax benefits provided to the investor under the arrangement in accounting periods before the later period.</p></item><item><p><i>Step 2</i></p><p>Subtract from the result of Step 1 the total of any amounts subtracted under <ref href="#d25e21712">subsection (2)</ref> from the investor’s qualifying current tax expense for accounting periods before the later period.</p></item><item><p><i>Step 3</i></p><p>Compare the result of Step 2 with the amount of the investor’s excess return from the arrangement in the later period.</p><p>Whichever is less is the clawback amount.</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, an investor has an “excess return” from an arrangement in an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>where section 176E applies, if the result of Step 6 in section 176E(1) exceeds the amount of the flow-through tax benefits provided under the arrangement in the accounting period, in which case the amount of the excess return is the amount of the excess;</p></content></level><level class="para1"><num>(b)</num><content><p>where section 176F applies and the investor did not have an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than nil, in which case the amount of the excess return is the amount by which it is less than nil;</p></content></level><level class="para1"><num>(c)</num><content><p>where section 176F applies and the investor had an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than it was in the last accounting period in which the investor had an excess return from the arrangement, in which case the amount of the excess return is the amount of the difference.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-24" class="schProv1"><num>24</num><content><p>In Schedule 15 (elections), in paragraph 2(1) (annual elections), omit paragraph (za).</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e21785"><heading>Blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-4-paragraph-25-1"><num>(1)</num><content><p>Section 180 (blended CFC regimes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-25-2"><num>(2)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-25-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “the effective tax rate of” substitute <quotedText>“a single effective tax rate of all”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is a member of the multinational group,</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different subsets of (one or more) members of the multinational group located in the territory where the CFC entity is located (“local blending subsets”), and</p></content></level><level class="para2"><num>(iii)</num><content><p>the CFC entity is a member of a local blending subset,</p></content></level><wrapUp><p>the effective tax rate of the local blending subset of which the CFC entity is a member, calculated on the assumptions set out in paragraph (a)(i) and (ii) (“the relevant assumptions”);</p></wrapUp></level><level class="para1"><num>(ab)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is not a member of the multinational group, or is a member of the multinational group but not a member of any local blending subset, and</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different local blending subsets,</p></content></level><wrapUp><p>the effective tax rate, calculated on the relevant assumptions, of the local blending subset whose members have collectively the highest attributable income of C in relation to the CFC entity (as mentioned in subsection (5)(a));</p></wrapUp></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-c"><num>(c)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-25-2-c-i"><num>(i)</num><content><p><mod>for “where it is not located in such a territory,” substitute <quotedText>“where no applicable effective tax rate can be determined under paragraphs (a) to (ab)”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-25-2-c-ii"><num>(ii)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>But this is subject to section 180A.</p></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-25-3"><num>(3)</num><content><p><mod>After section 180 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>180A</num><heading>Section 180: further provision</heading><subsection><num>(1)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 3 of Schedule 16 for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of the multinational group (as defined in paragraph 8 of Schedule 16)).</p></content></subsection><subsection><num>(2)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 10 of Schedule 16 (application in the case of joint venture group) for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of that multinational group (as defined in paragraph 8 of Schedule 16).</p></content></subsection><subsection><num>(3)</num><content><p>Subsection (4) has effect where the filing member of a particular multinational group mentioned in section 180(8)(a) has made one or more separate elections under any of paragraphs 1, 4, 5 and 6 of Schedule 16A for the relevant period in respect of the territory mentioned in section 180(8)(a).</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of section 180, the effective tax rate of any member or set of members to which a particular election mentioned in subsection (4) relates is to be the rate (expressed as a percentage) given by dividing—</p></intro><level class="para1"><num>(a)</num><content><p>the aggregate tax expense of that member or set of members used to determine the effective tax rate for the purposes of the qualifying domestic top-up tax applying in the territory for the accounting period, together with any amounts of qualifying domestic top-up tax paid of that member or set of members, by</p></content></level><level class="para1"><num>(b)</num><content><p>the income of that member or set of members determined for the purposes of the qualifying domestic top-up tax.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “relevant period” is to be interpreted in accordance with section 180(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e21949"><heading>No allocation of deferred tax assets and liabilities under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-26" class="schProv1"><num>26</num><content><p><mod>In section 180 (blended CFC regimes), in subsection (3), in the words before paragraph (a), for “tax charged to C under” substitute <quotedText>“C’s current tax expense so far as relating to”</quotedText>.</mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e21961"><heading>Cross-border allocation of current tax under cross-crediting regimes</heading><paragraph eId="schedule-4-paragraph-27" class="schProv1"><num>27</num><content><p><mod>After section 181 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e21974"><num>181A</num><heading>Cross-border allocation of current tax under cross-crediting regime</heading><subsection><num>(1)</num><content><p>Qualifying current tax expense is to be allocated between standard members of a multinational group in a territory in which a cross-crediting regime applies and standard members of the group in another territory in accordance with the cross-crediting regime methodology.</p></content></subsection><subsection><num>(2)</num><content><p>A cross-crediting regime applies in a territory if, under the law of that territory, taxes paid with respect to one source of income arising in another territory give rise to foreign tax credits which can be used against another source of income arising in a further territory.</p></content></subsection><subsection eId="d25e21990"><num>(3)</num><intro><p>The “<term refersTo="#term-cross-crediting-regime-methodology">cross-crediting regime methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the cross-crediting regime methodology, or</p></content></level><level class="para1" eId="d25e22005"><num>(b)</num><content><p>where no cross-crediting regime methodology is identified in any such regulations, the methodology described in the cross-crediting guidance.</p></content></level></subsection><subsection><num>(4)</num><content><p>The “<term refersTo="#term-cross-crediting-guidance">cross-crediting guidance</term>” means Chapter 3.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(5)</num><content><p>Where <ref href="#d25e21990">subsection (3)</ref><ref href="#d25e22005">(b)</ref> applies, the cross-crediting guidance has effect as cross-crediting regime methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(6)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the cross-crediting regime methodology.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e22037"><heading>Cross-border allocation of deferred tax</heading><paragraph eId="schedule-4-paragraph-28" class="schProv1"><num>28</num><content><p><mod>After section <ref href="#d25e21974">181A</ref> (as inserted by <ref href="#schedule-4-paragraph-27">paragraph 27</ref>) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Cross-border allocation of deferred tax expense</heading><section><num>181B</num><heading>Cross-border allocation of deferred tax assets and liabilities</heading><subsection><num>(1)</num><content><p>Deferred tax assets and liabilities are to be allocated between standard members of a multinational group in one territory and standard members of the group in another territory in accordance with the deferred taxes methodology.</p></content></subsection><subsection eId="d25e22069"><num>(2)</num><intro><p>The “<term refersTo="#term-deferred-taxes-methodology">deferred taxes methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the deferred taxes methodology, or</p></content></level><level class="para1" eId="d25e22084"><num>(b)</num><content><p>where no deferred taxes methodology is identified in any such regulations, the methodology described in the cross-border deferred taxes guidance.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-cross-border-deferred-taxes-guidance">cross-border deferred taxes guidance</term>” means Chapter 4.2 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(4)</num><content><p>Where <ref href="#d25e22069">subsection (2)</ref><ref href="#d25e22084">(b)</ref> applies, the cross-border deferred taxes guidance has effect as deferred taxes methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(5)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the deferred taxes methodology.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e22116"><heading>Extension of qualifying foreign tax credits</heading><paragraph eId="schedule-4-paragraph-29" class="schProv1"><num>29</num><intro><p>In section 183 (qualifying foreign tax credits (substitute loss carry forward assets))—</p></intro><level class="para1" eId="schedule-4-paragraph-29-a"><num>(a)</num><intro><p>in subsection (5)—</p></intro><level class="para2" eId="schedule-4-paragraph-29-a-i"><num>(i)</num><content><p>the words from “income”, in the second place it occurs, to the end become paragraph (a), and</p></content></level><level class="para2" eId="schedule-4-paragraph-29-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>other qualifying income.</p></content></level></quotedStructure></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-29-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>For the purposes of subsection (5) “other qualifying income means”—</p></intro><level class="para1"><num>(a)</num><content><p>income identified as such for the purposes of this section in regulations made under section 262(1)(a), or</p></content></level><level class="para1"><num>(b)</num><content><p>where no income is identified as other qualifying income in any such regulations, such income as is necessary to give effect to the substitute loss carry-forward guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-substitute-loss-carry-forward-guidance">substitute loss carry-forward guidance</term>” means Chapter 4.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e22187"><heading>Deferred tax recapture</heading><paragraph eId="schedule-4-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 184 (recaptured deferred tax liabilities) after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>This section is to be applied in accordance with, and is subject to, the DTL recapture methodology.</p></content></subsection><subsection eId="d25e22203"><num>(6)</num><intro><p>The DTL recapture methodology means provisions about the treatment of deferred tax liabilities—</p></intro><level class="para1"><num>(a)</num><content><p>set out in regulations made under section 262(1)(a) and identified in those regulations as the DTL recapture methodology, or</p></content></level><level class="para1" eId="d25e22215"><num>(b)</num><content><p>where no such provisions are identified in any such regulations, set out in the DTL recapture guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-dtl-recapture-guidance">DTL recapture guidance</term>” means the guidance in Chapter 1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(8)</num><content><p>Where subsection <ref href="#d25e22203">(6)</ref><ref href="#d25e22215">(b)</ref> applies, the DTL recapture guidance has effect as DTL recapture methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(9)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the DTL recapture methodology.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e22247"><heading>Existing deferred tax assets and liabilities arising under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-31" class="schProv1"><num>31</num><content><p><mod>In section 185 (inclusion of existing deferred tax assets and liabilities on entry into regime), after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Subsection <ref href="#d25e22266">(9)</ref> applies to a deferred tax asset or deferred tax liability of a member of a qualifying multinational group that arises under a blended CFC regime.</p></content></subsection><subsection eId="d25e22266"><num>(9)</num><content><p>A deferred tax asset or deferred tax liability to which this subsection applies is to be ignored in determining the member’s deferred tax expense.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e22272"><heading>Substance based income exclusion: permanent establishments and flow-through entities</heading><paragraph eId="schedule-4-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 195 (substance based income exclusion), for subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Section 198 supplements the rules in sections 196 and 197 in relation to a member that is a permanent establishment.</p></content></subsection><subsection><num>(9)</num><content><p>Section 198ZA supplements the rules in sections 196 and 197 in relation to a member that is a flow-through entity.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-33" class="schProv1"><num>33</num><content><p><mod>For section 198 (eligible payroll costs and eligible tangible asset amount: permanent establishments and flow-through entities) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>198</num><heading>Eligible payroll costs and eligible tangible asset amount: permanent establishments</heading><subsection><num>(1)</num><content><p>Sections 196 and 197 apply in relation to permanent establishments with the following modifications.</p></content></subsection><subsection><num>(2)</num><content><p>In determining under section 196 the eligible payroll costs of a permanent establishment within section 232(2)(a) to (c), the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the establishment.</p></content></subsection><subsection><num>(3)</num><content><p>In determining under section 197 the eligible tangible asset amount of a permanent establishment within section 232(2)(a) to (c), the only assets to be taken into account are assets used in the business of the establishment.</p></content></subsection><subsection><num>(4)</num><content><p>Both the eligible payroll costs and the eligible tangible asset amount of a permanent establishment within section 232(2)(d) are nil.</p></content></subsection><subsection><num>(5)</num><intro><p>If but for this subsection—</p></intro><level class="para1"><num>(a)</num><content><p>an amount would be taken into account under section 196 in respect of both a permanent establishment and the main entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>an asset would be taken into account under section 197 in respect of both a permanent establishment and the main entity,</p></content></level><wrapUp><p>the amount or asset is only to be taken into account in respect of the permanent establishment.</p></wrapUp></subsection></section><section eId="d25e22355"><num>198ZA</num><heading>Eligible payroll costs: flow-through entities</heading><subsection eId="d25e22359"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period if the member has costs that would be eligible payroll costs if the member were located in that territory and were not a flow-through entity and—</p></intro><level class="para1" eId="d25e22365"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Section 196 applies for the purposes of determining a flow-through payroll amount of a flow-through entity for a territory as it applies for the purposes of determining eligible payroll costs but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in that section to the territory of the member were to the territory to which the flow-through payroll amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22730">(7)</ref> of that section were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period, the eligible payroll costs of each member of the group falling within subsection <ref href="#d25e22359">(1)</ref><ref href="#d25e22365">(a)</ref> for that period (which may be nil) are to be increased by the amount given by multiplying the flow-through payroll amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through payroll amount for that period,</p></content></level><wrapUp><p>the eligible payroll costs of that entity for that period (which may be nil) are to be increased by the amount given by multiplying that flow-through payroll amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section eId="d25e22516"><num>198ZB</num><heading>Eligible tangible asset amount: flow-through entities</heading><subsection eId="d25e22520"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity that is not the ultimate parent has a flow-through tangible asset amount for a territory for an accounting period if the member holds one or more assets in that territory and—</p></intro><level class="para1" eId="d25e22526"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Sections 197 and 197A apply for the purposes of determining a flow-through tangible asset amount of a flow-through entity for a territory as they apply for the purposes of determining an eligible tangible asset amount but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in those sections to the territory of the member were to the territory to which the flow-through tangible asset amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22746">(10)</ref> of section 197 were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through tangible asset amount for a territory for an accounting period, the eligible tangible asset amount of each member of the group falling within subsection <ref href="#d25e22520">(1)</ref><ref href="#d25e22526">(a)</ref> for that period (which may be nil) is to be increased by the amount given by multiplying the flow-through tangible asset amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through tangible asset amount for that period,</p></content></level><wrapUp><p>the eligible tangible asset amount of that entity for that period (which may be nil) is to be increased by the amount given by multiplying that flow-through tangible asset amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section><num>198ZC</num><heading>Eligible payroll costs and eligible tangible asset amount: flow-through ultimate parent</heading><subsection eId="d25e22681"><num>(1)</num><content><p>In determining for an accounting period the eligible payroll costs or eligible tangible asset amount of a flow-through entity that is the ultimate parent of a multinational group, the amount given by section 196 or 197 is to be reduced by the section 170 proportion.</p></content></subsection><subsection eId="d25e22687"><num>(2)</num><intro><p>In subsection <ref href="#d25e22681">(1)</ref>, “<term refersTo="#term-the-section-170-proportion">the section 170 proportion</term>” means the proportion of the adjusted profits of the flow-through entity for the accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where subsection (1) of 170 (adjustments for ultimate parent that is a flow-through entity) applies, is excluded under that subsection, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where that subsection does not apply as a result of the entity having not made a profit for that period, would be excluded under that subsection if the entity had adjusted profits of 100 euros.</p></content></level></subsection><subsection><num>(3)</num><content><p>In subsection <ref href="#d25e22687">(2)</ref>, “<term refersTo="#term-the-adjusted-profits">the adjusted profits</term>” means the adjusted profits before the application of section 170.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 196 (eligible payroll costs), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22730"><num>(7)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having nil eligible payroll costs (subject to the application of section <ref href="#d25e22355">198ZA</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-35" class="schProv1"><num>35</num><content><p><mod>In section 197 (eligible tangible asset amount), after subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22746"><num>(10)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having an eligible tangible asset amount of nil (subject to the application of section <ref href="#d25e22516">198ZB</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Eligible payroll costs</heading><paragraph eId="schedule-4-paragraph-36" class="schProv1"><num>36</num><intro><p>In section 196 (eligible payroll costs)—</p></intro><level class="para1" eId="schedule-4-paragraph-36-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (b);</p></content></level><level class="para1" eId="schedule-4-paragraph-36-b"><num>(b)</num><content><p><mod>in subsection (b) of subsection (3), for the words from “acting” to “group” substitute <quotedText>“participating in the ordinary operating activities of the member”</quotedText>.</mod></p></content></level></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-36" class="schProv1"><num>36</num><intro><p>In section 196 (eligible payroll costs)—</p></intro><level class="para1" eId="schedule-4-paragraph-36-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (b);</p></content></level><level class="para1" eId="schedule-4-paragraph-36-b"><num>(b)</num><content><p><mod>in subsection (b) of subsection (3), for the words from “acting” to “group” substitute <quotedText>“participating in the ordinary operating activities of the member”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-36-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (b);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-36-b"><num>(b)</num><content><p><mod>in subsection (b) of subsection (3), for the words from “acting” to “group” substitute <quotedText>“participating in the ordinary operating activities of the member”</quotedText>.</mod></p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e22755"><heading>Eligible payroll costs</heading><paragraph eId="schedule-4-paragraph-36" class="schProv1"><num>36</num><intro><p>In section 196 (eligible payroll costs)—</p></intro><level class="para1" eId="schedule-4-paragraph-36-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (b);</p></content></level><level class="para1" eId="schedule-4-paragraph-36-b"><num>(b)</num><content><p><mod>in subsection (b) of subsection (3), for the words from “acting” to “group” substitute <quotedText>“participating in the ordinary operating activities of the member”</quotedText>.</mod></p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e22779"><heading>Additional top-up amounts</heading><paragraph eId="schedule-4-paragraph-37" class="schProv1"><num>37</num><content><p><mod>In section 203 (additional top-up amounts where covered taxes less than expected), in subsections (4)(b), (5)(b), (6)(b) and (7)(b), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-4-paragraph-38-1"><num>(1)</num><content><p>Section 206 (additional top-up amounts where recalculations required) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-38-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-2-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “members” insert <quotedText>“(“the current members”)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “those members would have for a prior period” substitute <quotedText>“the standard members of the group in the territory in a prior period would have for that period”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-3-b"><num>(b)</num><content><p><mod>in the words after paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-4-a"><num>(a)</num><content><p><mod>in Step 1, for “those members would have had for the prior period” substitute <quotedText>“the standard members of the group in the territory for the prior period would have had for that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-b"><num>(b)</num><content><p><mod>in Step 3, after “nil” insert <quotedText>“(and if there are no such results, the result of this step is nil)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-c"><num>(c)</num><intro><p>in Step 4—</p></intro><level class="para2" eId="schedule-4-paragraph-38-4-c-i"><num>(i)</num><content><p><mod>before “members” insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-4-c-ii"><num>(ii)</num><content><p><mod>for “Step 2” substitute <quotedText>“Step 3”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-5-a"><num>(a)</num><content><p><mod>for “those members” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-5-b"><num>(b)</num><content><p><mod>for “in accordance with subsections (5) to (8)” substitute <quotedText>“as follows”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-6"><num>(6)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-6-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-6-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-6-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-6-b"><num>(b)</num><content><p><mod>in paragraph (b), for “members for the members’ territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-6-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-7"><num>(7)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-7-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-7-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-7-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-7-b"><num>(b)</num><content><p><mod>in paragraph (b), for “standard members in the territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-8"><num>(8)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-8-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-ii"><num>(ii)</num><content><p><mod>before “period”, in the first place it occurs, insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-iii"><num>(iii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-8-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-9"><num>(9)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-9-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-a-ii"><num>(ii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-c"><num>(c)</num><content><p><mod>in the words after paragraph (b) for the words from “amount”, in the second place it occurs, to the end substitute <quotedText>“relevant amount.”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-10"><num>(10)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9)</num><intro><p>The relevant amount is the amount given by multiplying—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of the amounts of qualifying domestic top-up tax accrued by the current members in the current period, by</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount given by dividing—</p></intro><level class="para2"><num>(i)</num><content><p>the collective additional amount under this section, by</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of that collective additional amount, any collective additional amount under section 203 and the total top-up amount for the current period.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Filing etc not required before 30 June 2026</heading><paragraph eId="schedule-4-paragraph-52" class="schProv1"><num>52</num><subparagraph eId="schedule-4-paragraph-52-1"><num>(1)</num><content><p>Schedule 14 (administration) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-2"><num>(2)</num><content><p><mod>In paragraph 10, after sub-paragraph (11) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(12)</num><content><p>Where (ignoring this sub-paragraph) the date by which an information return or overseas return notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-3"><num>(3)</num><content><p><mod>In paragraph 13, after sub-paragraph (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(11)</num><content><p>Where (ignoring this sub-paragraph) the date by which a self assessment return or below-threshold notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is instead 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-4"><num>(4)</num><content><p><mod>In paragraph 32, after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(3A)</num><content><p>Where (ignoring this sub-paragraph) the date on which an amount of multinational top-up tax must be paid falls before 30 June 2026, the date on which it must be paid is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-39" class="schProv1"><num>39</num><intro><p>In section 226 (joint venture group), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-39-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “group” insert <quotedText>“for an accounting period of that entity”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-b"><num>(b)</num><content><p><mod>in paragraph (a), after “entity” insert <quotedText>“for all or any part of that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-c"><num>(c)</num><content><p><mod>in paragraph (b), after “entity” insert <quotedText>“at any time in that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-d"><num>(d)</num><content><p><mod>in paragraph (c), for “qualifying multinational group” substitute <quotedText>“multinational group that meets condition A in section 129(2) for that accounting period (revenue threshold exceeded in at least 2 of previous 4 accounting periods)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-e"><num>(e)</num><content><p><mod>in paragraph (f), for “of which the entity is a member” substitute <quotedText>“referred to in paragraph (a)”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-39-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “group” insert <quotedText>“for an accounting period of that entity”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-39-b"><num>(b)</num><content><p><mod>in paragraph (a), after “entity” insert <quotedText>“for all or any part of that period”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-39-c"><num>(c)</num><content><p><mod>in paragraph (b), after “entity” insert <quotedText>“at any time in that period”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-39-d"><num>(d)</num><content><p><mod>in paragraph (c), for “qualifying multinational group” substitute <quotedText>“multinational group that meets condition A in section 129(2) for that accounting period (revenue threshold exceeded in at least 2 of previous 4 accounting periods)”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-39-e"><num>(e)</num><content><p><mod>in paragraph (f), for “of which the entity is a member” substitute <quotedText>“referred to in paragraph (a)”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-4-paragraph-45-1"><num>(1)</num><intro><p>In section 199 (election to treat total top-up amount as nil)—</p></intro><level class="para1" eId="schedule-4-paragraph-45-1-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-45-1-a-i"><num>(i)</num><content><p><mod>for “total top-up amount” substitute <quotedText>“top-up amounts of the relevant members”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-45-1-a-ii"><num>(ii)</num><content><p><mod>for “is” substitute <quotedText>“are”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-45-1-b"><num>(b)</num><content><p><mod>in subsections (2)(a), (3), (4), (6)(a) and (6)(b), for “standard” substitute <quotedText>“relevant”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-c"><num>(c)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23840"><num>(2A)</num><intro><p>In this section, a member of a multinational group is a “relevant” member if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a standard member of the group, or</p></content></level><level class="para1"><num>(b)</num><content><p>a minority owned member of the group.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-d"><num>(d)</num><content><p><mod>in the heading, for “total top-up amount” substitute <quotedText>“certain top-up amounts”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-45-2"><num>(2)</num><content><p><mod>In section 228 (minority owned members), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>But neither subsection (3) nor (4) applies to the reference to “standard member” in section 199<ref href="#d25e23840">(2A)</ref> (election to treat top-up amounts of relevant members as nil).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-4-paragraph-48-1"><num>(1)</num><content><p>In section 195 (substance based income exclusion) omit subsections (2) and (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-48-2"><num>(2)</num><content><p>Accordingly, in paragraph 2 (annual elections) of Schedule 15 (multinational top-up tax: elections), omit paragraph (e).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-52" class="schProv1"><num>52</num><subparagraph eId="schedule-4-paragraph-52-1"><num>(1)</num><content><p>Schedule 14 (administration) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-2"><num>(2)</num><content><p><mod>In paragraph 10, after sub-paragraph (11) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(12)</num><content><p>Where (ignoring this sub-paragraph) the date by which an information return or overseas return notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-3"><num>(3)</num><content><p><mod>In paragraph 13, after sub-paragraph (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(11)</num><content><p>Where (ignoring this sub-paragraph) the date by which a self assessment return or below-threshold notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is instead 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-4"><num>(4)</num><content><p><mod>In paragraph 32, after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(3A)</num><content><p>Where (ignoring this sub-paragraph) the date on which an amount of multinational top-up tax must be paid falls before 30 June 2026, the date on which it must be paid is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00182" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>In section 117 (overview of Chapter 4 of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">(2A)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a> (UK furnished holiday lettings business treated as trade),</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a> (EEA furnished holiday lettings business treated as trade), and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-c"><num>(c)</num><content><p>the italic heading before those sections.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">section 388</a> (loan to buy plant or machinery for partnership use)—</p></intro><level class="para1" eId="schedule-5-paragraph-3-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">(a)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (4)</a>, for ““ordinary property business”” substitute <quotedText>““property business””</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">section 389</a> (eligibility requirements for interest on loans), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">subsection (4)</a> omit “ordinary”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>In section 399A (property partnerships: restriction of relief for investment loan interest) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/399A">subsection (9)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>In section 836 (jointly held property), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/836">subsection (3)</a> omit exceptions D and DA.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-71" class="schProv1"><num>71</num><subparagraph eId="schedule-12-paragraph-71-1"><num>(1)</num><content><p>Section 643EA of ITTOIA 2005 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-17">paragraph 17</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 643EA of ITTOIA 2005; and in a case within section 643EA(3) “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-4-paragraph-40-1"><num>(1)</num><content><p>Section 227 (application of Part to joint venture groups) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-2-a"><num>(a)</num><intro><p>in the words before paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-40-2-a-i"><num>(i)</num><content><p><mod>after “but” insert <quotedText>“in their application by virtue of this subsection”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-ii"><num>(ii)</num><content><p><mod>after “Part”, in the second place it occurs, insert <quotedText>“, this Chapter other than this section and section 226”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-iii"><num>(iii)</num><content><p><mod>for “apply” substitute <quotedText>“have effect”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-40-2-b"><num>(b)</num><content><p><mod>in paragraph (c), for “the multinational” substitute <quotedText>“each respective multinational”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-40-3"><num>(3)</num><content><p><mod>In subsection (2), for “Part,” substitute <quotedText>“Part (in its application by virtue of subsection (1)),”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-4-a"><num>(a)</num><content><p><mod>after “But” insert <quotedText>“(in the application of this Part by virtue of subsection (1))”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-40-4-b"><num>(b)</num><content><p><mod>for “that” substitute <quotedText>“the joint venture”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-72" class="schProv1"><num>72</num><intro><p>Despite the repeal of section 643M of ITTOIA 2005 by <ref href="#schedule-12-paragraph-21">paragraph 21</ref> of this Schedule, that section continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-72-a"><num>(a)</num><content><p>it provided before its repeal for a benefit of a particular amount to be treated for the purposes of section 643B of that Act as having been provided to a particular person at a particular time, and</p></content></level><level class="para1" eId="schedule-12-paragraph-72-b"><num>(b)</num><content><p>the receipt of the benefit by the person is relevant to the application of section 643B of that Act in the tax year 2025-26 or a later tax year.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-72-a"><num>(a)</num><content><p>it provided before its repeal for a benefit of a particular amount to be treated for the purposes of section 643B of that Act as having been provided to a particular person at a particular time, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-72-b"><num>(b)</num><content><p>the receipt of the benefit by the person is relevant to the application of section 643B of that Act in the tax year 2025-26 or a later tax year.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-41" class="schProv1"><num>41</num><subparagraph eId="schedule-4-paragraph-41-1"><num>(1)</num><content><p>Section 266 (qualifying entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-2"><num>(2)</num><content><p><mod>In subsection (1), after “An entity” insert <quotedText>“which is not a member of a joint venture group”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-3"><num>(3)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23349"><num>(1A)</num><intro><p>A member of a joint venture group is a qualifying entity for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is not a DTT excluded entity,</p></content></level><level class="para1"><num>(b)</num><content><p>the member meets condition A for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>the revenue condition is met in relation to the group for that period.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of subsection <ref href="#d25e23349">(1A)</ref> the “revenue condition” is met in relation to a joint venture group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>a single entity which directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meets Condition A and Condition B for that period, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the members of a group (the “relevant group”) whose ultimate parent directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meet Condition C for that period and—</p></intro><level class="para2"><num>(i)</num><content><p>all of those members are located in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the relevant group is a multinational group (see section 126 in Part 3), and at least one of the members is located in a Pillar Two territory.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e23179"><heading>Joint ventures</heading><paragraph eId="schedule-4-paragraph-39" class="schProv1"><num>39</num><intro><p>In section 226 (joint venture group), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-39-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “group” insert <quotedText>“for an accounting period of that entity”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-b"><num>(b)</num><content><p><mod>in paragraph (a), after “entity” insert <quotedText>“for all or any part of that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-c"><num>(c)</num><content><p><mod>in paragraph (b), after “entity” insert <quotedText>“at any time in that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-d"><num>(d)</num><content><p><mod>in paragraph (c), for “qualifying multinational group” substitute <quotedText>“multinational group that meets condition A in section 129(2) for that accounting period (revenue threshold exceeded in at least 2 of previous 4 accounting periods)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-e"><num>(e)</num><content><p><mod>in paragraph (f), for “of which the entity is a member” substitute <quotedText>“referred to in paragraph (a)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-4-paragraph-40-1"><num>(1)</num><content><p>Section 227 (application of Part to joint venture groups) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-2-a"><num>(a)</num><intro><p>in the words before paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-40-2-a-i"><num>(i)</num><content><p><mod>after “but” insert <quotedText>“in their application by virtue of this subsection”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-ii"><num>(ii)</num><content><p><mod>after “Part”, in the second place it occurs, insert <quotedText>“, this Chapter other than this section and section 226”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-iii"><num>(iii)</num><content><p><mod>for “apply” substitute <quotedText>“have effect”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-40-2-b"><num>(b)</num><content><p><mod>in paragraph (c), for “the multinational” substitute <quotedText>“each respective multinational”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-40-3"><num>(3)</num><content><p><mod>In subsection (2), for “Part,” substitute <quotedText>“Part (in its application by virtue of subsection (1)),”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-4-a"><num>(a)</num><content><p><mod>after “But” insert <quotedText>“(in the application of this Part by virtue of subsection (1))”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-40-4-b"><num>(b)</num><content><p><mod>for “that” substitute <quotedText>“the joint venture”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-41" class="schProv1"><num>41</num><subparagraph eId="schedule-4-paragraph-41-1"><num>(1)</num><content><p>Section 266 (qualifying entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-2"><num>(2)</num><content><p><mod>In subsection (1), after “An entity” insert <quotedText>“which is not a member of a joint venture group”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-3"><num>(3)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23349"><num>(1A)</num><intro><p>A member of a joint venture group is a qualifying entity for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is not a DTT excluded entity,</p></content></level><level class="para1"><num>(b)</num><content><p>the member meets condition A for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>the revenue condition is met in relation to the group for that period.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of subsection <ref href="#d25e23349">(1A)</ref> the “revenue condition” is met in relation to a joint venture group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>a single entity which directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meets Condition A and Condition B for that period, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the members of a group (the “relevant group”) whose ultimate parent directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meet Condition C for that period and—</p></intro><level class="para2"><num>(i)</num><content><p>all of those members are located in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the relevant group is a multinational group (see section 126 in Part 3), and at least one of the members is located in a Pillar Two territory.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e23406"><heading>Domestic top-up tax</heading><paragraph eId="schedule-4-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-4-paragraph-42-1"><num>(1)</num><content><p>Section 270 (amount charged) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-2"><num>(2)</num><content><p><mod>Before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>Where a person is chargeable to domestic top-up tax for an accounting period as, or in respect of, a qualifying entity which is a member of a group, the amount (if any) the person must pay is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine (in accordance with section 272)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>whether the entity has a top-up amount for that period, and</p></item><item><num>(b)</num><p>the extent of any such amount.</p></item></blockList></item><item><p><i>Step 2</i></p><p>If the result of <ref href="#d25e23433">Step 1</ref> is not expressed in sterling, convert the result of that Step to sterling.</p></item></blockList></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-42-3-a"><num>(a)</num><content><p><mod>in the words before Step 1, for “as a qualifying entity or in respect of a qualifying entity” substitute <quotedText>“as or in respect of a qualifying entity which is not a member of a group”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-42-3-b"><num>(b)</num><content><p><mod>in Step 1, after “Determine” insert <quotedText>“(in accordance with section 273)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-4-paragraph-43-1"><num>(1)</num><content><p>Section 272 (determining top-up amounts of entity that is a member of a group) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-2"><num>(2)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p><mod>Part 3 has effect for those purposes as if the following sections were substituted for section 193—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>193</num><heading>Determination of top-up amounts of entity that is a member of a group</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e23537">(2)</ref> sets out (for the purposes of Step 1 of section 270(A1)) how to determine in relation to an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>whether an entity which is a standard member of a group has a top-up amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, what the amount is.</p></content></level></subsection><subsection eId="d25e23537"><num>(2)</num><content><p>Take the following Steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine for the period (in accordance with section 272) the sum of any top-up amounts and additional top-up amounts of standard members of the group (the “total top-up amount”).</p></item><item><p><i>Step 2</i></p><p>Determine for each such member—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the adjusted profits (if any);</p></item><item><num>(b)</num><p>the covered tax balance.</p></item></blockList></item><item><p><i>Step 3</i></p><p>For each standard member of the group in relation to which a positive amount of adjusted profits is determined under <ref href="#d25e23552">Step 2</ref>, determine the “effective tax rate” by dividing the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23565">(b)</ref> (covered tax balance) by the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23561">(a)</ref> (adjusted profits).</p></item><item><p><i>Step 4</i></p><p>For any standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>determine that member’s “top-up tax percentage” by subtracting the member’s effective tax rate from 15%, and</p></item><item><num>(b)</num><p>proceed to <ref href="#d25e23613">Step 5</ref>.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Calculate for the member an amount (an “allocation key amount”) by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s top-up tax percentage (see <ref href="#d25e23590">Step 4</ref>(a)), by</p></item><item><num>(b)</num><p>the member’s adjusted profits.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Determine the sum (the “group allocation key amount”) of all the allocation key amounts calculated under <ref href="#d25e23613">Step 5</ref> for members of the group.</p></item><item><p><i>Step 7</i></p><p>Determine the “allocation key ratio” for each standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%, by dividing—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s allocation key amount (see <ref href="#d25e23613">Step 5</ref>), by</p></item><item><num>(b)</num><p>the group allocation key amount (see <ref href="#d25e23633">Step 6</ref>).</p></item></blockList></item><item><p><i>Step 8</i></p><p>Determine each such member’s top-up amount by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of any top-up amounts and additional top-up amounts of standard members of the group for the period (see <ref href="#d25e23544">Step 1</ref>), by</p></item><item><num>(b)</num><p>the member’s allocation key ratio (see <ref href="#d25e23644">Step 7</ref>).</p></item></blockList></item><item><p><i>Step 9</i></p><p>If none of the standard members falls within <ref href="#d25e23569">Step 3</ref>, or none of them has an effective tax rate of less than 15%, each standard member has a top-up amount equal to—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the total top-up amount, divided by</p></item><item><num>(b)</num><p>the number of the standard members.</p></item></blockList></item></blockList></content></subsection></section><section><num>193A</num><heading>Section 193: supplementary</heading><subsection><num>(1)</num><content><p>Section 193 and subsection (2) of this section apply to joint venture groups and their members as they apply to groups and their members.</p></content></subsection><subsection><num>(2)</num><content><p>Section 193 has effect in relation to a qualifying entity that is a standard member of a group as if the total top-up amount referred to in that section included any top-up amounts or additional top-up amounts of qualifying investment entities determined under sections 220 to 224.</p></content></subsection><subsection><num>(3)</num><intro><p>See also subsections (9) to (11) of section 272, which—</p></intro><level class="para1"><num>(a)</num><content><p>define “<term refersTo="#term-qualifying-investment-entity">qualifying investment entity</term>” in relation to a qualifying entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>make further provision about top-up amounts (for the purposes of domestic top-up tax).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-3"><num>(3)</num><content><p>In subsection (8) omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Domestic top-up tax: excluded entities</heading><paragraph eId="schedule-4-paragraph-44" class="schProv1"><num>44</num><content><p><mod>In section 267 (DTT excluded entities), after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>A company is a DTT excluded entity if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a qualifying asset holding company for the purposes of Schedule 2 to FA 2022, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not a member of a multinational group.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-44" class="schProv1"><num>44</num><content><p><mod>In section 267 (DTT excluded entities), after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>A company is a DTT excluded entity if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a qualifying asset holding company for the purposes of Schedule 2 to FA 2022, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not a member of a multinational group.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-4-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-4-paragraph-47-1"><num>(1)</num><content><p><mod>In Schedule 16, after paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Deduction and non-inclusion arrangements and duplicate loss arrangements</heading><paragraph class="schProv1"><num>6A</num><subparagraph eId="d25e24206"><num>(1)</num><content><p>Where the aggregate profit (loss) before income tax of the standard members of a multinational group in a territory reflects disqualified expense, the aggregate profit (loss) before income tax is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24212"><num>(2)</num><intro><p>Disqualified expense means any expense or loss of a member of a multinational group reflected in the financial statements of the member arising as a result of qualifying arrangements that involve another member of the group—</p></intro><level class="para1" eId="d25e24218"><num>(a)</num><intro><p>to the extent that the expense or loss is a result of the member directly or indirectly being provided credit by the other member or the other member otherwise making an investment in the member under the arrangements and—</p></intro><level class="para2"><num>(i)</num><content><p>the credit or investment is not reflected as an increase in the revenue, or a gain, in the financial statements of the other member that corresponds to the expense or loss, or</p></content></level><level class="para2" eId="d25e24230"><num>(ii)</num><content><p>it is not reasonable to expect that the credit or investment will be reflected as an increase in the taxable income of the other member over the life of the arrangements that corresponds to the expense or loss, or</p></content></level></level><level class="para1" eId="d25e24236"><num>(b)</num><intro><p>to the extent that—</p></intro><level class="para2" eId="d25e24242"><num>(i)</num><content><p>the expense or loss is also included as an expense or loss in the financial statements of another member of the group, or</p></content></level><level class="para2" eId="d25e24248"><num>(ii)</num><content><p>the expense or loss is mirrored by an amount that can be deducted from the taxable income of another member of the group that is located in a different territory to the member.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>an expense or a loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref> if it is solely referable to the provision of qualifying tier one capital,</p></content></level><level class="para1"><num>(b)</num><content><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> to the extent it is offset against revenue that is included in the financial statements of each member whose financial statements reflect the expense or loss, and</p></content></level><level class="para1"><num>(c)</num><intro><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24248">(ii)</ref> to the extent that it is offset against revenue or income that is included in both—</p></intro><level class="para2"><num>(i)</num><content><p>the financial statements that reflect the expense or loss, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the taxable income from which the amount that mirrors the expense or loss can be deducted.</p></content></level></level></subparagraph><subparagraph><num>(4)</num><intro><p>An expense or loss included in the financial statements of a member of a multinational group is to be ignored to the extent that the expense or loss is included in the financial statements of another member of the group as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>the other member having a direct or indirect ownership interest in the member, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member being regarded as tax transparent in the territory in which the other member is located.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Where as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> more than one standard member in a territory has disqualified expense in respect of the same expense or loss, <ref href="#d25e24206">sub-paragraph (1)</ref> applies to all but one of those amounts of disqualified expense.</p></content></subparagraph><subparagraph eId="d25e24343"><num>(6)</num><intro><p>For the purposes of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref><ref href="#d25e24230">(ii)</ref>, ignore any increase in the taxable income of the other member—</p></intro><level class="para1" eId="d25e24356"><num>(a)</num><content><p>that is offset by a devalued tax attribute, or</p></content></level><level class="para1"><num>(b)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the payment that gives rise to the expense or loss in question also results in a taxable deduction or loss of a further member of the group located in the same territory as the other member, and</p></content></level><level class="para2"><num>(ii)</num><content><p>that deduction or loss is not reflected in the aggregate profit (loss) before income tax for that territory for the purposes of determining whether an election under paragraph 3 that applies in relation to that further member can be made.</p></content></level></level></subparagraph><subparagraph><num>(7)</num><intro><p>For the purposes of <ref href="#d25e24343">sub-paragraph (6)</ref><ref href="#d25e24356">(a)</ref>, a “<term refersTo="#term-devalued-tax-attribute">devalued tax attribute</term>” means a tax attribute of a member of a multinational group—</p></intro><level class="para1"><num>(a)</num><content><p>whose value is reflected in financial statements of the member at less than the amount of the attribute multiplied by the tax rate that applies to the member, or</p></content></level><level class="para1"><num>(b)</num><content><p>whose value would be so reflected if the qualifying arrangements that result in disqualified expense or disqualified tax expense (see paragraph <ref href="#d25e24472">6B</ref>) were ignored.</p></content></level></subparagraph><subparagraph><num>(8)</num><intro><p>For the purposes of this paragraph and paragraph <ref href="#d25e24472">6B</ref>, arrangements are “qualifying” if—</p></intro><level class="para1"><num>(a)</num><content><p>they were entered into on or after 16 December 2022, or</p></content></level><level class="para1"><num>(b)</num><intro><p>they were entered into before that date, but—</p></intro><level class="para2"><num>(i)</num><content><p>the arrangements are amended on or after that date (including by way of a substitution of one or more of the parties),</p></content></level><level class="para2"><num>(ii)</num><content><p>the performance of rights or obligations under the arrangements is altered on or after that date (for example where payments under the arrangements are reduced or ceased), or</p></content></level><level class="para2"><num>(iii)</num><content><p>the accounting treatment of the arrangements is varied on or after that date.</p></content></level></level></subparagraph><subparagraph><num>(9)</num><intro><p>In this paragraph and in paragraph <ref href="#d25e24472">6B</ref> reference to the financial statements of a member of a multinational group is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an accounting period in which an election under paragraph 3 that applies in relation to the member was made, or for the purposes of determining whether such an election can be made, to the financial statements, or financial accounts, that form the basis of qualified financial statements in relation to the member for the purposes of this Part of this Schedule, or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, to the underlying profits accounts of that member (see section 136).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Duplicate tax recognition arrangements</heading><paragraph eId="d25e24472" class="schProv1"><num>6B</num><subparagraph><num>(1)</num><content><p>Where the aggregate qualifying income tax expense of the standard members of a multinational group in a territory reflects disqualified tax expense, the aggregate qualifying income tax expense is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24482"><num>(2)</num><intro><p>Disqualified tax expense means any qualifying income tax expense of a member of a multinational group reflected in the financial statements of the member that, as a result of qualifying arrangements, is also reflected in—</p></intro><level class="para1" eId="d25e24488"><num>(a)</num><content><p>the covered tax balance of one or more other members of the group, or</p></content></level><level class="para1" eId="d25e24494"><num>(b)</num><content><p>the qualifying income tax expense of one or more other members of the group.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>But qualifying income tax expense is not to be regarded as disqualified tax expense—</p></intro><level class="para1"><num>(a)</num><content><p>if the income to which the tax expense relates is reflected in the financial statements of each member of the group falling within <ref href="#d25e24482">sub-paragraph (2)</ref><ref href="#d25e24488">(a)</ref> and <ref href="#d25e24494">(b)</ref> to at least the same extent to which the tax expense is reflected in the covered tax balance, or qualifying income tax expense, of each of those members;</p></content></level><level class="para1"><num>(b)</num><content><p>to the extent that the duplication of the tax expense would not arise if the adjustments that would have been made in determining the member’s covered tax balance (and that are not required to be made for the purpose of determining the member’s qualifying income tax expense) had been made.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-2"><num>(2)</num><intro><p>The amendment made by <ref href="#schedule-4-paragraph-47-1">sub-paragraph (1)</ref> has effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-47-2-a"><num>(a)</num><content><p>disqualified expense accruing on or after 14 March 2024, and</p></content></level><level class="para1" eId="schedule-4-paragraph-47-2-b"><num>(b)</num><content><p>disqualified tax expense attributable to profits accruing on or after 14 March 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-47-3"><num>(3)</num><content><p><mod>In paragraph 4 (qualified financial statements and basis of calculations), in sub-paragraph (4), in the words after paragraph (b) for “paragraph 6” substitute <quotedText>“paragraphs 6 to 6B”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-4"><num>(4)</num><content><p><mod>In section 155 (qualifying tier one capital), in subsection (3), for “section” substitute <quotedText>“Part”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-5"><num>(5)</num><content><p><mod>In Schedule 17, in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">qualifying tier one capital</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">section 155(3)</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e23759"><heading>Domestic top-up tax: excluded entities</heading><paragraph eId="schedule-4-paragraph-44" class="schProv1"><num>44</num><content><p><mod>In section 267 (DTT excluded entities), after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>A company is a DTT excluded entity if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a qualifying asset holding company for the purposes of Schedule 2 to FA 2022, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not a member of a multinational group.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e23787"><heading>De minimis rule</heading><paragraph eId="schedule-4-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-4-paragraph-45-1"><num>(1)</num><intro><p>In section 199 (election to treat total top-up amount as nil)—</p></intro><level class="para1" eId="schedule-4-paragraph-45-1-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-45-1-a-i"><num>(i)</num><content><p><mod>for “total top-up amount” substitute <quotedText>“top-up amounts of the relevant members”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-45-1-a-ii"><num>(ii)</num><content><p><mod>for “is” substitute <quotedText>“are”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-45-1-b"><num>(b)</num><content><p><mod>in subsections (2)(a), (3), (4), (6)(a) and (6)(b), for “standard” substitute <quotedText>“relevant”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-c"><num>(c)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23840"><num>(2A)</num><intro><p>In this section, a member of a multinational group is a “relevant” member if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a standard member of the group, or</p></content></level><level class="para1"><num>(b)</num><content><p>a minority owned member of the group.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-d"><num>(d)</num><content><p><mod>in the heading, for “total top-up amount” substitute <quotedText>“certain top-up amounts”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-45-2"><num>(2)</num><content><p><mod>In section 228 (minority owned members), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>But neither subsection (3) nor (4) applies to the reference to “standard member” in section 199<ref href="#d25e23840">(2A)</ref> (election to treat top-up amounts of relevant members as nil).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e23885"><heading>Transitional safe harbour</heading><paragraph eId="schedule-4-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-4-paragraph-46-1"><num>(1)</num><content><p>Part 2 of Schedule 16 (transitional safe harbour) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-2"><num>(2)</num><intro><p>In paragraph 3 (election)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (1), after “election” insert <quotedText>“under this paragraph”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2)(c), for “the election” substitute <quotedText>“a transitional safe harbour election”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-c"><num>(c)</num><content><p><mod>in sub-paragraph (7), for “the information” substitute <quotedText>“all relevant information”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-d"><num>(d)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(7A)</num><content><p>For the purposes of sub-paragraph (7), “<term refersTo="#term-all-relevant-information">all relevant information</term>” means all of the information described in paragraphs (a) to (d) of paragraph 4(3).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-e"><num>(e)</num><content><p><mod>after sub-paragraph (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(10)</num><content><p>An election under this paragraph may not be made in respect of the nominal territory of a stateless member of a multinational group.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-3"><num>(3)</num><intro><p>In paragraph 4 (qualified financial statements), in sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for “statement” substitute <quotedText>“statements”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>after “parent” insert <quotedText>“provided the statements are prepared in accordance with acceptable accounting standards or an authorised accounting standard”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-46-3-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>financial statements of members of the group provided—</p></intro><level class="para2"><num>(i)</num><content><p>they are prepared in accordance with acceptable accounting standards or an authorised accounting standard, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the information contained in those statements is reliable and is maintained in a manner that is consistent with its use under the accounting standard used in preparing those statements.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-4"><num>(4)</num><content><p><mod>In paragraph 4, after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>But see also <ref href="#d25e24052">paragraph 4A</ref> in cases where those accounts or statements reflect purchase price accounting adjustments.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-5"><num>(5)</num><content><p><mod>In paragraph 4, in sub-paragraph (3), in paragraph (d), after “income” insert <quotedText>“exclusion”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-6"><num>(6)</num><content><p><mod>After paragraph 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Accounts or statements reflecting purchase price accounting adjustments</heading><paragraph eId="d25e24052" class="schProv1"><num>4A</num><subparagraph><num>(1)</num><intro><p>This paragraph applies in relation to accounts or financial statements (“the relevant statements”) in relation to a multinational group in a territory that—</p></intro><level class="para1"><num>(a)</num><content><p>fall within paragraph (a) or (b) of paragraph 4(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>reflect purchase price accounting adjustments.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a country-by-country report has been submitted in respect of the group in that territory in respect of a period commencing on or after 1 January 2023 and concluding before the commencement of the accounting period for which the transitional safe harbour election is being made,</p></content></level><level class="para1"><num>(b)</num><content><p>the financial accounts used for the preparation of that report did not reflect purchase price accounting adjustments, and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no requirement to reflect purchase price adjustments in the relevant statements under the law of the territory that applies in relation to the preparation of those statements,</p></content></level><wrapUp><p>the relevant statements are not qualified financial statements.</p></wrapUp></subparagraph><subparagraph><num>(3)</num><intro><p>Sub-paragraph <ref href="#d25e24121">(4)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant statements are qualified financial statements, and</p></content></level><level class="para1"><num>(b)</num><content><p>an impairment of goodwill in relation to a transaction entered into on or after 1 December 2021 is reflected in a member’s profit (loss) before income tax.</p></content></level></subparagraph><subparagraph eId="d25e24121"><num>(4)</num><intro><p>Adjust the profit (loss) before income tax of the member so that it does not reflect that impairment for the purposes of determining—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the condition in sub-paragraph <ref href="#d25e24142">(5)</ref> is not met, whether the simplified effective tax rate test is met (see paragraph 8), and</p></content></level><level class="para1"><num>(b)</num><content><p>in any case, whether the routine profits test is met (see paragraph 9).</p></content></level></subparagraph><subparagraph eId="d25e24142"><num>(5)</num><intro><p>The condition in this sub-paragraph is that the relevant statements reflect—</p></intro><level class="para1"><num>(a)</num><content><p>a reversal of deferred tax liability in relation to the goodwill, or</p></content></level><level class="para1"><num>(b)</num><content><p>the recognition or increase of a deferred tax asset in relation to it.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-7"><num>(7)</num><intro><p>In paragraph 5 (qualifying income tax expense)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-7-a"><num>(a)</num><content><p>the existing text becomes sub-paragraph (1), and</p></content></level><level class="para1" eId="schedule-4-paragraph-46-7-b"><num>(b)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><content><p>For the purposes of this Part of this Schedule, any amount of qualifying income tax expense that is in respect of profits of a permanent establishment and that is incurred in the territory of the permanent establishment is to be regarded as the expense of that permanent establishment (rather than of the main entity).</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" class="schGroup7" eId="d25e24185"><heading>Transitional safe harbour: arbitrage arrangements</heading><paragraph eId="schedule-4-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-4-paragraph-47-1"><num>(1)</num><content><p><mod>In Schedule 16, after paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Deduction and non-inclusion arrangements and duplicate loss arrangements</heading><paragraph class="schProv1"><num>6A</num><subparagraph eId="d25e24206"><num>(1)</num><content><p>Where the aggregate profit (loss) before income tax of the standard members of a multinational group in a territory reflects disqualified expense, the aggregate profit (loss) before income tax is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24212"><num>(2)</num><intro><p>Disqualified expense means any expense or loss of a member of a multinational group reflected in the financial statements of the member arising as a result of qualifying arrangements that involve another member of the group—</p></intro><level class="para1" eId="d25e24218"><num>(a)</num><intro><p>to the extent that the expense or loss is a result of the member directly or indirectly being provided credit by the other member or the other member otherwise making an investment in the member under the arrangements and—</p></intro><level class="para2"><num>(i)</num><content><p>the credit or investment is not reflected as an increase in the revenue, or a gain, in the financial statements of the other member that corresponds to the expense or loss, or</p></content></level><level class="para2" eId="d25e24230"><num>(ii)</num><content><p>it is not reasonable to expect that the credit or investment will be reflected as an increase in the taxable income of the other member over the life of the arrangements that corresponds to the expense or loss, or</p></content></level></level><level class="para1" eId="d25e24236"><num>(b)</num><intro><p>to the extent that—</p></intro><level class="para2" eId="d25e24242"><num>(i)</num><content><p>the expense or loss is also included as an expense or loss in the financial statements of another member of the group, or</p></content></level><level class="para2" eId="d25e24248"><num>(ii)</num><content><p>the expense or loss is mirrored by an amount that can be deducted from the taxable income of another member of the group that is located in a different territory to the member.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>an expense or a loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref> if it is solely referable to the provision of qualifying tier one capital,</p></content></level><level class="para1"><num>(b)</num><content><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> to the extent it is offset against revenue that is included in the financial statements of each member whose financial statements reflect the expense or loss, and</p></content></level><level class="para1"><num>(c)</num><intro><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24248">(ii)</ref> to the extent that it is offset against revenue or income that is included in both—</p></intro><level class="para2"><num>(i)</num><content><p>the financial statements that reflect the expense or loss, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the taxable income from which the amount that mirrors the expense or loss can be deducted.</p></content></level></level></subparagraph><subparagraph><num>(4)</num><intro><p>An expense or loss included in the financial statements of a member of a multinational group is to be ignored to the extent that the expense or loss is included in the financial statements of another member of the group as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>the other member having a direct or indirect ownership interest in the member, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member being regarded as tax transparent in the territory in which the other member is located.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Where as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> more than one standard member in a territory has disqualified expense in respect of the same expense or loss, <ref href="#d25e24206">sub-paragraph (1)</ref> applies to all but one of those amounts of disqualified expense.</p></content></subparagraph><subparagraph eId="d25e24343"><num>(6)</num><intro><p>For the purposes of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref><ref href="#d25e24230">(ii)</ref>, ignore any increase in the taxable income of the other member—</p></intro><level class="para1" eId="d25e24356"><num>(a)</num><content><p>that is offset by a devalued tax attribute, or</p></content></level><level class="para1"><num>(b)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the payment that gives rise to the expense or loss in question also results in a taxable deduction or loss of a further member of the group located in the same territory as the other member, and</p></content></level><level class="para2"><num>(ii)</num><content><p>that deduction or loss is not reflected in the aggregate profit (loss) before income tax for that territory for the purposes of determining whether an election under paragraph 3 that applies in relation to that further member can be made.</p></content></level></level></subparagraph><subparagraph><num>(7)</num><intro><p>For the purposes of <ref href="#d25e24343">sub-paragraph (6)</ref><ref href="#d25e24356">(a)</ref>, a “<term refersTo="#term-devalued-tax-attribute">devalued tax attribute</term>” means a tax attribute of a member of a multinational group—</p></intro><level class="para1"><num>(a)</num><content><p>whose value is reflected in financial statements of the member at less than the amount of the attribute multiplied by the tax rate that applies to the member, or</p></content></level><level class="para1"><num>(b)</num><content><p>whose value would be so reflected if the qualifying arrangements that result in disqualified expense or disqualified tax expense (see paragraph <ref href="#d25e24472">6B</ref>) were ignored.</p></content></level></subparagraph><subparagraph><num>(8)</num><intro><p>For the purposes of this paragraph and paragraph <ref href="#d25e24472">6B</ref>, arrangements are “qualifying” if—</p></intro><level class="para1"><num>(a)</num><content><p>they were entered into on or after 16 December 2022, or</p></content></level><level class="para1"><num>(b)</num><intro><p>they were entered into before that date, but—</p></intro><level class="para2"><num>(i)</num><content><p>the arrangements are amended on or after that date (including by way of a substitution of one or more of the parties),</p></content></level><level class="para2"><num>(ii)</num><content><p>the performance of rights or obligations under the arrangements is altered on or after that date (for example where payments under the arrangements are reduced or ceased), or</p></content></level><level class="para2"><num>(iii)</num><content><p>the accounting treatment of the arrangements is varied on or after that date.</p></content></level></level></subparagraph><subparagraph><num>(9)</num><intro><p>In this paragraph and in paragraph <ref href="#d25e24472">6B</ref> reference to the financial statements of a member of a multinational group is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an accounting period in which an election under paragraph 3 that applies in relation to the member was made, or for the purposes of determining whether such an election can be made, to the financial statements, or financial accounts, that form the basis of qualified financial statements in relation to the member for the purposes of this Part of this Schedule, or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, to the underlying profits accounts of that member (see section 136).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Duplicate tax recognition arrangements</heading><paragraph eId="d25e24472" class="schProv1"><num>6B</num><subparagraph><num>(1)</num><content><p>Where the aggregate qualifying income tax expense of the standard members of a multinational group in a territory reflects disqualified tax expense, the aggregate qualifying income tax expense is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24482"><num>(2)</num><intro><p>Disqualified tax expense means any qualifying income tax expense of a member of a multinational group reflected in the financial statements of the member that, as a result of qualifying arrangements, is also reflected in—</p></intro><level class="para1" eId="d25e24488"><num>(a)</num><content><p>the covered tax balance of one or more other members of the group, or</p></content></level><level class="para1" eId="d25e24494"><num>(b)</num><content><p>the qualifying income tax expense of one or more other members of the group.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>But qualifying income tax expense is not to be regarded as disqualified tax expense—</p></intro><level class="para1"><num>(a)</num><content><p>if the income to which the tax expense relates is reflected in the financial statements of each member of the group falling within <ref href="#d25e24482">sub-paragraph (2)</ref><ref href="#d25e24488">(a)</ref> and <ref href="#d25e24494">(b)</ref> to at least the same extent to which the tax expense is reflected in the covered tax balance, or qualifying income tax expense, of each of those members;</p></content></level><level class="para1"><num>(b)</num><content><p>to the extent that the duplication of the tax expense would not arise if the adjustments that would have been made in determining the member’s covered tax balance (and that are not required to be made for the purpose of determining the member’s qualifying income tax expense) had been made.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-2"><num>(2)</num><intro><p>The amendment made by <ref href="#schedule-4-paragraph-47-1">sub-paragraph (1)</ref> has effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-47-2-a"><num>(a)</num><content><p>disqualified expense accruing on or after 14 March 2024, and</p></content></level><level class="para1" eId="schedule-4-paragraph-47-2-b"><num>(b)</num><content><p>disqualified tax expense attributable to profits accruing on or after 14 March 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-47-3"><num>(3)</num><content><p><mod>In paragraph 4 (qualified financial statements and basis of calculations), in sub-paragraph (4), in the words after paragraph (b) for “paragraph 6” substitute <quotedText>“paragraphs 6 to 6B”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-4"><num>(4)</num><content><p><mod>In section 155 (qualifying tier one capital), in subsection (3), for “section” substitute <quotedText>“Part”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-5"><num>(5)</num><content><p><mod>In Schedule 17, in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">qualifying tier one capital</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">section 155(3)</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e24581"><heading>Substance based income exclusion: removal of provision for election</heading><paragraph eId="schedule-4-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-4-paragraph-48-1"><num>(1)</num><content><p>In section 195 (substance based income exclusion) omit subsections (2) and (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-48-2"><num>(2)</num><content><p>Accordingly, in paragraph 2 (annual elections) of Schedule 15 (multinational top-up tax: elections), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e24600"><heading>Inclusion ratio</heading><paragraph eId="schedule-4-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-4-paragraph-49-1"><num>(1)</num><content><p>Section 201 (inclusion ratio) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-2"><num>(2)</num><content><p><mod>In subsection (1), in Step 2, at the end insert <quotedText>“, but excluding ownership interests in respect of which an amount has been excluded from the relevant member’s adjusted profits.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-3"><num>(3)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-50" class="schProv1"><num>50</num><subparagraph eId="schedule-4-paragraph-50-1"><num>(1)</num><content><p>Section 223 (adjustments) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-50-2"><num>(2)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “group,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “profits” insert <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-3"><num>(3)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-3-a"><num>(a)</num><content><p><mod>in paragraph (a), after “made,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-3-b"><num>(b)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-4"><num>(4)</num><content><p><mod>In subsection (9), after “201(2)” insert <quotedText>“and (3)”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Specification of territories and taxes</heading><paragraph eId="schedule-4-paragraph-51" class="schProv1"><num>51</num><subparagraph eId="schedule-4-paragraph-51-1"><num>(1)</num><intro><p>In section 241 (Pillar Two territories)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-1-a"><num>(a)</num><content><p><mod>in subsection (1), before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a territory to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-c-i"><num>(i)</num><content><p><mod>after “Regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a territory in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a territory made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-e"><num>(e)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the territory was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a territory previously specified ceases to have effect” substitute <quotedText>“for the specification of a territory to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>A territory outside the United Kingdom is to be treated as a Pillar Two territory for the purposes of any accounting period that concluded before the first regulations under this section have been made, if it is a territory in which a tax applies for that accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>that is a Qualified IIR for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>that it is reasonable to conclude is likely to be a Qualified IIR for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-2"><num>(2)</num><intro><p>In section 256 (qualifying domestic top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-2-a"><num>(a)</num><content><p><mod>in subsection (1)(b), for “a” substitute <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-c-i"><num>(i)</num><content><p><mod>after “regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a tax in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a tax made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-e"><num>(e)</num><intro><p>in subsection (4)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the tax was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a tax previously specified ceases to have effect” substitute <quotedText>“for the specification of a tax to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>A tax (other than domestic top-up tax which is always a qualifying domestic top-up tax) is to be treated as a qualifying domestic top-up tax for the purposes of any accounting period that concluded before the first regulations under this section have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that it is likely to be a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-3"><num>(3)</num><intro><p>In Schedule 16A (qualifying domestic top-up tax safe harbour election)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-3-a"><num>(a)</num><intro><p>in paragraph 1(3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-a-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “may only be made” substitute <quotedText>“is only valid”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-ii"><num>(ii)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the accreditation applies to the accounting period, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-3-b"><num>(b)</num><intro><p>in paragraph 2—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-b-i"><num>(i)</num><content><p>the existing text becomes sub-paragraph (1),</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-ii"><num>(ii)</num><content><p><mod>in that sub-paragraph, before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>Regulations may provide for the accreditation of a tax by specification in a notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subparagraph><subparagraph><num>(1B)</num><content><p>Regulations, or a notice, must identify the accounting periods to which the accreditation applies.</p></content></subparagraph><subparagraph><num>(1C)</num><content><p>Regulations under this paragraph may provide for the accreditation of a tax to have effect from a time before the tax was specified (but may not provide for the accreditation of a tax to cease to have effect in relation to accounting periods commencing before the regulations are made).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iv"><num>(iv)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e25099"><num>(2)</num><intro><p>A qualifying domestic top-up tax is to be treated as accredited for the purposes of any accounting period that concluded before the first regulations under this paragraph have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>the tax falls within Chapter 5.5 to 5.7 of the QDMTT safe harbour guidance, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that the tax is likely to fall within Chapter 5.5 to 5.7 of that guidance.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>For the purposes of sub-paragraph <ref href="#d25e25099">(2)</ref> the “<term refersTo="#term-qdmtt-safe-harbour-guidance">QDMTT safe harbour guidance</term>” means Chapter 5 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023, published by the OECD on 17 July 2023.</p></content></subparagraph></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-4"><num>(4)</num><content><p>The amendments made by sub-paragraphs <ref href="#schedule-4-paragraph-51-1">(1)</ref><ref href="#schedule-4-paragraph-51-1-f">(f)</ref>, <ref href="#schedule-4-paragraph-51-2">(2)</ref><ref href="#schedule-4-paragraph-51-2-f">(f)</ref> and <ref href="#schedule-4-paragraph-51-3">(3)</ref><ref href="#schedule-4-paragraph-51-3-b">(b)</ref><ref href="#schedule-4-paragraph-51-3-b-i">(i)</ref> and <ref href="#schedule-4-paragraph-51-3-b-iv">(iv)</ref> are treated as having come into force on 7 November 2024.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-51" class="schProv1"><num>51</num><subparagraph eId="schedule-4-paragraph-51-1"><num>(1)</num><intro><p>In section 241 (Pillar Two territories)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-1-a"><num>(a)</num><content><p><mod>in subsection (1), before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a territory to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-c-i"><num>(i)</num><content><p><mod>after “Regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a territory in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a territory made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-e"><num>(e)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the territory was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a territory previously specified ceases to have effect” substitute <quotedText>“for the specification of a territory to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>A territory outside the United Kingdom is to be treated as a Pillar Two territory for the purposes of any accounting period that concluded before the first regulations under this section have been made, if it is a territory in which a tax applies for that accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>that is a Qualified IIR for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>that it is reasonable to conclude is likely to be a Qualified IIR for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-2"><num>(2)</num><intro><p>In section 256 (qualifying domestic top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-2-a"><num>(a)</num><content><p><mod>in subsection (1)(b), for “a” substitute <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-c-i"><num>(i)</num><content><p><mod>after “regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a tax in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a tax made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-e"><num>(e)</num><intro><p>in subsection (4)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the tax was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a tax previously specified ceases to have effect” substitute <quotedText>“for the specification of a tax to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>A tax (other than domestic top-up tax which is always a qualifying domestic top-up tax) is to be treated as a qualifying domestic top-up tax for the purposes of any accounting period that concluded before the first regulations under this section have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that it is likely to be a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-3"><num>(3)</num><intro><p>In Schedule 16A (qualifying domestic top-up tax safe harbour election)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-3-a"><num>(a)</num><intro><p>in paragraph 1(3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-a-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “may only be made” substitute <quotedText>“is only valid”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-ii"><num>(ii)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the accreditation applies to the accounting period, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-3-b"><num>(b)</num><intro><p>in paragraph 2—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-b-i"><num>(i)</num><content><p>the existing text becomes sub-paragraph (1),</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-ii"><num>(ii)</num><content><p><mod>in that sub-paragraph, before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>Regulations may provide for the accreditation of a tax by specification in a notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subparagraph><subparagraph><num>(1B)</num><content><p>Regulations, or a notice, must identify the accounting periods to which the accreditation applies.</p></content></subparagraph><subparagraph><num>(1C)</num><content><p>Regulations under this paragraph may provide for the accreditation of a tax to have effect from a time before the tax was specified (but may not provide for the accreditation of a tax to cease to have effect in relation to accounting periods commencing before the regulations are made).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iv"><num>(iv)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e25105"><num>(2)</num><intro><p>A qualifying domestic top-up tax is to be treated as accredited for the purposes of any accounting period that concluded before the first regulations under this paragraph have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>the tax falls within Chapter 5.5 to 5.7 of the QDMTT safe harbour guidance, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that the tax is likely to fall within Chapter 5.5 to 5.7 of that guidance.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>For the purposes of sub-paragraph <ref href="#d25e25105">(2)</ref> the “<term refersTo="#term-qdmtt-safe-harbour-guidance">QDMTT safe harbour guidance</term>” means Chapter 5 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023, published by the OECD on 17 July 2023.</p></content></subparagraph></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-4"><num>(4)</num><content><p>The amendments made by sub-paragraphs <ref href="#schedule-4-paragraph-51-1">(1)</ref><ref href="#schedule-4-paragraph-51-1-f">(f)</ref>, <ref href="#schedule-4-paragraph-51-2">(2)</ref><ref href="#schedule-4-paragraph-51-2-f">(f)</ref> and <ref href="#schedule-4-paragraph-51-3">(3)</ref><ref href="#schedule-4-paragraph-51-3-b">(b)</ref><ref href="#schedule-4-paragraph-51-3-b-i">(i)</ref> and <ref href="#schedule-4-paragraph-51-3-b-iv">(iv)</ref> are treated as having come into force on 7 November 2024.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e24705"><heading>Specification of territories and taxes</heading><paragraph eId="schedule-4-paragraph-51" class="schProv1"><num>51</num><subparagraph eId="schedule-4-paragraph-51-1"><num>(1)</num><intro><p>In section 241 (Pillar Two territories)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-1-a"><num>(a)</num><content><p><mod>in subsection (1), before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a territory to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-c-i"><num>(i)</num><content><p><mod>after “Regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a territory in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a territory made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-e"><num>(e)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the territory was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a territory previously specified ceases to have effect” substitute <quotedText>“for the specification of a territory to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>A territory outside the United Kingdom is to be treated as a Pillar Two territory for the purposes of any accounting period that concluded before the first regulations under this section have been made, if it is a territory in which a tax applies for that accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>that is a Qualified IIR for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>that it is reasonable to conclude is likely to be a Qualified IIR for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-2"><num>(2)</num><intro><p>In section 256 (qualifying domestic top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-2-a"><num>(a)</num><content><p><mod>in subsection (1)(b), for “a” substitute <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-c-i"><num>(i)</num><content><p><mod>after “regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a tax in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a tax made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-e"><num>(e)</num><intro><p>in subsection (4)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the tax was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a tax previously specified ceases to have effect” substitute <quotedText>“for the specification of a tax to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>A tax (other than domestic top-up tax which is always a qualifying domestic top-up tax) is to be treated as a qualifying domestic top-up tax for the purposes of any accounting period that concluded before the first regulations under this section have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that it is likely to be a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-3"><num>(3)</num><intro><p>In Schedule 16A (qualifying domestic top-up tax safe harbour election)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-3-a"><num>(a)</num><intro><p>in paragraph 1(3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-a-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “may only be made” substitute <quotedText>“is only valid”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-ii"><num>(ii)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the accreditation applies to the accounting period, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-3-b"><num>(b)</num><intro><p>in paragraph 2—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-b-i"><num>(i)</num><content><p>the existing text becomes sub-paragraph (1),</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-ii"><num>(ii)</num><content><p><mod>in that sub-paragraph, before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>Regulations may provide for the accreditation of a tax by specification in a notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subparagraph><subparagraph><num>(1B)</num><content><p>Regulations, or a notice, must identify the accounting periods to which the accreditation applies.</p></content></subparagraph><subparagraph><num>(1C)</num><content><p>Regulations under this paragraph may provide for the accreditation of a tax to have effect from a time before the tax was specified (but may not provide for the accreditation of a tax to cease to have effect in relation to accounting periods commencing before the regulations are made).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iv"><num>(iv)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e25105"><num>(2)</num><intro><p>A qualifying domestic top-up tax is to be treated as accredited for the purposes of any accounting period that concluded before the first regulations under this paragraph have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>the tax falls within Chapter 5.5 to 5.7 of the QDMTT safe harbour guidance, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that the tax is likely to fall within Chapter 5.5 to 5.7 of that guidance.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>For the purposes of sub-paragraph <ref href="#d25e25105">(2)</ref> the “<term refersTo="#term-qdmtt-safe-harbour-guidance">QDMTT safe harbour guidance</term>” means Chapter 5 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023, published by the OECD on 17 July 2023.</p></content></subparagraph></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-4"><num>(4)</num><content><p>The amendments made by sub-paragraphs <ref href="#schedule-4-paragraph-51-1">(1)</ref><ref href="#schedule-4-paragraph-51-1-f">(f)</ref>, <ref href="#schedule-4-paragraph-51-2">(2)</ref><ref href="#schedule-4-paragraph-51-2-f">(f)</ref> and <ref href="#schedule-4-paragraph-51-3">(3)</ref><ref href="#schedule-4-paragraph-51-3-b">(b)</ref><ref href="#schedule-4-paragraph-51-3-b-i">(i)</ref> and <ref href="#schedule-4-paragraph-51-3-b-iv">(iv)</ref> are treated as having come into force on 7 November 2024.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e25162"><heading>Filing etc not required before 30 June 2026</heading><paragraph eId="schedule-4-paragraph-52" class="schProv1"><num>52</num><subparagraph eId="schedule-4-paragraph-52-1"><num>(1)</num><content><p>Schedule 14 (administration) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-2"><num>(2)</num><content><p><mod>In paragraph 10, after sub-paragraph (11) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(12)</num><content><p>Where (ignoring this sub-paragraph) the date by which an information return or overseas return notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-3"><num>(3)</num><content><p><mod>In paragraph 13, after sub-paragraph (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(11)</num><content><p>Where (ignoring this sub-paragraph) the date by which a self assessment return or below-threshold notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is instead 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-4"><num>(4)</num><content><p><mod>In paragraph 32, after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(3A)</num><content><p>Where (ignoring this sub-paragraph) the date on which an amount of multinational top-up tax must be paid falls before 30 June 2026, the date on which it must be paid is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e25214"><heading>Minor amendments</heading><paragraph eId="schedule-4-paragraph-53" class="schProv1"><num>53</num><content><p>In section 141 (general exclusion of dividends), in subsection (9) omit paragraph (b) and the “or” preceding it.</p></content></paragraph><paragraph eId="schedule-4-paragraph-54" class="schProv1"><num>54</num><intro><p>In section 148A (transferable tax credits), in subsection (5)(a)—</p></intro><level class="para1" eId="schedule-4-paragraph-54-a"><num>(a)</num><content><p><mod>in sub-paragraph (i), for “before the end of 15 months” substitute <quotedText>“in the period beginning with the day on which the credit was granted and ending 15 months after the end”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-54-b"><num>(b)</num><content><p><mod>in sub-paragraph (ii), for “before the end of 15 months of the accounting period in which they are granted” substitute <quotedText>“in that period”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-55" class="schProv1"><num>55</num><content><p><mod>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (9)(b), for the words from “the ultimate parent’s“ to the end substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>the entity is regarded as tax transparent in the territory in which the ultimate parent is located, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the ultimate parent’s interest in that entity is held directly or through one or more entities all of which are regarded as tax transparent in that territory.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-56" class="schProv1"><num>56</num><intro><p>In section 171 (ultimate parent subject to qualifying dividend regime)—</p></intro><level class="para1" eId="schedule-4-paragraph-56-a"><num>(a)</num><content><p>in subsection (2)(b), omit “adjusted”, and</p></content></level><level class="para1" eId="schedule-4-paragraph-56-b"><num>(b)</num><content><p><mod>in subsection (6), for “underlying”, in each place it occurs, substitute <quotedText>“adjusted”</quotedText></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 176B (value of non-marketable transferable tax credits: originator), in subsection (3), after “the”, in the fourth place it occurs, insert <quotedText>“end of the”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-58" class="schProv1"><num>58</num><intro><p>In section 176C (value of non-marketable transferable tax credits: purchaser)—</p></intro><level class="para1" eId="schedule-4-paragraph-58-a"><num>(a)</num><content><p><mod>in subsection (4)(b), for “underlying” substitute <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-58-b"><num>(b)</num><content><p>in subsection (5)(a)(ii) omit “reflected”;</p></content></level><level class="para1" eId="schedule-4-paragraph-58-c"><num>(c)</num><content><p><mod>in subsection (6) for “underlying” substitute <quotedText>“adjusted”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-59" class="schProv1"><num>59</num><content><p><mod>In section 176D (tax credits etc allocated under tax equity partnerships), in subsection (10), for “the amount multiplied” substitute <quotedText>“that amount”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-60" class="schProv1"><num>60</num><intro><p>In section 211 (transfer of assets or liabilities to a member of a multinational group)—</p></intro><level class="para1" eId="schedule-4-paragraph-60-a"><num>(a)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-60-a-i"><num>(i)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-60-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the transferor and the transferee are not members of the same type located in the same territory, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-60-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>For the purposes of subsection (2) two members of a multinational group are of the same type if—</p></intro><level class="para1"><num>(a)</num><content><p>they are both standard members of the group,</p></content></level><level class="para1"><num>(b)</num><content><p>they are both investment entities, or</p></content></level><level class="para1"><num>(c)</num><content><p>they are both members of the same minority subgroup (see section 228).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 212 (meaning of “<term refersTo="#term-qualifying-reorganisation" eId="term-qualifying-reorganisation">qualifying reorganisation</term>”), in subsection (4), after “is”, in the third place it occurs, insert <quotedText>“no greater than”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-62" class="schProv1"><num>62</num><content><p>In section 215 (undistributed income amount), in subsection (2)(c) omit “the made a loss”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-63" class="schProv1"><num>63</num><content><p><mod>In section 216 (election where assets and liabilities adjusted to fair value for tax purposes), in subsection (7)(a), before “immediately after” insert <quotedText>“or liability”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-64" class="schProv1"><num>64</num><content><p><mod>In section 217 (post filing adjustments of covered taxes), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>In the case of a prior accounting period for which there is no information return, overseas information return or self-assessment return, the reference to covered taxes being reflected in such a return is to the covered taxes as would have been reflected in such a return had there been one.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-65" class="schProv1"><num>65</num><content><p><mod>In section 217(8), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the aggregate covered tax balance of the standard members of the group in the territory of the member for the prior period is not reduced by 1 million euros or more, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 220 (top-up amount of investment entity)—</p></intro><level class="para1" eId="schedule-4-paragraph-66-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-66-a-i"><num>(i)</num><content><p><mod>in Step 8, after “entity” insert <quotedText>“, unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9), and</quotedText></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-66-a-ii"><num>(ii)</num><content><p><mod>after that Step insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 9</i></p><p>Where this Step applies, the top-up amount for the entity is the sum of—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the result of Step 8, and</p></item><item><num>(b)</num><p>the positive undistributed income amount for the entity for the period multiplied by 15%.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-66-b"><num>(b)</num><content><p>omit subsection (2).</p></content></level></paragraph><paragraph eId="schedule-4-paragraph-67" class="schProv1"><num>67</num><content><p><mod>In section 222 (investment entity effective tax rate), in Step 9 for “Step 1” substitute <quotedText>“Step 2”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-68" class="schProv1"><num>68</num><content><p>In section 242 (ownership interests and controlling interests), in subsection (5)(a) omit “financial”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-69" class="schProv1"><num>69</num><content><p><mod>In section 255 (Pillar Two rules), in subsection (6), for “3(1)” substitute <quotedText>“3 of Schedule 16”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-70" class="schProv1"><num>70</num><intro><p>In Schedule 14 (administration of multinational top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-70-a"><num>(a)</num><content><p><mod>in paragraph 2(12), for “entity” substitute <quotedText>“member”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-70-b"><num>(b)</num><content><p><mod>in paragraph 7(6), for “or Revenue” substitute <quotedText>“of Revenue”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-71" class="schProv1"><num>71</num><content><p>In Schedule 16A (multinational top-up tax: safe harbours), in paragraph 4(1)(b) omit “members of the group that are”.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-national-authority" eId="term-national-authority">national authority</term>” has the meaning given by section 95 of the Climate Change Act 2008;</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-72" class="schProv1"><num>72</num><subparagraph eId="schedule-4-paragraph-72-1"><num>(1)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2023—</p></intro><level class="para1" eId="schedule-4-paragraph-72-1-a"><num>(a)</num><content><p><ref href="#schedule-4-paragraph-11">paragraph 11</ref> (permanent establishments as excluded entities);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-b"><num>(b)</num><content><p><ref href="#schedule-4-paragraph-39">paragraph 39</ref><ref href="#schedule-4-paragraph-39-d">(d)</ref> (joint venture conditions);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-c"><num>(c)</num><content><p><ref href="#schedule-4-paragraph-48">paragraph 48</ref> (removal of requirement for SBIE election);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-d"><num>(d)</num><content><p><ref href="#schedule-4-paragraph-51">paragraph 51</ref> (specification of territories and taxes);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-e"><num>(e)</num><content><p><ref href="#schedule-4-paragraph-52">paragraph 52</ref> (filing etc not required before 30 June 2026);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-f"><num>(f)</num><content><p><ref href="#schedule-4-paragraph-66">paragraph 66</ref> (top-up amount of investment entity).</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-2"><num>(2)</num><content><p><ref href="#schedule-4-paragraph-47">Paragraph 47</ref> has effect in relation to relation to accounting periods commencing on or after 31 December 2023, subject to sub-paragraph <ref href="#schedule-4-paragraph-47-2">(2)</ref> of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-3"><num>(3)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024—</p></intro><level class="para1" eId="schedule-4-paragraph-72-3-a"><num>(a)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-18">18</ref> to <ref href="#schedule-4-paragraph-24">24</ref> (tax equity partnerships);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-3-b"><num>(b)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-39-a">(a)</ref> to <ref href="#schedule-4-paragraph-39-c">(c)</ref> of <ref href="#schedule-4-paragraph-39">paragraph 39</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-4"><num>(4)</num><intro><p>The other provisions of this Part of this Schedule have effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-72-4-a"><num>(a)</num><content><p>where a retrospection election has been made in relation to a multinational group, a group, or a qualifying entity that is not a member of a group, accounting periods of that multinational group, group or entity commencing on or after 31 December 2023, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-4-b"><num>(b)</num><content><p>otherwise, accounting periods commencing on or after 31 December 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-5"><num>(5)</num><intro><p>A retrospection election—</p></intro><level class="para1" eId="schedule-4-paragraph-72-5-a"><num>(a)</num><intro><p>is to be made—</p></intro><level class="para2" eId="schedule-4-paragraph-72-5-a-i"><num>(i)</num><content><p>in the case of a multinational group or group, by the filing member, or</p></content></level><level class="para2" eId="schedule-4-paragraph-72-5-a-ii"><num>(ii)</num><content><p>in the case of a qualifying entity that is not a member of a group, by that entity,</p></content></level></level><level class="para1" eId="schedule-4-paragraph-72-5-b"><num>(b)</num><content><p>must be made on or before the day on which the self-assessment return or below-threshold notification for the first accounting period of the multinational group, group or entity commencing on or after 31 December 2023 is made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-5-c"><num>(c)</num><content><p>may not be revoked.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-6"><num>(6)</num><intro><p>But <ref href="#schedule-4-paragraph-72-7">sub-paragraph (7)</ref> applies where any member, or former member, of a multinational group or group is, or would be on either or both of the relevant assumptions—</p></intro><level class="para1" eId="schedule-4-paragraph-72-6-a"><num>(a)</num><content><p>a person chargeable to domestic top-up tax that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the person’s membership of the multinational group or group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-6-b"><num>(b)</num><content><p>a qualifying entity that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the entity’s membership of the multinational group or group in respect of which a person is chargeable to domestic top-up tax.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-7"><num>(7)</num><content><p>Where this sub-paragraph applies, a retrospection election may not be made without the written consent of each such person.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-8"><num>(8)</num><intro><p>For the purposes of sub-paragraph <ref href="#schedule-4-paragraph-72-6">(6)</ref>, the relevant assumptions are—</p></intro><level class="para1" eId="schedule-4-paragraph-72-8-a"><num>(a)</num><content><p>that the retrospection election had been made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-8-b"><num>(b)</num><content><p>that no election under section 271 of F(No.2)A 2023 had been made.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-9"><num>(9)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-9-a"><num>(a)</num><content><p>the filing member of a multinational group is not a responsible member of that multinational group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-9-b"><num>(b)</num><content><p>there is more than one responsible member of that multinational group,</p></content></level><wrapUp><p>a retrospection election may not be made without the written consent of each responsible member.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-72-10"><num>(10)</num><intro><p>Sub-paragraph <ref href="#schedule-4-paragraph-72-11">(11)</ref> applies where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-10-a"><num>(a)</num><content><p>the filing member of a multinational group or group has made a retrospection election,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-b"><num>(b)</num><content><p>at the time the election was made it was reasonable for the filing member to consider that the consent of a person was not required,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-c"><num>(c)</num><content><p>that consent was not given,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-d"><num>(d)</num><content><p>the filing member becomes aware that the consent of that person was, or may have been, required, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-e"><num>(e)</num><content><p>the written consent of that person is given within the period of 60 days beginning with the day on which the condition in paragraph <ref href="#schedule-4-paragraph-72-10-d">(d)</ref> is first met.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-11"><num>(11)</num><content><p>The consent of that person is to be treated as having been given before the election was made.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-12"><num>(12)</num><content><p>References in this paragraph to a “group”, other than in the expression “multinational group”, are to a group for the purposes of Part 4 of F(No.2)A 2023 (domestic top-up tax).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-9-a"><num>(a)</num><content><p>in <ref eId="c00197" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>, paragraph 13 of Schedule 2;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-b"><num>(b)</num><content><p>in <ref eId="c00198" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraphs 527 and 528 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-c"><num>(c)</num><content><p>in <ref eId="c00199" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 477 and 478 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-d"><num>(d)</num><content><p>in <ref eId="c00200" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraph 347 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-e"><num>(e)</num><content><p>in <ref eId="c00201" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 3 of Schedule 14.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-9-a"><num>(a)</num><content><p>in <ref eId="c00197" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>, paragraph 13 of Schedule 2;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-9-b"><num>(b)</num><content><p>in <ref eId="c00198" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraphs 527 and 528 of Schedule 1;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-9-c"><num>(c)</num><content><p>in <ref eId="c00199" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 477 and 478 of Schedule 1;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-9-d"><num>(d)</num><content><p>in <ref eId="c00200" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraph 347 of Schedule 1;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-9-e"><num>(e)</num><content><p>in <ref eId="c00201" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 3 of Schedule 14.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><intro><p>No liability to income tax arises on </p></intro><level class="para1" eId="schedule-10-paragraph-10-1-a"><num><ins class="first last" ukl:ChangeId="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8-1776853132966" ukl:CommentaryRef="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8"><noteRef uk:name="commentary" href="#key-b1095a56ce7bbfabdc9e4e6e3a8b01f8" class="commentary"/>(a)</ins></num><content><p>the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-d10d1a50438566ccae8772e4ce37d1e2-1776853290668" ukl:CommentaryRef="key-d10d1a50438566ccae8772e4ce37d1e2"><noteRef uk:name="commentary" href="#key-d10d1a50438566ccae8772e4ce37d1e2" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision</ins> <ins class="first" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f"><noteRef uk:name="commentary" href="#key-f4964405d862b2748a4c836b21acf08f" class="commentary"/>, or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-10-1-b"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(b)</ins></num><intro><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">an amount of income treated as qualifying overseas capital under paragraph 6 that—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-10-1-b-i"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(i)</ins></num><content><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">falls within sub-paragraph (1)(b) of that paragraph, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-10-1-b-ii"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">is designated on the basis that it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 6 <ins class="first last" ukl:ChangeId="key-630151fc78607bb429cf9a616baf808b-1776853263158" ukl:CommentaryRef="key-630151fc78607bb429cf9a616baf808b"><noteRef uk:name="commentary" href="#key-630151fc78607bb429cf9a616baf808b" class="commentary"/>, and that falls within sub-paragraph (1)(a) or (c) of that paragraph,</ins> if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p>But such an amount is to be treated for the purposes of section 97(1) of TCGA 1992 (capital payments not to include amounts chargeable to income tax) as if it were chargeable to income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 7 if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><intro><p>Accordingly the amount—</p></intro><level class="para1" eId="schedule-10-paragraph-10-5-a"><num>(a)</num><content><p>will be a capital payment for the purposes of sections 86A to 96 of, and Schedule 4C to, TCGA 1992 (see section 97(1) of that Act), and</p></content></level><level class="para1" eId="schedule-10-paragraph-10-5-b"><num>(b)</num><content><p>will, as a result of paragraph 3 or 5 (or both), be qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p>Any such qualifying overseas capital is to be treated as having been designated by the individual (under that paragraph or those paragraphs), but no liability to the TRF charge is to arise as a result of that deemed designation.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-7"><num><noteRef href="#key-f37db8ccd0ef3d5d94e00404966056a9" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(7)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-8"><num><noteRef href="#key-1abc611bdef108e4a81cb2f8fbeee822" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(8)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-9"><num>(9)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-10-paragraph-13-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> or 89(2) of <ref eId="c00303" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-1-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 3.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-2"><num>(2)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-3"><num>(3)</num><intro><p>Sub-paragraph (4) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-3-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00304" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>) of a capital payment with the section 1(3) amount for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00305" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (4)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 3(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">Section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00306" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (3)(a) as is matched with the amount of the section 1(3) amount as would also, in accordance with paragraph 3(2), be matched with the amount of a capital payment mentioned in sub-paragraph (3)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-5-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under paragraph 8(1) of Schedule 4C to TCGA 1992 as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-5-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-6"><num>(6)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-7"><num>(7)</num><intro><p>Sub-paragraph (8) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-7-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00307" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as it has effect for the purposes of paragraph 8(3) of Schedule 4C to that Act) of a capital payment with the section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-b"><num>(b)</num><content><p>paragraph 13(2) of Schedule 4C to that Act (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (8)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 5(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-8"><num>(8)</num><content><p>Paragraph 13(2) of Schedule 4C to TCGA 1992 does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (7)(a) as is matched with the amount of the section 1(3) amount in the Schedule 4C pool as would also, in accordance with paragraph 5(2), be matched with the amount of a capital payment mentioned in sub-paragraph (7)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-9"><num>(9)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-13-9-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a> of <ref eId="c00308" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></level><level class="para1" eId="schedule-10-paragraph-13-9-b"><num>(b)</num><content><p>“<term refersTo="#term-section-13-amount-in-the-schedule-4c-pool" eId="term-section-13-amount-in-the-schedule-4c-pool">section 1(3) amount in the Schedule 4C pool</term>” is to be construed in accordance with Schedule 4C to TCGA 1992.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-10"><num>(10)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e25563"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-72" class="schProv1"><num>72</num><subparagraph eId="schedule-4-paragraph-72-1"><num>(1)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2023—</p></intro><level class="para1" eId="schedule-4-paragraph-72-1-a"><num>(a)</num><content><p><ref href="#schedule-4-paragraph-11">paragraph 11</ref> (permanent establishments as excluded entities);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-b"><num>(b)</num><content><p><ref href="#schedule-4-paragraph-39">paragraph 39</ref><ref href="#schedule-4-paragraph-39-d">(d)</ref> (joint venture conditions);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-c"><num>(c)</num><content><p><ref href="#schedule-4-paragraph-48">paragraph 48</ref> (removal of requirement for SBIE election);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-d"><num>(d)</num><content><p><ref href="#schedule-4-paragraph-51">paragraph 51</ref> (specification of territories and taxes);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-e"><num>(e)</num><content><p><ref href="#schedule-4-paragraph-52">paragraph 52</ref> (filing etc not required before 30 June 2026);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-f"><num>(f)</num><content><p><ref href="#schedule-4-paragraph-66">paragraph 66</ref> (top-up amount of investment entity).</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-2"><num>(2)</num><content><p><ref href="#schedule-4-paragraph-47">Paragraph 47</ref> has effect in relation to relation to accounting periods commencing on or after 31 December 2023, subject to sub-paragraph <ref href="#schedule-4-paragraph-47-2">(2)</ref> of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-3"><num>(3)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024—</p></intro><level class="para1" eId="schedule-4-paragraph-72-3-a"><num>(a)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-18">18</ref> to <ref href="#schedule-4-paragraph-24">24</ref> (tax equity partnerships);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-3-b"><num>(b)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-39-a">(a)</ref> to <ref href="#schedule-4-paragraph-39-c">(c)</ref> of <ref href="#schedule-4-paragraph-39">paragraph 39</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-4"><num>(4)</num><intro><p>The other provisions of this Part of this Schedule have effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-72-4-a"><num>(a)</num><content><p>where a retrospection election has been made in relation to a multinational group, a group, or a qualifying entity that is not a member of a group, accounting periods of that multinational group, group or entity commencing on or after 31 December 2023, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-4-b"><num>(b)</num><content><p>otherwise, accounting periods commencing on or after 31 December 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-5"><num>(5)</num><intro><p>A retrospection election—</p></intro><level class="para1" eId="schedule-4-paragraph-72-5-a"><num>(a)</num><intro><p>is to be made—</p></intro><level class="para2" eId="schedule-4-paragraph-72-5-a-i"><num>(i)</num><content><p>in the case of a multinational group or group, by the filing member, or</p></content></level><level class="para2" eId="schedule-4-paragraph-72-5-a-ii"><num>(ii)</num><content><p>in the case of a qualifying entity that is not a member of a group, by that entity,</p></content></level></level><level class="para1" eId="schedule-4-paragraph-72-5-b"><num>(b)</num><content><p>must be made on or before the day on which the self-assessment return or below-threshold notification for the first accounting period of the multinational group, group or entity commencing on or after 31 December 2023 is made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-5-c"><num>(c)</num><content><p>may not be revoked.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-6"><num>(6)</num><intro><p>But <ref href="#schedule-4-paragraph-72-7">sub-paragraph (7)</ref> applies where any member, or former member, of a multinational group or group is, or would be on either or both of the relevant assumptions—</p></intro><level class="para1" eId="schedule-4-paragraph-72-6-a"><num>(a)</num><content><p>a person chargeable to domestic top-up tax that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the person’s membership of the multinational group or group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-6-b"><num>(b)</num><content><p>a qualifying entity that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the entity’s membership of the multinational group or group in respect of which a person is chargeable to domestic top-up tax.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-7"><num>(7)</num><content><p>Where this sub-paragraph applies, a retrospection election may not be made without the written consent of each such person.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-8"><num>(8)</num><intro><p>For the purposes of sub-paragraph <ref href="#schedule-4-paragraph-72-6">(6)</ref>, the relevant assumptions are—</p></intro><level class="para1" eId="schedule-4-paragraph-72-8-a"><num>(a)</num><content><p>that the retrospection election had been made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-8-b"><num>(b)</num><content><p>that no election under section 271 of F(No.2)A 2023 had been made.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-9"><num>(9)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-9-a"><num>(a)</num><content><p>the filing member of a multinational group is not a responsible member of that multinational group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-9-b"><num>(b)</num><content><p>there is more than one responsible member of that multinational group,</p></content></level><wrapUp><p>a retrospection election may not be made without the written consent of each responsible member.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-72-10"><num>(10)</num><intro><p>Sub-paragraph <ref href="#schedule-4-paragraph-72-11">(11)</ref> applies where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-10-a"><num>(a)</num><content><p>the filing member of a multinational group or group has made a retrospection election,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-b"><num>(b)</num><content><p>at the time the election was made it was reasonable for the filing member to consider that the consent of a person was not required,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-c"><num>(c)</num><content><p>that consent was not given,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-d"><num>(d)</num><content><p>the filing member becomes aware that the consent of that person was, or may have been, required, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-e"><num>(e)</num><content><p>the written consent of that person is given within the period of 60 days beginning with the day on which the condition in paragraph <ref href="#schedule-4-paragraph-72-10-d">(d)</ref> is first met.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-11"><num>(11)</num><content><p>The consent of that person is to be treated as having been given before the election was made.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-12"><num>(12)</num><content><p>References in this paragraph to a “group”, other than in the expression “multinational group”, are to a group for the purposes of Part 4 of F(No.2)A 2023 (domestic top-up tax).</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-5"><num>Schedule 5<authorialNote class="referenceNote"><p>Section 25</p></authorialNote></num><heading>Furnished holiday lettings</heading><part eId="schedule-5-part-1"><num>Part 1</num><heading>Amendments relating to income tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e25861"><heading><ref eId="c00178" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><intro><p>Section 189 of FA 2004 (tax reliefs and exemptions in connection with registered pension schemes: meaning of relevant UK earnings) is amended as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsection (2)</a> omit—</p></intro><level class="para2" eId="schedule-5-paragraph-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (ba)</a>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (bb)</a> (but not the “and” after it);</p></content></level></level><level class="para1" eId="schedule-5-paragraph-1-b"><num>(b)</num><content><p>omit <span><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsections (5)</a> to <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">(6B)</a></span>.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25909"><heading><ref eId="c00179" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref></heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00180" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">section 270</a> (charge on profits of property businesses), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-2-2-a"><num>(a)</num><content><p>in the definition of “CAA allowances” omit “or 250A”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-2-b"><num>(b)</num><content><p><mod>in the definition of “CAA charges”, for “either of those sections” substitute <quotedText>“that section”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>In section 272B (meaning of “<term refersTo="#term-costs-of-a-dwelling-related-loan" eId="term-costs-of-a-dwelling-related-loan">costs of a dwelling-related loan</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (2)</a> for “subsections (3) and (4)” substitute <quotedText>“subsection (3)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (4)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><intro><p>In section 307B (cash basis: capital expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (6)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(7)</a>, omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsection (8)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">paragraph (a)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-residential-property">residential property</term>” means land consisting of a dwelling-house or part of a dwelling-house in relation to which a UK property business or an overseas property business is carried on in the tax year, and</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (9)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(19)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">section 307E</a> (cash basis: capital receipts)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (20)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a> for “sections 248 to 250A” substitute <quotedText>“sections 248 and 250”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (22)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a>, for “section 15(1)(b) to (da)” substitute <quotedText>“section 15(1)(b) or (d)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>In section 311A (replacement domestic items relief)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (6)</a>, for “subsections (7) and (8)” substitute <quotedText>“subsection (8)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (7)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In section 313 (restrictions on relief), omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/313">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-8"><num>(8)</num><content><p>Omit Chapter 6 of Part 3 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-9"><num>(9)</num><intro><p>In section 334C (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">(b)</a>, for “a relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (3)</a>, for “each relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (6)</a>, omit the definition of “relevant property business activity”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-10"><num>(10)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4">Schedule 4</a> (index of defined expressions), omit the entry for “commercial letting of furnished holiday accommodation (for purposes of Chapter 6 of Part 3)”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26171"><heading><ref eId="c00181" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00182" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>In section 117 (overview of Chapter 4 of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">(2A)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a> (UK furnished holiday lettings business treated as trade),</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a> (EEA furnished holiday lettings business treated as trade), and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-c"><num>(c)</num><content><p>the italic heading before those sections.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">section 388</a> (loan to buy plant or machinery for partnership use)—</p></intro><level class="para1" eId="schedule-5-paragraph-3-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">(a)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (4)</a>, for ““ordinary property business”” substitute <quotedText>““property business””</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">section 389</a> (eligibility requirements for interest on loans), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">subsection (4)</a> omit “ordinary”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>In section 399A (property partnerships: restriction of relief for investment loan interest) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/399A">subsection (9)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>In section 836 (jointly held property), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/836">subsection (3)</a> omit exceptions D and DA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26289"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-4-a"><num>(a)</num><intro><p>in <ref eId="c00183" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-a-i"><num>(i)</num><content><p>paragraph 196 of Schedule 1, and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-a-ii"><num>(ii)</num><content><p>paragraphs 74 and 75 of Schedule 2;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/schedule/1">Schedule 1</a> to <ref eId="c00184" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-b-i"><num>(i)</num><content><p>paragraph 473(2)(a) and (b), and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-b-ii"><num>(ii)</num><content><p>paragraphs 508, 509 and 510;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-c"><num>(c)</num><content><p>in <ref eId="c00185" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 1 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-d"><num>(d)</num><content><p>in <ref eId="c00186" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(5);</p></content></level><level class="para1" eId="schedule-5-paragraph-4-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 26 of Schedule 2.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-2"><num>Part 2</num><heading>Amendments relating to corporation tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e26372"><heading><ref eId="c00187" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00188" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>In section 202 (overview of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/202">subsection (5)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><content><p>In section 250A (replacement domestic items relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/250A">subsection (7)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>In section 252 (restrictions on relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/252">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>Omit Chapter 6 of Part 4 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-6"><num>(6)</num><intro><p>In section 748 (assets held for purposes of property business)—</p></intro><level class="para1" eId="schedule-5-paragraph-5-6-a"><num>(a)</num><content><p><mod>for <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (1), “<term refersTo="#term-property-business">property business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a UK property business, or</p></content></level><level class="para1"><num>(b)</num><content><p>an overseas property business.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-5-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (5)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-7"><num>(7)</num><content><p>In Schedule 4 (index of defined expressions) omit the entry for “commercial letting of furnished holiday accommodation (in Chapter 6 of Part 4)”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26478"><heading><ref eId="c00189" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p><ref eId="c00190" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a> (UK furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a> (EEA furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-4"><num>(4)</num><content><p>In section 188DD (limitations on relief under section 188CB: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-5"><num>(5)</num><content><p>In section 188ED (limitations on relief under section 188CC: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-6"><num>(6)</num><content><p>In section 269ZF (restriction of certain deductions: determination of company’s qualifying trading profits), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">(e)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">sub-paragraph (vii)</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26554"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-7-a"><num>(a)</num><content><p>in <ref eId="c00191" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 172 and 173 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-b"><num>(b)</num><content><p>in <ref eId="c00192" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraphs 602 and 603 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-c"><num>(c)</num><content><p>in <ref eId="c00193" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 2 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-d"><num>(d)</num><content><p>in <ref eId="c00194" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(7);</p></content></level><level class="para1" eId="schedule-5-paragraph-7-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 155 of Schedule 4.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-3"><num>Part 3</num><heading>Amendments relating to capital allowances</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e26610"><heading><ref eId="c00195" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><content><p><ref eId="c00196" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>Omit section 13B (use for other purposes of plant or machinery: property businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>In section 15 (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-ii"><num>(ii)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (c)</a>;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iii"><num>(iii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iv"><num>(iv)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (da)</a>;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (3)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-b-ii"><num>(ii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a> omit “ordinary”.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><content><p>Omit <span><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/16">sections 16</a> to <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/17B">17B</a></span> (which define ordinary UK, or overseas, property business and UK, or EEA, furnished holiday lettings business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><intro><p>In section 28 (qualifying expenditure: thermal insulation of buildings), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">subsections (1)</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">(2)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-5-a"><num>(a)</num><content><p><mod>for “an ordinary UK”, in each subsection, substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-5-b"><num>(b)</num><content><p><mod>for “an ordinary overseas”, in each subsection, substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><intro><p>In section 33 (qualifying expenditure: personal security), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">subsection (8)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (da)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>In section 35 (exclusion of certain expenditure on plant or machinery for use in a dwelling-house), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><intro><p>In section 59 (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-8-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (4A)</a>, for “a relevant qualifying activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-8-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (7A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-9"><num>(9)</num><intro><p>In section 63 (cases in which disposal value of plant or machinery is nil), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (da)</a> (but not the “or” after it).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-10"><num>(10)</num><intro><p>In section 248 (treatment of allowances or charges in relation to UK property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-10-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-10-b"><num>(b)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/248">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-11"><num>(11)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/249">section 249</a> (giving effect to allowances and charges: UK furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-12"><num>(12)</num><intro><p>In section 250 (treatment of allowances or charges in relation to overseas property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-12-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-12-b"><num>(b)</num><content><p>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250">paragraph (a)</a> omit “Ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-13"><num>(13)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250A">section 250A</a> (giving effect to allowances and charges: EEA furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-14"><num>(14)</num><intro><p>In section 270CA (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-14-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-14-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (c)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-15"><num>(15)</num><content><p>Omit section 270CB (meaning of ordinary UK or overseas property business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-16"><num>(16)</num><intro><p>In section 270CG (use for the purposes of a property business), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CG">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-16-a"><num>(a)</num><content><p><mod>for “an ordinary UK” substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-16-b"><num>(b)</num><content><p><mod>for “an ordinary overseas” substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-17"><num>(17)</num><intro><p>In section 270HB (allowances to be treated as expense of property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-17-a"><num>(a)</num><content><p>in the heading omit “ordinary” in both places;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-18"><num>(18)</num><intro><p>In section 536 (contributions not made by public bodies and not eligible for tax relief), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">subsection (5)</a><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">(a)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-18-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (i)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (ii)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iii)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iiia)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-19"><num>(19)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1">Schedule 1</a> (defined expressions) omit the entries for—</p></intro><level class="para1" eId="schedule-5-paragraph-8-19-a"><num>(a)</num><content><p>“EEA furnished holiday lettings business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-b"><num>(b)</num><content><p>“ordinary overseas property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-c"><num>(c)</num><content><p>“ordinary UK property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-d"><num>(d)</num><content><p>“UK furnished holiday lettings business”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27155"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-9-a"><num>(a)</num><content><p>in <ref eId="c00197" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>, paragraph 13 of Schedule 2;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-b"><num>(b)</num><content><p>in <ref eId="c00198" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraphs 527 and 528 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-c"><num>(c)</num><content><p>in <ref eId="c00199" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 477 and 478 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-d"><num>(d)</num><content><p>in <ref eId="c00200" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraph 347 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-e"><num>(e)</num><content><p>in <ref eId="c00201" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 3 of Schedule 14.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-4"><num>Part 4</num><heading>Amendments relating to chargeable gains</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e27214"><heading><ref eId="c00202" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p><ref eId="c00203" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>In section 3A (gains connected to avoidance or foreign activities etc) omit <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">subsections (3)</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">(5)</a></span>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">section 165A</a> (meaning of “<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “<term refersTo="#term-trading-group" eId="term-trading-group">trading group</term>”), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">subsection (14)</a>, in the definition of “trade” omit “(subject to section 241(3))”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-10-4-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">section 241</a> (UK furnished holiday lettings), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-4-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">section 241A</a> (EEA furnished holiday lettings).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27283"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-11-a"><num>(a)</num><content><p>in <ref eId="c00204" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref>, paragraph 62 of Schedule 20;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-b"><num>(b)</num><intro><p>in <ref eId="c00205" href="https://www.legislation.gov.uk/ukpga/1998/36">FA 1998</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-b-i"><num>(i)</num><content><p>paragraph 62 of Schedule 5, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-b-ii"><num>(ii)</num><content><p>paragraph 8 of Schedule 21;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-c"><num>(c)</num><content><p>in <ref eId="c00206" href="https://www.legislation.gov.uk/ukpga/2002/23">FA 2002</ref>, paragraph 3 of Schedule 8;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-d"><num>(d)</num><content><p>in <ref eId="c00207" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraph 441 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-e"><num>(e)</num><content><p>in <ref eId="c00208" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, paragraph 325 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-f"><num>(f)</num><intro><p>in <ref eId="c00209" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-f-i"><num>(i)</num><content><p>paragraph 37 of Schedule 2, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-f-ii"><num>(ii)</num><content><p>paragraph 3 of Schedule 3;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-g"><num>(g)</num><content><p>in <ref eId="c00210" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraph 380 of Schedule 1 to CTA 2009;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-h"><num>(h)</num><content><p>in <ref eId="c00211" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 4 of Schedule 14.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-5"><num>Part 5</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e27393"><heading>Commencement: <span><ref href="#schedule-5-part-1">Parts 1</ref> to <ref href="#schedule-5-part-3">3</ref></span></heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-1">Part 1</ref> have effect for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>The amendments made by <ref href="#schedule-5-part-2">Part 2</ref> have effect for the purposes of corporation tax in relation to accounting periods beginning on or after 1 April 2025.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><intro><p>The amendments made by <ref href="#schedule-5-part-3">Part 3</ref> have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-12-3-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-12-3-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to periods of account beginning on or after 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27445"><heading>Commencement: <ref href="#schedule-5-part-4">Part 4</ref></heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to disposals made on or after the commencement date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> also have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>for the purposes of <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">sections 152</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/157">157</a></span> of <ref eId="c00212" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief on replacement of business asset), in relation to acquisitions that take place on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/253">section 253</a> of <ref eId="c00213" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for loans to traders), in relation to claims for a loss to be treated as accruing to a person on or after the commencement date.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p><ref href="#schedule-5-paragraph-13-1">Sub-paragraph (1)</ref> is subject to <ref href="#schedule-5-paragraph-19">paragraph 19</ref> (business asset disposal relief: disposals relating to pre-commencement businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In <ref href="#schedule-5-paragraph-13">this paragraph</ref>, “<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27535"><heading>Anti-forestalling: disposals under unconditional contracts</heading><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-14-2">Sub-paragraph (2)</ref> applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-14-1-a"><num>(a)</num><content><p>an asset is disposed of under an unconditional contract made during the pre-commencement period,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-b"><num>(b)</num><content><p>the asset is conveyed or transferred on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-c"><num>(c)</num><content><p>a relevant claim is made in respect of the disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to the disposal unless—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><content><p>no purpose of entering into the contract was to avoid the amendments made by <ref href="#schedule-5-part-4">Part 4</ref> having effect in relation to the disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-b-i"><num>(i)</num><content><p>the contract was entered into wholly for commercial reasons, or</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-b-ii"><num>(ii)</num><content><p>the parties to the contract are not connected persons, and</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-c"><num>(c)</num><content><p>the claim includes a statement that the conditions in <ref href="#schedule-5-paragraph-14-2-a">paragraphs (a)</ref> and <ref href="#schedule-5-paragraph-14-2-b">(b)</ref> are met.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-14">this paragraph</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025;</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-connected-persons" eId="term-connected-persons">connected persons</term>” is to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/286">section 286</a> of <ref eId="c00214" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-pre-commencement-period" eId="term-the-pre-commencement-period">the pre-commencement period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with 6 March 2024, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the commencement date;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-claim" eId="term-relevant-claim">relevant claim</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">section 152</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153">153</a> of <ref eId="c00215" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief) or a declaration under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153A">section 153A</a> of <ref eId="c00216" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (provisional application of sections 152 and 153),</p></content></level><level class="para1"><num>(b)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165">section 165</a> of <ref eId="c00217" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for gifts of business assets), or</p></content></level><level class="para1"><num>(c)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00218" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (business asset disposal relief).</p></content></level></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27718"><heading>Corporation tax: accounting periods straddling 1 April 2025</heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><content><p><ref href="#schedule-5-paragraph-15">This paragraph</ref> applies where a company has an accounting period beginning before, and ending on or after, 1 April 2025 (“the straddling period”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>For the purposes of <ref href="#schedule-5">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>so much of the straddling period as falls before 1 April 2025, and so much of that period as falls on or after 1 April 2025, are treated as separate accounting periods, and</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><intro><p>where it is necessary to apportion an amount for the straddling period to the two separate accounting periods, it is to be apportioned—</p></intro><level class="para2" eId="schedule-5-paragraph-15-2-b-i"><num>(i)</num><content><p>in accordance with <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/1172">section 1172</a> of <ref eId="c00219" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (time basis), or</p></content></level><level class="para2" eId="schedule-5-paragraph-15-2-b-ii"><num>(ii)</num><content><p>if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27772"><heading>Carry-forward of losses: income tax</heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-16">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>a person is treated as carrying on in the tax year 2024-25 a single trade by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00220" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (UK furnished holiday lettings businesses) or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00221" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>the person has made a loss in that trade in the tax year 2024-25 or a previous tax year,</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-c"><num>(c)</num><content><p>relief for the loss has not been fully given under <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4/chapter/2">Chapter 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4">Part 4</a> of <ref eId="c00222" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (trade losses) or any other provision of the Income Tax Acts, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-d"><num>(d)</num><content><p>the person carries on a corresponding property business in the tax year 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><content><p>So much of the loss as has not been relieved is to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/118">section 118</a> of <ref eId="c00223" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (carry forward against subsequent property business profits) as if it had been made in the corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-16">this paragraph</ref>, “<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00224" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/264">section 264</a> of <ref eId="c00225" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00226" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/265">section 265</a> of <ref eId="c00227" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27900"><heading>Carry-forward of losses: corporation tax</heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-17">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-17-1-a"><num>(a)</num><intro><p>a company is treated as carrying on in its last accounting period to begin before 1 April 2025 a single trade by virtue of—</p></intro><level class="para2" eId="schedule-5-paragraph-17-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00228" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (UK furnished holiday lettings businesses), or</p></content></level><level class="para2" eId="schedule-5-paragraph-17-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00229" href="https://www.legislation.gov.uk/ukpga/2010/4">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level></level><level class="para1" eId="schedule-5-paragraph-17-1-b"><num>(b)</num><content><p>the company has made a loss in that trade in that accounting period or a previous one,</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-c"><num>(c)</num><content><p>but for the provision of <ref href="#schedule-5">this Schedule</ref>, all or part of the loss would fall to be carried forward under <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/45">section 45</a> of <ref eId="c00230" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> to an accounting period beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-d"><num>(d)</num><content><p>the company carries on a corresponding property business in its accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><content><p>The loss or the part of the loss that would otherwise fall to be carried forward as mentioned in <ref href="#schedule-5-paragraph-17-1">sub-paragraph (1)</ref><ref href="#schedule-5-paragraph-17-1-c">(c)</ref> is to be treated for the purposes of the relevant relieving provision as if it had been made by the company in its corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00231" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-3-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/205">section 205</a> of <ref eId="c00232" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-3-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">section 62</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">(5)</a> of <ref eId="c00233" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in UK property business).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00234" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-4-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/206">section 206</a> of <ref eId="c00235" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-4-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">section 66</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">(3)</a> of <ref eId="c00236" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in overseas property business).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28086"><heading>Plant and machinery allowances</heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-18">This paragraph</ref> applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00237" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (plant and machinery allowances) where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>immediately before the end of a person’s pre-commencement chargeable period, the person is carrying on an FHL qualifying activity, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>at the start of the person’s post-commencement chargeable period, the person is carrying on the corresponding property activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The amount of any allowance or charge arising in the person’s post-commencement chargeable period or any subsequent chargeable period is to be calculated as if anything done by or to the person in carrying on the FHL qualifying activity had been done by or to the person in carrying on the corresponding property activity.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>In particular—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><intro><p>where plant or machinery is in use for the purposes of the FHL qualifying activity immediately before the end of the person’s pre-commencement chargeable period—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-a-i"><num>(i)</num><content><p>the plant or machinery is to be treated as if it had been brought into use for the purposes of the corresponding property activity on the day on which it was brought into use for the purposes of the FHL qualifying activity, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-a-ii"><num>(ii)</num><content><p>its use for the purposes of the FHL qualifying activity is to be disregarded.</p></content></level></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><intro><p>where the person has unrelieved qualifying expenditure (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">section 59</a> of <ref eId="c00238" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>) to carry forward from the person’s pre-commencement chargeable period in a pool for an FHL qualifying activity, the expenditure is to be—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-b-i"><num>(i)</num><content><p>carried forward to the person’s post-commencement chargeable period, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-b-ii"><num>(ii)</num><content><p>allocated to the appropriate pool for the corresponding property activity.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>Accordingly, the person is not to be taken, by reason only of the effect of the amendments made by <ref href="#schedule-5">this Schedule</ref>, as having—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>brought plant or machinery into use, or ceased to use plant or machinery, for the purposes of a qualifying activity, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>permanently discontinued a qualifying activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">Section 35</a> of <ref eId="c00239" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure) does not apply to expenditure carried forward in accordance with <ref href="#schedule-5-paragraph-18-3">sub-paragraph (3)</ref><ref href="#schedule-5-paragraph-18-3-b">(b)</ref><ref href="#schedule-5-paragraph-18-3-b-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>In <ref href="#schedule-5-paragraph-18">this paragraph</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fhl-qualifying-activity" eId="term-fhl-qualifying-activity">FHL qualifying activity</term>” means a UK furnished holiday lettings business or an EEA furnished holiday lettings business;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-corresponding-property-activity" eId="term-the-corresponding-property-activity">the corresponding property activity</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK furnished holiday lettings business carried on by a person, a UK property business carried on by that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an EEA furnished holiday lettings business carried on by a person, an overseas property business carried on by that person;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-pre-commencement-chargeable-period" eId="term-pre-commencement-chargeable-period">pre-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, a company’s last accounting period to begin before 1 April 2025, and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2024-25;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-post-commencement-chargeable-period" eId="term-post-commencement-chargeable-period">post-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, the accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2025-26.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Expressions used in <ref href="#schedule-5-paragraph-18-6">sub-paragraph (6)</ref> have the same meaning as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00240" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28295"><heading>Business asset disposal relief: disposals relating to pre-commencement businesses</heading><paragraph eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><intro><p>The amendments made by <ref href="#schedule-5">this Schedule</ref> do not have effect in relation to a disposal made on or after 6 April 2025 if it is—</p></intro><level class="para1" eId="schedule-5-paragraph-19-a"><num>(a)</num><content><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(b)</a> of <ref eId="c00241" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (assets used for purposes of business) where the date on which the business ceases to be carried on is before 6 April 2025;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-b"><num>(b)</num><intro><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(c)</a> of <ref eId="c00242" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (shares in or securities of a company) where—</p></intro><level class="para2" eId="schedule-5-paragraph-19-b-i"><num>(i)</num><content><p>the disposal is a material disposal by virtue of condition B in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7)</a> of <ref eId="c00243" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> or condition D in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7B)</a> of <ref eId="c00244" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-19-b-ii"><num>(ii)</num><content><p>the period of 2 years mentioned in condition B or condition D (as the case may be) ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-c"><num>(c)</num><intro><p>a disposal of trust business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(1)</a> of <ref eId="c00245" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where the settlement business assets are—</p></intro><level class="para2" eId="schedule-5-paragraph-19-c-i"><num>(i)</num><content><p>assets consisting of (or of interests in) shares in or securities of a company in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(4)</a> of <ref eId="c00246" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025, or</p></content></level><level class="para2" eId="schedule-5-paragraph-19-c-ii"><num>(ii)</num><content><p>assets (or interests in assets) used or previously used for the purposes of a business in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(5)</a> of <ref eId="c00247" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-d"><num>(d)</num><content><p>a disposal associated with a relevant material disposal within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">section 169K</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">(1)</a> of <ref eId="c00248" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, where the date of the material disposal of business assets with which the disposal is associated is before 6 April 2025.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28423"><heading>Post-commencement disposals by companies with substantial shareholding</heading><paragraph eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC/paragraph/3">Paragraph 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">Schedule 7AC</a> to <ref eId="c00249" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (exemptions for disposals by companies with substantial shareholding: main conditions previously met) has effect in relation to a disposal made on or after 1 April 2025 in accordance with <ref href="#schedule-5-paragraph-20-2">sub-paragraph (2)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><content><p>In determining whether the condition in sub-paragraph (2)(d) of that paragraph of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">that Schedule</a> is met, <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">sections 241</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">241A</a> of <ref eId="c00250" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (commercial letting of furnished holiday accommodation to be treated as a trade) are to be disregarded.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-part-1"><num>Part 1</num><heading>Amendments relating to income tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e25861"><heading><ref eId="c00178" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><intro><p>Section 189 of FA 2004 (tax reliefs and exemptions in connection with registered pension schemes: meaning of relevant UK earnings) is amended as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsection (2)</a> omit—</p></intro><level class="para2" eId="schedule-5-paragraph-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (ba)</a>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (bb)</a> (but not the “and” after it);</p></content></level></level><level class="para1" eId="schedule-5-paragraph-1-b"><num>(b)</num><content><p>omit <span><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsections (5)</a> to <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">(6B)</a></span>.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25909"><heading><ref eId="c00179" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref></heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00180" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">section 270</a> (charge on profits of property businesses), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-2-2-a"><num>(a)</num><content><p>in the definition of “CAA allowances” omit “or 250A”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-2-b"><num>(b)</num><content><p><mod>in the definition of “CAA charges”, for “either of those sections” substitute <quotedText>“that section”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>In section 272B (meaning of “<term refersTo="#term-costs-of-a-dwelling-related-loan" eId="term-costs-of-a-dwelling-related-loan">costs of a dwelling-related loan</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (2)</a> for “subsections (3) and (4)” substitute <quotedText>“subsection (3)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (4)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><intro><p>In section 307B (cash basis: capital expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (6)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(7)</a>, omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsection (8)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">paragraph (a)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-residential-property">residential property</term>” means land consisting of a dwelling-house or part of a dwelling-house in relation to which a UK property business or an overseas property business is carried on in the tax year, and</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (9)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(19)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">section 307E</a> (cash basis: capital receipts)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (20)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a> for “sections 248 to 250A” substitute <quotedText>“sections 248 and 250”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (22)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a>, for “section 15(1)(b) to (da)” substitute <quotedText>“section 15(1)(b) or (d)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>In section 311A (replacement domestic items relief)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (6)</a>, for “subsections (7) and (8)” substitute <quotedText>“subsection (8)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (7)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In section 313 (restrictions on relief), omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/313">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-8"><num>(8)</num><content><p>Omit Chapter 6 of Part 3 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-9"><num>(9)</num><intro><p>In section 334C (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">(b)</a>, for “a relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (3)</a>, for “each relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (6)</a>, omit the definition of “relevant property business activity”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-10"><num>(10)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4">Schedule 4</a> (index of defined expressions), omit the entry for “commercial letting of furnished holiday accommodation (for purposes of Chapter 6 of Part 3)”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26171"><heading><ref eId="c00181" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00182" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>In section 117 (overview of Chapter 4 of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">(2A)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a> (UK furnished holiday lettings business treated as trade),</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a> (EEA furnished holiday lettings business treated as trade), and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-c"><num>(c)</num><content><p>the italic heading before those sections.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">section 388</a> (loan to buy plant or machinery for partnership use)—</p></intro><level class="para1" eId="schedule-5-paragraph-3-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">(a)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (4)</a>, for ““ordinary property business”” substitute <quotedText>““property business””</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">section 389</a> (eligibility requirements for interest on loans), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">subsection (4)</a> omit “ordinary”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>In section 399A (property partnerships: restriction of relief for investment loan interest) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/399A">subsection (9)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>In section 836 (jointly held property), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/836">subsection (3)</a> omit exceptions D and DA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26289"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-4-a"><num>(a)</num><intro><p>in <ref eId="c00183" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-a-i"><num>(i)</num><content><p>paragraph 196 of Schedule 1, and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-a-ii"><num>(ii)</num><content><p>paragraphs 74 and 75 of Schedule 2;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/schedule/1">Schedule 1</a> to <ref eId="c00184" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-b-i"><num>(i)</num><content><p>paragraph 473(2)(a) and (b), and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-b-ii"><num>(ii)</num><content><p>paragraphs 508, 509 and 510;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-c"><num>(c)</num><content><p>in <ref eId="c00185" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 1 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-d"><num>(d)</num><content><p>in <ref eId="c00186" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(5);</p></content></level><level class="para1" eId="schedule-5-paragraph-4-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 26 of Schedule 2.</p></content></level></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Constitutional Reform and Governance Act 2010</heading><paragraph eId="schedule-13-paragraph-36" class="schProv1"><num>36</num><content><p><mod>In section 41 of the Constitutional Reform and Governance Act 2010 (tax status of MPs and members of the House of Lords), for subsections (2) and (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>The person is to be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as resident in the United Kingdom for the whole of that tax year for the purposes of income tax, capital gains tax and inheritance tax, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a long-term UK resident at all times in that tax year for the purposes of inheritance tax.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><intro><p>Section 189 of FA 2004 (tax reliefs and exemptions in connection with registered pension schemes: meaning of relevant UK earnings) is amended as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsection (2)</a> omit—</p></intro><level class="para2" eId="schedule-5-paragraph-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (ba)</a>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (bb)</a> (but not the “and” after it);</p></content></level></level><level class="para1" eId="schedule-5-paragraph-1-b"><num>(b)</num><content><p>omit <span><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsections (5)</a> to <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">(6B)</a></span>.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsection (2)</a> omit—</p></intro><level class="para2" eId="schedule-5-paragraph-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (ba)</a>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (bb)</a> (but not the “and” after it);</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (ba)</a>, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (bb)</a> (but not the “and” after it);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-1-b"><num>(b)</num><content><p>omit <span><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsections (5)</a> to <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">(6B)</a></span>.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-4-a"><num>(a)</num><intro><p>in <ref eId="c00183" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-a-i"><num>(i)</num><content><p>paragraph 196 of Schedule 1, and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-a-ii"><num>(ii)</num><content><p>paragraphs 74 and 75 of Schedule 2;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/schedule/1">Schedule 1</a> to <ref eId="c00184" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-b-i"><num>(i)</num><content><p>paragraph 473(2)(a) and (b), and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-b-ii"><num>(ii)</num><content><p>paragraphs 508, 509 and 510;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-c"><num>(c)</num><content><p>in <ref eId="c00185" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 1 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-d"><num>(d)</num><content><p>in <ref eId="c00186" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(5);</p></content></level><level class="para1" eId="schedule-5-paragraph-4-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 26 of Schedule 2.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-4-a"><num>(a)</num><intro><p>in <ref eId="c00183" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-a-i"><num>(i)</num><content><p>paragraph 196 of Schedule 1, and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-a-ii"><num>(ii)</num><content><p>paragraphs 74 and 75 of Schedule 2;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-4-a-i"><num>(i)</num><content><p>paragraph 196 of Schedule 1, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-4-a-ii"><num>(ii)</num><content><p>paragraphs 74 and 75 of Schedule 2;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/schedule/1">Schedule 1</a> to <ref eId="c00184" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-b-i"><num>(i)</num><content><p>paragraph 473(2)(a) and (b), and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-b-ii"><num>(ii)</num><content><p>paragraphs 508, 509 and 510;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-4-b-i"><num>(i)</num><content><p>paragraph 473(2)(a) and (b), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-5-paragraph-4-b-ii"><num>(ii)</num><content><p>paragraphs 508, 509 and 510;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-4-c"><num>(c)</num><content><p>in <ref eId="c00185" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 1 of Schedule 14;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-4-d"><num>(d)</num><content><p>in <ref eId="c00186" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(5);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-4-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 26 of Schedule 2.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-14-2">Sub-paragraph (2)</ref> applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-14-1-a"><num>(a)</num><content><p>an asset is disposed of under an unconditional contract made during the pre-commencement period,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-b"><num>(b)</num><content><p>the asset is conveyed or transferred on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-c"><num>(c)</num><content><p>a relevant claim is made in respect of the disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to the disposal unless—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><content><p>no purpose of entering into the contract was to avoid the amendments made by <ref href="#schedule-5-part-4">Part 4</ref> having effect in relation to the disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-b-i"><num>(i)</num><content><p>the contract was entered into wholly for commercial reasons, or</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-b-ii"><num>(ii)</num><content><p>the parties to the contract are not connected persons, and</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-c"><num>(c)</num><content><p>the claim includes a statement that the conditions in <ref href="#schedule-5-paragraph-14-2-a">paragraphs (a)</ref> and <ref href="#schedule-5-paragraph-14-2-b">(b)</ref> are met.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-14">this paragraph</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025;</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-connected-persons" eId="term-connected-persons">connected persons</term>” is to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/286">section 286</a> of <ref eId="c00214" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-pre-commencement-period" eId="term-the-pre-commencement-period">the pre-commencement period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with 6 March 2024, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the commencement date;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-claim" eId="term-relevant-claim">relevant claim</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">section 152</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153">153</a> of <ref eId="c00215" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief) or a declaration under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153A">section 153A</a> of <ref eId="c00216" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (provisional application of sections 152 and 153),</p></content></level><level class="para1"><num>(b)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165">section 165</a> of <ref eId="c00217" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for gifts of business assets), or</p></content></level><level class="para1"><num>(c)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00218" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (business asset disposal relief).</p></content></level></hcontainer></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-17">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-17-1-a"><num>(a)</num><intro><p>a company is treated as carrying on in its last accounting period to begin before 1 April 2025 a single trade by virtue of—</p></intro><level class="para2" eId="schedule-5-paragraph-17-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00228" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (UK furnished holiday lettings businesses), or</p></content></level><level class="para2" eId="schedule-5-paragraph-17-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00229" href="https://www.legislation.gov.uk/ukpga/2010/4">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level></level><level class="para1" eId="schedule-5-paragraph-17-1-b"><num>(b)</num><content><p>the company has made a loss in that trade in that accounting period or a previous one,</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-c"><num>(c)</num><content><p>but for the provision of <ref href="#schedule-5">this Schedule</ref>, all or part of the loss would fall to be carried forward under <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/45">section 45</a> of <ref eId="c00230" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> to an accounting period beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-d"><num>(d)</num><content><p>the company carries on a corresponding property business in its accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><content><p>The loss or the part of the loss that would otherwise fall to be carried forward as mentioned in <ref href="#schedule-5-paragraph-17-1">sub-paragraph (1)</ref><ref href="#schedule-5-paragraph-17-1-c">(c)</ref> is to be treated for the purposes of the relevant relieving provision as if it had been made by the company in its corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00231" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-3-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/205">section 205</a> of <ref eId="c00232" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-3-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">section 62</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">(5)</a> of <ref eId="c00233" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in UK property business).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00234" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-4-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/206">section 206</a> of <ref eId="c00235" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-4-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">section 66</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">(3)</a> of <ref eId="c00236" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in overseas property business).</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC/paragraph/3">Paragraph 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">Schedule 7AC</a> to <ref eId="c00249" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (exemptions for disposals by companies with substantial shareholding: main conditions previously met) has effect in relation to a disposal made on or after 1 April 2025 in accordance with <ref href="#schedule-5-paragraph-20-2">sub-paragraph (2)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><content><p>In determining whether the condition in sub-paragraph (2)(d) of that paragraph of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">that Schedule</a> is met, <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">sections 241</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">241A</a> of <ref eId="c00250" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (commercial letting of furnished holiday accommodation to be treated as a trade) are to be disregarded.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-73" class="schProv1"><num>73</num><subparagraph eId="schedule-12-paragraph-73-1"><num>(1)</num><content><p><ref href="#d25e41418">Section 735AF</ref> of ITA 2007 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-44">paragraph 44</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in <ref href="#d25e41418">section 735AF</ref> of ITA 2007; and in a case within <ref href="#d25e41418">section 735AF</ref><ref href="#d25e41546">(3)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-paragraph-36" class="schProv1"><num>36</num><content><p><mod>In section 41 of the Constitutional Reform and Governance Act 2010 (tax status of MPs and members of the House of Lords), for subsections (2) and (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>The person is to be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as resident in the United Kingdom for the whole of that tax year for the purposes of income tax, capital gains tax and inheritance tax, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a long-term UK resident at all times in that tax year for the purposes of inheritance tax.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-47" class="schProv1"><num>47</num><content><p>The amendment of section 81(1) of IHTA 1984 by <ref href="#schedule-13-paragraph-15">paragraph 15</ref><ref href="#schedule-13-paragraph-15-b">(b)</ref> of this Schedule (trusts on which property moving between settlements is held) is to be disregarded in construing section 81(1) in a case where the property in question ceased to be comprised in the first settlement before 6 April 2025.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e25861"><heading><ref eId="c00178" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><intro><p>Section 189 of FA 2004 (tax reliefs and exemptions in connection with registered pension schemes: meaning of relevant UK earnings) is amended as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsection (2)</a> omit—</p></intro><level class="para2" eId="schedule-5-paragraph-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (ba)</a>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (bb)</a> (but not the “and” after it);</p></content></level></level><level class="para1" eId="schedule-5-paragraph-1-b"><num>(b)</num><content><p>omit <span><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsections (5)</a> to <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">(6B)</a></span>.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e25909"><heading><ref eId="c00179" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref></heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00180" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">section 270</a> (charge on profits of property businesses), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-2-2-a"><num>(a)</num><content><p>in the definition of “CAA allowances” omit “or 250A”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-2-b"><num>(b)</num><content><p><mod>in the definition of “CAA charges”, for “either of those sections” substitute <quotedText>“that section”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>In section 272B (meaning of “<term refersTo="#term-costs-of-a-dwelling-related-loan" eId="term-costs-of-a-dwelling-related-loan">costs of a dwelling-related loan</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (2)</a> for “subsections (3) and (4)” substitute <quotedText>“subsection (3)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (4)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><intro><p>In section 307B (cash basis: capital expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (6)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(7)</a>, omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsection (8)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">paragraph (a)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-residential-property">residential property</term>” means land consisting of a dwelling-house or part of a dwelling-house in relation to which a UK property business or an overseas property business is carried on in the tax year, and</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (9)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(19)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">section 307E</a> (cash basis: capital receipts)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (20)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a> for “sections 248 to 250A” substitute <quotedText>“sections 248 and 250”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (22)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a>, for “section 15(1)(b) to (da)” substitute <quotedText>“section 15(1)(b) or (d)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>In section 311A (replacement domestic items relief)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (6)</a>, for “subsections (7) and (8)” substitute <quotedText>“subsection (8)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (7)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In section 313 (restrictions on relief), omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/313">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-8"><num>(8)</num><content><p>Omit Chapter 6 of Part 3 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-9"><num>(9)</num><intro><p>In section 334C (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">(b)</a>, for “a relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (3)</a>, for “each relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (6)</a>, omit the definition of “relevant property business activity”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-10"><num>(10)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4">Schedule 4</a> (index of defined expressions), omit the entry for “commercial letting of furnished holiday accommodation (for purposes of Chapter 6 of Part 3)”.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e26171"><heading><ref eId="c00181" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00182" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>In section 117 (overview of Chapter 4 of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">(2A)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a> (UK furnished holiday lettings business treated as trade),</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a> (EEA furnished holiday lettings business treated as trade), and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-c"><num>(c)</num><content><p>the italic heading before those sections.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">section 388</a> (loan to buy plant or machinery for partnership use)—</p></intro><level class="para1" eId="schedule-5-paragraph-3-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">(a)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (4)</a>, for ““ordinary property business”” substitute <quotedText>““property business””</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">section 389</a> (eligibility requirements for interest on loans), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">subsection (4)</a> omit “ordinary”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>In section 399A (property partnerships: restriction of relief for investment loan interest) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/399A">subsection (9)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>In section 836 (jointly held property), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/836">subsection (3)</a> omit exceptions D and DA.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e26289"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-4-a"><num>(a)</num><intro><p>in <ref eId="c00183" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-a-i"><num>(i)</num><content><p>paragraph 196 of Schedule 1, and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-a-ii"><num>(ii)</num><content><p>paragraphs 74 and 75 of Schedule 2;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/schedule/1">Schedule 1</a> to <ref eId="c00184" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-b-i"><num>(i)</num><content><p>paragraph 473(2)(a) and (b), and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-b-ii"><num>(ii)</num><content><p>paragraphs 508, 509 and 510;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-c"><num>(c)</num><content><p>in <ref eId="c00185" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 1 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-d"><num>(d)</num><content><p>in <ref eId="c00186" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(5);</p></content></level><level class="para1" eId="schedule-5-paragraph-4-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 26 of Schedule 2.</p></content></level></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-part-2"><num>Part 2</num><heading>Amendments relating to corporation tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e26372"><heading><ref eId="c00187" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00188" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>In section 202 (overview of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/202">subsection (5)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><content><p>In section 250A (replacement domestic items relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/250A">subsection (7)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>In section 252 (restrictions on relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/252">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>Omit Chapter 6 of Part 4 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-6"><num>(6)</num><intro><p>In section 748 (assets held for purposes of property business)—</p></intro><level class="para1" eId="schedule-5-paragraph-5-6-a"><num>(a)</num><content><p><mod>for <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (1), “<term refersTo="#term-property-business">property business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a UK property business, or</p></content></level><level class="para1"><num>(b)</num><content><p>an overseas property business.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-5-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (5)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-7"><num>(7)</num><content><p>In Schedule 4 (index of defined expressions) omit the entry for “commercial letting of furnished holiday accommodation (in Chapter 6 of Part 4)”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26478"><heading><ref eId="c00189" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p><ref eId="c00190" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a> (UK furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a> (EEA furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-4"><num>(4)</num><content><p>In section 188DD (limitations on relief under section 188CB: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-5"><num>(5)</num><content><p>In section 188ED (limitations on relief under section 188CC: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-6"><num>(6)</num><content><p>In section 269ZF (restriction of certain deductions: determination of company’s qualifying trading profits), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">(e)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">sub-paragraph (vii)</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26554"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-7-a"><num>(a)</num><content><p>in <ref eId="c00191" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 172 and 173 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-b"><num>(b)</num><content><p>in <ref eId="c00192" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraphs 602 and 603 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-c"><num>(c)</num><content><p>in <ref eId="c00193" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 2 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-d"><num>(d)</num><content><p>in <ref eId="c00194" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(7);</p></content></level><level class="para1" eId="schedule-5-paragraph-7-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 155 of Schedule 4.</p></content></level></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e26372"><heading><ref eId="c00187" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00188" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>In section 202 (overview of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/202">subsection (5)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><content><p>In section 250A (replacement domestic items relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/250A">subsection (7)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>In section 252 (restrictions on relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/252">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>Omit Chapter 6 of Part 4 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-6"><num>(6)</num><intro><p>In section 748 (assets held for purposes of property business)—</p></intro><level class="para1" eId="schedule-5-paragraph-5-6-a"><num>(a)</num><content><p><mod>for <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (1), “<term refersTo="#term-property-business">property business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a UK property business, or</p></content></level><level class="para1"><num>(b)</num><content><p>an overseas property business.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-5-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (5)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-7"><num>(7)</num><content><p>In Schedule 4 (index of defined expressions) omit the entry for “commercial letting of furnished holiday accommodation (in Chapter 6 of Part 4)”.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading><ref eId="c00189" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p><ref eId="c00190" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a> (UK furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a> (EEA furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-4"><num>(4)</num><content><p>In section 188DD (limitations on relief under section 188CB: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-5"><num>(5)</num><content><p>In section 188ED (limitations on relief under section 188CC: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-6"><num>(6)</num><content><p>In section 269ZF (restriction of certain deductions: determination of company’s qualifying trading profits), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">(e)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">sub-paragraph (vii)</a>.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p><ref eId="c00190" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a> (UK furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a> (EEA furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-4"><num>(4)</num><content><p>In section 188DD (limitations on relief under section 188CB: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-5"><num>(5)</num><content><p>In section 188ED (limitations on relief under section 188CC: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-6"><num>(6)</num><content><p>In section 269ZF (restriction of certain deductions: determination of company’s qualifying trading profits), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">(e)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">sub-paragraph (vii)</a>.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-70" class="schProv1"><num>70</num><subparagraph eId="schedule-12-paragraph-70-1"><num>(1)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-1">1</ref> to <ref href="#schedule-12-paragraph-53">53</ref>, <ref href="#schedule-12-paragraph-55">55</ref> to <ref href="#schedule-12-paragraph-64">64</ref> and <ref href="#schedule-12-paragraph-67">67</ref> to <ref href="#schedule-12-paragraph-69">69</ref> have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-2"><num>(2)</num><content><p>The amendment made by paragraph <ref href="#schedule-12-paragraph-54">54</ref> to section 62 of TCGA 1992 (death: general provisions) has effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-3"><num>(3)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-65">65</ref> and <ref href="#schedule-12-paragraph-66">66</ref> to sections 279A and 279C of TCGA 1992 (deferred unascertainable consideration: election for treatment of loss) have effect in relation to disposals made on or after 6 April 2025 of rights to which section 279A of that Act applies.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-74" class="schProv1"><num>74</num><subparagraph eId="schedule-12-paragraph-74-1"><num>(1)</num><content><p>Section 87HA of TCGA 1992 (benefits routed via non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-62">paragraph 62</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which they receive the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 87HA of TCGA 1992; and in a case within section <ref href="#d25e42124">87HA</ref><ref href="#d25e42241">(4)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-75" class="schProv1"><num>75</num><intro><p>Despite the repeal of sections 87K and 87L of TCGA 1992 (old onward gifting rules) by paragraph <ref href="#schedule-12-paragraph-62">62</ref> of this Schedule, each of those sections continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-75-a"><num>(a)</num><content><p>before its repeal, it provided for section 87 and 87A of that Act to have effect as if a capital payment of a particular amount had been received at a particular time by a particular person, and</p></content></level><level class="para1" eId="schedule-12-paragraph-75-b"><num>(b)</num><content><p>the receipt of the capital payment by that person is relevant to the application of sections 87 and 87A in the tax year 2025-26 or a later tax year.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-75-a"><num>(a)</num><content><p>before its repeal, it provided for section 87 and 87A of that Act to have effect as if a capital payment of a particular amount had been received at a particular time by a particular person, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-75-b"><num>(b)</num><content><p>the receipt of the capital payment by that person is relevant to the application of sections 87 and 87A in the tax year 2025-26 or a later tax year.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e26478"><heading><ref eId="c00189" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p><ref eId="c00190" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a> (UK furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a> (EEA furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-4"><num>(4)</num><content><p>In section 188DD (limitations on relief under section 188CB: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-5"><num>(5)</num><content><p>In section 188ED (limitations on relief under section 188CC: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-6"><num>(6)</num><content><p>In section 269ZF (restriction of certain deductions: determination of company’s qualifying trading profits), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">(e)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">sub-paragraph (vii)</a>.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e26554"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-7-a"><num>(a)</num><content><p>in <ref eId="c00191" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 172 and 173 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-b"><num>(b)</num><content><p>in <ref eId="c00192" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraphs 602 and 603 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-c"><num>(c)</num><content><p>in <ref eId="c00193" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 2 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-d"><num>(d)</num><content><p>in <ref eId="c00194" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(7);</p></content></level><level class="para1" eId="schedule-5-paragraph-7-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 155 of Schedule 4.</p></content></level></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-part-3"><num>Part 3</num><heading>Amendments relating to capital allowances</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e26610"><heading><ref eId="c00195" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><content><p><ref eId="c00196" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>Omit section 13B (use for other purposes of plant or machinery: property businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>In section 15 (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-ii"><num>(ii)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (c)</a>;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iii"><num>(iii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iv"><num>(iv)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (da)</a>;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (3)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-b-ii"><num>(ii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a> omit “ordinary”.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><content><p>Omit <span><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/16">sections 16</a> to <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/17B">17B</a></span> (which define ordinary UK, or overseas, property business and UK, or EEA, furnished holiday lettings business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><intro><p>In section 28 (qualifying expenditure: thermal insulation of buildings), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">subsections (1)</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">(2)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-5-a"><num>(a)</num><content><p><mod>for “an ordinary UK”, in each subsection, substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-5-b"><num>(b)</num><content><p><mod>for “an ordinary overseas”, in each subsection, substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><intro><p>In section 33 (qualifying expenditure: personal security), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">subsection (8)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (da)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>In section 35 (exclusion of certain expenditure on plant or machinery for use in a dwelling-house), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><intro><p>In section 59 (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-8-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (4A)</a>, for “a relevant qualifying activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-8-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (7A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-9"><num>(9)</num><intro><p>In section 63 (cases in which disposal value of plant or machinery is nil), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (da)</a> (but not the “or” after it).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-10"><num>(10)</num><intro><p>In section 248 (treatment of allowances or charges in relation to UK property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-10-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-10-b"><num>(b)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/248">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-11"><num>(11)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/249">section 249</a> (giving effect to allowances and charges: UK furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-12"><num>(12)</num><intro><p>In section 250 (treatment of allowances or charges in relation to overseas property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-12-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-12-b"><num>(b)</num><content><p>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250">paragraph (a)</a> omit “Ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-13"><num>(13)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250A">section 250A</a> (giving effect to allowances and charges: EEA furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-14"><num>(14)</num><intro><p>In section 270CA (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-14-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-14-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (c)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-15"><num>(15)</num><content><p>Omit section 270CB (meaning of ordinary UK or overseas property business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-16"><num>(16)</num><intro><p>In section 270CG (use for the purposes of a property business), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CG">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-16-a"><num>(a)</num><content><p><mod>for “an ordinary UK” substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-16-b"><num>(b)</num><content><p><mod>for “an ordinary overseas” substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-17"><num>(17)</num><intro><p>In section 270HB (allowances to be treated as expense of property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-17-a"><num>(a)</num><content><p>in the heading omit “ordinary” in both places;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-18"><num>(18)</num><intro><p>In section 536 (contributions not made by public bodies and not eligible for tax relief), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">subsection (5)</a><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">(a)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-18-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (i)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (ii)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iii)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iiia)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-19"><num>(19)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1">Schedule 1</a> (defined expressions) omit the entries for—</p></intro><level class="para1" eId="schedule-5-paragraph-8-19-a"><num>(a)</num><content><p>“EEA furnished holiday lettings business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-b"><num>(b)</num><content><p>“ordinary overseas property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-c"><num>(c)</num><content><p>“ordinary UK property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-d"><num>(d)</num><content><p>“UK furnished holiday lettings business”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27155"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-9-a"><num>(a)</num><content><p>in <ref eId="c00197" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>, paragraph 13 of Schedule 2;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-b"><num>(b)</num><content><p>in <ref eId="c00198" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraphs 527 and 528 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-c"><num>(c)</num><content><p>in <ref eId="c00199" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 477 and 478 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-d"><num>(d)</num><content><p>in <ref eId="c00200" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraph 347 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-e"><num>(e)</num><content><p>in <ref eId="c00201" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 3 of Schedule 14.</p></content></level></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e26610"><heading><ref eId="c00195" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><content><p><ref eId="c00196" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>Omit section 13B (use for other purposes of plant or machinery: property businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>In section 15 (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-ii"><num>(ii)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (c)</a>;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iii"><num>(iii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iv"><num>(iv)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (da)</a>;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (3)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-b-ii"><num>(ii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a> omit “ordinary”.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><content><p>Omit <span><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/16">sections 16</a> to <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/17B">17B</a></span> (which define ordinary UK, or overseas, property business and UK, or EEA, furnished holiday lettings business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><intro><p>In section 28 (qualifying expenditure: thermal insulation of buildings), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">subsections (1)</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">(2)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-5-a"><num>(a)</num><content><p><mod>for “an ordinary UK”, in each subsection, substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-5-b"><num>(b)</num><content><p><mod>for “an ordinary overseas”, in each subsection, substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><intro><p>In section 33 (qualifying expenditure: personal security), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">subsection (8)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (da)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>In section 35 (exclusion of certain expenditure on plant or machinery for use in a dwelling-house), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><intro><p>In section 59 (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-8-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (4A)</a>, for “a relevant qualifying activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-8-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (7A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-9"><num>(9)</num><intro><p>In section 63 (cases in which disposal value of plant or machinery is nil), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (da)</a> (but not the “or” after it).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-10"><num>(10)</num><intro><p>In section 248 (treatment of allowances or charges in relation to UK property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-10-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-10-b"><num>(b)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/248">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-11"><num>(11)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/249">section 249</a> (giving effect to allowances and charges: UK furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-12"><num>(12)</num><intro><p>In section 250 (treatment of allowances or charges in relation to overseas property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-12-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-12-b"><num>(b)</num><content><p>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250">paragraph (a)</a> omit “Ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-13"><num>(13)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250A">section 250A</a> (giving effect to allowances and charges: EEA furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-14"><num>(14)</num><intro><p>In section 270CA (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-14-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-14-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (c)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-15"><num>(15)</num><content><p>Omit section 270CB (meaning of ordinary UK or overseas property business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-16"><num>(16)</num><intro><p>In section 270CG (use for the purposes of a property business), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CG">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-16-a"><num>(a)</num><content><p><mod>for “an ordinary UK” substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-16-b"><num>(b)</num><content><p><mod>for “an ordinary overseas” substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-17"><num>(17)</num><intro><p>In section 270HB (allowances to be treated as expense of property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-17-a"><num>(a)</num><content><p>in the heading omit “ordinary” in both places;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-18"><num>(18)</num><intro><p>In section 536 (contributions not made by public bodies and not eligible for tax relief), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">subsection (5)</a><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">(a)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-18-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (i)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (ii)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iii)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iiia)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-19"><num>(19)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1">Schedule 1</a> (defined expressions) omit the entries for—</p></intro><level class="para1" eId="schedule-5-paragraph-8-19-a"><num>(a)</num><content><p>“EEA furnished holiday lettings business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-b"><num>(b)</num><content><p>“ordinary overseas property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-c"><num>(c)</num><content><p>“ordinary UK property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-d"><num>(d)</num><content><p>“UK furnished holiday lettings business”.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27155"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-9-a"><num>(a)</num><content><p>in <ref eId="c00197" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>, paragraph 13 of Schedule 2;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-b"><num>(b)</num><content><p>in <ref eId="c00198" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraphs 527 and 528 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-c"><num>(c)</num><content><p>in <ref eId="c00199" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 477 and 478 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-d"><num>(d)</num><content><p>in <ref eId="c00200" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraph 347 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-e"><num>(e)</num><content><p>in <ref eId="c00201" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 3 of Schedule 14.</p></content></level></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-part-4"><num>Part 4</num><heading>Amendments relating to chargeable gains</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e27214"><heading><ref eId="c00202" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p><ref eId="c00203" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>In section 3A (gains connected to avoidance or foreign activities etc) omit <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">subsections (3)</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">(5)</a></span>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">section 165A</a> (meaning of “<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “<term refersTo="#term-trading-group" eId="term-trading-group">trading group</term>”), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">subsection (14)</a>, in the definition of “trade” omit “(subject to section 241(3))”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-10-4-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">section 241</a> (UK furnished holiday lettings), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-4-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">section 241A</a> (EEA furnished holiday lettings).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27283"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-11-a"><num>(a)</num><content><p>in <ref eId="c00204" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref>, paragraph 62 of Schedule 20;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-b"><num>(b)</num><intro><p>in <ref eId="c00205" href="https://www.legislation.gov.uk/ukpga/1998/36">FA 1998</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-b-i"><num>(i)</num><content><p>paragraph 62 of Schedule 5, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-b-ii"><num>(ii)</num><content><p>paragraph 8 of Schedule 21;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-c"><num>(c)</num><content><p>in <ref eId="c00206" href="https://www.legislation.gov.uk/ukpga/2002/23">FA 2002</ref>, paragraph 3 of Schedule 8;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-d"><num>(d)</num><content><p>in <ref eId="c00207" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraph 441 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-e"><num>(e)</num><content><p>in <ref eId="c00208" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, paragraph 325 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-f"><num>(f)</num><intro><p>in <ref eId="c00209" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-f-i"><num>(i)</num><content><p>paragraph 37 of Schedule 2, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-f-ii"><num>(ii)</num><content><p>paragraph 3 of Schedule 3;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-g"><num>(g)</num><content><p>in <ref eId="c00210" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraph 380 of Schedule 1 to CTA 2009;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-h"><num>(h)</num><content><p>in <ref eId="c00211" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 4 of Schedule 14.</p></content></level></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27214"><heading><ref eId="c00202" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p><ref eId="c00203" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>In section 3A (gains connected to avoidance or foreign activities etc) omit <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">subsections (3)</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">(5)</a></span>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">section 165A</a> (meaning of “<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “<term refersTo="#term-trading-group" eId="term-trading-group">trading group</term>”), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">subsection (14)</a>, in the definition of “trade” omit “(subject to section 241(3))”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-10-4-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">section 241</a> (UK furnished holiday lettings), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-4-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">section 241A</a> (EEA furnished holiday lettings).</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27283"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-11-a"><num>(a)</num><content><p>in <ref eId="c00204" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref>, paragraph 62 of Schedule 20;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-b"><num>(b)</num><intro><p>in <ref eId="c00205" href="https://www.legislation.gov.uk/ukpga/1998/36">FA 1998</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-b-i"><num>(i)</num><content><p>paragraph 62 of Schedule 5, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-b-ii"><num>(ii)</num><content><p>paragraph 8 of Schedule 21;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-c"><num>(c)</num><content><p>in <ref eId="c00206" href="https://www.legislation.gov.uk/ukpga/2002/23">FA 2002</ref>, paragraph 3 of Schedule 8;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-d"><num>(d)</num><content><p>in <ref eId="c00207" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraph 441 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-e"><num>(e)</num><content><p>in <ref eId="c00208" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, paragraph 325 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-f"><num>(f)</num><intro><p>in <ref eId="c00209" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-f-i"><num>(i)</num><content><p>paragraph 37 of Schedule 2, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-f-ii"><num>(ii)</num><content><p>paragraph 3 of Schedule 3;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-g"><num>(g)</num><content><p>in <ref eId="c00210" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraph 380 of Schedule 1 to CTA 2009;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-h"><num>(h)</num><content><p>in <ref eId="c00211" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 4 of Schedule 14.</p></content></level></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-part-5"><num>Part 5</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e27393"><heading>Commencement: <span><ref href="#schedule-5-part-1">Parts 1</ref> to <ref href="#schedule-5-part-3">3</ref></span></heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-1">Part 1</ref> have effect for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>The amendments made by <ref href="#schedule-5-part-2">Part 2</ref> have effect for the purposes of corporation tax in relation to accounting periods beginning on or after 1 April 2025.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><intro><p>The amendments made by <ref href="#schedule-5-part-3">Part 3</ref> have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-12-3-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-12-3-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to periods of account beginning on or after 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27445"><heading>Commencement: <ref href="#schedule-5-part-4">Part 4</ref></heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to disposals made on or after the commencement date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> also have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>for the purposes of <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">sections 152</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/157">157</a></span> of <ref eId="c00212" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief on replacement of business asset), in relation to acquisitions that take place on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/253">section 253</a> of <ref eId="c00213" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for loans to traders), in relation to claims for a loss to be treated as accruing to a person on or after the commencement date.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p><ref href="#schedule-5-paragraph-13-1">Sub-paragraph (1)</ref> is subject to <ref href="#schedule-5-paragraph-19">paragraph 19</ref> (business asset disposal relief: disposals relating to pre-commencement businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In <ref href="#schedule-5-paragraph-13">this paragraph</ref>, “<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27535"><heading>Anti-forestalling: disposals under unconditional contracts</heading><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-14-2">Sub-paragraph (2)</ref> applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-14-1-a"><num>(a)</num><content><p>an asset is disposed of under an unconditional contract made during the pre-commencement period,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-b"><num>(b)</num><content><p>the asset is conveyed or transferred on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-c"><num>(c)</num><content><p>a relevant claim is made in respect of the disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to the disposal unless—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><content><p>no purpose of entering into the contract was to avoid the amendments made by <ref href="#schedule-5-part-4">Part 4</ref> having effect in relation to the disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-b-i"><num>(i)</num><content><p>the contract was entered into wholly for commercial reasons, or</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-b-ii"><num>(ii)</num><content><p>the parties to the contract are not connected persons, and</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-c"><num>(c)</num><content><p>the claim includes a statement that the conditions in <ref href="#schedule-5-paragraph-14-2-a">paragraphs (a)</ref> and <ref href="#schedule-5-paragraph-14-2-b">(b)</ref> are met.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-14">this paragraph</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025;</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-connected-persons" eId="term-connected-persons">connected persons</term>” is to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/286">section 286</a> of <ref eId="c00214" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-pre-commencement-period" eId="term-the-pre-commencement-period">the pre-commencement period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with 6 March 2024, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the commencement date;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-claim" eId="term-relevant-claim">relevant claim</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">section 152</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153">153</a> of <ref eId="c00215" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief) or a declaration under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153A">section 153A</a> of <ref eId="c00216" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (provisional application of sections 152 and 153),</p></content></level><level class="para1"><num>(b)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165">section 165</a> of <ref eId="c00217" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for gifts of business assets), or</p></content></level><level class="para1"><num>(c)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00218" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (business asset disposal relief).</p></content></level></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27718"><heading>Corporation tax: accounting periods straddling 1 April 2025</heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><content><p><ref href="#schedule-5-paragraph-15">This paragraph</ref> applies where a company has an accounting period beginning before, and ending on or after, 1 April 2025 (“the straddling period”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>For the purposes of <ref href="#schedule-5">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>so much of the straddling period as falls before 1 April 2025, and so much of that period as falls on or after 1 April 2025, are treated as separate accounting periods, and</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><intro><p>where it is necessary to apportion an amount for the straddling period to the two separate accounting periods, it is to be apportioned—</p></intro><level class="para2" eId="schedule-5-paragraph-15-2-b-i"><num>(i)</num><content><p>in accordance with <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/1172">section 1172</a> of <ref eId="c00219" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (time basis), or</p></content></level><level class="para2" eId="schedule-5-paragraph-15-2-b-ii"><num>(ii)</num><content><p>if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27772"><heading>Carry-forward of losses: income tax</heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-16">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>a person is treated as carrying on in the tax year 2024-25 a single trade by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00220" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (UK furnished holiday lettings businesses) or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00221" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>the person has made a loss in that trade in the tax year 2024-25 or a previous tax year,</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-c"><num>(c)</num><content><p>relief for the loss has not been fully given under <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4/chapter/2">Chapter 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4">Part 4</a> of <ref eId="c00222" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (trade losses) or any other provision of the Income Tax Acts, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-d"><num>(d)</num><content><p>the person carries on a corresponding property business in the tax year 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><content><p>So much of the loss as has not been relieved is to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/118">section 118</a> of <ref eId="c00223" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (carry forward against subsequent property business profits) as if it had been made in the corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-16">this paragraph</ref>, “<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00224" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/264">section 264</a> of <ref eId="c00225" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00226" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/265">section 265</a> of <ref eId="c00227" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27900"><heading>Carry-forward of losses: corporation tax</heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-17">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-17-1-a"><num>(a)</num><intro><p>a company is treated as carrying on in its last accounting period to begin before 1 April 2025 a single trade by virtue of—</p></intro><level class="para2" eId="schedule-5-paragraph-17-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00228" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (UK furnished holiday lettings businesses), or</p></content></level><level class="para2" eId="schedule-5-paragraph-17-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00229" href="https://www.legislation.gov.uk/ukpga/2010/4">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level></level><level class="para1" eId="schedule-5-paragraph-17-1-b"><num>(b)</num><content><p>the company has made a loss in that trade in that accounting period or a previous one,</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-c"><num>(c)</num><content><p>but for the provision of <ref href="#schedule-5">this Schedule</ref>, all or part of the loss would fall to be carried forward under <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/45">section 45</a> of <ref eId="c00230" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> to an accounting period beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-d"><num>(d)</num><content><p>the company carries on a corresponding property business in its accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><content><p>The loss or the part of the loss that would otherwise fall to be carried forward as mentioned in <ref href="#schedule-5-paragraph-17-1">sub-paragraph (1)</ref><ref href="#schedule-5-paragraph-17-1-c">(c)</ref> is to be treated for the purposes of the relevant relieving provision as if it had been made by the company in its corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00231" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-3-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/205">section 205</a> of <ref eId="c00232" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-3-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">section 62</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">(5)</a> of <ref eId="c00233" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in UK property business).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00234" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-4-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/206">section 206</a> of <ref eId="c00235" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-4-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">section 66</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">(3)</a> of <ref eId="c00236" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in overseas property business).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28086"><heading>Plant and machinery allowances</heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-18">This paragraph</ref> applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00237" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (plant and machinery allowances) where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>immediately before the end of a person’s pre-commencement chargeable period, the person is carrying on an FHL qualifying activity, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>at the start of the person’s post-commencement chargeable period, the person is carrying on the corresponding property activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The amount of any allowance or charge arising in the person’s post-commencement chargeable period or any subsequent chargeable period is to be calculated as if anything done by or to the person in carrying on the FHL qualifying activity had been done by or to the person in carrying on the corresponding property activity.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>In particular—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><intro><p>where plant or machinery is in use for the purposes of the FHL qualifying activity immediately before the end of the person’s pre-commencement chargeable period—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-a-i"><num>(i)</num><content><p>the plant or machinery is to be treated as if it had been brought into use for the purposes of the corresponding property activity on the day on which it was brought into use for the purposes of the FHL qualifying activity, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-a-ii"><num>(ii)</num><content><p>its use for the purposes of the FHL qualifying activity is to be disregarded.</p></content></level></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><intro><p>where the person has unrelieved qualifying expenditure (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">section 59</a> of <ref eId="c00238" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>) to carry forward from the person’s pre-commencement chargeable period in a pool for an FHL qualifying activity, the expenditure is to be—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-b-i"><num>(i)</num><content><p>carried forward to the person’s post-commencement chargeable period, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-b-ii"><num>(ii)</num><content><p>allocated to the appropriate pool for the corresponding property activity.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>Accordingly, the person is not to be taken, by reason only of the effect of the amendments made by <ref href="#schedule-5">this Schedule</ref>, as having—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>brought plant or machinery into use, or ceased to use plant or machinery, for the purposes of a qualifying activity, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>permanently discontinued a qualifying activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">Section 35</a> of <ref eId="c00239" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure) does not apply to expenditure carried forward in accordance with <ref href="#schedule-5-paragraph-18-3">sub-paragraph (3)</ref><ref href="#schedule-5-paragraph-18-3-b">(b)</ref><ref href="#schedule-5-paragraph-18-3-b-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>In <ref href="#schedule-5-paragraph-18">this paragraph</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fhl-qualifying-activity" eId="term-fhl-qualifying-activity">FHL qualifying activity</term>” means a UK furnished holiday lettings business or an EEA furnished holiday lettings business;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-corresponding-property-activity" eId="term-the-corresponding-property-activity">the corresponding property activity</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK furnished holiday lettings business carried on by a person, a UK property business carried on by that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an EEA furnished holiday lettings business carried on by a person, an overseas property business carried on by that person;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-pre-commencement-chargeable-period" eId="term-pre-commencement-chargeable-period">pre-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, a company’s last accounting period to begin before 1 April 2025, and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2024-25;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-post-commencement-chargeable-period" eId="term-post-commencement-chargeable-period">post-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, the accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2025-26.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Expressions used in <ref href="#schedule-5-paragraph-18-6">sub-paragraph (6)</ref> have the same meaning as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00240" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28295"><heading>Business asset disposal relief: disposals relating to pre-commencement businesses</heading><paragraph eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><intro><p>The amendments made by <ref href="#schedule-5">this Schedule</ref> do not have effect in relation to a disposal made on or after 6 April 2025 if it is—</p></intro><level class="para1" eId="schedule-5-paragraph-19-a"><num>(a)</num><content><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(b)</a> of <ref eId="c00241" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (assets used for purposes of business) where the date on which the business ceases to be carried on is before 6 April 2025;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-b"><num>(b)</num><intro><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(c)</a> of <ref eId="c00242" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (shares in or securities of a company) where—</p></intro><level class="para2" eId="schedule-5-paragraph-19-b-i"><num>(i)</num><content><p>the disposal is a material disposal by virtue of condition B in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7)</a> of <ref eId="c00243" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> or condition D in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7B)</a> of <ref eId="c00244" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-19-b-ii"><num>(ii)</num><content><p>the period of 2 years mentioned in condition B or condition D (as the case may be) ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-c"><num>(c)</num><intro><p>a disposal of trust business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(1)</a> of <ref eId="c00245" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where the settlement business assets are—</p></intro><level class="para2" eId="schedule-5-paragraph-19-c-i"><num>(i)</num><content><p>assets consisting of (or of interests in) shares in or securities of a company in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(4)</a> of <ref eId="c00246" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025, or</p></content></level><level class="para2" eId="schedule-5-paragraph-19-c-ii"><num>(ii)</num><content><p>assets (or interests in assets) used or previously used for the purposes of a business in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(5)</a> of <ref eId="c00247" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-d"><num>(d)</num><content><p>a disposal associated with a relevant material disposal within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">section 169K</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">(1)</a> of <ref eId="c00248" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, where the date of the material disposal of business assets with which the disposal is associated is before 6 April 2025.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28423"><heading>Post-commencement disposals by companies with substantial shareholding</heading><paragraph eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC/paragraph/3">Paragraph 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">Schedule 7AC</a> to <ref eId="c00249" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (exemptions for disposals by companies with substantial shareholding: main conditions previously met) has effect in relation to a disposal made on or after 1 April 2025 in accordance with <ref href="#schedule-5-paragraph-20-2">sub-paragraph (2)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><content><p>In determining whether the condition in sub-paragraph (2)(d) of that paragraph of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">that Schedule</a> is met, <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">sections 241</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">241A</a> of <ref eId="c00250" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (commercial letting of furnished holiday accommodation to be treated as a trade) are to be disregarded.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27393"><heading>Commencement: <span><ref href="#schedule-5-part-1">Parts 1</ref> to <ref href="#schedule-5-part-3">3</ref></span></heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-1">Part 1</ref> have effect for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>The amendments made by <ref href="#schedule-5-part-2">Part 2</ref> have effect for the purposes of corporation tax in relation to accounting periods beginning on or after 1 April 2025.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><intro><p>The amendments made by <ref href="#schedule-5-part-3">Part 3</ref> have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-12-3-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-12-3-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to periods of account beginning on or after 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27445"><heading>Commencement: <ref href="#schedule-5-part-4">Part 4</ref></heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to disposals made on or after the commencement date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> also have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>for the purposes of <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">sections 152</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/157">157</a></span> of <ref eId="c00212" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief on replacement of business asset), in relation to acquisitions that take place on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/253">section 253</a> of <ref eId="c00213" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for loans to traders), in relation to claims for a loss to be treated as accruing to a person on or after the commencement date.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p><ref href="#schedule-5-paragraph-13-1">Sub-paragraph (1)</ref> is subject to <ref href="#schedule-5-paragraph-19">paragraph 19</ref> (business asset disposal relief: disposals relating to pre-commencement businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In <ref href="#schedule-5-paragraph-13">this paragraph</ref>, “<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27535"><heading>Anti-forestalling: disposals under unconditional contracts</heading><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-14-2">Sub-paragraph (2)</ref> applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-14-1-a"><num>(a)</num><content><p>an asset is disposed of under an unconditional contract made during the pre-commencement period,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-b"><num>(b)</num><content><p>the asset is conveyed or transferred on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-c"><num>(c)</num><content><p>a relevant claim is made in respect of the disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to the disposal unless—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><content><p>no purpose of entering into the contract was to avoid the amendments made by <ref href="#schedule-5-part-4">Part 4</ref> having effect in relation to the disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-b-i"><num>(i)</num><content><p>the contract was entered into wholly for commercial reasons, or</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-b-ii"><num>(ii)</num><content><p>the parties to the contract are not connected persons, and</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-c"><num>(c)</num><content><p>the claim includes a statement that the conditions in <ref href="#schedule-5-paragraph-14-2-a">paragraphs (a)</ref> and <ref href="#schedule-5-paragraph-14-2-b">(b)</ref> are met.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-14">this paragraph</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025;</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-connected-persons" eId="term-connected-persons">connected persons</term>” is to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/286">section 286</a> of <ref eId="c00214" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-pre-commencement-period" eId="term-the-pre-commencement-period">the pre-commencement period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with 6 March 2024, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the commencement date;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-claim" eId="term-relevant-claim">relevant claim</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">section 152</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153">153</a> of <ref eId="c00215" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief) or a declaration under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153A">section 153A</a> of <ref eId="c00216" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (provisional application of sections 152 and 153),</p></content></level><level class="para1"><num>(b)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165">section 165</a> of <ref eId="c00217" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for gifts of business assets), or</p></content></level><level class="para1"><num>(c)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00218" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (business asset disposal relief).</p></content></level></hcontainer></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27718"><heading>Corporation tax: accounting periods straddling 1 April 2025</heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><content><p><ref href="#schedule-5-paragraph-15">This paragraph</ref> applies where a company has an accounting period beginning before, and ending on or after, 1 April 2025 (“the straddling period”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>For the purposes of <ref href="#schedule-5">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>so much of the straddling period as falls before 1 April 2025, and so much of that period as falls on or after 1 April 2025, are treated as separate accounting periods, and</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><intro><p>where it is necessary to apportion an amount for the straddling period to the two separate accounting periods, it is to be apportioned—</p></intro><level class="para2" eId="schedule-5-paragraph-15-2-b-i"><num>(i)</num><content><p>in accordance with <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/1172">section 1172</a> of <ref eId="c00219" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (time basis), or</p></content></level><level class="para2" eId="schedule-5-paragraph-15-2-b-ii"><num>(ii)</num><content><p>if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.</p></content></level></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27772"><heading>Carry-forward of losses: income tax</heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-16">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>a person is treated as carrying on in the tax year 2024-25 a single trade by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00220" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (UK furnished holiday lettings businesses) or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00221" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>the person has made a loss in that trade in the tax year 2024-25 or a previous tax year,</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-c"><num>(c)</num><content><p>relief for the loss has not been fully given under <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4/chapter/2">Chapter 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4">Part 4</a> of <ref eId="c00222" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (trade losses) or any other provision of the Income Tax Acts, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-d"><num>(d)</num><content><p>the person carries on a corresponding property business in the tax year 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><content><p>So much of the loss as has not been relieved is to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/118">section 118</a> of <ref eId="c00223" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (carry forward against subsequent property business profits) as if it had been made in the corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-16">this paragraph</ref>, “<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00224" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/264">section 264</a> of <ref eId="c00225" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00226" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/265">section 265</a> of <ref eId="c00227" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e27900"><heading>Carry-forward of losses: corporation tax</heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-17">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-17-1-a"><num>(a)</num><intro><p>a company is treated as carrying on in its last accounting period to begin before 1 April 2025 a single trade by virtue of—</p></intro><level class="para2" eId="schedule-5-paragraph-17-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00228" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (UK furnished holiday lettings businesses), or</p></content></level><level class="para2" eId="schedule-5-paragraph-17-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00229" href="https://www.legislation.gov.uk/ukpga/2010/4">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level></level><level class="para1" eId="schedule-5-paragraph-17-1-b"><num>(b)</num><content><p>the company has made a loss in that trade in that accounting period or a previous one,</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-c"><num>(c)</num><content><p>but for the provision of <ref href="#schedule-5">this Schedule</ref>, all or part of the loss would fall to be carried forward under <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/45">section 45</a> of <ref eId="c00230" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> to an accounting period beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-d"><num>(d)</num><content><p>the company carries on a corresponding property business in its accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><content><p>The loss or the part of the loss that would otherwise fall to be carried forward as mentioned in <ref href="#schedule-5-paragraph-17-1">sub-paragraph (1)</ref><ref href="#schedule-5-paragraph-17-1-c">(c)</ref> is to be treated for the purposes of the relevant relieving provision as if it had been made by the company in its corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00231" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-3-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/205">section 205</a> of <ref eId="c00232" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-3-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">section 62</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">(5)</a> of <ref eId="c00233" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in UK property business).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00234" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-4-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/206">section 206</a> of <ref eId="c00235" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-4-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">section 66</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">(3)</a> of <ref eId="c00236" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in overseas property business).</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e28086"><heading>Plant and machinery allowances</heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-18">This paragraph</ref> applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00237" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (plant and machinery allowances) where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>immediately before the end of a person’s pre-commencement chargeable period, the person is carrying on an FHL qualifying activity, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>at the start of the person’s post-commencement chargeable period, the person is carrying on the corresponding property activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The amount of any allowance or charge arising in the person’s post-commencement chargeable period or any subsequent chargeable period is to be calculated as if anything done by or to the person in carrying on the FHL qualifying activity had been done by or to the person in carrying on the corresponding property activity.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>In particular—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><intro><p>where plant or machinery is in use for the purposes of the FHL qualifying activity immediately before the end of the person’s pre-commencement chargeable period—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-a-i"><num>(i)</num><content><p>the plant or machinery is to be treated as if it had been brought into use for the purposes of the corresponding property activity on the day on which it was brought into use for the purposes of the FHL qualifying activity, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-a-ii"><num>(ii)</num><content><p>its use for the purposes of the FHL qualifying activity is to be disregarded.</p></content></level></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><intro><p>where the person has unrelieved qualifying expenditure (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">section 59</a> of <ref eId="c00238" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>) to carry forward from the person’s pre-commencement chargeable period in a pool for an FHL qualifying activity, the expenditure is to be—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-b-i"><num>(i)</num><content><p>carried forward to the person’s post-commencement chargeable period, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-b-ii"><num>(ii)</num><content><p>allocated to the appropriate pool for the corresponding property activity.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>Accordingly, the person is not to be taken, by reason only of the effect of the amendments made by <ref href="#schedule-5">this Schedule</ref>, as having—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>brought plant or machinery into use, or ceased to use plant or machinery, for the purposes of a qualifying activity, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>permanently discontinued a qualifying activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">Section 35</a> of <ref eId="c00239" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure) does not apply to expenditure carried forward in accordance with <ref href="#schedule-5-paragraph-18-3">sub-paragraph (3)</ref><ref href="#schedule-5-paragraph-18-3-b">(b)</ref><ref href="#schedule-5-paragraph-18-3-b-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>In <ref href="#schedule-5-paragraph-18">this paragraph</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fhl-qualifying-activity" eId="term-fhl-qualifying-activity">FHL qualifying activity</term>” means a UK furnished holiday lettings business or an EEA furnished holiday lettings business;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-corresponding-property-activity" eId="term-the-corresponding-property-activity">the corresponding property activity</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK furnished holiday lettings business carried on by a person, a UK property business carried on by that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an EEA furnished holiday lettings business carried on by a person, an overseas property business carried on by that person;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-pre-commencement-chargeable-period" eId="term-pre-commencement-chargeable-period">pre-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, a company’s last accounting period to begin before 1 April 2025, and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2024-25;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-post-commencement-chargeable-period" eId="term-post-commencement-chargeable-period">post-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, the accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2025-26.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Expressions used in <ref href="#schedule-5-paragraph-18-6">sub-paragraph (6)</ref> have the same meaning as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00240" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e28295"><heading>Business asset disposal relief: disposals relating to pre-commencement businesses</heading><paragraph eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><intro><p>The amendments made by <ref href="#schedule-5">this Schedule</ref> do not have effect in relation to a disposal made on or after 6 April 2025 if it is—</p></intro><level class="para1" eId="schedule-5-paragraph-19-a"><num>(a)</num><content><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(b)</a> of <ref eId="c00241" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (assets used for purposes of business) where the date on which the business ceases to be carried on is before 6 April 2025;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-b"><num>(b)</num><intro><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(c)</a> of <ref eId="c00242" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (shares in or securities of a company) where—</p></intro><level class="para2" eId="schedule-5-paragraph-19-b-i"><num>(i)</num><content><p>the disposal is a material disposal by virtue of condition B in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7)</a> of <ref eId="c00243" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> or condition D in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7B)</a> of <ref eId="c00244" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-19-b-ii"><num>(ii)</num><content><p>the period of 2 years mentioned in condition B or condition D (as the case may be) ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-c"><num>(c)</num><intro><p>a disposal of trust business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(1)</a> of <ref eId="c00245" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where the settlement business assets are—</p></intro><level class="para2" eId="schedule-5-paragraph-19-c-i"><num>(i)</num><content><p>assets consisting of (or of interests in) shares in or securities of a company in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(4)</a> of <ref eId="c00246" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025, or</p></content></level><level class="para2" eId="schedule-5-paragraph-19-c-ii"><num>(ii)</num><content><p>assets (or interests in assets) used or previously used for the purposes of a business in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(5)</a> of <ref eId="c00247" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-d"><num>(d)</num><content><p>a disposal associated with a relevant material disposal within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">section 169K</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">(1)</a> of <ref eId="c00248" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, where the date of the material disposal of business assets with which the disposal is associated is before 6 April 2025.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e28423"><heading>Post-commencement disposals by companies with substantial shareholding</heading><paragraph eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC/paragraph/3">Paragraph 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">Schedule 7AC</a> to <ref eId="c00249" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (exemptions for disposals by companies with substantial shareholding: main conditions previously met) has effect in relation to a disposal made on or after 1 April 2025 in accordance with <ref href="#schedule-5-paragraph-20-2">sub-paragraph (2)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><content><p>In determining whether the condition in sub-paragraph (2)(d) of that paragraph of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">that Schedule</a> is met, <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">sections 241</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">241A</a> of <ref eId="c00250" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (commercial letting of furnished holiday accommodation to be treated as a trade) are to be disregarded.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-6"><num>Schedule 6<authorialNote class="referenceNote"><p>Section 31</p></authorialNote></num><heading>Employee-ownership trusts</heading><part eId="schedule-6-part-1"><num>Part 1</num><heading>Capital gains tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e28479"><heading>Introduction</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00251" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28490"><heading>Requirement for trustees of employee-ownership trusts to be UK resident</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a> (disposals to employee-ownership trusts), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28509"><num>(za)</num><content><p>that the trustees of the settlement are resident in the United Kingdom at the time of the disposal and continue to be UK resident for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a> (no section 236H relief if disqualifying event in next tax year), before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28532"><num>(za)</num><content><p>the trustees of the settlement cease to be resident in the United Kingdom,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p>See also section 80 (trustees ceasing to be resident in U.K.), which provides for similar consequences in circumstances where the trustees of the settlement cease to be resident in the United Kingdom.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a> (relief for deemed disposals under section 71), for “236H(4)(a)” substitute <quotedText>“236H(4)<ref href="#d25e28509">(za)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-2">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28587"><heading>Trustee independence</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>that the settlement meets the trustee independence requirement (see section 236LA) at the time of the disposal and continues to meet that requirement for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236L">section 236L</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>236LA</num><heading>Trustee independence requirement</heading><subsection><num>(1)</num><intro><p>A settlement meets the trustee independence requirement if—</p></intro><level class="para1"><num>(a)</num><content><p>less than 50% of the trustees are persons who are excluded participators, and</p></content></level><level class="para1"><num>(b)</num><content><p>excluded participators do not have control of the settlement.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In this section “<term refersTo="#term-excluded-participator">excluded participator</term>” means—</p></intro><level class="para1" eId="d25e28661"><num>(a)</num><content><p>a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>a company not falling within <ref href="#d25e28661">paragraph (a)</ref>, if 50% or more of its directors are persons falling within that paragraph.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to—</p></intro><level class="para1"><num>(a)</num><content><p>dispose of, advance, lend, invest, pay or apply settlement property;</p></content></level><level class="para1"><num>(b)</num><content><p>vary or terminate the settlement;</p></content></level><level class="para1"><num>(c)</num><content><p>add or remove a person as a beneficiary or to or from a class of beneficiaries;</p></content></level><level class="para1"><num>(d)</num><content><p>appoint or remove trustees or give another individual control over the settlement;</p></content></level><level class="para1"><num>(e)</num><content><p>direct the exercise of a power mentioned in sub-paragraphs (a) to (d).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28727"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(2)</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28750"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-3">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28767"><heading>Temporary breach of trustee independence requirement or residence requirement arising from death of trustee</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28532">(za)</ref> occurs (trustees cease to be resident in the United Kingdom),</p></content></level><level class="para1"><num>(b)</num><content><p>the event only occurs as a result of the death of a trustee of the settlement, and</p></content></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with the death of the trustee, the trustees become resident in the United Kingdom,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection><subsection><num>(2B)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28727">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28750">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-4">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28920"><heading>Consideration requirement</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><intro><p>that the trustees have taken all reasonable steps to secure that—</p></intro><level class="para2"><num>(i)</num><content><p>the consideration for the disposal does not exceed the market value of the ordinary share capital at the time of the disposal, and</p></content></level><level class="para2"><num>(ii)</num><content><p>where some or all of the consideration for the disposal is deferred, that the rate of any interest payable in relation to the deferral does not exceed a reasonable commercial rate,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a>, for “(d)” substitute <quotedText>“(c) and (d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-5">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28988"><heading>Extended period for disqualifying events</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-1-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-1-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(1)</a>, after “end of the” insert <quotedText>“fourth”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">section 236R</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-3-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-3-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-4"><num>(4)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-6">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e29082"><heading>Additional information to be provided in claims</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-1-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a>,</p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-ii"><num>(ii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that paragraph</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29126"><num>(ba)</num><intro><p>the number of persons who at the time of the disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>C, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if C is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group,</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-iii"><num>(iii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the consideration for the disposal (including amounts of consideration due after the disposal).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-1-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (7)<ref href="#d25e29126">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (6)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-2-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">paragraph (b)</a>, and</p></content></level><level class="para2" eId="schedule-6-paragraph-7-2-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29231"><num>(ba)</num><intro><p>the number of persons who at the time of the deemed disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>the company, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the company is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group, and</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-2-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (6)<ref href="#d25e29231">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-7">this paragraph</ref> have effect in relation to claims made under those sections on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-6-part-2"><num>Part 2</num><heading>Income tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e29296"><heading>Participation requirement not infringed by exclusion of directors</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-6-paragraph-8-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/312C">section 312C</a> of <ref eId="c00252" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref>, after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>The participation requirement is not infringed by reason of the exclusion of directors of the company from participating in an award.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-8-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-8">this paragraph</ref> has effect in relation to qualifying bonus payments made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e29331"><heading>Relief for distributions to trustees of employee-ownership trusts</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-6-paragraph-9-1"><num>(1)</num><content><p><mod>In <ref eId="c00253" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, after section 401 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Employee-ownership trusts</heading><section><num>401ZA</num><heading>Relief: distributions to trustees of employee-ownership trusts</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there has been a disposal of ordinary share capital of a company (“<term refersTo="#term-c">C</term>”) to the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the relief requirements are met in relation to the disposal,</p></content></level><level class="para1"><num>(c)</num><content><p>C has made a payment to the trustees that is a distribution to the trustees chargeable to income tax as a result of this Chapter or Chapter 4 (dividends from non-UK resident companies), and</p></content></level><level class="para1"><num>(d)</num><content><p>the payment was made for the purposes of meeting the trustees’ acquisition costs.</p></content></level></subsection><subsection><num>(2)</num><intro><p>On the making of a claim, so much of the trustees’ acquisition costs may be deducted from the distribution (whether chargeable under this Chapter or Chapter 4) as—</p></intro><level class="para1"><num>(a)</num><content><p>does not reduce the amount of the distribution below nil, and</p></content></level><level class="para1"><num>(b)</num><content><p>has not been deducted from any other distribution.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-relief-requirements">relief requirements</term>” means the requirements set out in section 236H(4) of TCGA 1992 (disposals to employee-ownership trusts), but those requirements have effect for the purposes of this section as if references to “P” were to the person making the disposal whether or not that person is a company.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, the trustees’ acquisition costs are sums expended by the trustees on—</p></intro><level class="para1"><num>(a)</num><content><p>the acquisition of ordinary share capital in C by the trustees that resulted from the disposal;</p></content></level><level class="para1"><num>(b)</num><content><p>the repayment of any sums borrowed to fund that acquisition;</p></content></level><level class="para1"><num>(c)</num><content><p>the payment of interest on any such sums or in respect of any deferral of consideration for the disposal to the extent the payment is not in respect of interest exceeding a reasonable commercial rate;</p></content></level><level class="para1"><num>(d)</num><content><p>any valuation of C carried out in connection with the acquisition;</p></content></level><level class="para1"><num>(e)</num><content><p>any liability to stamp duty or stamp duty reserve tax on the acquisition;</p></content></level><level class="para1"><num>(f)</num><content><p>such other reasonable expenses as are directly connected with the acquisition (but this does not include any expenses incurred in connection with the ownership of the ordinary share capital once acquired).</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-9-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-9">this paragraph</ref> has effect in relation to distributions made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-part-1"><num>Part 1</num><heading>Capital gains tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e28479"><heading>Introduction</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00251" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28490"><heading>Requirement for trustees of employee-ownership trusts to be UK resident</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a> (disposals to employee-ownership trusts), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28509"><num>(za)</num><content><p>that the trustees of the settlement are resident in the United Kingdom at the time of the disposal and continue to be UK resident for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a> (no section 236H relief if disqualifying event in next tax year), before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28532"><num>(za)</num><content><p>the trustees of the settlement cease to be resident in the United Kingdom,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p>See also section 80 (trustees ceasing to be resident in U.K.), which provides for similar consequences in circumstances where the trustees of the settlement cease to be resident in the United Kingdom.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a> (relief for deemed disposals under section 71), for “236H(4)(a)” substitute <quotedText>“236H(4)<ref href="#d25e28509">(za)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-2">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28587"><heading>Trustee independence</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>that the settlement meets the trustee independence requirement (see section 236LA) at the time of the disposal and continues to meet that requirement for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236L">section 236L</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>236LA</num><heading>Trustee independence requirement</heading><subsection><num>(1)</num><intro><p>A settlement meets the trustee independence requirement if—</p></intro><level class="para1"><num>(a)</num><content><p>less than 50% of the trustees are persons who are excluded participators, and</p></content></level><level class="para1"><num>(b)</num><content><p>excluded participators do not have control of the settlement.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In this section “<term refersTo="#term-excluded-participator">excluded participator</term>” means—</p></intro><level class="para1" eId="d25e28661"><num>(a)</num><content><p>a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>a company not falling within <ref href="#d25e28661">paragraph (a)</ref>, if 50% or more of its directors are persons falling within that paragraph.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to—</p></intro><level class="para1"><num>(a)</num><content><p>dispose of, advance, lend, invest, pay or apply settlement property;</p></content></level><level class="para1"><num>(b)</num><content><p>vary or terminate the settlement;</p></content></level><level class="para1"><num>(c)</num><content><p>add or remove a person as a beneficiary or to or from a class of beneficiaries;</p></content></level><level class="para1"><num>(d)</num><content><p>appoint or remove trustees or give another individual control over the settlement;</p></content></level><level class="para1"><num>(e)</num><content><p>direct the exercise of a power mentioned in sub-paragraphs (a) to (d).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28727"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(2)</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28750"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-3">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28767"><heading>Temporary breach of trustee independence requirement or residence requirement arising from death of trustee</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28532">(za)</ref> occurs (trustees cease to be resident in the United Kingdom),</p></content></level><level class="para1"><num>(b)</num><content><p>the event only occurs as a result of the death of a trustee of the settlement, and</p></content></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with the death of the trustee, the trustees become resident in the United Kingdom,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection><subsection><num>(2B)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28727">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28750">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-4">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28920"><heading>Consideration requirement</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><intro><p>that the trustees have taken all reasonable steps to secure that—</p></intro><level class="para2"><num>(i)</num><content><p>the consideration for the disposal does not exceed the market value of the ordinary share capital at the time of the disposal, and</p></content></level><level class="para2"><num>(ii)</num><content><p>where some or all of the consideration for the disposal is deferred, that the rate of any interest payable in relation to the deferral does not exceed a reasonable commercial rate,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a>, for “(d)” substitute <quotedText>“(c) and (d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-5">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28988"><heading>Extended period for disqualifying events</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-1-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-1-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(1)</a>, after “end of the” insert <quotedText>“fourth”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">section 236R</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-3-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-3-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-4"><num>(4)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-6">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e29082"><heading>Additional information to be provided in claims</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-1-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a>,</p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-ii"><num>(ii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that paragraph</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29126"><num>(ba)</num><intro><p>the number of persons who at the time of the disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>C, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if C is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group,</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-iii"><num>(iii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the consideration for the disposal (including amounts of consideration due after the disposal).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-1-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (7)<ref href="#d25e29126">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (6)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-2-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">paragraph (b)</a>, and</p></content></level><level class="para2" eId="schedule-6-paragraph-7-2-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29231"><num>(ba)</num><intro><p>the number of persons who at the time of the deemed disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>the company, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the company is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group, and</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-2-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (6)<ref href="#d25e29231">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-7">this paragraph</ref> have effect in relation to claims made under those sections on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e28479"><heading>Introduction</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00251" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e28490"><heading>Requirement for trustees of employee-ownership trusts to be UK resident</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a> (disposals to employee-ownership trusts), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28509"><num>(za)</num><content><p>that the trustees of the settlement are resident in the United Kingdom at the time of the disposal and continue to be UK resident for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a> (no section 236H relief if disqualifying event in next tax year), before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28532"><num>(za)</num><content><p>the trustees of the settlement cease to be resident in the United Kingdom,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p>See also section 80 (trustees ceasing to be resident in U.K.), which provides for similar consequences in circumstances where the trustees of the settlement cease to be resident in the United Kingdom.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a> (relief for deemed disposals under section 71), for “236H(4)(a)” substitute <quotedText>“236H(4)<ref href="#d25e28509">(za)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-2">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e28587"><heading>Trustee independence</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>that the settlement meets the trustee independence requirement (see section 236LA) at the time of the disposal and continues to meet that requirement for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236L">section 236L</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>236LA</num><heading>Trustee independence requirement</heading><subsection><num>(1)</num><intro><p>A settlement meets the trustee independence requirement if—</p></intro><level class="para1"><num>(a)</num><content><p>less than 50% of the trustees are persons who are excluded participators, and</p></content></level><level class="para1"><num>(b)</num><content><p>excluded participators do not have control of the settlement.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In this section “<term refersTo="#term-excluded-participator">excluded participator</term>” means—</p></intro><level class="para1" eId="d25e28661"><num>(a)</num><content><p>a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>a company not falling within <ref href="#d25e28661">paragraph (a)</ref>, if 50% or more of its directors are persons falling within that paragraph.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to—</p></intro><level class="para1"><num>(a)</num><content><p>dispose of, advance, lend, invest, pay or apply settlement property;</p></content></level><level class="para1"><num>(b)</num><content><p>vary or terminate the settlement;</p></content></level><level class="para1"><num>(c)</num><content><p>add or remove a person as a beneficiary or to or from a class of beneficiaries;</p></content></level><level class="para1"><num>(d)</num><content><p>appoint or remove trustees or give another individual control over the settlement;</p></content></level><level class="para1"><num>(e)</num><content><p>direct the exercise of a power mentioned in sub-paragraphs (a) to (d).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28727"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(2)</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28750"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-3">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e28767"><heading>Temporary breach of trustee independence requirement or residence requirement arising from death of trustee</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28532">(za)</ref> occurs (trustees cease to be resident in the United Kingdom),</p></content></level><level class="para1"><num>(b)</num><content><p>the event only occurs as a result of the death of a trustee of the settlement, and</p></content></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with the death of the trustee, the trustees become resident in the United Kingdom,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection><subsection><num>(2B)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28727">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28750">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-4">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e28920"><heading>Consideration requirement</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><intro><p>that the trustees have taken all reasonable steps to secure that—</p></intro><level class="para2"><num>(i)</num><content><p>the consideration for the disposal does not exceed the market value of the ordinary share capital at the time of the disposal, and</p></content></level><level class="para2"><num>(ii)</num><content><p>where some or all of the consideration for the disposal is deferred, that the rate of any interest payable in relation to the deferral does not exceed a reasonable commercial rate,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a>, for “(d)” substitute <quotedText>“(c) and (d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-5">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e28988"><heading>Extended period for disqualifying events</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-1-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-1-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(1)</a>, after “end of the” insert <quotedText>“fourth”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">section 236R</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-3-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-3-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-4"><num>(4)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-6">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e29082"><heading>Additional information to be provided in claims</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-1-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a>,</p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-ii"><num>(ii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that paragraph</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29126"><num>(ba)</num><intro><p>the number of persons who at the time of the disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>C, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if C is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group,</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-iii"><num>(iii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the consideration for the disposal (including amounts of consideration due after the disposal).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-1-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (7)<ref href="#d25e29126">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (6)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-2-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">paragraph (b)</a>, and</p></content></level><level class="para2" eId="schedule-6-paragraph-7-2-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29231"><num>(ba)</num><intro><p>the number of persons who at the time of the deemed disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>the company, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the company is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group, and</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-2-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (6)<ref href="#d25e29231">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-7">this paragraph</ref> have effect in relation to claims made under those sections on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-part-2"><num>Part 2</num><heading>Income tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e29296"><heading>Participation requirement not infringed by exclusion of directors</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-6-paragraph-8-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/312C">section 312C</a> of <ref eId="c00252" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref>, after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>The participation requirement is not infringed by reason of the exclusion of directors of the company from participating in an award.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-8-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-8">this paragraph</ref> has effect in relation to qualifying bonus payments made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e29331"><heading>Relief for distributions to trustees of employee-ownership trusts</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-6-paragraph-9-1"><num>(1)</num><content><p><mod>In <ref eId="c00253" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, after section 401 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Employee-ownership trusts</heading><section><num>401ZA</num><heading>Relief: distributions to trustees of employee-ownership trusts</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there has been a disposal of ordinary share capital of a company (“<term refersTo="#term-c">C</term>”) to the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the relief requirements are met in relation to the disposal,</p></content></level><level class="para1"><num>(c)</num><content><p>C has made a payment to the trustees that is a distribution to the trustees chargeable to income tax as a result of this Chapter or Chapter 4 (dividends from non-UK resident companies), and</p></content></level><level class="para1"><num>(d)</num><content><p>the payment was made for the purposes of meeting the trustees’ acquisition costs.</p></content></level></subsection><subsection><num>(2)</num><intro><p>On the making of a claim, so much of the trustees’ acquisition costs may be deducted from the distribution (whether chargeable under this Chapter or Chapter 4) as—</p></intro><level class="para1"><num>(a)</num><content><p>does not reduce the amount of the distribution below nil, and</p></content></level><level class="para1"><num>(b)</num><content><p>has not been deducted from any other distribution.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-relief-requirements">relief requirements</term>” means the requirements set out in section 236H(4) of TCGA 1992 (disposals to employee-ownership trusts), but those requirements have effect for the purposes of this section as if references to “P” were to the person making the disposal whether or not that person is a company.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, the trustees’ acquisition costs are sums expended by the trustees on—</p></intro><level class="para1"><num>(a)</num><content><p>the acquisition of ordinary share capital in C by the trustees that resulted from the disposal;</p></content></level><level class="para1"><num>(b)</num><content><p>the repayment of any sums borrowed to fund that acquisition;</p></content></level><level class="para1"><num>(c)</num><content><p>the payment of interest on any such sums or in respect of any deferral of consideration for the disposal to the extent the payment is not in respect of interest exceeding a reasonable commercial rate;</p></content></level><level class="para1"><num>(d)</num><content><p>any valuation of C carried out in connection with the acquisition;</p></content></level><level class="para1"><num>(e)</num><content><p>any liability to stamp duty or stamp duty reserve tax on the acquisition;</p></content></level><level class="para1"><num>(f)</num><content><p>such other reasonable expenses as are directly connected with the acquisition (but this does not include any expenses incurred in connection with the ownership of the ordinary share capital once acquired).</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-9-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-9">this paragraph</ref> has effect in relation to distributions made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e29296"><heading>Participation requirement not infringed by exclusion of directors</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-6-paragraph-8-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/312C">section 312C</a> of <ref eId="c00252" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref>, after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>The participation requirement is not infringed by reason of the exclusion of directors of the company from participating in an award.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-8-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-8">this paragraph</ref> has effect in relation to qualifying bonus payments made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e29331"><heading>Relief for distributions to trustees of employee-ownership trusts</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-6-paragraph-9-1"><num>(1)</num><content><p><mod>In <ref eId="c00253" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, after section 401 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Employee-ownership trusts</heading><section><num>401ZA</num><heading>Relief: distributions to trustees of employee-ownership trusts</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there has been a disposal of ordinary share capital of a company (“<term refersTo="#term-c">C</term>”) to the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the relief requirements are met in relation to the disposal,</p></content></level><level class="para1"><num>(c)</num><content><p>C has made a payment to the trustees that is a distribution to the trustees chargeable to income tax as a result of this Chapter or Chapter 4 (dividends from non-UK resident companies), and</p></content></level><level class="para1"><num>(d)</num><content><p>the payment was made for the purposes of meeting the trustees’ acquisition costs.</p></content></level></subsection><subsection><num>(2)</num><intro><p>On the making of a claim, so much of the trustees’ acquisition costs may be deducted from the distribution (whether chargeable under this Chapter or Chapter 4) as—</p></intro><level class="para1"><num>(a)</num><content><p>does not reduce the amount of the distribution below nil, and</p></content></level><level class="para1"><num>(b)</num><content><p>has not been deducted from any other distribution.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-relief-requirements">relief requirements</term>” means the requirements set out in section 236H(4) of TCGA 1992 (disposals to employee-ownership trusts), but those requirements have effect for the purposes of this section as if references to “P” were to the person making the disposal whether or not that person is a company.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, the trustees’ acquisition costs are sums expended by the trustees on—</p></intro><level class="para1"><num>(a)</num><content><p>the acquisition of ordinary share capital in C by the trustees that resulted from the disposal;</p></content></level><level class="para1"><num>(b)</num><content><p>the repayment of any sums borrowed to fund that acquisition;</p></content></level><level class="para1"><num>(c)</num><content><p>the payment of interest on any such sums or in respect of any deferral of consideration for the disposal to the extent the payment is not in respect of interest exceeding a reasonable commercial rate;</p></content></level><level class="para1"><num>(d)</num><content><p>any valuation of C carried out in connection with the acquisition;</p></content></level><level class="para1"><num>(e)</num><content><p>any liability to stamp duty or stamp duty reserve tax on the acquisition;</p></content></level><level class="para1"><num>(f)</num><content><p>such other reasonable expenses as are directly connected with the acquisition (but this does not include any expenses incurred in connection with the ownership of the ordinary share capital once acquired).</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-9-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-9">this paragraph</ref> has effect in relation to distributions made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-7"><num>Schedule 7<authorialNote class="referenceNote"><p>Section 35</p></authorialNote></num><heading>Diminishing shared ownership refinancing arrangements</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e29478"><heading>Income tax</heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-7-paragraph-1-1"><num>(1)</num><content><p>Part 10A of ITA 2007 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-2"><num>(2)</num><content><p><mod>In section 564A (introduction), in subsection (3)(b) after “section 564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-3"><num>(3)</num><intro><p>In section 564D (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “564E” substitute <quotedText>“<ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-4"><num>(4)</num><content><p><mod>After section 564D insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e29597"><num>564DA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e29601"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e29607"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e29616"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29643"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e29616">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29852">(6)</ref>),</p></content></level><level class="para1" eId="d25e29655"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29667"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29673"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e29679"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 564D or subsection <ref href="#d25e29601">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e29688"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 564D(1)(a) or subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref> of this section as has not yet been acquired as mentioned in section 564D(1)(d) or subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29655">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29725"><num>(c)</num><content><p>the customer mentioned in section 564D(1) or <ref href="#d25e29601">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 564D(1)(c) or <ref href="#d25e29601">subsection (1)</ref><ref href="#d25e29643">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29852">(6)</ref>),</p></content></level><level class="para1" eId="d25e29742"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29754"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29760"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e29601">(1)</ref><ref href="#d25e29607">(a)</ref> and <ref href="#d25e29616">(b)</ref> and <ref href="#d25e29679">(2)</ref><ref href="#d25e29688">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29667">(g)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29754">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e29816">(5)</ref> are met.</p></content></subsection><subsection eId="d25e29816"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e29852"><num>(6)</num><intro><p>Subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29673">(h)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29760">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 564H (provision not at arm’s length: exclusion of arrangements from sections 564C and 564D, this section and sections 564E to 564G).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-5"><num>(5)</num><intro><p>In section 564K (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-1-5-b-i"><num>(i)</num><content><p><mod>after “section 564D(1)(c)” insert <quotedText>“or <ref href="#d25e29597">564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29643">(d)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29725">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-6"><num>(6)</num><content><p><mod>In section 564V (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-7"><num>(7)</num><content><p><mod>After section 564W (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>564WA</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e29597">564DA</ref> applies.</p></content></subsection><subsection><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref>, any profit, gain or loss realised by the customer on the disposal of the asset is to be treated as not having been realised for income tax purposes.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30012"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref>,</p></content></level><level class="para1" eId="d25e30025"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29643">(d)</ref> and <ref href="#d25e29655">(e)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29725">(c)</ref> and <ref href="#d25e29742">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30012">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30025">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of calculating, for income tax purposes, the amount of the profit, gain or loss realised by customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30795">(2)</ref> and <ref href="#d25e30808">(3)</ref>, “<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in <ref href="#d25e29597">section 564DA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29679">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for income tax purposes.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e30092"><heading>Corporation tax</heading><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-7-paragraph-2-1"><num>(1)</num><content><p>Chapter 6 of Part 6 of CTA 2009 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-2"><num>(2)</num><content><p><mod>In section 501 (introduction), in subsection (3)(b) after “section 504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-3"><num>(3)</num><intro><p>In section 504 (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “505” substitute <quotedText>“<ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-4"><num>(4)</num><content><p><mod>After section 504 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e30211"><num>504A</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e30215"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e30221"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e30230"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30257"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e30230">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in <ref href="#d25e30466">subsection (6)</ref>),</p></content></level><level class="para1" eId="d25e30269"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30281"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30287"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e30293"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 504 or subsection <ref href="#d25e30215">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e30302"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 504(1)(a) or subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref> of this section as has not yet been acquired as mentioned in section 504(1)(d) or subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30269">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30339"><num>(c)</num><content><p>the customer mentioned in section 504(1) or <ref href="#d25e30215">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 504(1)(c) or <ref href="#d25e30215">subsection (1)</ref><ref href="#d25e30257">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e30466">(6)</ref>),</p></content></level><level class="para1" eId="d25e30356"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30368"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30374"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e30215">(1)</ref><ref href="#d25e30221">(a)</ref> and <ref href="#d25e30230">(b)</ref> and <ref href="#d25e30293">(2)</ref><ref href="#d25e30302">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30281">(g)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30368">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e30430">(5)</ref> are met.</p></content></subsection><subsection eId="d25e30430"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e30466"><num>(6)</num><intro><p>Subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30287">(h)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30374">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 508 (provision not at arm’s length: exclusion of arrangements from sections 503 and 504, this section and sections 505 to 507).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-5"><num>(5)</num><intro><p>In section 510 (application of Part 5 of CTA 2009 to alternative finance arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-5-a"><num>(a)</num><intro><p>in subsection (2)(a)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-a-i"><num>(i)</num><content><p><mod>for “first owner” substitute <quotedText>“financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-ii"><num>(ii)</num><content><p><mod>for the “first owner’s” substitute <quotedText>“financier’s”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-iii"><num>(iii)</num><content><p><mod>for “eventual owner” substitute <quotedText>“customer”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-5-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-b-i"><num>(i)</num><content><p>omit the definitions of “the eventual owner” and “the first owner”;</p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>before the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30211">504A</ref> (see subsection <ref href="#d25e30215">(1)</ref> or <ref href="#d25e30293">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-iii"><num>(iii)</num><content><p><mod>after the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-financier">the financier</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30211">504A</ref> (see subsection <ref href="#d25e30215">(1)</ref> or <ref href="#d25e30293">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-6"><num>(6)</num><intro><p>In section 512 (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-6-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-6-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-6-b-i"><num>(i)</num><content><p><mod>after “section 504(1)(c)” insert <quotedText>“or <ref href="#d25e30211">504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30257">(d)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30339">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-6-c"><num>(c)</num><content><p><mod>in subsection (4), after “504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-7"><num>(7)</num><content><p><mod>In section 514 (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-8"><num>(8)</num><intro><p>In section 515 (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-8-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of the Corporation Tax Acts as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 504 or <ref href="#d25e30211">504A</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-9"><num>(9)</num><content><p><mod>After section 515 (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>515A</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e30211">section 504A</ref> applies.</p></content></subsection><subsection eId="d25e30795"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection eId="d25e30808"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30814"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref>,</p></content></level><level class="para1" eId="d25e30827"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30257">(d)</ref> and <ref href="#d25e30269">(e)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30339">(c)</ref> and <ref href="#d25e30356">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30814">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30827">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of the Corporation Tax Acts, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30795">(2)</ref> and <ref href="#d25e30808">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e30211">section 504A</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e30211">section 504A</ref><ref href="#d25e30293">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of the Corporation Tax Acts.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e30891"><heading>Capital gains tax</heading><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-7-paragraph-3-1"><num>(1)</num><content><p>Chapter 4 of Part 4 of the TCGA 1992 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-2"><num>(2)</num><content><p><mod>In section 151H (introduction), in subsection (3)(b) after “section 151K” insert <quotedText>“or 151KA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-3"><num>(3)</num><intro><p>In section 151K (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-g"><num>(g)</num><content><p><mod>in subsection (7), for “151L” substitute <quotedText>“151KA”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-4"><num>(4)</num><content><p><mod>After section 151K insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e31004"><num>151KA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e31008"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e31014"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e31023"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31050"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e31023">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31259">(6)</ref>),</p></content></level><level class="para1" eId="d25e31062"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31074"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31080"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e31086"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 151K or subsection <ref href="#d25e31008">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e31095"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 151K(1)(a) or subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref> of this section as has not yet been acquired as mentioned in section 151K(1)(d) or subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31062">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31132"><num>(c)</num><content><p>the customer mentioned in section 151K(1) or <ref href="#d25e31008">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 151K(1)(c) or <ref href="#d25e31008">subsection (1)</ref><ref href="#d25e31050">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31259">(6)</ref>),</p></content></level><level class="para1" eId="d25e31149"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31161"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31167"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e31008">(1)</ref><ref href="#d25e31014">(a)</ref> and <ref href="#d25e31023">(b)</ref> and <ref href="#d25e31086">(2)</ref><ref href="#d25e31095">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31074">(g)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31161">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e31223">(5)</ref> are met.</p></content></subsection><subsection eId="d25e31223"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e31259"><num>(6)</num><intro><p>Subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31080">(h)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31167">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 1124 of CTA 2010 (meaning of “<term refersTo="#term-control">control</term>”) applies for the purposes of this section.</p></content></subsection><subsection><num>(8)</num><content><p>This section is subject to section 151O (provision not at arm’s length: exclusion of arrangements from sections 151J and 151K, this section and sections 151L to 151N).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-5"><num>(5)</num><intro><p>In section 151R (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-3-5-b-i"><num>(i)</num><content><p><mod>after “section 151K(1)(c)” insert <quotedText>“or <ref href="#d25e31004">151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31050">(d)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31132">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-3-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “section 151K” insert <quotedText>“or <ref href="#d25e31004">151KA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-6"><num>(6)</num><content><p><mod>In section 151X (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 151K” insert <quotedText>“or <ref href="#d25e31004">151KA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-7"><num>(7)</num><intro><p>In section 151Y (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of this Act so far as it applies for capital gains tax as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 151K or <ref href="#d25e31004">151KA</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-8"><num>(8)</num><content><p><mod>After section 151Y (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>151Z</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e31004">section 151KA</ref> applies.</p></content></subsection><subsection eId="d25e31494"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection eId="d25e31507"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e31513"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref>,</p></content></level><level class="para1" eId="d25e31526"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31050">(d)</ref> and <ref href="#d25e31062">(e)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31132">(c)</ref> and <ref href="#d25e31149">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e31513">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e31526">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of this Act so far as it applies for capital gains tax, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e31494">(2)</ref> and <ref href="#d25e31507">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e31004">section 151KA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31086">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e31590"><heading>Application</heading><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><content><p>The amendments made by this Schedule have effect in relation to arrangements entered into on or after 30 October 2024.</p></content></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e29478"><heading>Income tax</heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-7-paragraph-1-1"><num>(1)</num><content><p>Part 10A of ITA 2007 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-2"><num>(2)</num><content><p><mod>In section 564A (introduction), in subsection (3)(b) after “section 564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-3"><num>(3)</num><intro><p>In section 564D (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “564E” substitute <quotedText>“<ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-4"><num>(4)</num><content><p><mod>After section 564D insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e29597"><num>564DA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e29601"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e29607"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e29616"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29643"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e29616">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29852">(6)</ref>),</p></content></level><level class="para1" eId="d25e29655"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29667"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29673"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e29679"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 564D or subsection <ref href="#d25e29601">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e29688"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 564D(1)(a) or subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref> of this section as has not yet been acquired as mentioned in section 564D(1)(d) or subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29655">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29725"><num>(c)</num><content><p>the customer mentioned in section 564D(1) or <ref href="#d25e29601">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 564D(1)(c) or <ref href="#d25e29601">subsection (1)</ref><ref href="#d25e29643">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29852">(6)</ref>),</p></content></level><level class="para1" eId="d25e29742"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29754"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29760"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e29601">(1)</ref><ref href="#d25e29607">(a)</ref> and <ref href="#d25e29616">(b)</ref> and <ref href="#d25e29679">(2)</ref><ref href="#d25e29688">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29667">(g)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29754">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e29816">(5)</ref> are met.</p></content></subsection><subsection eId="d25e29816"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e29852"><num>(6)</num><intro><p>Subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29673">(h)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29760">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 564H (provision not at arm’s length: exclusion of arrangements from sections 564C and 564D, this section and sections 564E to 564G).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-5"><num>(5)</num><intro><p>In section 564K (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-1-5-b-i"><num>(i)</num><content><p><mod>after “section 564D(1)(c)” insert <quotedText>“or <ref href="#d25e29597">564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29643">(d)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29725">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-6"><num>(6)</num><content><p><mod>In section 564V (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-7"><num>(7)</num><content><p><mod>After section 564W (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>564WA</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e29597">564DA</ref> applies.</p></content></subsection><subsection><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref>, any profit, gain or loss realised by the customer on the disposal of the asset is to be treated as not having been realised for income tax purposes.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30012"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref>,</p></content></level><level class="para1" eId="d25e30025"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29643">(d)</ref> and <ref href="#d25e29655">(e)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29725">(c)</ref> and <ref href="#d25e29742">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30012">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30025">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of calculating, for income tax purposes, the amount of the profit, gain or loss realised by customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30795">(2)</ref> and <ref href="#d25e30808">(3)</ref>, “<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in <ref href="#d25e29597">section 564DA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29679">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for income tax purposes.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e30092"><heading>Corporation tax</heading><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-7-paragraph-2-1"><num>(1)</num><content><p>Chapter 6 of Part 6 of CTA 2009 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-2"><num>(2)</num><content><p><mod>In section 501 (introduction), in subsection (3)(b) after “section 504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-3"><num>(3)</num><intro><p>In section 504 (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “505” substitute <quotedText>“<ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-4"><num>(4)</num><content><p><mod>After section 504 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e30211"><num>504A</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e30215"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e30221"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e30230"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30257"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e30230">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in <ref href="#d25e30466">subsection (6)</ref>),</p></content></level><level class="para1" eId="d25e30269"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30281"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30287"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e30293"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 504 or subsection <ref href="#d25e30215">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e30302"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 504(1)(a) or subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref> of this section as has not yet been acquired as mentioned in section 504(1)(d) or subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30269">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30339"><num>(c)</num><content><p>the customer mentioned in section 504(1) or <ref href="#d25e30215">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 504(1)(c) or <ref href="#d25e30215">subsection (1)</ref><ref href="#d25e30257">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e30466">(6)</ref>),</p></content></level><level class="para1" eId="d25e30356"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30368"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30374"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e30215">(1)</ref><ref href="#d25e30221">(a)</ref> and <ref href="#d25e30230">(b)</ref> and <ref href="#d25e30293">(2)</ref><ref href="#d25e30302">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30281">(g)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30368">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e30430">(5)</ref> are met.</p></content></subsection><subsection eId="d25e30430"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e30466"><num>(6)</num><intro><p>Subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30287">(h)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30374">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 508 (provision not at arm’s length: exclusion of arrangements from sections 503 and 504, this section and sections 505 to 507).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-5"><num>(5)</num><intro><p>In section 510 (application of Part 5 of CTA 2009 to alternative finance arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-5-a"><num>(a)</num><intro><p>in subsection (2)(a)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-a-i"><num>(i)</num><content><p><mod>for “first owner” substitute <quotedText>“financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-ii"><num>(ii)</num><content><p><mod>for the “first owner’s” substitute <quotedText>“financier’s”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-iii"><num>(iii)</num><content><p><mod>for “eventual owner” substitute <quotedText>“customer”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-5-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-b-i"><num>(i)</num><content><p>omit the definitions of “the eventual owner” and “the first owner”;</p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>before the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30211">504A</ref> (see subsection <ref href="#d25e30215">(1)</ref> or <ref href="#d25e30293">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-iii"><num>(iii)</num><content><p><mod>after the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-financier">the financier</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30211">504A</ref> (see subsection <ref href="#d25e30215">(1)</ref> or <ref href="#d25e30293">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-6"><num>(6)</num><intro><p>In section 512 (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-6-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-6-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-6-b-i"><num>(i)</num><content><p><mod>after “section 504(1)(c)” insert <quotedText>“or <ref href="#d25e30211">504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30257">(d)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30339">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-6-c"><num>(c)</num><content><p><mod>in subsection (4), after “504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-7"><num>(7)</num><content><p><mod>In section 514 (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-8"><num>(8)</num><intro><p>In section 515 (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-8-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of the Corporation Tax Acts as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 504 or <ref href="#d25e30211">504A</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-9"><num>(9)</num><content><p><mod>After section 515 (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>515A</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e30211">section 504A</ref> applies.</p></content></subsection><subsection eId="d25e30795"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection eId="d25e30808"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30814"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref>,</p></content></level><level class="para1" eId="d25e30827"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30257">(d)</ref> and <ref href="#d25e30269">(e)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30339">(c)</ref> and <ref href="#d25e30356">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30814">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30827">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of the Corporation Tax Acts, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30795">(2)</ref> and <ref href="#d25e30808">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e30211">section 504A</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e30211">section 504A</ref><ref href="#d25e30293">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of the Corporation Tax Acts.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e30891"><heading>Capital gains tax</heading><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-7-paragraph-3-1"><num>(1)</num><content><p>Chapter 4 of Part 4 of the TCGA 1992 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-2"><num>(2)</num><content><p><mod>In section 151H (introduction), in subsection (3)(b) after “section 151K” insert <quotedText>“or 151KA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-3"><num>(3)</num><intro><p>In section 151K (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-g"><num>(g)</num><content><p><mod>in subsection (7), for “151L” substitute <quotedText>“151KA”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-4"><num>(4)</num><content><p><mod>After section 151K insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e31004"><num>151KA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e31008"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e31014"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e31023"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31050"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e31023">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31259">(6)</ref>),</p></content></level><level class="para1" eId="d25e31062"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31074"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31080"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e31086"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 151K or subsection <ref href="#d25e31008">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e31095"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 151K(1)(a) or subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref> of this section as has not yet been acquired as mentioned in section 151K(1)(d) or subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31062">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31132"><num>(c)</num><content><p>the customer mentioned in section 151K(1) or <ref href="#d25e31008">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 151K(1)(c) or <ref href="#d25e31008">subsection (1)</ref><ref href="#d25e31050">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31259">(6)</ref>),</p></content></level><level class="para1" eId="d25e31149"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31161"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31167"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e31008">(1)</ref><ref href="#d25e31014">(a)</ref> and <ref href="#d25e31023">(b)</ref> and <ref href="#d25e31086">(2)</ref><ref href="#d25e31095">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31074">(g)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31161">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e31223">(5)</ref> are met.</p></content></subsection><subsection eId="d25e31223"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e31259"><num>(6)</num><intro><p>Subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31080">(h)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31167">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 1124 of CTA 2010 (meaning of “<term refersTo="#term-control">control</term>”) applies for the purposes of this section.</p></content></subsection><subsection><num>(8)</num><content><p>This section is subject to section 151O (provision not at arm’s length: exclusion of arrangements from sections 151J and 151K, this section and sections 151L to 151N).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-5"><num>(5)</num><intro><p>In section 151R (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-3-5-b-i"><num>(i)</num><content><p><mod>after “section 151K(1)(c)” insert <quotedText>“or <ref href="#d25e31004">151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31050">(d)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31132">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-3-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “section 151K” insert <quotedText>“or <ref href="#d25e31004">151KA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-6"><num>(6)</num><content><p><mod>In section 151X (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 151K” insert <quotedText>“or <ref href="#d25e31004">151KA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-7"><num>(7)</num><intro><p>In section 151Y (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of this Act so far as it applies for capital gains tax as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 151K or <ref href="#d25e31004">151KA</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-8"><num>(8)</num><content><p><mod>After section 151Y (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>151Z</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e31004">section 151KA</ref> applies.</p></content></subsection><subsection eId="d25e31494"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection eId="d25e31507"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e31513"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref>,</p></content></level><level class="para1" eId="d25e31526"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31050">(d)</ref> and <ref href="#d25e31062">(e)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31132">(c)</ref> and <ref href="#d25e31149">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e31513">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e31526">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of this Act so far as it applies for capital gains tax, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e31494">(2)</ref> and <ref href="#d25e31507">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e31004">section 151KA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31086">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e31590"><heading>Application</heading><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><content><p>The amendments made by this Schedule have effect in relation to arrangements entered into on or after 30 October 2024.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-8"><num>Schedule 8<authorialNote class="referenceNote"><p>Section 38(2)</p></authorialNote></num><heading>Relief on foreign employment income: consequential and transitional provision</heading><part eId="schedule-8-part-1"><num>Part 1</num><heading>General consequential amendments</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">section 28</a> (meaning of “<term refersTo="#term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax" eId="term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax">general earnings from overseas Crown employment subject to UK tax</term>”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">(b)</a>, after “or of” insert <quotedText>“Wales, Scotland or”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-3"><num>(3)</num><content><p><mod>In section 225 (payments for restrictive undertakings), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>This section only applies where—</p></intro><level class="para1"><num>(a)</num><content><p>if there are general earnings from the employment that are earned in, or otherwise in respect of, the tax year mentioned in subsection (3), <ref href="#d25e31674">subsection (7)</ref> applies to any of those general earnings, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to assume that, if there were such general earnings, <ref href="#d25e31674">subsection (7)</ref> would apply to any of those general earnings.</p></content></level></subsection><subsection eId="d25e31674"><num>(7)</num><intro><p>This subsection applies to general earnings if either—</p></intro><level class="para1"><num>(a)</num><intro><p>section 15 applies to the general earnings and the general earnings are not—</p></intro><level class="para2"><num>(i)</num><content><p>qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), or</p></content></level><level class="para2"><num>(ii)</num><content><p>general earnings to which section 22 or section 26 would apply if the individual made a claim under section 809B of ITA 2007 (claim for the remittance basis) for the tax year mentioned in section 22(1) or 26(1) (being a tax year before tax year 2025-26), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>section 27 applies to the general earnings.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-4"><num>(4)</num><content><p><mod>In section 290E (calculation of earnings rate for a tax year), in subsection (4), for “non-domiciled”, in each place it occurs, substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-5"><num>(5)</num><content><p><mod>In section 333 (scope of this chapter: expenses paid by the employee), in subsection (3)(b), for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-6"><num>(6)</num><content><p><mod>In section 341 (travel at start or finish of overseas employment), in subsection (4), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-7"><num>(7)</num><content><p><mod>In section 342 (travel between employments where duties performed abroad), in subsection (7), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-8"><num>(8)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">section 355</a> (deductions for corresponding payments by non-domiciled employees)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-8-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-8-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">subsection (2)</a>, for the words from “not domiciled” to the end substitute <quotedText>“a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-9"><num>(9)</num><content><p><mod>In section 360 (disallowance of certain accommodation expenses of MPs), in subsection (1), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-10"><num>(10)</num><content><p><mod>In section 370 (travel costs and expenses where duties performed abroad), in subsection (6), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>if the tax year is tax year 2024-2025 or an earlier tax year, would be taxable earnings under section 15 even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the tax year is tax year 2025-2026 or a later tax year and the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings).</p></content></level></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-11"><num>(11)</num><content><p><mod>In the italic heading before section 373 for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-12"><num>(12)</num><intro><p>In section 373 (employee’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-12-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-c"><num>(c)</num><intro><p>in subsection (4)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-12-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-12-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-12-d"><num>(d)</num><content><p><mod>in subsection (4)(b), for “that”, in both places it occurs, substitute <quotedText>“such a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-e"><num>(e)</num><content><p>omit subsection (7).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-13"><num>(13)</num><intro><p>In section 374 (spouse’s, civil partner’s or child’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-13-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-c"><num>(c)</num><intro><p>in subsection (3)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-d"><num>(d)</num><intro><p>in subsection (5)(c)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-d-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-d-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText></mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-e"><num>(e)</num><content><p>omit subsection (10).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-14"><num>(14)</num><intro><p>In section 376 (foreign accommodation and subsistence costs and expenses (overseas employments))—</p></intro><level class="para1" eId="schedule-8-paragraph-1-14-a"><num>(a)</num><content><p><mod>in subsection (1)(c), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-14-b"><num>(b)</num><content><p>omit subsection (6).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-15"><num>(15)</num><content><p><mod>In section 395C (meaning of “<term refersTo="#term-foreign-service" eId="term-foreign-service">foreign service</term>” in section 395B), for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (2) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-16"><num>(16)</num><content><p><mod>In section 413 (exception in certain cases of foreign service), for subsection (3ZA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>In subsection (2A)(a) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><p>ITA 2007 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content><p><mod>In section 24 (reliefs deductible at Step 2), in subsection (1)(a), after the entry for section 266(7) of ICTA insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#d25e5493">section 41P</ref> of ITEPA 2003 (deduction for amount that reflects qualifying foreign employment income),</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-3"><num>(3)</num><content><p><mod>In section 989 (the definitions), at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means an election under <ref href="#d25e5233">section 41M</ref> of ITEPA 2003,</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><intro><p>In Part 8 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (<ref eId="c00254" href="http://www.legislation.gov.uk/id/uksi/2001/1004">S.I. 2001/1004</ref>), in paragraph 5 (travel costs and expenses where duties performed in the United Kingdom) —</p></intro><level class="para1" eId="schedule-8-paragraph-3-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-3-b"><num>(b)</num><content><p><mod>in paragraph (a), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></level></paragraph></part><part eId="schedule-8-part-2"><num>Part 2</num><heading>Consequential amendments relating to PAYE</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After <ref href="#d25e2345">section 690C</ref> of ITEPA 2003 (employees who were internationally mobile etc. before 2025-2026) (as inserted by <ref href="#section-21">section 21</ref> of this Act) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e32161"><num>690D</num><heading>Employer notification for qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies in relation to an employee if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be a qualifying new resident for a tax year (“the qualifying year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the employee works or is likely to work outside the UK during the qualifying year.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the qualifying year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat the foreign proportion of any qualifying payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and <ref href="#d25e32354">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>a “<term refersTo="#term-qualifying-payment">qualifying payment</term>” means a payment of, or on account of, an amount of employment income of the employee that is likely to be qualifying employment income;</p></content></level><level class="para1"><num>(b)</num><content><p>the “foreign proportion” of a qualifying payment is the proportion of the employment income that, on the basis of the best estimate that can reasonably be made, is likely to be qualifying foreign employment income.</p></content></level></subsection><subsection eId="d25e32225"><num>(4)</num><content><p>If a notice given under this section has effect, the proportion of any qualifying payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e32354">section 690E</ref> (direction by HMRC in relation to qualifying new residents) in relation to the employee and the qualifying year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32354">section 690E</ref> is given to the appropriate person in relation to the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under <ref href="#d25e1980">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident in the qualifying year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e32225">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and <ref href="#d25e32354">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 687A or 695A (employment income under Part 7A) or section 696 (readily convertible assets), the employer is to be treated as making payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>”, “<term refersTo="#term-qualifying-employment-income">qualifying employment income</term>” and “<term refersTo="#term-qualifying-foreign-employment-income">qualifying foreign employment income</term>” have the same meaning as in Chapter 5C of Part 2 (relief for new residents on foreign employment income).</p></content></level></subsection></section><section eId="d25e32354"><num>690E</num><heading>Direction by HMRC in relation to qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the qualifying year under <ref href="#d25e32161">section 690D</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any qualifying payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e32379"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any qualifying payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e32379">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a day specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e32424"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32379">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e32379">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e32379">subsection (2)</ref> ceases to have effect if a notice has subsequently been—</p></intro><level class="para1"><num>(a)</num><content><p>given by the appropriate person under <ref href="#d25e1980">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident for the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e32424">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></part><part eId="schedule-8-part-3"><num>Part 3</num><heading>Transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e32506"><heading>Individuals no longer meeting section 26A requirement not qualifying new residents</heading><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content><p>If an individual falling within <ref href="#schedule-8-paragraph-5-2">sub-paragraph (2)</ref> would otherwise be a qualifying new resident for tax year 2025-26 for the purposes of Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income), the individual is to be treated as not being a qualifying new resident for that year for the purposes of that Chapter.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-5-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2022-23, and</p></content></level><level class="para1" eId="schedule-8-paragraph-5-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that year or for tax year 2023-24 or 2024-25.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32540"><heading>Certain individuals meeting section 26A requirement treated as qualifying new residents</heading><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><intro><p>If an individual falling within <ref href="#schedule-8-paragraph-6-2">sub-paragraph (2)</ref>—</p></intro><level class="para1" eId="schedule-8-paragraph-6-1-a"><num>(a)</num><content><p>meets the section 26A requirement for tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-1-b"><num>(b)</num><content><p>is not a qualifying new resident for that year for the purposes of Chapter 5C of Part 2 of ITEPA 2003,</p></content></level><wrapUp><p>the individual is to be treated as a qualifying new resident for that tax year for the purposes of that Chapter.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-6-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2023-24 or tax year 2024-25, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that tax year.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32588"><heading>Limit on relief not to apply to certain foreign employment relief claims</heading><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Section <ref href="#d25e5700">41R</ref> of ITEPA 2003 (limit on relief) does not apply to a foreign employment relief claim made by an individual for a tax year if the claim falls within sub-paragraph <ref href="#schedule-8-paragraph-7-2">(2)</ref> or <ref href="#schedule-8-paragraph-7-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-2-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-2-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> applies to the individual for that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-3-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> does not apply to the individual for that tax year,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-c"><num>(c)</num><content><p>the individual falls within <ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-d"><num>(d)</num><content><p>the individual meets the section 26A requirement for tax year 2025-26.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32671"><heading>Definitions</heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-relief-claim" eId="term-foreign-employment-relief-claim">foreign employment relief claim</term>” and “qualifying year” have the same meanings as in Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-section-26a-requirement" eId="term-the-section-26a-requirement">the section 26A requirement</term>” means the requirement of section 26A of ITEPA 2003 (requirement for 3-year period of non-residence).</p></content></hcontainer></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-part-1"><num>Part 1</num><heading>General consequential amendments</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">section 28</a> (meaning of “<term refersTo="#term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax" eId="term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax">general earnings from overseas Crown employment subject to UK tax</term>”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">(b)</a>, after “or of” insert <quotedText>“Wales, Scotland or”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-3"><num>(3)</num><content><p><mod>In section 225 (payments for restrictive undertakings), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>This section only applies where—</p></intro><level class="para1"><num>(a)</num><content><p>if there are general earnings from the employment that are earned in, or otherwise in respect of, the tax year mentioned in subsection (3), <ref href="#d25e31674">subsection (7)</ref> applies to any of those general earnings, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to assume that, if there were such general earnings, <ref href="#d25e31674">subsection (7)</ref> would apply to any of those general earnings.</p></content></level></subsection><subsection eId="d25e31674"><num>(7)</num><intro><p>This subsection applies to general earnings if either—</p></intro><level class="para1"><num>(a)</num><intro><p>section 15 applies to the general earnings and the general earnings are not—</p></intro><level class="para2"><num>(i)</num><content><p>qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), or</p></content></level><level class="para2"><num>(ii)</num><content><p>general earnings to which section 22 or section 26 would apply if the individual made a claim under section 809B of ITA 2007 (claim for the remittance basis) for the tax year mentioned in section 22(1) or 26(1) (being a tax year before tax year 2025-26), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>section 27 applies to the general earnings.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-4"><num>(4)</num><content><p><mod>In section 290E (calculation of earnings rate for a tax year), in subsection (4), for “non-domiciled”, in each place it occurs, substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-5"><num>(5)</num><content><p><mod>In section 333 (scope of this chapter: expenses paid by the employee), in subsection (3)(b), for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-6"><num>(6)</num><content><p><mod>In section 341 (travel at start or finish of overseas employment), in subsection (4), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-7"><num>(7)</num><content><p><mod>In section 342 (travel between employments where duties performed abroad), in subsection (7), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-8"><num>(8)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">section 355</a> (deductions for corresponding payments by non-domiciled employees)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-8-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-8-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">subsection (2)</a>, for the words from “not domiciled” to the end substitute <quotedText>“a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-9"><num>(9)</num><content><p><mod>In section 360 (disallowance of certain accommodation expenses of MPs), in subsection (1), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-10"><num>(10)</num><content><p><mod>In section 370 (travel costs and expenses where duties performed abroad), in subsection (6), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>if the tax year is tax year 2024-2025 or an earlier tax year, would be taxable earnings under section 15 even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the tax year is tax year 2025-2026 or a later tax year and the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings).</p></content></level></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-11"><num>(11)</num><content><p><mod>In the italic heading before section 373 for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-12"><num>(12)</num><intro><p>In section 373 (employee’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-12-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-c"><num>(c)</num><intro><p>in subsection (4)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-12-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-12-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-12-d"><num>(d)</num><content><p><mod>in subsection (4)(b), for “that”, in both places it occurs, substitute <quotedText>“such a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-e"><num>(e)</num><content><p>omit subsection (7).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-13"><num>(13)</num><intro><p>In section 374 (spouse’s, civil partner’s or child’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-13-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-c"><num>(c)</num><intro><p>in subsection (3)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-d"><num>(d)</num><intro><p>in subsection (5)(c)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-d-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-d-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText></mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-e"><num>(e)</num><content><p>omit subsection (10).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-14"><num>(14)</num><intro><p>In section 376 (foreign accommodation and subsistence costs and expenses (overseas employments))—</p></intro><level class="para1" eId="schedule-8-paragraph-1-14-a"><num>(a)</num><content><p><mod>in subsection (1)(c), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-14-b"><num>(b)</num><content><p>omit subsection (6).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-15"><num>(15)</num><content><p><mod>In section 395C (meaning of “<term refersTo="#term-foreign-service" eId="term-foreign-service">foreign service</term>” in section 395B), for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (2) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-16"><num>(16)</num><content><p><mod>In section 413 (exception in certain cases of foreign service), for subsection (3ZA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>In subsection (2A)(a) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><p>ITA 2007 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content><p><mod>In section 24 (reliefs deductible at Step 2), in subsection (1)(a), after the entry for section 266(7) of ICTA insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#d25e5493">section 41P</ref> of ITEPA 2003 (deduction for amount that reflects qualifying foreign employment income),</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-3"><num>(3)</num><content><p><mod>In section 989 (the definitions), at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means an election under <ref href="#d25e5233">section 41M</ref> of ITEPA 2003,</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><intro><p>In Part 8 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (<ref eId="c00254" href="http://www.legislation.gov.uk/id/uksi/2001/1004">S.I. 2001/1004</ref>), in paragraph 5 (travel costs and expenses where duties performed in the United Kingdom) —</p></intro><level class="para1" eId="schedule-8-paragraph-3-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-3-b"><num>(b)</num><content><p><mod>in paragraph (a), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></level></paragraph></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">section 28</a> (meaning of “<term refersTo="#term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax" eId="term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax">general earnings from overseas Crown employment subject to UK tax</term>”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">(b)</a>, after “or of” insert <quotedText>“Wales, Scotland or”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-3"><num>(3)</num><content><p><mod>In section 225 (payments for restrictive undertakings), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>This section only applies where—</p></intro><level class="para1"><num>(a)</num><content><p>if there are general earnings from the employment that are earned in, or otherwise in respect of, the tax year mentioned in subsection (3), <ref href="#d25e31674">subsection (7)</ref> applies to any of those general earnings, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to assume that, if there were such general earnings, <ref href="#d25e31674">subsection (7)</ref> would apply to any of those general earnings.</p></content></level></subsection><subsection eId="d25e31674"><num>(7)</num><intro><p>This subsection applies to general earnings if either—</p></intro><level class="para1"><num>(a)</num><intro><p>section 15 applies to the general earnings and the general earnings are not—</p></intro><level class="para2"><num>(i)</num><content><p>qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), or</p></content></level><level class="para2"><num>(ii)</num><content><p>general earnings to which section 22 or section 26 would apply if the individual made a claim under section 809B of ITA 2007 (claim for the remittance basis) for the tax year mentioned in section 22(1) or 26(1) (being a tax year before tax year 2025-26), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>section 27 applies to the general earnings.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-4"><num>(4)</num><content><p><mod>In section 290E (calculation of earnings rate for a tax year), in subsection (4), for “non-domiciled”, in each place it occurs, substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-5"><num>(5)</num><content><p><mod>In section 333 (scope of this chapter: expenses paid by the employee), in subsection (3)(b), for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-6"><num>(6)</num><content><p><mod>In section 341 (travel at start or finish of overseas employment), in subsection (4), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-7"><num>(7)</num><content><p><mod>In section 342 (travel between employments where duties performed abroad), in subsection (7), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-8"><num>(8)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">section 355</a> (deductions for corresponding payments by non-domiciled employees)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-8-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-8-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">subsection (2)</a>, for the words from “not domiciled” to the end substitute <quotedText>“a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-9"><num>(9)</num><content><p><mod>In section 360 (disallowance of certain accommodation expenses of MPs), in subsection (1), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-10"><num>(10)</num><content><p><mod>In section 370 (travel costs and expenses where duties performed abroad), in subsection (6), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>if the tax year is tax year 2024-2025 or an earlier tax year, would be taxable earnings under section 15 even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the tax year is tax year 2025-2026 or a later tax year and the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings).</p></content></level></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-11"><num>(11)</num><content><p><mod>In the italic heading before section 373 for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-12"><num>(12)</num><intro><p>In section 373 (employee’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-12-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-c"><num>(c)</num><intro><p>in subsection (4)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-12-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-12-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-12-d"><num>(d)</num><content><p><mod>in subsection (4)(b), for “that”, in both places it occurs, substitute <quotedText>“such a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-e"><num>(e)</num><content><p>omit subsection (7).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-13"><num>(13)</num><intro><p>In section 374 (spouse’s, civil partner’s or child’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-13-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-c"><num>(c)</num><intro><p>in subsection (3)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-d"><num>(d)</num><intro><p>in subsection (5)(c)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-d-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-d-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText></mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-e"><num>(e)</num><content><p>omit subsection (10).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-14"><num>(14)</num><intro><p>In section 376 (foreign accommodation and subsistence costs and expenses (overseas employments))—</p></intro><level class="para1" eId="schedule-8-paragraph-1-14-a"><num>(a)</num><content><p><mod>in subsection (1)(c), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-14-b"><num>(b)</num><content><p>omit subsection (6).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-15"><num>(15)</num><content><p><mod>In section 395C (meaning of “<term refersTo="#term-foreign-service" eId="term-foreign-service">foreign service</term>” in section 395B), for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (2) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-16"><num>(16)</num><content><p><mod>In section 413 (exception in certain cases of foreign service), for subsection (3ZA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>In subsection (2A)(a) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><p>ITA 2007 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content><p><mod>In section 24 (reliefs deductible at Step 2), in subsection (1)(a), after the entry for section 266(7) of ICTA insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#d25e5493">section 41P</ref> of ITEPA 2003 (deduction for amount that reflects qualifying foreign employment income),</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-3"><num>(3)</num><content><p><mod>In section 989 (the definitions), at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means an election under <ref href="#d25e5233">section 41M</ref> of ITEPA 2003,</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><intro><p>In Part 8 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (<ref eId="c00254" href="http://www.legislation.gov.uk/id/uksi/2001/1004">S.I. 2001/1004</ref>), in paragraph 5 (travel costs and expenses where duties performed in the United Kingdom) —</p></intro><level class="para1" eId="schedule-8-paragraph-3-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-3-b"><num>(b)</num><content><p><mod>in paragraph (a), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-8-paragraph-3-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-8-paragraph-3-b"><num>(b)</num><content><p><mod>in paragraph (a), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></level>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-part-2"><num>Part 2</num><heading>Consequential amendments relating to PAYE</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After <ref href="#d25e2345">section 690C</ref> of ITEPA 2003 (employees who were internationally mobile etc. before 2025-2026) (as inserted by <ref href="#section-21">section 21</ref> of this Act) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e32161"><num>690D</num><heading>Employer notification for qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies in relation to an employee if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be a qualifying new resident for a tax year (“the qualifying year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the employee works or is likely to work outside the UK during the qualifying year.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the qualifying year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat the foreign proportion of any qualifying payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and <ref href="#d25e32354">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>a “<term refersTo="#term-qualifying-payment">qualifying payment</term>” means a payment of, or on account of, an amount of employment income of the employee that is likely to be qualifying employment income;</p></content></level><level class="para1"><num>(b)</num><content><p>the “foreign proportion” of a qualifying payment is the proportion of the employment income that, on the basis of the best estimate that can reasonably be made, is likely to be qualifying foreign employment income.</p></content></level></subsection><subsection eId="d25e32225"><num>(4)</num><content><p>If a notice given under this section has effect, the proportion of any qualifying payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e32354">section 690E</ref> (direction by HMRC in relation to qualifying new residents) in relation to the employee and the qualifying year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32354">section 690E</ref> is given to the appropriate person in relation to the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under <ref href="#d25e1980">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident in the qualifying year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e32225">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and <ref href="#d25e32354">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 687A or 695A (employment income under Part 7A) or section 696 (readily convertible assets), the employer is to be treated as making payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>”, “<term refersTo="#term-qualifying-employment-income">qualifying employment income</term>” and “<term refersTo="#term-qualifying-foreign-employment-income">qualifying foreign employment income</term>” have the same meaning as in Chapter 5C of Part 2 (relief for new residents on foreign employment income).</p></content></level></subsection></section><section eId="d25e32354"><num>690E</num><heading>Direction by HMRC in relation to qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the qualifying year under <ref href="#d25e32161">section 690D</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any qualifying payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e32379"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any qualifying payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e32379">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a day specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e32424"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32379">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e32379">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e32379">subsection (2)</ref> ceases to have effect if a notice has subsequently been—</p></intro><level class="para1"><num>(a)</num><content><p>given by the appropriate person under <ref href="#d25e1980">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident for the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e32424">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After <ref href="#d25e2345">section 690C</ref> of ITEPA 2003 (employees who were internationally mobile etc. before 2025-2026) (as inserted by <ref href="#section-21">section 21</ref> of this Act) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e32161"><num>690D</num><heading>Employer notification for qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies in relation to an employee if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be a qualifying new resident for a tax year (“the qualifying year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the employee works or is likely to work outside the UK during the qualifying year.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the qualifying year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat the foreign proportion of any qualifying payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and <ref href="#d25e32354">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>a “<term refersTo="#term-qualifying-payment">qualifying payment</term>” means a payment of, or on account of, an amount of employment income of the employee that is likely to be qualifying employment income;</p></content></level><level class="para1"><num>(b)</num><content><p>the “foreign proportion” of a qualifying payment is the proportion of the employment income that, on the basis of the best estimate that can reasonably be made, is likely to be qualifying foreign employment income.</p></content></level></subsection><subsection eId="d25e32225"><num>(4)</num><content><p>If a notice given under this section has effect, the proportion of any qualifying payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e32354">section 690E</ref> (direction by HMRC in relation to qualifying new residents) in relation to the employee and the qualifying year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32354">section 690E</ref> is given to the appropriate person in relation to the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under <ref href="#d25e1980">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident in the qualifying year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e32225">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and <ref href="#d25e32354">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 687A or 695A (employment income under Part 7A) or section 696 (readily convertible assets), the employer is to be treated as making payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>”, “<term refersTo="#term-qualifying-employment-income">qualifying employment income</term>” and “<term refersTo="#term-qualifying-foreign-employment-income">qualifying foreign employment income</term>” have the same meaning as in Chapter 5C of Part 2 (relief for new residents on foreign employment income).</p></content></level></subsection></section><section eId="d25e32354"><num>690E</num><heading>Direction by HMRC in relation to qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the qualifying year under <ref href="#d25e32161">section 690D</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any qualifying payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e32379"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any qualifying payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e32379">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a day specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e32424"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32379">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e32379">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e32379">subsection (2)</ref> ceases to have effect if a notice has subsequently been—</p></intro><level class="para1"><num>(a)</num><content><p>given by the appropriate person under <ref href="#d25e1980">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident for the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e32424">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-part-3"><num>Part 3</num><heading>Transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e32506"><heading>Individuals no longer meeting section 26A requirement not qualifying new residents</heading><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content><p>If an individual falling within <ref href="#schedule-8-paragraph-5-2">sub-paragraph (2)</ref> would otherwise be a qualifying new resident for tax year 2025-26 for the purposes of Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income), the individual is to be treated as not being a qualifying new resident for that year for the purposes of that Chapter.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-5-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2022-23, and</p></content></level><level class="para1" eId="schedule-8-paragraph-5-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that year or for tax year 2023-24 or 2024-25.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32540"><heading>Certain individuals meeting section 26A requirement treated as qualifying new residents</heading><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><intro><p>If an individual falling within <ref href="#schedule-8-paragraph-6-2">sub-paragraph (2)</ref>—</p></intro><level class="para1" eId="schedule-8-paragraph-6-1-a"><num>(a)</num><content><p>meets the section 26A requirement for tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-1-b"><num>(b)</num><content><p>is not a qualifying new resident for that year for the purposes of Chapter 5C of Part 2 of ITEPA 2003,</p></content></level><wrapUp><p>the individual is to be treated as a qualifying new resident for that tax year for the purposes of that Chapter.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-6-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2023-24 or tax year 2024-25, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that tax year.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32588"><heading>Limit on relief not to apply to certain foreign employment relief claims</heading><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Section <ref href="#d25e5700">41R</ref> of ITEPA 2003 (limit on relief) does not apply to a foreign employment relief claim made by an individual for a tax year if the claim falls within sub-paragraph <ref href="#schedule-8-paragraph-7-2">(2)</ref> or <ref href="#schedule-8-paragraph-7-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-2-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-2-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> applies to the individual for that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-3-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> does not apply to the individual for that tax year,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-c"><num>(c)</num><content><p>the individual falls within <ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-d"><num>(d)</num><content><p>the individual meets the section 26A requirement for tax year 2025-26.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32671"><heading>Definitions</heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-relief-claim" eId="term-foreign-employment-relief-claim">foreign employment relief claim</term>” and “qualifying year” have the same meanings as in Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-section-26a-requirement" eId="term-the-section-26a-requirement">the section 26A requirement</term>” means the requirement of section 26A of ITEPA 2003 (requirement for 3-year period of non-residence).</p></content></hcontainer></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e32506"><heading>Individuals no longer meeting section 26A requirement not qualifying new residents</heading><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content><p>If an individual falling within <ref href="#schedule-8-paragraph-5-2">sub-paragraph (2)</ref> would otherwise be a qualifying new resident for tax year 2025-26 for the purposes of Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income), the individual is to be treated as not being a qualifying new resident for that year for the purposes of that Chapter.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-5-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2022-23, and</p></content></level><level class="para1" eId="schedule-8-paragraph-5-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that year or for tax year 2023-24 or 2024-25.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e32540"><heading>Certain individuals meeting section 26A requirement treated as qualifying new residents</heading><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><intro><p>If an individual falling within <ref href="#schedule-8-paragraph-6-2">sub-paragraph (2)</ref>—</p></intro><level class="para1" eId="schedule-8-paragraph-6-1-a"><num>(a)</num><content><p>meets the section 26A requirement for tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-1-b"><num>(b)</num><content><p>is not a qualifying new resident for that year for the purposes of Chapter 5C of Part 2 of ITEPA 2003,</p></content></level><wrapUp><p>the individual is to be treated as a qualifying new resident for that tax year for the purposes of that Chapter.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-6-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2023-24 or tax year 2024-25, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that tax year.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Limit on relief not to apply to certain foreign employment relief claims</heading><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Section <ref href="#d25e5695">41R</ref> of ITEPA 2003 (limit on relief) does not apply to a foreign employment relief claim made by an individual for a tax year if the claim falls within sub-paragraph <ref href="#schedule-8-paragraph-7-2">(2)</ref> or <ref href="#schedule-8-paragraph-7-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-2-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-2-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> applies to the individual for that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-3-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> does not apply to the individual for that tax year,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-c"><num>(c)</num><content><p>the individual falls within <ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-d"><num>(d)</num><content><p>the individual meets the section 26A requirement for tax year 2025-26.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Section <ref href="#d25e5700">41R</ref> of ITEPA 2003 (limit on relief) does not apply to a foreign employment relief claim made by an individual for a tax year if the claim falls within sub-paragraph <ref href="#schedule-8-paragraph-7-2">(2)</ref> or <ref href="#schedule-8-paragraph-7-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-2-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-2-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> applies to the individual for that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-3-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> does not apply to the individual for that tax year,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-c"><num>(c)</num><content><p>the individual falls within <ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-d"><num>(d)</num><content><p>the individual meets the section 26A requirement for tax year 2025-26.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-9-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">Section 476</a> of <ref eId="c00266" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of trustees: how to work out if settlor meets condition C) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsections (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a>, omit “or domiciled in the United Kingdom”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34294"><num>(3ZA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on S’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted <quotedText>“or domiciled in the United Kingdom”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3A)</a>, for “subsections (2)(b) and (3)(b)” substitute <quotedText>“<ref href="#d25e34294">subsection (3ZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(c)</a>, for “subsection (2) or (3) or this subsection” substitute <quotedText>“this section”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">Section 69</a> of <ref eId="c00267" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (trustees of settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2B)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">(c)</a>, omit “or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2C)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34382"><num>(2CA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on the settlor’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that the settlor made (or was treated for the purposes of this Act as making) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsection (2B)(c) has effect as if after “resident” there were inserted <quotedText>“or domiciled”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2F)</a>, for “(2B)(c)” substitute <quotedText>“<ref href="#d25e34382">(2CA)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-9-paragraph-13-1"><num>(1)</num><content><p>In the <ref eId="c00268" href="https://www.legislation.gov.uk/uksi/2017/692">Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017</ref> (<ref eId="c00269" href="http://www.legislation.gov.uk/id/uksi/2017/692">S.I. 2017/692</ref>), <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">regulation 42</a> (application of Part 5) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(d)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(ii)</a>, omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2A)</num><content><p><mod>In relation to a trust that was set up before 6 April 2025, paragraph (2)(d)(ii) has effect as if after “resident” there were inserted <quotedText>“and domiciled”</quotedText>.</mod></p></content></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e32588"><heading>Limit on relief not to apply to certain foreign employment relief claims</heading><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Section <ref href="#d25e5700">41R</ref> of ITEPA 2003 (limit on relief) does not apply to a foreign employment relief claim made by an individual for a tax year if the claim falls within sub-paragraph <ref href="#schedule-8-paragraph-7-2">(2)</ref> or <ref href="#schedule-8-paragraph-7-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-2-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-2-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> applies to the individual for that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-3-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> does not apply to the individual for that tax year,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-c"><num>(c)</num><content><p>the individual falls within <ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-d"><num>(d)</num><content><p>the individual meets the section 26A requirement for tax year 2025-26.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e32671"><heading>Definitions</heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-relief-claim" eId="term-foreign-employment-relief-claim">foreign employment relief claim</term>” and “qualifying year” have the same meanings as in Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-section-26a-requirement" eId="term-the-section-26a-requirement">the section 26A requirement</term>” means the requirement of section 26A of ITEPA 2003 (requirement for 3-year period of non-residence).</p></content></hcontainer></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-9"><num>Schedule 9<authorialNote class="referenceNote"><p>Section 40</p></authorialNote></num><heading>Income tax and capital gains tax: remittance basis and domicile</heading><part eId="schedule-9-part-1"><num>Part 1</num><heading>Remittance basis</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e32709"><heading>No remittance basis for tax years after 2024-25</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-9-paragraph-1-1"><num>(1)</num><content><p>Chapter A1 of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00255" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-2"><num>(2)</num><intro><p>In section 809B (claim for remittance basis to apply), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-2-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-c"><num>(c)</num><content><p><mod>in each of paragraphs (a), (b) and (c), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-3"><num>(3)</num><intro><p>In section 809C (claim for remittance basis by long-term UK resident), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-3-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-c"><num>(c)</num><content><p><mod>in each of paragraphs (a) and (b), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-4"><num>(4)</num><content><p><mod>In section 809D (application of remittance basis where income and gains under £2000) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-5"><num>(5)</num><content><p><mod>In section 809E (application of remittance basis without claim: other cases) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-6"><num>(6)</num><intro><p>In consequence of the amendments made by <span><ref href="#schedule-9-paragraph-1-2">sub-paragraphs (2)</ref> to <ref href="#schedule-9-paragraph-1-5">(5)</ref></span>, in section 809A—</p></intro><level class="para1" eId="schedule-9-paragraph-1-6-a"><num>(a)</num><content><p><mod>for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-6-b"><num>(b)</num><content><p><mod>after “Kingdom” insert <quotedText>“in tax years before tax year 2025-26”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32861"><heading>Amendments of <ref eId="c00256" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00257" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">section 1A</a> (territorial scope), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">section 1K</a> (annual exempt amount), omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>, for “Non-UK domiciled individuals” substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-2-5-a"><num>(a)</num><content><p><mod>for the heading, substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-2-5-b-i"><num>(i)</num><content><p><mod>for “a tax year” substitute <quotedText>“tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>for “is”, in each place it occurs, substitute <quotedText>“was”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-2-6"><num>(6)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/16ZA">Section 16ZA</a> (losses: non-UK domiciled individuals) is omitted.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> (UK resident individuals not domiciled in UK)—</p></intro><level class="para1" eId="schedule-9-paragraph-2-7-a"><num>(a)</num><content><p><mod>in the heading, for “not domiciled in the UK” substitute <quotedText>“to whom the remittance basis applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(1)</a> for “applies” <ins class="first last" ukl:ChangeId="key-e186ed2d4fbf334b149d0a8898182cb6-1776849212143" ukl:CommentaryRef="key-e186ed2d4fbf334b149d0a8898182cb6"><noteRef uk:name="commentary" href="#key-e186ed2d4fbf334b149d0a8898182cb6" class="commentary"/>, in the second place it occurs,</ins> substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/2">paragraphs 2</a>, <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/3">3</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/4">4</a>.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33023"><heading>Amendments of <ref eId="c00258" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00259" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">section 6</a> (nature of charge to tax on employment income), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (a)</a>, omit “and domicile”;</p></content></level><level class="para1" eId="schedule-9-paragraph-3-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (aa)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">section 20</a> (taxable earnings under this Chapter), for <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">subsection (1)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This Chapter contains provision for determining how much of the following are taxable earnings from an employment in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings that are for a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee (being a tax year before tax year 2025-26), and</p></content></level><level class="para1"><num>(b)</num><content><p>general earnings that are for a tax year for which the employee is non-UK resident.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a> (chargeable overseas earnings for year when remittance basis applies and employee outside section 26)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-4-a"><num>(a)</num><content><p><mod>in the heading and in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(b)</a>, for “does not” substitute <quotedText>“did not”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">section 23</a> (calculation of “chargeable overseas earnings”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (aa)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (b)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-6"><num>(6)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/25">section 25</a>, for “meet” substitute <quotedText>“met”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">section 26</a> (foreign earnings for year when remittance basis applies and employee meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “applies and employee meets” substitute <quotedText>“applied and employee met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-7-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">subsection (1)</a>, in the opening words—</p></intro><level class="para2" eId="schedule-9-paragraph-3-7-b-i"><num>(i)</num><content><p><mod>for “applies”, in the second place it appears, substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-7-b-ii"><num>(ii)</num><content><p><mod>for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">section 41F</a> (taxable specific income: internationally mobile employee etc), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-9"><num>(9)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">section 41H</a> (section 41F: chargeable and unchargeable foreign securities income)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-9-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (4)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (d)</a> for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-3-9-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-10"><num>(10)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">section 271</a> (limited exemption of removal benefits and expenses: general)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-10-a"><num>(a)</num><content><p><mod>in subsections (2)(a) and (2)(b), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-10-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">(b)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-11"><num>(11)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">section 554Z9</a> (remittance basis: A does not meet section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-11-a"><num>(a)</num><content><p><mod>in the heading, for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-11-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-11-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (b)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (c)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (d)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (e)</a>, for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-12"><num>(12)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">section 554Z10</a> (remittance basis: A meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-12-a"><num>(a)</num><content><p><mod>in the heading, for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(b)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(c)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-13"><num>(13)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">section 576A</a> (temporary non-residents), in subsection <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">(5)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-14"><num>(14)</num><content><p><mod>In section 698 (PAYE: special charges on employment-related securities), in subsection (8), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-15"><num>(15)</num><content><p><mod>In section 700 (PAYE: gains from securities options), in subsection (7), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-16"><num>(16)</num><content><p><mod>In section 700A (employment-related securities etc: remittance basis), in the heading, for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33583"><heading>Amendment of <ref eId="c00260" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00261" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (relevant foreign income charge on remittance basis), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-4-a"><num>(a)</num><content><p>for “applies”, in the second place it appears, substitute” applied”;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-b"><num>(b)</num><content><p><mod>after “that year” insert <quotedText>“(being a tax year before tax year 2025-26)”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33619"><heading>When amounts will be remitted</heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00262" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">Section 809L</a> (meaning of “<term refersTo="#term-remitted-to-the-united-kingdom" eId="term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>”) is amended in accordance with sub-paragraphs to <ref href="#schedule-9-paragraph-5-3">(3)</ref> to <ref href="#schedule-9-paragraph-5-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>omit the “or” at the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (a)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33726"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-5-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33776"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-6"><num>(6)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-6-a"><num>(a)</num><content><p><mod>for “or (b)”, in each place it occurs, substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-6-b"><num>(b)</num><content><p><mod>after “property”, in the second place it occurs, insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-7"><num>(7)</num><content><p><mod>At the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert <quotedText>“and cases where the property is used to secure the debt.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-8"><num>(8)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9A)</num><intro><p>For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes—</p></intro><level class="para1"><num>(a)</num><content><p>sending, or otherwise effecting a transfer of, the property to the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom.</p></content></level></subsection><subsection eId="d25e33847"><num>(9B)</num><content><p>Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992.</p></content></subsection><subsection><num>(9C)</num><content><p>But subsection <ref href="#d25e33847">(9B)</ref> does not apply where the intangible property is a debt other than a judgment debt.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-9"><num>(9)</num><intro><p>In section 809N (section 809L: gift recipients, qualifying property and enjoyment)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-9-a"><num>(a)</num><content><p><mod>in subsection (7)(c), after “(b)” insert <quotedText>“, <ref href="#d25e33726">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-9-b"><num>(b)</num><intro><p>in subsection (9)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-9-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-10"><num>(10)</num><intro><p>In section 809O (section 809L: dealings where there is a connected operation)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-10-a"><num>(a)</num><content><p><mod>in each of subsections (2), (3), (4) and (5) after “(b)” insert <quotedText>“, <ref href="#d25e33776">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-10-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-10-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the property being dealt with as mentioned in section 809L(5)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-11"><num>(11)</num><intro><p>In section 809P (section 809L: amount remitted)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-11-a"><num>(a)</num><content><p><mod>in subsections (6) and (8), for “or (b)” substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-11-b"><num>(b)</num><content><p><mod>in subsection (12), after “previously remitted”, in each place it occurs, insert <quotedText>“that has been charged to income tax or capital gains tax”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34042"><heading>Relief for amounts remitted again on becoming UK resident</heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-1-a"><num>(a)</num><intro><p>income or chargeable gains of an individual have been remitted to the United Kingdom during a period that exceeds 5 years—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-a-i"><num>(i)</num><content><p>that ends before 6 April 2024, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-a-ii"><num>(ii)</num><content><p>in which there was no period for which the individual was UK resident, and</p></content></level></level><level class="para1" eId="schedule-9-paragraph-6-1-b"><num>(b)</num><intro><p>after the end of that period, but before 6 April 2025—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-b-i"><num>(i)</num><content><p>the same, or part of the same, income or chargeable gains (“the repeated remitted amount”) were again remitted to the United Kingdom, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-b-ii"><num>(ii)</num><content><p>a relevant charge has arisen in relation to that remittance.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><intro><p>A “<term refersTo="#term-relevant-charge" eId="term-relevant-charge">relevant charge</term>” in relation to a remittance means—</p></intro><level class="para1" eId="schedule-9-paragraph-6-2-a"><num>(a)</num><content><p>income tax becoming chargeable on that remittance, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-2-b"><num>(b)</num><content><p>a gain accruing under paragraph 1(2) of Schedule 1 to TCGA 1992 on that remittance.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>Any relevant charge that has arisen on the first occasion on which the repeated remitted amount is remitted in circumstances falling within <ref href="#schedule-9-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-9-paragraph-6-1-b">(b)</ref> is to be treated as never having arisen.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>But a remittance that is not charged to income tax or capital gains tax as a result of sub-paragraph <ref href="#schedule-9-paragraph-6-3">(3)</ref> is to be treated as if it were charged to income tax or capital gains tax (as the case may be) for the purposes of section 809P(12) of ITA 2007.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><intro><p>This paragraph is to be treated as never having applied where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-5-a"><num>(a)</num><content><p>for either, or each, of the tax years 2024-25 and 2025-26, the individual is not UK resident, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-5-b"><num>(b)</num><content><p>either, or each, of those tax years is a split year as respects the individual.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><content><p>References in this paragraph to amounts being remitted to the United Kingdom are to be construed in accordance with Chapter A1 of Part 14 of ITA 2007 (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-9-part-2"><num>Part 2</num><heading>Removal of domicile (primary legislation)</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e34161"><heading>Removal of exemption for persons not domiciled in United Kingdom</heading><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/1A">Chapter 1A</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00263" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (exemption for persons not domiciled in United Kingdom) is repealed.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34182"><heading>Transferable tax allowance for married couples etc</heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 55C of ITA 2007 (election to reduce personal allowance), in subsection (3)(b), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34194"><heading>Residence of personal representatives: domicile of deceased no longer relevant</heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-9-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">Section 834</a> of <ref eId="c00264" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of personal representatives) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident within the meaning of IHTA 1984”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (5)</a>.</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">section 62</a> of <ref eId="c00265" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (residence of personal representatives), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">subsection (3)</a>, for the words from “having” to the end substitute <quotedText>“UK resident if the deceased was UK resident or a long-term UK resident within the meaning of IHTA 1984 at the date of death.”</quotedText></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34250"><heading>Residence of trustees: domicile of settlor no longer relevant</heading><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-9-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">Section 476</a> of <ref eId="c00266" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of trustees: how to work out if settlor meets condition C) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsections (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a>, omit “or domiciled in the United Kingdom”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34294"><num>(3ZA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on S’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted <quotedText>“or domiciled in the United Kingdom”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3A)</a>, for “subsections (2)(b) and (3)(b)” substitute <quotedText>“<ref href="#d25e34294">subsection (3ZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(c)</a>, for “subsection (2) or (3) or this subsection” substitute <quotedText>“this section”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">Section 69</a> of <ref eId="c00267" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (trustees of settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2B)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">(c)</a>, omit “or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2C)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34382"><num>(2CA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on the settlor’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that the settlor made (or was treated for the purposes of this Act as making) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsection (2B)(c) has effect as if after “resident” there were inserted <quotedText>“or domiciled”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2F)</a>, for “(2B)(c)” substitute <quotedText>“<ref href="#d25e34382">(2CA)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-9-paragraph-13-1"><num>(1)</num><content><p>In the <ref eId="c00268" href="https://www.legislation.gov.uk/uksi/2017/692">Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017</ref> (<ref eId="c00269" href="http://www.legislation.gov.uk/id/uksi/2017/692">S.I. 2017/692</ref>), <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">regulation 42</a> (application of Part 5) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(d)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(ii)</a>, omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2A)</num><content><p><mod>In relation to a trust that was set up before 6 April 2025, paragraph (2)(d)(ii) has effect as if after “resident” there were inserted <quotedText>“and domiciled”</quotedText>.</mod></p></content></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34471"><heading>Application of Income Tax Acts in relation to deemed employment</heading><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><content><p>In sections 56, 61G and 61R of ITEPA 2003 (chargeability to tax in respect of deemed employment payment), omit subsections (4) and (5).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34480"><heading>Pension schemes</heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00270" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions schemes etc.) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">Chapter 3</a> (payments by registered pension schemes), in <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">section 185G</a>, in subsection (3)(a) omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><intro><p>In the following provisions of <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/5">Chapter 5</a> (registered pension schemes: tax charges) and Chapter 6 (schemes that are not registered pension schemes) omit “or domiciled”—</p></intro><level class="para1" eId="schedule-9-paragraph-15-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">section 205</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">section 206</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">section 207</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-d"><num>(d)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">section 208</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-e"><num>(e)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">section 209</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">(5)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-f"><num>(f)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">section 237A</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">(2)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-g"><num>(g)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">section 237B</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">(8)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-h"><num>(h)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">section 239</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">section 242</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-j"><num>(j)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">section 244J</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">(6)</a>.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p>In section 7 of F(No.2)A 2005 (social security pension lump sum), in subsection (3) omit “or domiciled”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34625"><heading>Domicile of overseas electors</heading><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In <ref eId="c00271" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref> omit section 200 (domicile for tax purposes of overseas electors).</p></content></paragraph><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>In <ref eId="c00272" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> omit section 835B (domicile for income tax purposes of overseas electors).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34646"><heading>Situs of debt</heading><paragraph eId="schedule-9-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-9-paragraph-19-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">Section 275</a> of <ref eId="c00273" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (location of assets) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (1)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">paragraph (l)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (3A)</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34685"><heading>Trust reporting requirements</heading><paragraph eId="schedule-9-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-9-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A">Schedule 5A</a> to <ref eId="c00274" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (settlements with foreign element: information) is amended in accordance with sub-paragraphs <ref href="#schedule-9-paragraph-20-2">(2)</ref> and <ref href="#schedule-9-paragraph-20-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">paragraph 3</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> omit “is domiciled in the United Kingdom and”;</p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-b"><num>(b)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> insert <quotedText>“and is not a qualifying new resident within the meaning of Schedule D1”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/4">paragraph 4</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-3-a"><num>(a)</num><content><p><mod>for sub-paragraph (2)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>where that time was before 6 April 2025, did not fulfil the condition mentioned in sub-paragraph (3) below at that time or at any time before 6 April 2025,</p></content></level><level class="para1"><num>(ba)</num><content><p>where that time was on or after 6 April 2025, does not fulfil the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below at that time,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-b"><num>(b)</num><intro><p>in sub-paragraph (2)(c)—</p></intro><level class="para2" eId="schedule-9-paragraph-20-3-b-i"><num>(i)</num><content><p><mod>for “that condition” substitute <quotedText>“the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-20-3-b-ii"><num>(ii)</num><content><p><mod>for “the commencement day” substitute <quotedText>“6 April 2025”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-20-3-c"><num>(c)</num><content><p><mod>in the closing words of sub-paragraph (2), for “the relevant day” substitute <quotedText>“31 January after the end of the tax year in which the relevant day falls”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-d"><num>(d)</num><content><p><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e34824"><num>(3A)</num><content><p>The condition is that the person concerned is resident in the United Kingdom and is not a qualifying new resident within the meaning of Schedule D1.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-4"><num>(4)</num><content><p>Sub-paragraph <ref href="#schedule-9-paragraph-20-5">(5)</ref> applies where a settlor fulfils the condition in paragraph 4<ref href="#d25e34824">(3A)</ref> of Schedule 5A to TCGA 1992 (settlements with foreign element: information) on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-5"><num>(5)</num><content><p>For the purposes of paragraph 4(2)(c) of that Schedule, the settlor is to be treated as first fulfilling that condition on 6 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34849"><heading>Trusts with vulnerable beneficiary</heading><paragraph eId="schedule-9-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-9-paragraph-21-1"><num>(1)</num><content><p><ref eId="c00275" href="https://www.legislation.gov.uk/ukpga/2005/7">FA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">section 28</a> (vulnerable person’s liability: VQTI), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-21-2-a"><num>(a)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (a)</a> insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-21-2-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (c)</a> and the “and” before it.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-21-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1">Schedule 1</a> (non-UK resident vulnerable person), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(a)</a> omit “and domiciled”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34913"><heading>Disposals of deeply discounted securities</heading><paragraph eId="schedule-9-paragraph-22" class="schProv1"><num>22</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">section 459</a> of <ref eId="c00276" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (application of transfer of assets abroad legislation to disposals of deeply discounted securities), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">subsection (1)</a> omit “or domiciled”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34931"><heading>The accrued income scheme</heading><paragraph eId="schedule-9-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-9-paragraph-23-1"><num>(1)</num><content><p><ref eId="c00277" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-23-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">section 667</a> (trustees’ accrued income profits treated as settlement income), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-2-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (b)</a> omit “or domiciled in the United Kingdom”.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-23-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">section 680</a> (interest on securities involving accrued income losses: foreign trustees), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-3-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-3-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (d)</a> omit “, or domiciled in the United Kingdom,”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35006"><heading>FOTRA securities</heading><paragraph eId="schedule-9-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-9-paragraph-24-1"><num>(1)</num><content><p><mod>In section 22 of F(No.2)A 1931 (Treasury power to issue securities with a FOTRA condition), in subsection (1)(b) for “neither domiciled nor” substitute <quotedText>“not”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-2"><num>(2)</num><content><p>In section 154 of FA 1996 (FOTRA securities), omit subsection (1).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-3"><num>(3)</num><intro><p>Any security issued with a FOTRA domicile condition is treated in relation to times on or after 6 April 2025 as if—</p></intro><level class="para1" eId="schedule-9-paragraph-24-3-a"><num>(a)</num><content><p>it were a security issued with the post-1996 Act FOTRA conditions (and with no other FOTRA condition), and</p></content></level><level class="para1" eId="schedule-9-paragraph-24-3-b"><num>(b)</num><content><p>the post-1996 Act FOTRA conditions had been authorised in relation to the issue of that security by virtue of section 22 of F(No.2)A 1931.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-24-4"><num>(4)</num><intro><p>In <ref href="#schedule-9-paragraph-24-3">sub-paragraph (3)</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-condition" eId="term-a-fotra-condition">a FOTRA condition</term>” means a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-domicile-condition" eId="term-a-fotra-domicile-condition">a FOTRA domicile condition</term>”, in relation to a security, means a FOTRA condition requiring the security to be in the beneficial ownership of persons who are not domiciled in the United Kingdom for an exemption from taxation to apply;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-post-1996-act-fotra-conditions" eId="term-the-post-1996-act-fotra-conditions">the post-1996 Act FOTRA conditions</term>” means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued.</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35077"><heading>Reliefs in respect of income from investments etc. of certain pension schemes</heading><paragraph eId="schedule-9-paragraph-25" class="schProv1"><num>25</num><content><p>In section 614 of the Income and Corporation Taxes Act 1988 (exemptions and reliefs in respect of income from investments etc. of certain pension schemes), in subsections (4) and (5), omit “not domiciled and”.</p></content></paragraph></hcontainer></part><part eId="schedule-9-part-3"><num>Part 3</num><heading>Removal of domicile (secondary legislation)</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e35091"><heading>Education funding</heading><paragraph eId="schedule-9-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-9-paragraph-26-1"><num>(1)</num><content><p>In the Appendix to <a href="https://www.legislation.gov.uk/uksi/2001/2743/schedule/1">Schedule 1</a> to the <ref eId="c00278" href="https://www.legislation.gov.uk/uksi/2001/2743">Education (Grants) (Music, Ballet and Choir Schools) (England) Regulations 2001</ref> (<ref eId="c00279" href="https://www.legislation.gov.uk/uksi/2001/2743">S.I. 2001/2743</ref>) (aided pupil scheme: computation of income), in paragraph 2, in sub-paragraph (a) omit “, ordinarily resident or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2">Schedule 2</a> to the <ref eId="c00280" href="https://www.legislation.gov.uk/uksi/2010/447">Education (Student Support) (European University Institute) Regulations 2010</ref> (<ref eId="c00281" href="http://www.legislation.gov.uk/id/uksi/2010/447">S.I. 2010/447</ref>) (calculation of contribution), in <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">paragraph 4</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(5)</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(a)</a>, omit “or domiciled” in the first place it appears.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-3"><num>(3)</num><content><p>The <ref eId="c00282" href="https://www.legislation.gov.uk/uksi/2011/1986">Education (Student Support) Regulations 2011</ref> (<ref eId="c00283" href="http://www.legislation.gov.uk/id/uksi/2011/1986">S.I. 2011/1986</ref>) are amended in accordance with <ref href="#schedule-9-paragraph-26-4">sub-paragraphs (4)</ref> and <ref href="#schedule-9-paragraph-26-5">(5)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4">Schedule 4</a> (financial assessment)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-4-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-b-ii"><num>(ii)</num><content><p>omit “so”.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-26-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6">Schedule 6</a> (assessment of eligible part-time student’s household income)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-5-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(6)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;The</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-b-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35275"><heading>Making Tax Digital</heading><paragraph eId="schedule-9-paragraph-27" class="schProv1"><num>27</num><content><p>In the <ref eId="c00284" href="https://www.legislation.gov.uk/uksi/2021/1076">Income Tax (Digital Requirements) Regulations 2021</ref> (<ref eId="c00285" href="http://www.legislation.gov.uk/id/uksi/2021/1076">S.I. 2021/1076</ref>) omit regulation 26.</p></content></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-part-1"><num>Part 1</num><heading>Remittance basis</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e32709"><heading>No remittance basis for tax years after 2024-25</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-9-paragraph-1-1"><num>(1)</num><content><p>Chapter A1 of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00255" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-2"><num>(2)</num><intro><p>In section 809B (claim for remittance basis to apply), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-2-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-c"><num>(c)</num><content><p><mod>in each of paragraphs (a), (b) and (c), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-3"><num>(3)</num><intro><p>In section 809C (claim for remittance basis by long-term UK resident), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-3-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-c"><num>(c)</num><content><p><mod>in each of paragraphs (a) and (b), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-4"><num>(4)</num><content><p><mod>In section 809D (application of remittance basis where income and gains under £2000) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-5"><num>(5)</num><content><p><mod>In section 809E (application of remittance basis without claim: other cases) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-6"><num>(6)</num><intro><p>In consequence of the amendments made by <span><ref href="#schedule-9-paragraph-1-2">sub-paragraphs (2)</ref> to <ref href="#schedule-9-paragraph-1-5">(5)</ref></span>, in section 809A—</p></intro><level class="para1" eId="schedule-9-paragraph-1-6-a"><num>(a)</num><content><p><mod>for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-6-b"><num>(b)</num><content><p><mod>after “Kingdom” insert <quotedText>“in tax years before tax year 2025-26”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32861"><heading>Amendments of <ref eId="c00256" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00257" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">section 1A</a> (territorial scope), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">section 1K</a> (annual exempt amount), omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>, for “Non-UK domiciled individuals” substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-2-5-a"><num>(a)</num><content><p><mod>for the heading, substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-2-5-b-i"><num>(i)</num><content><p><mod>for “a tax year” substitute <quotedText>“tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>for “is”, in each place it occurs, substitute <quotedText>“was”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-2-6"><num>(6)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/16ZA">Section 16ZA</a> (losses: non-UK domiciled individuals) is omitted.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> (UK resident individuals not domiciled in UK)—</p></intro><level class="para1" eId="schedule-9-paragraph-2-7-a"><num>(a)</num><content><p><mod>in the heading, for “not domiciled in the UK” substitute <quotedText>“to whom the remittance basis applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(1)</a> for “applies” <ins class="first last" ukl:ChangeId="key-e186ed2d4fbf334b149d0a8898182cb6-1776849212143" ukl:CommentaryRef="key-e186ed2d4fbf334b149d0a8898182cb6"><noteRef uk:name="commentary" href="#key-e186ed2d4fbf334b149d0a8898182cb6" class="commentary"/>, in the second place it occurs,</ins> substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/2">paragraphs 2</a>, <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/3">3</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/4">4</a>.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33023"><heading>Amendments of <ref eId="c00258" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00259" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">section 6</a> (nature of charge to tax on employment income), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (a)</a>, omit “and domicile”;</p></content></level><level class="para1" eId="schedule-9-paragraph-3-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (aa)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">section 20</a> (taxable earnings under this Chapter), for <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">subsection (1)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This Chapter contains provision for determining how much of the following are taxable earnings from an employment in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings that are for a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee (being a tax year before tax year 2025-26), and</p></content></level><level class="para1"><num>(b)</num><content><p>general earnings that are for a tax year for which the employee is non-UK resident.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a> (chargeable overseas earnings for year when remittance basis applies and employee outside section 26)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-4-a"><num>(a)</num><content><p><mod>in the heading and in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(b)</a>, for “does not” substitute <quotedText>“did not”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">section 23</a> (calculation of “chargeable overseas earnings”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (aa)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (b)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-6"><num>(6)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/25">section 25</a>, for “meet” substitute <quotedText>“met”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">section 26</a> (foreign earnings for year when remittance basis applies and employee meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “applies and employee meets” substitute <quotedText>“applied and employee met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-7-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">subsection (1)</a>, in the opening words—</p></intro><level class="para2" eId="schedule-9-paragraph-3-7-b-i"><num>(i)</num><content><p><mod>for “applies”, in the second place it appears, substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-7-b-ii"><num>(ii)</num><content><p><mod>for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">section 41F</a> (taxable specific income: internationally mobile employee etc), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-9"><num>(9)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">section 41H</a> (section 41F: chargeable and unchargeable foreign securities income)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-9-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (4)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (d)</a> for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-3-9-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-10"><num>(10)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">section 271</a> (limited exemption of removal benefits and expenses: general)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-10-a"><num>(a)</num><content><p><mod>in subsections (2)(a) and (2)(b), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-10-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">(b)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-11"><num>(11)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">section 554Z9</a> (remittance basis: A does not meet section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-11-a"><num>(a)</num><content><p><mod>in the heading, for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-11-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-11-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (b)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (c)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (d)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (e)</a>, for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-12"><num>(12)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">section 554Z10</a> (remittance basis: A meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-12-a"><num>(a)</num><content><p><mod>in the heading, for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(b)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(c)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-13"><num>(13)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">section 576A</a> (temporary non-residents), in subsection <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">(5)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-14"><num>(14)</num><content><p><mod>In section 698 (PAYE: special charges on employment-related securities), in subsection (8), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-15"><num>(15)</num><content><p><mod>In section 700 (PAYE: gains from securities options), in subsection (7), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-16"><num>(16)</num><content><p><mod>In section 700A (employment-related securities etc: remittance basis), in the heading, for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33583"><heading>Amendment of <ref eId="c00260" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00261" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (relevant foreign income charge on remittance basis), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-4-a"><num>(a)</num><content><p>for “applies”, in the second place it appears, substitute” applied”;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-b"><num>(b)</num><content><p><mod>after “that year” insert <quotedText>“(being a tax year before tax year 2025-26)”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33619"><heading>When amounts will be remitted</heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00262" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">Section 809L</a> (meaning of “<term refersTo="#term-remitted-to-the-united-kingdom" eId="term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>”) is amended in accordance with sub-paragraphs to <ref href="#schedule-9-paragraph-5-3">(3)</ref> to <ref href="#schedule-9-paragraph-5-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>omit the “or” at the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (a)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33726"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-5-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33776"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-6"><num>(6)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-6-a"><num>(a)</num><content><p><mod>for “or (b)”, in each place it occurs, substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-6-b"><num>(b)</num><content><p><mod>after “property”, in the second place it occurs, insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-7"><num>(7)</num><content><p><mod>At the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert <quotedText>“and cases where the property is used to secure the debt.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-8"><num>(8)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9A)</num><intro><p>For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes—</p></intro><level class="para1"><num>(a)</num><content><p>sending, or otherwise effecting a transfer of, the property to the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom.</p></content></level></subsection><subsection eId="d25e33847"><num>(9B)</num><content><p>Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992.</p></content></subsection><subsection><num>(9C)</num><content><p>But subsection <ref href="#d25e33847">(9B)</ref> does not apply where the intangible property is a debt other than a judgment debt.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-9"><num>(9)</num><intro><p>In section 809N (section 809L: gift recipients, qualifying property and enjoyment)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-9-a"><num>(a)</num><content><p><mod>in subsection (7)(c), after “(b)” insert <quotedText>“, <ref href="#d25e33726">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-9-b"><num>(b)</num><intro><p>in subsection (9)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-9-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-10"><num>(10)</num><intro><p>In section 809O (section 809L: dealings where there is a connected operation)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-10-a"><num>(a)</num><content><p><mod>in each of subsections (2), (3), (4) and (5) after “(b)” insert <quotedText>“, <ref href="#d25e33776">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-10-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-10-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the property being dealt with as mentioned in section 809L(5)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-11"><num>(11)</num><intro><p>In section 809P (section 809L: amount remitted)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-11-a"><num>(a)</num><content><p><mod>in subsections (6) and (8), for “or (b)” substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-11-b"><num>(b)</num><content><p><mod>in subsection (12), after “previously remitted”, in each place it occurs, insert <quotedText>“that has been charged to income tax or capital gains tax”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34042"><heading>Relief for amounts remitted again on becoming UK resident</heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-1-a"><num>(a)</num><intro><p>income or chargeable gains of an individual have been remitted to the United Kingdom during a period that exceeds 5 years—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-a-i"><num>(i)</num><content><p>that ends before 6 April 2024, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-a-ii"><num>(ii)</num><content><p>in which there was no period for which the individual was UK resident, and</p></content></level></level><level class="para1" eId="schedule-9-paragraph-6-1-b"><num>(b)</num><intro><p>after the end of that period, but before 6 April 2025—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-b-i"><num>(i)</num><content><p>the same, or part of the same, income or chargeable gains (“the repeated remitted amount”) were again remitted to the United Kingdom, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-b-ii"><num>(ii)</num><content><p>a relevant charge has arisen in relation to that remittance.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><intro><p>A “<term refersTo="#term-relevant-charge" eId="term-relevant-charge">relevant charge</term>” in relation to a remittance means—</p></intro><level class="para1" eId="schedule-9-paragraph-6-2-a"><num>(a)</num><content><p>income tax becoming chargeable on that remittance, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-2-b"><num>(b)</num><content><p>a gain accruing under paragraph 1(2) of Schedule 1 to TCGA 1992 on that remittance.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>Any relevant charge that has arisen on the first occasion on which the repeated remitted amount is remitted in circumstances falling within <ref href="#schedule-9-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-9-paragraph-6-1-b">(b)</ref> is to be treated as never having arisen.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>But a remittance that is not charged to income tax or capital gains tax as a result of sub-paragraph <ref href="#schedule-9-paragraph-6-3">(3)</ref> is to be treated as if it were charged to income tax or capital gains tax (as the case may be) for the purposes of section 809P(12) of ITA 2007.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><intro><p>This paragraph is to be treated as never having applied where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-5-a"><num>(a)</num><content><p>for either, or each, of the tax years 2024-25 and 2025-26, the individual is not UK resident, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-5-b"><num>(b)</num><content><p>either, or each, of those tax years is a split year as respects the individual.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><content><p>References in this paragraph to amounts being remitted to the United Kingdom are to be construed in accordance with Chapter A1 of Part 14 of ITA 2007 (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e32709"><heading>No remittance basis for tax years after 2024-25</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-9-paragraph-1-1"><num>(1)</num><content><p>Chapter A1 of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00255" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-2"><num>(2)</num><intro><p>In section 809B (claim for remittance basis to apply), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-2-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-c"><num>(c)</num><content><p><mod>in each of paragraphs (a), (b) and (c), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-3"><num>(3)</num><intro><p>In section 809C (claim for remittance basis by long-term UK resident), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-3-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-c"><num>(c)</num><content><p><mod>in each of paragraphs (a) and (b), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-4"><num>(4)</num><content><p><mod>In section 809D (application of remittance basis where income and gains under £2000) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-5"><num>(5)</num><content><p><mod>In section 809E (application of remittance basis without claim: other cases) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-6"><num>(6)</num><intro><p>In consequence of the amendments made by <span><ref href="#schedule-9-paragraph-1-2">sub-paragraphs (2)</ref> to <ref href="#schedule-9-paragraph-1-5">(5)</ref></span>, in section 809A—</p></intro><level class="para1" eId="schedule-9-paragraph-1-6-a"><num>(a)</num><content><p><mod>for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-6-b"><num>(b)</num><content><p><mod>after “Kingdom” insert <quotedText>“in tax years before tax year 2025-26”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e32861"><heading>Amendments of <ref eId="c00256" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00257" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">section 1A</a> (territorial scope), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">section 1K</a> (annual exempt amount), omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>, for “Non-UK domiciled individuals” substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-2-5-a"><num>(a)</num><content><p><mod>for the heading, substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-2-5-b-i"><num>(i)</num><content><p><mod>for “a tax year” substitute <quotedText>“tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>for “is”, in each place it occurs, substitute <quotedText>“was”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-2-6"><num>(6)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/16ZA">Section 16ZA</a> (losses: non-UK domiciled individuals) is omitted.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> (UK resident individuals not domiciled in UK)—</p></intro><level class="para1" eId="schedule-9-paragraph-2-7-a"><num>(a)</num><content><p><mod>in the heading, for “not domiciled in the UK” substitute <quotedText>“to whom the remittance basis applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(1)</a> for “applies” <ins class="first last" ukl:ChangeId="key-e186ed2d4fbf334b149d0a8898182cb6-1776849212143" ukl:CommentaryRef="key-e186ed2d4fbf334b149d0a8898182cb6"><noteRef uk:name="commentary" href="#key-e186ed2d4fbf334b149d0a8898182cb6" class="commentary"/>, in the second place it occurs,</ins> substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/2">paragraphs 2</a>, <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/3">3</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/4">4</a>.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e33023"><heading>Amendments of <ref eId="c00258" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00259" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">section 6</a> (nature of charge to tax on employment income), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (a)</a>, omit “and domicile”;</p></content></level><level class="para1" eId="schedule-9-paragraph-3-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (aa)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">section 20</a> (taxable earnings under this Chapter), for <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">subsection (1)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This Chapter contains provision for determining how much of the following are taxable earnings from an employment in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings that are for a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee (being a tax year before tax year 2025-26), and</p></content></level><level class="para1"><num>(b)</num><content><p>general earnings that are for a tax year for which the employee is non-UK resident.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a> (chargeable overseas earnings for year when remittance basis applies and employee outside section 26)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-4-a"><num>(a)</num><content><p><mod>in the heading and in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(b)</a>, for “does not” substitute <quotedText>“did not”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">section 23</a> (calculation of “chargeable overseas earnings”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (aa)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (b)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-6"><num>(6)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/25">section 25</a>, for “meet” substitute <quotedText>“met”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">section 26</a> (foreign earnings for year when remittance basis applies and employee meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “applies and employee meets” substitute <quotedText>“applied and employee met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-7-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">subsection (1)</a>, in the opening words—</p></intro><level class="para2" eId="schedule-9-paragraph-3-7-b-i"><num>(i)</num><content><p><mod>for “applies”, in the second place it appears, substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-7-b-ii"><num>(ii)</num><content><p><mod>for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">section 41F</a> (taxable specific income: internationally mobile employee etc), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-9"><num>(9)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">section 41H</a> (section 41F: chargeable and unchargeable foreign securities income)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-9-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (4)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (d)</a> for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-3-9-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-10"><num>(10)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">section 271</a> (limited exemption of removal benefits and expenses: general)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-10-a"><num>(a)</num><content><p><mod>in subsections (2)(a) and (2)(b), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-10-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">(b)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-11"><num>(11)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">section 554Z9</a> (remittance basis: A does not meet section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-11-a"><num>(a)</num><content><p><mod>in the heading, for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-11-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-11-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (b)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (c)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (d)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (e)</a>, for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-12"><num>(12)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">section 554Z10</a> (remittance basis: A meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-12-a"><num>(a)</num><content><p><mod>in the heading, for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(b)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(c)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-13"><num>(13)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">section 576A</a> (temporary non-residents), in subsection <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">(5)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-14"><num>(14)</num><content><p><mod>In section 698 (PAYE: special charges on employment-related securities), in subsection (8), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-15"><num>(15)</num><content><p><mod>In section 700 (PAYE: gains from securities options), in subsection (7), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-16"><num>(16)</num><content><p><mod>In section 700A (employment-related securities etc: remittance basis), in the heading, for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e33583"><heading>Amendment of <ref eId="c00260" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00261" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (relevant foreign income charge on remittance basis), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-4-a"><num>(a)</num><content><p>for “applies”, in the second place it appears, substitute” applied”;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-b"><num>(b)</num><content><p><mod>after “that year” insert <quotedText>“(being a tax year before tax year 2025-26)”</quotedText>.</mod></p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e33619"><heading>When amounts will be remitted</heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00262" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">Section 809L</a> (meaning of “<term refersTo="#term-remitted-to-the-united-kingdom" eId="term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>”) is amended in accordance with sub-paragraphs to <ref href="#schedule-9-paragraph-5-3">(3)</ref> to <ref href="#schedule-9-paragraph-5-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>omit the “or” at the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (a)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33726"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-5-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33776"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-6"><num>(6)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-6-a"><num>(a)</num><content><p><mod>for “or (b)”, in each place it occurs, substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-6-b"><num>(b)</num><content><p><mod>after “property”, in the second place it occurs, insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-7"><num>(7)</num><content><p><mod>At the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert <quotedText>“and cases where the property is used to secure the debt.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-8"><num>(8)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9A)</num><intro><p>For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes—</p></intro><level class="para1"><num>(a)</num><content><p>sending, or otherwise effecting a transfer of, the property to the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom.</p></content></level></subsection><subsection eId="d25e33847"><num>(9B)</num><content><p>Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992.</p></content></subsection><subsection><num>(9C)</num><content><p>But subsection <ref href="#d25e33847">(9B)</ref> does not apply where the intangible property is a debt other than a judgment debt.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-9"><num>(9)</num><intro><p>In section 809N (section 809L: gift recipients, qualifying property and enjoyment)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-9-a"><num>(a)</num><content><p><mod>in subsection (7)(c), after “(b)” insert <quotedText>“, <ref href="#d25e33726">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-9-b"><num>(b)</num><intro><p>in subsection (9)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-9-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-10"><num>(10)</num><intro><p>In section 809O (section 809L: dealings where there is a connected operation)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-10-a"><num>(a)</num><content><p><mod>in each of subsections (2), (3), (4) and (5) after “(b)” insert <quotedText>“, <ref href="#d25e33776">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-10-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-10-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the property being dealt with as mentioned in section 809L(5)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-11"><num>(11)</num><intro><p>In section 809P (section 809L: amount remitted)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-11-a"><num>(a)</num><content><p><mod>in subsections (6) and (8), for “or (b)” substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-11-b"><num>(b)</num><content><p><mod>in subsection (12), after “previously remitted”, in each place it occurs, insert <quotedText>“that has been charged to income tax or capital gains tax”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34042"><heading>Relief for amounts remitted again on becoming UK resident</heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-1-a"><num>(a)</num><intro><p>income or chargeable gains of an individual have been remitted to the United Kingdom during a period that exceeds 5 years—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-a-i"><num>(i)</num><content><p>that ends before 6 April 2024, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-a-ii"><num>(ii)</num><content><p>in which there was no period for which the individual was UK resident, and</p></content></level></level><level class="para1" eId="schedule-9-paragraph-6-1-b"><num>(b)</num><intro><p>after the end of that period, but before 6 April 2025—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-b-i"><num>(i)</num><content><p>the same, or part of the same, income or chargeable gains (“the repeated remitted amount”) were again remitted to the United Kingdom, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-b-ii"><num>(ii)</num><content><p>a relevant charge has arisen in relation to that remittance.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><intro><p>A “<term refersTo="#term-relevant-charge" eId="term-relevant-charge">relevant charge</term>” in relation to a remittance means—</p></intro><level class="para1" eId="schedule-9-paragraph-6-2-a"><num>(a)</num><content><p>income tax becoming chargeable on that remittance, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-2-b"><num>(b)</num><content><p>a gain accruing under paragraph 1(2) of Schedule 1 to TCGA 1992 on that remittance.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>Any relevant charge that has arisen on the first occasion on which the repeated remitted amount is remitted in circumstances falling within <ref href="#schedule-9-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-9-paragraph-6-1-b">(b)</ref> is to be treated as never having arisen.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>But a remittance that is not charged to income tax or capital gains tax as a result of sub-paragraph <ref href="#schedule-9-paragraph-6-3">(3)</ref> is to be treated as if it were charged to income tax or capital gains tax (as the case may be) for the purposes of section 809P(12) of ITA 2007.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><intro><p>This paragraph is to be treated as never having applied where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-5-a"><num>(a)</num><content><p>for either, or each, of the tax years 2024-25 and 2025-26, the individual is not UK resident, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-5-b"><num>(b)</num><content><p>either, or each, of those tax years is a split year as respects the individual.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><content><p>References in this paragraph to amounts being remitted to the United Kingdom are to be construed in accordance with Chapter A1 of Part 14 of ITA 2007 (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-part-2"><num>Part 2</num><heading>Removal of domicile (primary legislation)</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e34161"><heading>Removal of exemption for persons not domiciled in United Kingdom</heading><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/1A">Chapter 1A</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00263" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (exemption for persons not domiciled in United Kingdom) is repealed.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34182"><heading>Transferable tax allowance for married couples etc</heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 55C of ITA 2007 (election to reduce personal allowance), in subsection (3)(b), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34194"><heading>Residence of personal representatives: domicile of deceased no longer relevant</heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-9-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">Section 834</a> of <ref eId="c00264" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of personal representatives) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident within the meaning of IHTA 1984”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (5)</a>.</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">section 62</a> of <ref eId="c00265" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (residence of personal representatives), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">subsection (3)</a>, for the words from “having” to the end substitute <quotedText>“UK resident if the deceased was UK resident or a long-term UK resident within the meaning of IHTA 1984 at the date of death.”</quotedText></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34250"><heading>Residence of trustees: domicile of settlor no longer relevant</heading><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-9-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">Section 476</a> of <ref eId="c00266" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of trustees: how to work out if settlor meets condition C) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsections (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a>, omit “or domiciled in the United Kingdom”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34294"><num>(3ZA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on S’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted <quotedText>“or domiciled in the United Kingdom”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3A)</a>, for “subsections (2)(b) and (3)(b)” substitute <quotedText>“<ref href="#d25e34294">subsection (3ZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(c)</a>, for “subsection (2) or (3) or this subsection” substitute <quotedText>“this section”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">Section 69</a> of <ref eId="c00267" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (trustees of settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2B)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">(c)</a>, omit “or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2C)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34382"><num>(2CA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on the settlor’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that the settlor made (or was treated for the purposes of this Act as making) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsection (2B)(c) has effect as if after “resident” there were inserted <quotedText>“or domiciled”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2F)</a>, for “(2B)(c)” substitute <quotedText>“<ref href="#d25e34382">(2CA)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-9-paragraph-13-1"><num>(1)</num><content><p>In the <ref eId="c00268" href="https://www.legislation.gov.uk/uksi/2017/692">Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017</ref> (<ref eId="c00269" href="http://www.legislation.gov.uk/id/uksi/2017/692">S.I. 2017/692</ref>), <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">regulation 42</a> (application of Part 5) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(d)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(ii)</a>, omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2A)</num><content><p><mod>In relation to a trust that was set up before 6 April 2025, paragraph (2)(d)(ii) has effect as if after “resident” there were inserted <quotedText>“and domiciled”</quotedText>.</mod></p></content></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34471"><heading>Application of Income Tax Acts in relation to deemed employment</heading><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><content><p>In sections 56, 61G and 61R of ITEPA 2003 (chargeability to tax in respect of deemed employment payment), omit subsections (4) and (5).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34480"><heading>Pension schemes</heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00270" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions schemes etc.) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">Chapter 3</a> (payments by registered pension schemes), in <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">section 185G</a>, in subsection (3)(a) omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><intro><p>In the following provisions of <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/5">Chapter 5</a> (registered pension schemes: tax charges) and Chapter 6 (schemes that are not registered pension schemes) omit “or domiciled”—</p></intro><level class="para1" eId="schedule-9-paragraph-15-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">section 205</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">section 206</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">section 207</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-d"><num>(d)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">section 208</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-e"><num>(e)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">section 209</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">(5)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-f"><num>(f)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">section 237A</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">(2)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-g"><num>(g)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">section 237B</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">(8)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-h"><num>(h)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">section 239</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">section 242</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-j"><num>(j)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">section 244J</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">(6)</a>.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p>In section 7 of F(No.2)A 2005 (social security pension lump sum), in subsection (3) omit “or domiciled”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34625"><heading>Domicile of overseas electors</heading><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In <ref eId="c00271" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref> omit section 200 (domicile for tax purposes of overseas electors).</p></content></paragraph><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>In <ref eId="c00272" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> omit section 835B (domicile for income tax purposes of overseas electors).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34646"><heading>Situs of debt</heading><paragraph eId="schedule-9-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-9-paragraph-19-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">Section 275</a> of <ref eId="c00273" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (location of assets) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (1)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">paragraph (l)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (3A)</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34685"><heading>Trust reporting requirements</heading><paragraph eId="schedule-9-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-9-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A">Schedule 5A</a> to <ref eId="c00274" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (settlements with foreign element: information) is amended in accordance with sub-paragraphs <ref href="#schedule-9-paragraph-20-2">(2)</ref> and <ref href="#schedule-9-paragraph-20-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">paragraph 3</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> omit “is domiciled in the United Kingdom and”;</p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-b"><num>(b)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> insert <quotedText>“and is not a qualifying new resident within the meaning of Schedule D1”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/4">paragraph 4</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-3-a"><num>(a)</num><content><p><mod>for sub-paragraph (2)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>where that time was before 6 April 2025, did not fulfil the condition mentioned in sub-paragraph (3) below at that time or at any time before 6 April 2025,</p></content></level><level class="para1"><num>(ba)</num><content><p>where that time was on or after 6 April 2025, does not fulfil the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below at that time,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-b"><num>(b)</num><intro><p>in sub-paragraph (2)(c)—</p></intro><level class="para2" eId="schedule-9-paragraph-20-3-b-i"><num>(i)</num><content><p><mod>for “that condition” substitute <quotedText>“the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-20-3-b-ii"><num>(ii)</num><content><p><mod>for “the commencement day” substitute <quotedText>“6 April 2025”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-20-3-c"><num>(c)</num><content><p><mod>in the closing words of sub-paragraph (2), for “the relevant day” substitute <quotedText>“31 January after the end of the tax year in which the relevant day falls”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-d"><num>(d)</num><content><p><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e34824"><num>(3A)</num><content><p>The condition is that the person concerned is resident in the United Kingdom and is not a qualifying new resident within the meaning of Schedule D1.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-4"><num>(4)</num><content><p>Sub-paragraph <ref href="#schedule-9-paragraph-20-5">(5)</ref> applies where a settlor fulfils the condition in paragraph 4<ref href="#d25e34824">(3A)</ref> of Schedule 5A to TCGA 1992 (settlements with foreign element: information) on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-5"><num>(5)</num><content><p>For the purposes of paragraph 4(2)(c) of that Schedule, the settlor is to be treated as first fulfilling that condition on 6 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34849"><heading>Trusts with vulnerable beneficiary</heading><paragraph eId="schedule-9-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-9-paragraph-21-1"><num>(1)</num><content><p><ref eId="c00275" href="https://www.legislation.gov.uk/ukpga/2005/7">FA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">section 28</a> (vulnerable person’s liability: VQTI), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-21-2-a"><num>(a)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (a)</a> insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-21-2-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (c)</a> and the “and” before it.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-21-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1">Schedule 1</a> (non-UK resident vulnerable person), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(a)</a> omit “and domiciled”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34913"><heading>Disposals of deeply discounted securities</heading><paragraph eId="schedule-9-paragraph-22" class="schProv1"><num>22</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">section 459</a> of <ref eId="c00276" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (application of transfer of assets abroad legislation to disposals of deeply discounted securities), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">subsection (1)</a> omit “or domiciled”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34931"><heading>The accrued income scheme</heading><paragraph eId="schedule-9-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-9-paragraph-23-1"><num>(1)</num><content><p><ref eId="c00277" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-23-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">section 667</a> (trustees’ accrued income profits treated as settlement income), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-2-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (b)</a> omit “or domiciled in the United Kingdom”.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-23-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">section 680</a> (interest on securities involving accrued income losses: foreign trustees), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-3-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-3-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (d)</a> omit “, or domiciled in the United Kingdom,”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35006"><heading>FOTRA securities</heading><paragraph eId="schedule-9-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-9-paragraph-24-1"><num>(1)</num><content><p><mod>In section 22 of F(No.2)A 1931 (Treasury power to issue securities with a FOTRA condition), in subsection (1)(b) for “neither domiciled nor” substitute <quotedText>“not”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-2"><num>(2)</num><content><p>In section 154 of FA 1996 (FOTRA securities), omit subsection (1).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-3"><num>(3)</num><intro><p>Any security issued with a FOTRA domicile condition is treated in relation to times on or after 6 April 2025 as if—</p></intro><level class="para1" eId="schedule-9-paragraph-24-3-a"><num>(a)</num><content><p>it were a security issued with the post-1996 Act FOTRA conditions (and with no other FOTRA condition), and</p></content></level><level class="para1" eId="schedule-9-paragraph-24-3-b"><num>(b)</num><content><p>the post-1996 Act FOTRA conditions had been authorised in relation to the issue of that security by virtue of section 22 of F(No.2)A 1931.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-24-4"><num>(4)</num><intro><p>In <ref href="#schedule-9-paragraph-24-3">sub-paragraph (3)</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-condition" eId="term-a-fotra-condition">a FOTRA condition</term>” means a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-domicile-condition" eId="term-a-fotra-domicile-condition">a FOTRA domicile condition</term>”, in relation to a security, means a FOTRA condition requiring the security to be in the beneficial ownership of persons who are not domiciled in the United Kingdom for an exemption from taxation to apply;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-post-1996-act-fotra-conditions" eId="term-the-post-1996-act-fotra-conditions">the post-1996 Act FOTRA conditions</term>” means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued.</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35077"><heading>Reliefs in respect of income from investments etc. of certain pension schemes</heading><paragraph eId="schedule-9-paragraph-25" class="schProv1"><num>25</num><content><p>In section 614 of the Income and Corporation Taxes Act 1988 (exemptions and reliefs in respect of income from investments etc. of certain pension schemes), in subsections (4) and (5), omit “not domiciled and”.</p></content></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34161"><heading>Removal of exemption for persons not domiciled in United Kingdom</heading><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/1A">Chapter 1A</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00263" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (exemption for persons not domiciled in United Kingdom) is repealed.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34182"><heading>Transferable tax allowance for married couples etc</heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 55C of ITA 2007 (election to reduce personal allowance), in subsection (3)(b), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident”</quotedText>.</mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34194"><heading>Residence of personal representatives: domicile of deceased no longer relevant</heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-9-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">Section 834</a> of <ref eId="c00264" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of personal representatives) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident within the meaning of IHTA 1984”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (5)</a>.</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">section 62</a> of <ref eId="c00265" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (residence of personal representatives), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">subsection (3)</a>, for the words from “having” to the end substitute <quotedText>“UK resident if the deceased was UK resident or a long-term UK resident within the meaning of IHTA 1984 at the date of death.”</quotedText></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e34250"><heading>Residence of trustees: domicile of settlor no longer relevant</heading><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-9-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">Section 476</a> of <ref eId="c00266" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of trustees: how to work out if settlor meets condition C) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsections (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a>, omit “or domiciled in the United Kingdom”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34294"><num>(3ZA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on S’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted <quotedText>“or domiciled in the United Kingdom”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3A)</a>, for “subsections (2)(b) and (3)(b)” substitute <quotedText>“<ref href="#d25e34294">subsection (3ZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(c)</a>, for “subsection (2) or (3) or this subsection” substitute <quotedText>“this section”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">Section 69</a> of <ref eId="c00267" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (trustees of settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2B)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">(c)</a>, omit “or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2C)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34382"><num>(2CA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on the settlor’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that the settlor made (or was treated for the purposes of this Act as making) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsection (2B)(c) has effect as if after “resident” there were inserted <quotedText>“or domiciled”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2F)</a>, for “(2B)(c)” substitute <quotedText>“<ref href="#d25e34382">(2CA)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-9-paragraph-13-1"><num>(1)</num><content><p>In the <ref eId="c00268" href="https://www.legislation.gov.uk/uksi/2017/692">Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017</ref> (<ref eId="c00269" href="http://www.legislation.gov.uk/id/uksi/2017/692">S.I. 2017/692</ref>), <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">regulation 42</a> (application of Part 5) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(d)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(ii)</a>, omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2A)</num><content><p><mod>In relation to a trust that was set up before 6 April 2025, paragraph (2)(d)(ii) has effect as if after “resident” there were inserted <quotedText>“and domiciled”</quotedText>.</mod></p></content></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34471"><heading>Application of Income Tax Acts in relation to deemed employment</heading><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><content><p>In sections 56, 61G and 61R of ITEPA 2003 (chargeability to tax in respect of deemed employment payment), omit subsections (4) and (5).</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34480"><heading>Pension schemes</heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00270" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions schemes etc.) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">Chapter 3</a> (payments by registered pension schemes), in <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">section 185G</a>, in subsection (3)(a) omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><intro><p>In the following provisions of <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/5">Chapter 5</a> (registered pension schemes: tax charges) and Chapter 6 (schemes that are not registered pension schemes) omit “or domiciled”—</p></intro><level class="para1" eId="schedule-9-paragraph-15-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">section 205</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">section 206</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">section 207</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-d"><num>(d)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">section 208</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-e"><num>(e)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">section 209</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">(5)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-f"><num>(f)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">section 237A</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">(2)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-g"><num>(g)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">section 237B</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">(8)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-h"><num>(h)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">section 239</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">section 242</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-j"><num>(j)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">section 244J</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">(6)</a>.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p>In section 7 of F(No.2)A 2005 (social security pension lump sum), in subsection (3) omit “or domiciled”.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34625"><heading>Domicile of overseas electors</heading><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In <ref eId="c00271" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref> omit section 200 (domicile for tax purposes of overseas electors).</p></content></paragraph><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>In <ref eId="c00272" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> omit section 835B (domicile for income tax purposes of overseas electors).</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34646"><heading>Situs of debt</heading><paragraph eId="schedule-9-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-9-paragraph-19-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">Section 275</a> of <ref eId="c00273" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (location of assets) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (1)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">paragraph (l)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (3A)</a>.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e34685"><heading>Trust reporting requirements</heading><paragraph eId="schedule-9-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-9-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A">Schedule 5A</a> to <ref eId="c00274" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (settlements with foreign element: information) is amended in accordance with sub-paragraphs <ref href="#schedule-9-paragraph-20-2">(2)</ref> and <ref href="#schedule-9-paragraph-20-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">paragraph 3</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> omit “is domiciled in the United Kingdom and”;</p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-b"><num>(b)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> insert <quotedText>“and is not a qualifying new resident within the meaning of Schedule D1”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/4">paragraph 4</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-3-a"><num>(a)</num><content><p><mod>for sub-paragraph (2)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>where that time was before 6 April 2025, did not fulfil the condition mentioned in sub-paragraph (3) below at that time or at any time before 6 April 2025,</p></content></level><level class="para1"><num>(ba)</num><content><p>where that time was on or after 6 April 2025, does not fulfil the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below at that time,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-b"><num>(b)</num><intro><p>in sub-paragraph (2)(c)—</p></intro><level class="para2" eId="schedule-9-paragraph-20-3-b-i"><num>(i)</num><content><p><mod>for “that condition” substitute <quotedText>“the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-20-3-b-ii"><num>(ii)</num><content><p><mod>for “the commencement day” substitute <quotedText>“6 April 2025”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-20-3-c"><num>(c)</num><content><p><mod>in the closing words of sub-paragraph (2), for “the relevant day” substitute <quotedText>“31 January after the end of the tax year in which the relevant day falls”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-d"><num>(d)</num><content><p><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e34824"><num>(3A)</num><content><p>The condition is that the person concerned is resident in the United Kingdom and is not a qualifying new resident within the meaning of Schedule D1.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-4"><num>(4)</num><content><p>Sub-paragraph <ref href="#schedule-9-paragraph-20-5">(5)</ref> applies where a settlor fulfils the condition in paragraph 4<ref href="#d25e34824">(3A)</ref> of Schedule 5A to TCGA 1992 (settlements with foreign element: information) on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-5"><num>(5)</num><content><p>For the purposes of paragraph 4(2)(c) of that Schedule, the settlor is to be treated as first fulfilling that condition on 6 April 2025.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34849"><heading>Trusts with vulnerable beneficiary</heading><paragraph eId="schedule-9-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-9-paragraph-21-1"><num>(1)</num><content><p><ref eId="c00275" href="https://www.legislation.gov.uk/ukpga/2005/7">FA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">section 28</a> (vulnerable person’s liability: VQTI), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-21-2-a"><num>(a)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (a)</a> insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-21-2-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (c)</a> and the “and” before it.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-21-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1">Schedule 1</a> (non-UK resident vulnerable person), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(a)</a> omit “and domiciled”.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34913"><heading>Disposals of deeply discounted securities</heading><paragraph eId="schedule-9-paragraph-22" class="schProv1"><num>22</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">section 459</a> of <ref eId="c00276" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (application of transfer of assets abroad legislation to disposals of deeply discounted securities), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">subsection (1)</a> omit “or domiciled”.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e34931"><heading>The accrued income scheme</heading><paragraph eId="schedule-9-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-9-paragraph-23-1"><num>(1)</num><content><p><ref eId="c00277" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-23-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">section 667</a> (trustees’ accrued income profits treated as settlement income), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-2-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (b)</a> omit “or domiciled in the United Kingdom”.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-23-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">section 680</a> (interest on securities involving accrued income losses: foreign trustees), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-3-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-3-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (d)</a> omit “, or domiciled in the United Kingdom,”.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e35006"><heading>FOTRA securities</heading><paragraph eId="schedule-9-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-9-paragraph-24-1"><num>(1)</num><content><p><mod>In section 22 of F(No.2)A 1931 (Treasury power to issue securities with a FOTRA condition), in subsection (1)(b) for “neither domiciled nor” substitute <quotedText>“not”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-2"><num>(2)</num><content><p>In section 154 of FA 1996 (FOTRA securities), omit subsection (1).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-3"><num>(3)</num><intro><p>Any security issued with a FOTRA domicile condition is treated in relation to times on or after 6 April 2025 as if—</p></intro><level class="para1" eId="schedule-9-paragraph-24-3-a"><num>(a)</num><content><p>it were a security issued with the post-1996 Act FOTRA conditions (and with no other FOTRA condition), and</p></content></level><level class="para1" eId="schedule-9-paragraph-24-3-b"><num>(b)</num><content><p>the post-1996 Act FOTRA conditions had been authorised in relation to the issue of that security by virtue of section 22 of F(No.2)A 1931.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-24-4"><num>(4)</num><intro><p>In <ref href="#schedule-9-paragraph-24-3">sub-paragraph (3)</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-condition" eId="term-a-fotra-condition">a FOTRA condition</term>” means a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-domicile-condition" eId="term-a-fotra-domicile-condition">a FOTRA domicile condition</term>”, in relation to a security, means a FOTRA condition requiring the security to be in the beneficial ownership of persons who are not domiciled in the United Kingdom for an exemption from taxation to apply;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-post-1996-act-fotra-conditions" eId="term-the-post-1996-act-fotra-conditions">the post-1996 Act FOTRA conditions</term>” means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued.</p></content></hcontainer></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e35077"><heading>Reliefs in respect of income from investments etc. of certain pension schemes</heading><paragraph eId="schedule-9-paragraph-25" class="schProv1"><num>25</num><content><p>In section 614 of the Income and Corporation Taxes Act 1988 (exemptions and reliefs in respect of income from investments etc. of certain pension schemes), in subsections (4) and (5), omit “not domiciled and”.</p></content></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-part-3"><num>Part 3</num><heading>Removal of domicile (secondary legislation)</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e35091"><heading>Education funding</heading><paragraph eId="schedule-9-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-9-paragraph-26-1"><num>(1)</num><content><p>In the Appendix to <a href="https://www.legislation.gov.uk/uksi/2001/2743/schedule/1">Schedule 1</a> to the <ref eId="c00278" href="https://www.legislation.gov.uk/uksi/2001/2743">Education (Grants) (Music, Ballet and Choir Schools) (England) Regulations 2001</ref> (<ref eId="c00279" href="https://www.legislation.gov.uk/uksi/2001/2743">S.I. 2001/2743</ref>) (aided pupil scheme: computation of income), in paragraph 2, in sub-paragraph (a) omit “, ordinarily resident or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2">Schedule 2</a> to the <ref eId="c00280" href="https://www.legislation.gov.uk/uksi/2010/447">Education (Student Support) (European University Institute) Regulations 2010</ref> (<ref eId="c00281" href="http://www.legislation.gov.uk/id/uksi/2010/447">S.I. 2010/447</ref>) (calculation of contribution), in <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">paragraph 4</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(5)</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(a)</a>, omit “or domiciled” in the first place it appears.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-3"><num>(3)</num><content><p>The <ref eId="c00282" href="https://www.legislation.gov.uk/uksi/2011/1986">Education (Student Support) Regulations 2011</ref> (<ref eId="c00283" href="http://www.legislation.gov.uk/id/uksi/2011/1986">S.I. 2011/1986</ref>) are amended in accordance with <ref href="#schedule-9-paragraph-26-4">sub-paragraphs (4)</ref> and <ref href="#schedule-9-paragraph-26-5">(5)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4">Schedule 4</a> (financial assessment)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-4-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-b-ii"><num>(ii)</num><content><p>omit “so”.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-26-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6">Schedule 6</a> (assessment of eligible part-time student’s household income)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-5-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(6)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;The</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-b-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35275"><heading>Making Tax Digital</heading><paragraph eId="schedule-9-paragraph-27" class="schProv1"><num>27</num><content><p>In the <ref eId="c00284" href="https://www.legislation.gov.uk/uksi/2021/1076">Income Tax (Digital Requirements) Regulations 2021</ref> (<ref eId="c00285" href="http://www.legislation.gov.uk/id/uksi/2021/1076">S.I. 2021/1076</ref>) omit regulation 26.</p></content></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e35091"><heading>Education funding</heading><paragraph eId="schedule-9-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-9-paragraph-26-1"><num>(1)</num><content><p>In the Appendix to <a href="https://www.legislation.gov.uk/uksi/2001/2743/schedule/1">Schedule 1</a> to the <ref eId="c00278" href="https://www.legislation.gov.uk/uksi/2001/2743">Education (Grants) (Music, Ballet and Choir Schools) (England) Regulations 2001</ref> (<ref eId="c00279" href="https://www.legislation.gov.uk/uksi/2001/2743">S.I. 2001/2743</ref>) (aided pupil scheme: computation of income), in paragraph 2, in sub-paragraph (a) omit “, ordinarily resident or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2">Schedule 2</a> to the <ref eId="c00280" href="https://www.legislation.gov.uk/uksi/2010/447">Education (Student Support) (European University Institute) Regulations 2010</ref> (<ref eId="c00281" href="http://www.legislation.gov.uk/id/uksi/2010/447">S.I. 2010/447</ref>) (calculation of contribution), in <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">paragraph 4</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(5)</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(a)</a>, omit “or domiciled” in the first place it appears.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-3"><num>(3)</num><content><p>The <ref eId="c00282" href="https://www.legislation.gov.uk/uksi/2011/1986">Education (Student Support) Regulations 2011</ref> (<ref eId="c00283" href="http://www.legislation.gov.uk/id/uksi/2011/1986">S.I. 2011/1986</ref>) are amended in accordance with <ref href="#schedule-9-paragraph-26-4">sub-paragraphs (4)</ref> and <ref href="#schedule-9-paragraph-26-5">(5)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4">Schedule 4</a> (financial assessment)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-4-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-b-ii"><num>(ii)</num><content><p>omit “so”.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-26-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6">Schedule 6</a> (assessment of eligible part-time student’s household income)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-5-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(6)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;The</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-b-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e35275"><heading>Making Tax Digital</heading><paragraph eId="schedule-9-paragraph-27" class="schProv1"><num>27</num><content><p>In the <ref eId="c00284" href="https://www.legislation.gov.uk/uksi/2021/1076">Income Tax (Digital Requirements) Regulations 2021</ref> (<ref eId="c00285" href="http://www.legislation.gov.uk/id/uksi/2021/1076">S.I. 2021/1076</ref>) omit regulation 26.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-10"><num>Schedule 10<authorialNote class="referenceNote"><p>Section 41</p></authorialNote></num><heading>Temporary repatriation facility</heading><part eId="schedule-10-part-1"><num>Part 1</num><heading>Temporary repatriation facility charge</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e35304"><heading>Introduction and charge</heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-10-paragraph-1-1"><num>(1)</num><content><p><ref href="#schedule-10-part-1">This Part</ref> of <ref href="#schedule-10">this Schedule</ref> sets out a charge on amounts of qualifying overseas capital of individuals previously subject to the remittance basis.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-2"><num>(2)</num><content><p>The charge is to be known as the temporary repatriation facility charge, and is referred to in this Schedule as the “<term refersTo="#term-trf-charge" eId="term-trf-charge">TRF charge</term>”.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-3"><num>(3)</num><content><p><span><ref href="#schedule-10-paragraph-2">Paragraphs 2</ref> to <ref href="#schedule-10-paragraph-6">6</ref></span> set out when amounts are, or are to be treated, as qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-4"><num>(4)</num><content><p>Amounts of qualifying overseas capital of an individual are subject to the TRF charge only if the individual designates them in accordance with this Part of this Schedule.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-5"><num>(5)</num><content><p>An individual may only designate qualifying overseas capital if the individual was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-6"><num>(6)</num><content><p>An individual designates qualifying overseas capital by making an election (a “designation election”) in a return for the tax year 2025-26, 2026-27 or 2027-28 (see <ref href="#schedule-10-paragraph-8">paragraph 8</ref> for further provision about designation elections).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-7"><num>(7)</num><content><p>A designation election may only be made in a return if, for the tax year to which the return relates, the individual is UK resident for the purposes of income tax and capital gains tax (see <a href="https://www.legislation.gov.uk/ukpga/2013/29/schedule/45">Schedule 45</a> to <ref eId="c00286" href="https://www.legislation.gov.uk/ukpga/2013/29">FA 2013</ref>).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-8"><num>(8)</num><intro><p>The amount of the TRF charge on qualifying overseas capital designated by an individual is—</p></intro><level class="para1" eId="schedule-10-paragraph-1-8-a"><num>(a)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2025-26 or 2026-27, the amount equal to 12% of the amount of that capital, and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-8-b"><num>(b)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2027-28, the amount equal to 15% of the amount of that capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-1-9"><num>(9)</num><content><p>Part 2 of this Schedule sets out exemptions and reliefs from income tax and capital gains tax that apply where amounts of qualifying overseas capital are designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-10"><num>(10)</num><content><p><ref href="#schedule-10-part-3">Part 3</ref> of <ref href="#schedule-10">this Schedule</ref> amends or modifies rules about the remittance of amounts where an individual has designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-11"><num>(11)</num><intro><p>For the purposes of <ref href="#schedule-10-part-1">this Part</ref> of <ref href="#schedule-10">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-10-paragraph-1-11-a"><num>(a)</num><intro><p>an individual is subject to the remittance basis for a tax year—</p></intro><level class="para2" eId="schedule-10-paragraph-1-11-a-i"><num>(i)</num><content><p>in relation to the tax years 2008-09 to 2024-25, if any of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">sections 809B</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">809D</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809E">809E</a> of <ref eId="c00287" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> apply to the individual for that year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-1-11-a-ii"><num>(ii)</num><content><p>in relation to any tax year before 2008-2009, if any income or gains of the individual for that year were subject to the remittance basis (including any income or gains that would have been regarded as arising in the tax year but were not as a result of the application of the remittance basis), and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-1-11-b"><num>(b)</num><content><p>“<term refersTo="#term-return" eId="term-return">return</term>” means a return under <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/8">section 8</a> of <ref eId="c00288" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (personal return for income tax and capital gains tax), and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-11-c"><num>(c)</num><content><p>references to an election being included in a return include an election being so included as a result of an amendment of the return.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35474"><heading>Qualifying overseas capital: main cases</heading><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-10-paragraph-2-1"><num>(1)</num><content><p>An amount of capital is “qualifying overseas capital” of an individual if it falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>, <ref href="#schedule-10-paragraph-2-5">(5)</ref> or <ref href="#schedule-10-paragraph-2-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-2"><num>(2)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-2-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-b"><num>(b)</num><content><p>the amount has not been remitted to the United Kingdom, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-c"><num>(c)</num><content><p>the amount, if remitted to the United Kingdom, would have the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-3"><num>(3)</num><intro><p>That effect is that—</p></intro><level class="para1" eId="schedule-10-paragraph-2-3-a"><num>(a)</num><content><p>the individual becomes chargeable to income tax by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">26</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">41F</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">554Z9</a> or 554Z10 of <ref eId="c00289" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> or <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00290" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (income charged on remittance basis), or</p></content></level><level class="para1" eId="schedule-10-paragraph-2-3-b"><num>(b)</num><content><p>a gain is treated as accruing to the individual by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00291" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (gains charged on remittance basis).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-4"><num>(4)</num><content><p>In determining whether an amount of capital falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> for the purposes of making a designation election for a tax year, the condition in <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-10-paragraph-2-2-b">(b)</ref> is to be regarded as met if it was met at the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-5"><num>(5)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-5-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-b"><num>(b)</num><content><p>the amount is remitted to the United Kingdom in the tax year 2025-26, 2026-27 or 2027-28, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-c"><num>(c)</num><content><p>that remittance has the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-6"><num>(6)</num><content><p>An amount that is qualifying overseas capital falling within <ref href="#schedule-10-paragraph-2-5">sub-paragraph (5)</ref> (and that has not previously been designated as result of the amount falling within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>) may only be designated in a designation election for the tax year in which it was remitted.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-7"><num>(7)</num><intro><p>For the purposes of <ref href="#schedule-10-paragraph-2-2">sub-paragraphs (2)</ref><ref href="#schedule-10-paragraph-2-2-c">(c)</ref> and <ref href="#schedule-10-paragraph-2-5">(5)</ref><ref href="#schedule-10-paragraph-2-5-c">(c)</ref>, a remittance is to be treated as having the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref> if it would have that effect ignoring—</p></intro><level class="para1" eId="schedule-10-paragraph-2-7-a"><num>(a)</num><content><p><ref href="#schedule-10-part-2">Part 2</ref> of this Schedule (exemptions etc for designated qualifying overseas capital),</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VA">section 809VA</a> of <ref eId="c00292" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (business investment relief), and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a> of <ref eId="c00293" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (exempt property).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-8"><num>(8)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-8-a"><num>(a)</num><content><p>it does not fall within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> or <ref href="#schedule-10-paragraph-2-5">(5)</ref>,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-b"><num>(b)</num><content><p>it was held by the individual immediately before 6 April 2025,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-c"><num>(c)</num><intro><p>it was situated outside the United Kingdom—</p></intro><level class="para2" eId="schedule-10-paragraph-2-8-c-i"><num>(i)</num><content><p>immediately before it was most recently acquired by the individual before that date, and</p></content></level><level class="para2" eId="schedule-10-paragraph-2-8-c-ii"><num>(ii)</num><content><p>throughout the period beginning with the time referred to in <ref href="#schedule-10-paragraph-2-8-c-i">sub-paragraph (i)</ref> and ending with that date.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-9"><num>(9)</num><content><p>References in <ref href="#schedule-10-part-1">Parts 1</ref> and <ref href="#schedule-10-part-2">2</ref> of <ref href="#schedule-10">this Schedule</ref> to amounts being remitted to the United Kingdom are to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00294" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35761"><heading>Capital payments made by settlement: section 87 and 89 TCGA 1992 cases</heading><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of section 87(2) or 89(2) of TCGA 1992 in relation to a capital payment from the trustees of a settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-1-b"><num>(b)</num><content><p>the settlement has a section 1(3) amount that is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-3-a"><num>(a)</num><content><p>the section 1(3) amount for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-3-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-3-3-b-ii"><num>(ii)</num><content><p>to which section 87(2) or 89(2) of that Act applies.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount for the tax year 2024-25 or an earlier tax year resulting from the application of section 87 or 89(2) of TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-3-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-6"><num>(6)</num><content><p>The section 1(3) amount is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-544c8e842f22544bd470af33cb08a98c-1776847074039" ukl:CommentaryRef="key-544c8e842f22544bd470af33cb08a98c"><noteRef uk:name="commentary" href="#key-544c8e842f22544bd470af33cb08a98c" class="commentary"/>paragraph 5</ins> (and no section 1(3) amounts or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-3-8-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in section 87 of TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-9"><num>(9)</num><intro><p>For the purposes of this paragraph, and <ins class="substitution first last" ukl:ChangeId="key-8c7dfbc4b972e5671ea104100e876f83-1776847074039" ukl:CommentaryRef="key-8c7dfbc4b972e5671ea104100e876f83"><noteRef uk:name="commentary" href="#key-8c7dfbc4b972e5671ea104100e876f83" class="commentary"/>paragraph 5</ins>, an individual is a qualifying individual in a tax year if the individual—</p></intro><level class="para1" eId="schedule-10-paragraph-3-9-a"><num>(a)</num><content><p>is UK resident for the purposes of income tax and capital gains tax for that tax year, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-9-b"><num>(b)</num><content><p>was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35903"><heading>Capital payments made by settlement: offshore income gains cases</heading><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num><noteRef href="#key-b2c7030c15d614327ddf86dccff26e8c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>4</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35913"><heading>Capital payments made by settlement: Schedule 4C cases</heading><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-10-paragraph-5-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of paragraph 8(1) of Schedule 4C to TCGA 1992 in relation to a capital payment from the trustees of a relevant settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-1-b"><num>(b)</num><content><p>the section 1(3) amount in the Schedule 4C pool is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts in the Schedule 4C pool for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-3-a"><num>(a)</num><content><p>the section 1(3) amount in the Schedule 4C pool for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-5-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-5-3-b-ii"><num>(ii)</num><content><p>to which paragraph 8(1) of Schedule 4C to that Act applies in relation to section 1(3) amounts in the Schedule 4C pool.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or an earlier tax year resulting from the application of paragraph 8(1) of Schedule 4C to TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-5-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount in the Schedule 4C pool under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-6"><num>(6)</num><content><p>The section 1(3) amount in the Schedule 4C pool is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-53f680365af6ece2c1f0aed8e72e1394-1776847357884" ukl:CommentaryRef="key-53f680365af6ece2c1f0aed8e72e1394"><noteRef uk:name="commentary" href="#key-53f680365af6ece2c1f0aed8e72e1394" class="commentary"/>paragraph 3</ins> (and no section 1(3) amount in the Schedule 4C pool or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-5-8-a"><num>(a)</num><content><p>“section 1(3) amount in the Schedule 4C pool” and “relevant settlement” are to be construed in accordance with Schedule 4C to TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36031"><heading>Amounts of income treated as qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-10-paragraph-6-1"><num>(1)</num><intro><p><ref href="#schedule-10-paragraph-6">This paragraph</ref> applies—</p></intro><level class="para1" eId="schedule-10-paragraph-6-1-a"><num>(a)</num><content><p>where an individual is treated as having an amount of income as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/643A">section 643A</a> of <ref eId="c00295" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (benefits paid out of protected foreign-source income or transitional trust income) for any of the tax years 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-b"><num>(b)</num><content><p>where an individual would have been treated as having an amount of income as a result of any other provision of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5/chapter/5">Chapter 5</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5">Part 5</a> of <ref eId="c00296" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (settlements: amounts treated as income of settlor or family) in the tax year 2024-25 or an earlier tax year but was not only as a result of the application of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">section 648</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">(3)</a> of <ref eId="c00297" href="https://www.legislation.gov.uk/ukpga/2005/5">that Act</ref> (relevant foreign income treated as arising under settlement only if and when remitted), or</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-c"><num>(c)</num><intro><p>where—</p></intro><level class="para2" eId="schedule-10-paragraph-6-1-c-i"><num>(i)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/732">section 732</a> of <ref eId="c00298" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-ii"><num>(ii)</num><content><p>under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/735A">section 735A</a> of <ref eId="c00299" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (if it applied also for this purpose) that amount would be matched with relevant income that arose in the tax year 2024-25 or an earlier tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-iii"><num>(iii)</num><content><p>that amount would have been treated as relevant foreign income of the individual if it had been treated as accruing in the tax year 2024-25 and the individual had been subject to the remittance basis for that tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-6-2"><num>(2)</num><content><p>An amount of income falling within <ref href="#schedule-10-paragraph-6-1-a">paragraph (a)</ref>, <ref href="#schedule-10-paragraph-6-1-b">(b)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> of <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref> is to be treated as an amount of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-3"><num>(3)</num><content><p>An amount of income treated as qualifying overseas capital falling within <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-10-paragraph-6-1-a">(a)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-4"><num>(4)</num><content><p>For the purposes of <ref href="#schedule-10-paragraph-6">this paragraph</ref> “<term refersTo="#term-relevant-foreign-income" eId="term-relevant-foreign-income">relevant foreign income</term>” has the meaning it has in the Income Tax Acts.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36161"><heading>Deemed income under section 732 of ITA 2007 where pre-2025 gains available for matching</heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-10-paragraph-7-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-7-1-a"><num>(a)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-b"><num>(b)</num><content><p>the amount of income does not fall within paragraph 6(1)(c), and</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-c"><num>(c)</num><content><p>the benefit by reference to which that income is treated as arising would, if it were not chargeable to income tax, be an amount of qualifying overseas capital of the individual by virtue of paragraph 3 or 5 (capital payments).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-1A"><num><ins class="first" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd"><noteRef uk:name="commentary" href="#key-a714d4c53e920634821d9d78d9c849cd" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">For the purposes of applying those paragraphs for the purposes of sub-paragraph (1)(c)—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-7-1A-a"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs have effect as if—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-7-1A-a-i"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(i)</ins></num><content><p><mod><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">for sub-paragraph (1)(a) (in each paragraph) there were substituted—</ins><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</ins></p></content></level></quotedStructure><inline name="appendText"><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">,</ins></inline></mod></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-ii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(ii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the reference in sub-paragraph (2) (in each paragraph) to “the payment” were to the benefit by reference to which the income is treated as arising,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">sub-paragraph (3)(b)(ii) (in each paragraph) were omitted, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iv"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iv)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the references in each paragraph, and in section 87A of TCGA 1992 as applied by those paragraphs, to “capital payments” were to benefits falling within sub-paragraph (1)(c) of this paragraph, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-7-1A-b"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs are to be applied after they have been applied for the purposes of determining whether any amount of a capital payment is qualifying overseas capital.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-2"><num>(2)</num><content><p>The amount is to be treated as an amount <ins class="first last" ukl:ChangeId="key-5afe54cf97ef5cab8f21e8361e836a74-1776849382513" ukl:CommentaryRef="key-5afe54cf97ef5cab8f21e8361e836a74"><noteRef uk:name="commentary" href="#key-5afe54cf97ef5cab8f21e8361e836a74" class="commentary"/>of income</ins> of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-7-3"><num>(3)</num><content><p>The amount may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36275"><heading>Designation of qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-10-paragraph-8-1"><num>(1)</num><content><p>A designation election for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2"><num>(2)</num><intro><p>The designation must—</p></intro><level class="para1" eId="schedule-10-paragraph-8-2-a"><num>(a)</num><content><p>set out the total amount designated, <noteRef href="#key-618a6a5886e1287ff91179a230f38778" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-aa"><num><ins class="first" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55"><noteRef uk:name="commentary" href="#key-2431037c5d02401011ed77937389fc55" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55">for each amount designated, whether or not it is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-b"><num>(b)</num><content><p>identify which (if any) of the amounts designated <ins class="first last" ukl:ChangeId="key-988aec55dba20941dfe651e6fc0cdbee-1776849778990" ukl:CommentaryRef="key-988aec55dba20941dfe651e6fc0cdbee"><noteRef uk:name="commentary" href="#key-988aec55dba20941dfe651e6fc0cdbee" class="commentary"/>on that basis</ins> have been remitted in the tax year to which the return relates.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-2A"><num><ins class="first" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af"><noteRef uk:name="commentary" href="#key-65ee73b2b4a1eeb8133aba3eb5d541af" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">For the purposes of designating an amount of qualifying overseas capital of an individual that—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2A-a"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(a)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is qualifying overseas capital as a result of paragraph 2(2) or (5), or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2A-b"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(b)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is treated as qualifying overseas capital as a result of paragraph 6(1)(b),</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">the value of that amount is the value of the amount when it first arose to the individual.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2B"><num><ins class="first" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa"><noteRef uk:name="commentary" href="#key-dc0713a92959e81f684701908e0759aa" class="commentary"/>(2B)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">In this Part and in Part 2 “</ins><term refersTo="#term-remittance-provision"><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">remittance provision</ins></term><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">” means paragraph 2(2) or (5) or paragraph 6(1)(b).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2C"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2C)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2C-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">an amount is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2C-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">the amount would (ignoring this sub-paragraph) also be regarded as designated under paragraph 3 or 5 (matched capital payments),</ins></p></content></level><wrapUp><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">it is not to be regarded as designated under that paragraph for the purposes of paragraph 10(7) (relief for offshore income gains) or paragraph 13 (relief for matched capital payments) as a result of that designation on that basis.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2D"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2D)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Accordingly two designations of the amount are required to secure the benefit of all of the reliefs that may be available under paragraphs 10(1), 10(7),12(1) and 13—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2D-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">one designation of the amount on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2D-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">another not on that basis.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-3"><num>(3)</num><content><p>Where an amount of relevant foreign tax has been paid, or is payable, in respect of an amount of qualifying overseas capital, only so much of the amount as remains after deducting the amount of relevant foreign tax paid, or payable, may be designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-4"><num>(4)</num><intro><p>For the purposes of this paragraph, relevant foreign tax means a tax imposed by the law of a territory outside the United Kingdom that corresponds to—</p></intro><level class="para1" eId="schedule-10-paragraph-8-4-a"><num>(a)</num><content><p>income tax, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-4-b"><num>(b)</num><content><p>capital gains tax.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-4A"><num><ins class="first" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3"><noteRef uk:name="commentary" href="#key-d2b98820144550a15e507e0a9ff68cf3" class="commentary"/>(4A)</ins></num><intro><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">But where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-4A-a"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">an amount of relevant foreign tax has been paid, or will be paid, in respect of an amount of qualifying overseas capital (“the related qualifying overseas capital”), and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-4A-b"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">it has been, or will be, paid out of funds other than the related qualifying overseas capital,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">sub-paragraph (3) does not apply to the related qualifying overseas capital to the extent that the tax has been, or will be, paid out of those funds.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-5"><num>(5)</num><intro><p>An individual may designate an amount where it has not yet been determined—</p></intro><level class="para1" eId="schedule-10-paragraph-8-5-a"><num>(a)</num><content><p>whether the amount is qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-5-b"><num>(b)</num><content><p>whether, or to what extent, relevant foreign tax is, or was, payable in respect of the amount.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-5A"><num><ins class="first" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1"><noteRef uk:name="commentary" href="#key-7a0c94f10a7604893d15a37e40290eb1" class="commentary"/>(5A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1">Where the individual considers that an amount designated under sub-paragraph (5) could, if it were qualifying overseas capital, be designated on the basis that it is qualifying overseas capital as a result of a remittance provision, the individual may designate it on that basis.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6"><num>(6)</num><intro><p>An amount designated—</p></intro><level class="para1" eId="schedule-10-paragraph-8-6-a"><num>(a)</num><content><p>that is determined to not be qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-6-b"><num>(b)</num><content><p>that should not have been designated as a result of sub-paragraph (3),</p></content></level><wrapUp><p>is to be nevertheless treated as designated qualifying overseas capital, other than for the purpose of Part 2 of this Schedule (exemptions etc).</p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-6A"><num><ins class="first" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52"><noteRef uk:name="commentary" href="#key-faf32870b83f36b1427015ddaafdef52" class="commentary"/>(6A)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Sub-paragraph (6B) applies where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-6A-a"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(a)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">an amount (“the TRF amount”) is treated as designated qualifying overseas capital of an individual as a result of sub-paragraph (6),</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-6A-b"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(b)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">on or after 6 April 2025, an officer of Revenue and Customs, in relation to the tax year 2024-25 or an earlier tax year—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-8-6A-b-i"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(i)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">amends the individual’s self-assessment while an enquiry under section 9A of TMA 1970 (enquiry into return) into the individual’s return for that tax year is in progress,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-ii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(ii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">issues a partial or final closure notice under section 28A of that Act (completion of enquiry) in relation to that return, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-iii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(iii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">makes an assessment under section 29 of that Act, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-8-6A-c"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(c)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">the effect of the officer taking that step is that income tax or capital gains tax is charged in respect of the TRF amount.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-6B"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6B)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">The amount of income tax or capital gains tax due and payable under section 59B of TMA 1970 in respect of the TRF amount is to be treated as reduced (but not below nil) by the amount of the TRF charge paid in respect of the TRF amount.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6C"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Where sub-paragraph (6B) applies, the individual may not amend the return in which the designation election relating to the TRF amount was included to alter or revoke that election (if the return otherwise could have been amended) so as to cause the TRF amount not to be designated.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-7"><num>(7)</num><content><p>Where an amount is designated, it is treated as designated qualifying overseas capital from the beginning of the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-8"><num>(8)</num><content><p>An individual who makes a designation election must keep a record of each amount designated.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36592"><heading>Payment of the TRF charge through the income tax system</heading><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-10-paragraph-9-1"><num>(1)</num><content><p>An amount of designated qualifying overseas capital is chargeable to the TRF charge for the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-2"><num>(2)</num><content><p>Amounts of TRF charge are to be charged as if they were amounts of income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-3"><num>(3)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/23">Section 23</a> of <ref eId="c00300" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (calculation of income tax liability) applies in relation to a person liable to the TRF charge as if paragraph 1(8) were included in the lists of provisions in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">section 30</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">(1)</a> of <ref eId="c00301" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (amounts of tax added at Step 7).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-4"><num>(4)</num><content><p>For the purposes of the collection and management of the TRF charge, all other enactments applying generally to income tax apply to the TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-5"><num>(5)</num><intro><p>Those enactments include—</p></intro><level class="para1" eId="schedule-10-paragraph-9-5-a"><num>(a)</num><content><p>those relating to returns of information and the supply of accounts, statements and reports,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-b"><num>(b)</num><content><p>those relating to the assessing, collecting and receiving of income tax,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-c"><num>(c)</num><content><p>those conferring or regulating a right of appeal, and</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-d"><num>(d)</num><content><p>those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-9-6"><num>(6)</num><content><p>But section 59A of TMA 1970 (payments on account of income tax) does not apply in relation to amounts of TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-7"><num>(7)</num><content><p>For the purposes of section 12B of TMA 1970 (as applied as a result of sub-paragraph (4)), the records required to be kept as a result of paragraph 8(8) are to be regarded as records that must be kept for the purposes of enabling an individual to make and deliver a correct and complete return.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-8"><num><ins class="first" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76"><noteRef uk:name="commentary" href="#key-2c99a990a7f9f8700096951e66076d76" class="commentary"/>(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76">Paragraph 8(6) is not to be taken as preventing the amendment of a return so as to alter or revoke a designation of qualifying overseas capital made in that return, provided that amendment is made in accordance with section 9ZA of TMA 1970 (taxpayer permitted to amend return within 12 months of filing date).</ins></p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-10-part-2"><num>Part 2</num><heading>Exemptions etc for designated qualifying overseas capital</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e36691"><heading>Income tax exemptions and relief</heading><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><intro><p>No liability to income tax arises on </p></intro><level class="para1" eId="schedule-10-paragraph-10-1-a"><num><ins class="first last" ukl:ChangeId="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8-1776853132966" ukl:CommentaryRef="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8"><noteRef uk:name="commentary" href="#key-b1095a56ce7bbfabdc9e4e6e3a8b01f8" class="commentary"/>(a)</ins></num><content><p>the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-d10d1a50438566ccae8772e4ce37d1e2-1776853290668" ukl:CommentaryRef="key-d10d1a50438566ccae8772e4ce37d1e2"><noteRef uk:name="commentary" href="#key-d10d1a50438566ccae8772e4ce37d1e2" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision</ins> <ins class="first" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f"><noteRef uk:name="commentary" href="#key-f4964405d862b2748a4c836b21acf08f" class="commentary"/>, or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-10-1-b"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(b)</ins></num><intro><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">an amount of income treated as qualifying overseas capital under paragraph 6 that—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-10-1-b-i"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(i)</ins></num><content><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">falls within sub-paragraph (1)(b) of that paragraph, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-10-1-b-ii"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">is designated on the basis that it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 6 <ins class="first last" ukl:ChangeId="key-630151fc78607bb429cf9a616baf808b-1776853263158" ukl:CommentaryRef="key-630151fc78607bb429cf9a616baf808b"><noteRef uk:name="commentary" href="#key-630151fc78607bb429cf9a616baf808b" class="commentary"/>, and that falls within sub-paragraph (1)(a) or (c) of that paragraph,</ins> if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p>But such an amount is to be treated for the purposes of section 97(1) of TCGA 1992 (capital payments not to include amounts chargeable to income tax) as if it were chargeable to income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 7 if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><intro><p>Accordingly the amount—</p></intro><level class="para1" eId="schedule-10-paragraph-10-5-a"><num>(a)</num><content><p>will be a capital payment for the purposes of sections 86A to 96 of, and Schedule 4C to, TCGA 1992 (see section 97(1) of that Act), and</p></content></level><level class="para1" eId="schedule-10-paragraph-10-5-b"><num>(b)</num><content><p>will, as a result of paragraph 3 or 5 (or both), be qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p>Any such qualifying overseas capital is to be treated as having been designated by the individual (under that paragraph or those paragraphs), but no liability to the TRF charge is to arise as a result of that deemed designation.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-7"><num><noteRef href="#key-f37db8ccd0ef3d5d94e00404966056a9" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(7)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-8"><num><noteRef href="#key-1abc611bdef108e4a81cb2f8fbeee822" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(8)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-9"><num>(9)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36805"><heading>Income tax exemptions: application of transfer of assets abroad rules in future years</heading><paragraph eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content><p>This paragraph applies where an amount of income that is treated as arising to an individual under section 732 of ITA 2007 (“the deemed income”) is exempt from income tax by virtue of paragraph 10.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 6(1)(c), Chapter 2 of Part 13 of ITA 2007 has effect as though the deemed income had been charged to tax under section 731 of that Act.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><intro><p>Accordingly—</p></intro><level class="para1" eId="schedule-10-paragraph-11-3-a"><num>(a)</num><content><p>in the application of section 733(1) of ITA 2007 to the individual for subsequent tax years, the amount of the deemed income will be deducted at Step 2 and at paragraph (a) of Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-3-b"><num>(b)</num><content><p>in the application of section 733(1) of ITA 2007 to any other individual for subsequent tax years, the amount of the deemed income will be deducted at paragraph (b) of Step 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 7, Chapter 2 of Part 13 of ITA 2007 has effect as though the benefit by reference to which the deemed income was treated as arising had never been provided.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><intro><p>Accordingly, in the application of section 733(1) of ITA 2007 to any individual for subsequent tax years—</p></intro><level class="para1" eId="schedule-10-paragraph-11-5-a"><num>(a)</num><content><p>that benefit will not be taken into account at Step 1,</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-b"><num>(b)</num><content><p>no deduction in respect of the deemed income will be made at Step 2 or Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-c"><num>(c)</num><content><p>the total untaxed benefits will not be reduced in respect of that benefit by virtue of section 734 (previous capital gains charge).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36872"><heading>Capital gains tax: main exemption</heading><paragraph eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-10-paragraph-12-1"><num>(1)</num><content><p>No gain is treated as accruing under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00302" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> on the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-8dff72aa92040e88a538c94dba73ba0a-1776854193920" ukl:CommentaryRef="key-8dff72aa92040e88a538c94dba73ba0a"><noteRef uk:name="commentary" href="#key-8dff72aa92040e88a538c94dba73ba0a" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision (other than paragraph 6(1)(b))</ins>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-12-2"><num>(2)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36905"><heading>Capital gains tax: reliefs in respect of matched capital payments</heading><paragraph eId="schedule-10-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-10-paragraph-13-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> or 89(2) of <ref eId="c00303" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-1-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 3.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-2"><num>(2)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-3"><num>(3)</num><intro><p>Sub-paragraph (4) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-3-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00304" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>) of a capital payment with the section 1(3) amount for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00305" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (4)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 3(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">Section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00306" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (3)(a) as is matched with the amount of the section 1(3) amount as would also, in accordance with paragraph 3(2), be matched with the amount of a capital payment mentioned in sub-paragraph (3)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-5-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under paragraph 8(1) of Schedule 4C to TCGA 1992 as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-5-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-6"><num>(6)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-7"><num>(7)</num><intro><p>Sub-paragraph (8) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-7-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00307" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as it has effect for the purposes of paragraph 8(3) of Schedule 4C to that Act) of a capital payment with the section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-b"><num>(b)</num><content><p>paragraph 13(2) of Schedule 4C to that Act (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (8)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 5(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-8"><num>(8)</num><content><p>Paragraph 13(2) of Schedule 4C to TCGA 1992 does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (7)(a) as is matched with the amount of the section 1(3) amount in the Schedule 4C pool as would also, in accordance with paragraph 5(2), be matched with the amount of a capital payment mentioned in sub-paragraph (7)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-9"><num>(9)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-13-9-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a> of <ref eId="c00308" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></level><level class="para1" eId="schedule-10-paragraph-13-9-b"><num>(b)</num><content><p>“<term refersTo="#term-section-13-amount-in-the-schedule-4c-pool" eId="term-section-13-amount-in-the-schedule-4c-pool">section 1(3) amount in the Schedule 4C pool</term>” is to be construed in accordance with Schedule 4C to TCGA 1992.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-10"><num>(10)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37102"><heading><ins class="first" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471"><noteRef uk:name="commentary" href="#key-375a186091df53bad23bcaed69ae4471" class="commentary"/>Amounts derived from designated qualifying overseas capital</ins></heading><paragraph eId="schedule-10-paragraph-13A" class="schProv1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">13A</ins></num><subparagraph eId="schedule-10-paragraph-13A-1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(1)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">This paragraph applies to an amount (“</ins><term refersTo="#term-amount-a"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount A</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) if—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-1-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">either—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-13A-1-a-i"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(i)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount to the United Kingdom would have the effect mentioned in paragraph 2(3)(a) or (b) by reference to income or gains, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-13A-1-a-ii"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(ii)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount would result in income being treated as arising to a settlement in accordance with section 648(3) (and accordingly would result in an amount falling within paragraph 6(1)(b) arising), and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-13A-1-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of an amount (“</ins><term refersTo="#term-amount-b"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount B</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) of designated qualifying overseas capital to the United Kingdom would have one of the effects mentioned in paragraph (a)(i) or (ii) by reference to that same income or those same gains (“the reference income or gains”) if it had not been designated.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-2"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(2)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(i), so much of amount A (so far as it relates to the reference income or gains) as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-2-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-2-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-3"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(3)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(ii), so much of the amount falling within paragraph 6(1)(b) as would result from the remittance of amount A as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-3-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-3-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37209"><heading><ins class="first" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151"><noteRef uk:name="commentary" href="#key-bb44b435d1d2199ab6db0e477c766151" class="commentary"/>Effect of this Schedule on section 65(5) IHTA 1984 and section 260(2) of TCGA 1992</ins></heading><paragraph eId="schedule-10-paragraph-13B" class="schProv1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">13B</ins></num><subparagraph eId="schedule-10-paragraph-13B-1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(1)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">The effects of Parts 1 and 2 of this Schedule are to be ignored for the purposes of section 65(5)(b) of IHTA 1984 (and accordingly will not prevent any amount being regarded as income of a person for the purposes of income tax for the purposes of that section).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13B-2"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(2)</ins></num><intro><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13B-2-a"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(a)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the trustees of a settlement make a capital payment to an individual,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-b"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(b)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the making of that payment results in the individual having qualifying overseas capital,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-c"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(c)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">that qualifying overseas capital is designated,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">so much of the deemed disposal under section 71 of TCGA 1992 arising on the making of the payment as reflects the designated qualifying overseas capital is (despite sub-paragraph (1)) treated as a chargeable transfer within the meaning of IHTA 1984 for the purposes only of section 260(2)(a) of TCGA 1992 (gifts on which inheritance tax is chargeable etc).</ins></p></wrapUp></subparagraph></paragraph></hcontainer></part><part eId="schedule-10-part-3"><num>Part 3</num><heading>Effect of designation on when amounts remitted etc</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e37266"><heading>Temporary disapplication of nominated income ordering rules</heading><paragraph eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809I">Section 809I</a> of <ref eId="c00309" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis charge: income and gains treated as remitted) does not apply for a tax year in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content><p>the tax year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><intro><p>the individual—</p></intro><level class="para2" eId="schedule-10-paragraph-14-b-i"><num>(i)</num><content><p>makes a designation of qualifying overseas capital for that tax year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-14-b-ii"><num>(ii)</num><content><p>has made such a designation for a previous tax year, and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-14-c"><num>(c)</num><content><p>that section has not applied in relation to that individual for the tax year 2024-25 or an earlier tax year.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37310"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">section 809Q</a> of <ref eId="c00310" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-10-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">Section 809Q</a> of <ref eId="c00311" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-2-a"><num>(a)</num><content><p><mod>before Step 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step A1</i></p><p>Find the amount (if any) of income or capital of the individual for the relevant tax year in the mixed fund immediately before the transfer that is TRF capital.</p><p>If the amount of the transfer is equal to, or less than, the amount of TRF capital, treat the transfer as containing only TRF capital.</p><p>Otherwise—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>treat so much of the transfer as does not exceed the amount of the TRF capital as being comprised of TRF capital, and</p></item><item><num>(b)</num><p>apply the following steps to the remainder of the transfer.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-15-2-b"><num>(b)</num><content><p><mod>in Steps 2 to 4, and in the first sentence in Step 5, for “transfer”, in each place it occurs, substitute <quotedText>“remainder”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-3-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-15-3-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-4"><num>(4)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e37427"><num>(9)</num><intro><p>For the purposes of this Chapter “<term refersTo="#term-trf-capital">TRF capital</term>” means any amount that—</p></intro><level class="para1"><num>(a)</num><content><p>is qualifying overseas capital (within the meaning of Part 1 of Schedule 10 to FA 2025) as a result of paragraph 2 of that Schedule, and</p></content></level><level class="para1"><num>(b)</num><content><p>is designated qualifying overseas capital for the purposes of that Part of that Schedule (and see paragraph 8(7) which provides for qualifying overseas capital to be treated as designated qualifying overseas capital from the start of the tax year to which the return in which it is designated relates).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-5"><num>(5)</num><content><p><mod>In section 809Z10 of ITA 2007 (general interpretation), after the definition of “the remittance basis user” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-trf-capital">TRF capital</term>” has the meaning given by section 809Q(9).</p></content></hcontainer></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37463"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00312" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-10-paragraph-16-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">Section 809R</a> of <ref eId="c00313" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “This section applies” substitute <quotedText>“Subsections (2) to (8) apply”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>For the purposes of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (5)</a> for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-5-a"><num>(a)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q as not applying in relation to it, if it” substitute <quotedText>“neither section 809Q nor section 809RZA(2) as applying in relation to it, if they”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-6"><num>(6)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (7)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-6-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-16-6-b"><num>(b)</num><content><p><mod> after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-7"><num>(7)</num><intro><p>In subsection (9)—</p></intro><level class="para1" eId="schedule-10-paragraph-16-7-a"><num>(a)</num><content><p><mod>for “step 1” substitute <quotedText>“steps A1 and 1”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-7-b"><num>(b)</num><content><p><mod>for “step 2” substitute <quotedText>“steps A1 and 2”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37625"><heading>Mixed funds: TRF capital account</heading><paragraph eId="schedule-10-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00314" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37644"><num>809RZA</num><heading>Transfers into TRF capital account</heading><subsection eId="d25e37648"><num>(1)</num><intro><p>Subsection (2) applies to a transfer made from a mixed fund if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made from a mixed fund that contains TRF capital,</p></content></level><level class="para1"><num>(b)</num><content><p>the transfer is to a TRF capital account, and</p></content></level><level class="para1" eId="d25e37666"><num>(c)</num><content><p>the amount of the transfer does not exceed the amount of TRF capital in the mixed fund at the time of the transfer.</p></content></level></subsection><subsection eId="d25e37672"><num>(2)</num><content><p>The transfer is to be treated as a transfer of TRF capital.</p></content></subsection><subsection><num>(3)</num><intro><p>Where subsection (2) would apply to a transfer but does not because of paragraph (c) of subsection (1)—</p></intro><level class="para1"><num>(a)</num><content><p>that transfer is to be treated as two separate transfers occurring one immediately after the other, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first of those transfers is to be treated as being in the amount of TRF capital in the mixed fund (and accordingly subsection (2) will apply to that deemed transfer but not the second, which may result in the TRF capital account ceasing to be a TRF capital account).</p></content></level></subsection><subsection><num>(4)</num><content><p>Section 809RZB makes provision about the nomination of an account as a TRF capital account (and see sections 809RZC and 809RZD for the effect of making a transfer that contains amounts that are not TRF capital).</p></content></subsection></section><section eId="d25e37705"><num>809RZB</num><heading>TRF capital account</heading><subsection eId="d25e37709"><num>(1)</num><content><p>An individual may by notice to the Commissioners nominate an account to be a TRF capital account (and more than one nomination may have effect at any time).</p></content></subsection><subsection><num>(2)</num><content><p>The notice must specify the qualifying date for the account.</p></content></subsection><subsection><num>(3)</num><content><p>“The qualifying date” for the account is the first date on which there is paid into the account sums falling within subsection (4) which (in total) are more than £10 at a time when the credit balance of the account was £10 or less.</p></content></subsection><subsection eId="d25e37727"><num>(4)</num><content><p>A sum falls within this subsection if it is TRF capital.</p></content></subsection><subsection eId="d25e37733"><num>(5)</num><content><p>The individual may withdraw the nomination by giving a further notice to the Commissioners, specifying the date with effect from which the nomination is withdrawn.</p></content></subsection><subsection><num>(6)</num><content><p>A notice under subsection (1) or (5) must be in writing and include such information as the Commissioners may reasonably require.</p></content></subsection><subsection><num>(7)</num><intro><p>A notice under subsection (1) or (5) must be given no later than—</p></intro><level class="para1"><num>(a)</num><intro><p>31 January in the tax year following the tax year in which falls, as the case may be—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying date for the account, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn, or</p></content></level></level><level class="para1"><num>(b)</num><content><p>such later date as the Commissioners may allow.</p></content></level></subsection><subsection eId="d25e37775"><num>(8)</num><intro><p>If an individual nominates an account under this section, the account is a “TRF capital account” of the individual throughout the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the qualifying date, and</p></content></level><level class="para1" eId="d25e37787"><num>(b)</num><intro><p>ending with the date before the earliest of the following dates—</p></intro><level class="para2" eId="d25e37793"><num>(i)</num><content><p>the date on which the account is closed or ceases to be an ordinary bank account held by and for the benefit of the individual (alone or jointly with others);</p></content></level><level class="para2" eId="d25e37799"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn under this section;</p></content></level><level class="para2" eId="d25e37805"><num>(iii)</num><content><p>6 April in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></level></level></subsection><subsection><num>(9)</num><intro><p>The account is not to be a TRF capital account at all if—</p></intro><level class="para1"><num>(a)</num><content><p>at any time on the qualifying date, the account is not an ordinary bank account held by and for the benefit of the individual (alone or jointly with others), or</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before the qualifying date, the account has a credit balance of more than £10.</p></content></level></subsection><subsection><num>(10)</num><content><p>Where the account has a credit balance immediately before the qualifying date (which must be £10 or less), that balance is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection><num>(11)</num><content><p>Where interest is payable on TRF capital held in the TRF capital account, any such interest paid into the account is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e37842"><num>(12)</num><content><p>The account is not to be a TRF capital account at all if the qualifying date falls in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></subsection><subsection><num>(13)</num><content><p>Subsection (8)(b)(iii) or (12) (as relevant) is to be ignored if the breach occurs on or after a date falling within subsection (8)(b)(i) or (ii).</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section an account is an “ordinary bank account” if it is a cash account in a bank (whether a current or savings account) where sums standing to the credit of the account from time to time represent a debt owed by the bank to the account-holder.</p></content></subsection><subsection><num>(15)</num><content><p>In this section, and in sections 809RZC and 809RZD, a reference to anything “paid into” an account includes anything credited to the account by whatever means.</p></content></subsection></section><section eId="d25e37869"><num>809RZC</num><heading>Breaches of the TRF deposit rule</heading><subsection><num>(1)</num><content><p>There is a breach of the TRF deposit rule if one or more prohibited sums are paid into a TRF capital account on the qualifying date or any day after the qualifying date.</p></content></subsection><subsection eId="d25e37879"><num>(2)</num><content><p>A breach of the TRF deposit rule is remedied if, within 30 days beginning with the day on which the prohibited sums are paid into the account, the required amount is transferred out of the account by way of a single one-off qualifying transfer.</p></content></subsection><subsection><num>(3)</num><content><p>A transfer is “qualifying” if it does not result in the remittance of any amount to the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>“The required amount” is an amount equal to the total of the prohibited sums paid into the TRF capital account on the day of the breach.</p></content></subsection><subsection><num>(5)</num><content><p>If there are 2 days in a tax year on which one or more breaches of the TRF deposit rule occur, subsection (2) does not apply to any breach on any subsequent day in the tax year (and accordingly any breach occurring on any day after the second day in the tax year on which there has been a breach cannot be remedied).</p></content></subsection><subsection><num>(6)</num><content><p>A “prohibited sum” is anything other than a sum that is TRF capital.</p></content></subsection></section><section eId="d25e37912"><num>809RZD</num><heading>Effect where 30-day deadline is met</heading><subsection><num>(1)</num><content><p>This section applies if the required amount in relation to a breach of the TRF deposit rule was transferred out of the account in accordance with section 809RZC(2).</p></content></subsection><subsection eId="d25e37922"><num>(2)</num><intro><p>Sections 809Q and 809R have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the intervening transactions had never taken place, and</p></content></level><level class="para1"><num>(b)</num><content><p>each prohibited sum represented by the required amount had instead been transferred directly (at the time that sum was paid into the TRF capital account) into the account or other property into which the required amount was transferred by virtue of the single one-off qualifying transfer.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Each of the following is an “intervening transaction”—</p></intro><level class="para1"><num>(a)</num><content><p>each payment into the TRF capital account of a prohibited sum represented by the required amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the single one-off qualifying transfer out of the TRF capital account.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37958"><heading>Temporary application of annualised basis to mixed funds containing TRF capital</heading><paragraph eId="schedule-10-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-10-paragraph-18-1"><num>(1)</num><content><p>This following modifications have effect for the tax years 2025-26, 2026-27 and 2027-28.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-18-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00315" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> has effect as if—</p></intro><level class="para1" eId="schedule-10-paragraph-18-2-a"><num>(a)</num><content><p><mod>after section 809R there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37995"><num>809RZZA</num><heading>Annualised basis for mixed funds containing TRF capital</heading><subsection><num>(1)</num><content><p>This section applies where, at any time in a tax year, a mixed fund contains TRF capital.</p></content></subsection><subsection eId="d25e38005"><num>(2)</num><content><p>If this section applies, the composition of each transfer made from the fund in that tax year at any time is to be determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Suppose that all transfers made from the mixed fund to a TRF capital account in relation to which section 809RZA(2) applies had been a single transfer made from the fund at the end of the tax year.</p><p>Whether that section applies in relation to transfers to a TRF capital account is determined as if all transfers from the mixed fund were made at the end of the tax year but transfers to a TRF capital account were made—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>before any other transfer from the mixed fund was made, and</p></item><item><num>(b)</num><p>sequentially in the order in which the transfers to a TRF capital account were actually made.</p></item></blockList></item><item><p><i>Step 2</i></p><p>Suppose that all the condition A transfers made from the mixed fund in the tax year had been a single transfer made at the end of the tax year immediately after the single transfer mentioned in Step 1.</p></item><item><p><i>Step 3</i></p><p>Suppose that all the other transfers made from the account in the tax year had been a single offshore transfer made at the end of the tax year immediately after the single transfer mentioned in Step 2.</p></item><item><p><i>Step 4</i></p><p>Applying those suppositions—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>find under section 809Q(3) the content of the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>find under section 809R(4) the content of the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Each transfer made from the fund in the tax year, other than a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, is treated as containing the specified proportion of each kind of income or capital contained in the relevant deemed transfer.</p><p>“The specified proportion” is the amount of the transfer divided by the amount of the relevant deemed transfer.</p><p>“The relevant deemed transfer is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the transfer is a condition A transfer, the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>otherwise, the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Each transfer made from the fund in the tax year to which section 809RZA(2) is regarded as applying in accordance with Step 1 is to be treated as a transfer to which that section applies (and no other transfer in the tax year is to be regarded as a transfer in relation to which that section applies).</p></item></blockList></content></subsection><subsection><num>(3)</num><content><p>Subsection (2) applies in determining the composition of a transfer for the purposes of sections 809Q and 809R but it does not otherwise affect the date on which a transfer is considered to occur for the purposes of this Chapter.</p></content></subsection><subsection><num>(4)</num><intro><p>A transfer from the fund is a “condition A transfer” if and to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>condition A in section 809L is met, and</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the property or consideration for the service is (wholly or in part), or derives (wholly or in part, and directly or indirectly) from, the transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the transfer, or anything deriving (wholly or in part, and directly or indirectly) from the transfer, is used as mentioned in section 809L(3)(c).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>A transfer from the fund is an “other transfer” if and to the extent that it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></subsection><subsection><num>(6)</num><intro><p>Treat a transfer as an “other transfer” if and to the extent that, at the end of the tax year—</p></intro><level class="para1"><num>(a)</num><content><p>it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>on the basis of the best estimate that can reasonably be made at that time, it will not become either a condition A transfer or a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of Step 5 in subsection (2)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></section></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-18-2-b"><num>(b)</num><content><p><mod>in section 809RZD (as inserted by paragraph 17), at the end there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><content><p>If it is supposed under Steps 1 to 3 of section 809RZZA(2) that single transfers had been made in the intervening period, re-apply those steps in relation to those transfers taking account of subsection (2) and re-apply sections 809Q and 809R accordingly.</p></content></subsection><subsection><num>(5)</num><intro><p>“The intervening period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the breach occurred, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day on which the single one-off qualifying transfer was made in accordance with section 809RZC(2).</p></content></level></subsection><subsection><num>(6)</num><content><p>If more than one qualifying transfer of a sum equal to the required amount was transferred out of the TRF capital account within the 30-day grace period, the first of those transfers is assumed to be the single one-off qualifying transfer.</p></content></subsection><subsection><num>(7)</num><content><p>“The 30-day grace period” is the period of 30 days mentioned in section 809RZC(2).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38219"><heading>Business investment relief</heading><paragraph eId="schedule-10-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-10-paragraph-19-1"><num>(1)</num><content><p><ref eId="c00316" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">section 809VC</a> (qualifying investments) in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">subsection (4)</a>, after “if” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the investment is made before 6 April 2028,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the money or other property used to make the investment is TRF capital, and</p></content></level><level class="para1"><num>(c)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a> (income or gains treated as remitted following certain events)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (6)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38287"><num>(6A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>the income or gains mentioned in subsection (1)(a) include amounts designated as TRF capital (in a tax year after the tax year in which the investment is made), and</p></content></level><level class="para1"><num>(b)</num><content><p>the portion of the investment affected is less than the whole of the investment,</p></content></level><wrapUp><p>so much of the affected income or gains as does not exceed the amounts designated is to be treated as being comprised of the TRF capital.</p></wrapUp></subsection><subsection><num>(6B)</num><intro><p>Where section 809VO (investments made from mixed funds) applies, subsection (8) of that section applies for the purposes of determining the composition of the amount of the affected income or gains that is not treated as being comprised of TRF capital (referred to as the “<term refersTo="#term-relevant-affected-income-and-gains">relevant affected income and gains</term>” in that subsection) as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>subsection (6A) of this section not applying, or</p></content></level><level class="para1"><num>(b)</num><content><p>that subsection only applying to a part of the affected income or gains.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-3-b"><num>(b)</num><intro><p>in subsection (7)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>for “Sections” substitute <quotedText>“Section”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-3-b-ii"><num>(ii)</num><content><p><mod>for “and 809VO (investments made from mixed funds) make” substitute <quotedText>“makes”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-3-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (9)</a>, after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content><p>any part contained in amounts already treated as remitted under section 809VIA(4) following an earlier event,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">section 809VN</a> (order of disposals etc)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">(b)</a>, for the words from “order” to the end substitute <quotedText>“following order.”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The order is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the qualifying investments as were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and then</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to whatever remains, the order in which the qualifying investments were made (that is to say, on a first in, first out basis).</p></content></level></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (4)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">paragraph (b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>assume that a disposal of all or part of that deemed single holding is—</p></intro><level class="para2" eId="d25e38447"><num>(i)</num><content><p>a disposal of so much of the deemed single holding as is from any qualifying investments that were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if any of the deemed single holding remains after the disposal referred to in sub-paragraph (i), a disposal of a holding from qualifying investments until the holdings from all the qualifying investments have been disposed of.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">section 809VO</a> (investments made from mixed funds)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-5-a"><num>(a)</num><content><p><mod>for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38475"><num>(4)</num><content><p>The “fixed proportion” is, unless subsection (4B) applies, the proportion of that kind of income or capital contained in the invested property by virtue of subsection (2).</p></content></subsection><subsection><num>(4A)</num><content><p>Subsection (4B) applies, instead of subsection (3), for determining the composition of the holding in connection with the application of subsections (7) and (8) where the holding contains TRF capital (as a result of the designation of income or capital in the holding as TRF capital in the tax year after the tax year in which the relevant event occurred).</p></content></subsection><subsection eId="d25e38487"><num>(4B)</num><content><p>Where this subsection applies, take the following steps to determine the composition of the holding in connection with the application of those subsections—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the amounts of each kind of income and capital that the holding was treated as containing by virtue of subsection (3).</p></item><item><p><i>Step 2</i></p><p>Reduce the amount of each kind of income and capital by the amount (if any) of that income or capital as is TRF capital.</p></item></blockList></content></subsection><subsection eId="d25e38510"><num>(4C)</num><content><p>Where subsection (4B) applies, the “fixed proportion” is the proportion of that kind of income or capital treated as contained in the invested property by virtue of that subsection (instead of subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-b"><num>(b)</num><content><p><mod>in subsection (7), after “proportion” insert <quotedText>“(determined under subsection (4) or (4C) as the case may be)”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-c"><num>(c)</num><intro><p>in subsection (8)(a)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-5-c-i"><num>(i)</num><content><p><mod>before “affected” insert <quotedText>“relevant”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-5-c-ii"><num>(ii)</num><content><p><mod>before “portion” insert <quotedText>“relevant proportion of the”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-5-d"><num>(d)</num><content><p><mod>in subsection (8)(b), after “(3)” insert <quotedText>“or (4B) (as the case may be)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-e"><num>(e)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p>For the purposes of subsection (8)(a)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “<term refersTo="#term-relevant-affected-income-or-gains">relevant affected income or gains</term>” means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, so much of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, all of the affected income or gains, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “relevant proportion” of the portion of the investment means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, the proportion of the portion of the investment that is equal to the proportion of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, the whole of the portion of the investment.</p></content></level></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VI">section 809VI</a> (the appropriate mitigation steps), in subsection (3), after “But” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>see also section 809VIA (which makes provision treating the disposal proceeds as reduced where TRF capital is involved), and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-7"><num>(7)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e38654"><num>809VIA</num><heading>Application of appropriate mitigation steps where TRF capital involved</heading><subsection><num>(1)</num><content><p>This section applies in relation to a potentially chargeable event where, if no appropriate mitigation steps were regarded as taken, an amount of TRF capital would (ignoring this section) be treated as remitted to the United Kingdom immediately after the end of the relevant grace period as a result of section 809VG(2).</p></content></subsection><subsection><num>(2)</num><content><p>Where there has been a disposal of all or part of the holding (see section 809VI(1) or (2)(b)), so much of the proceeds of that disposal as are equal to that amount of TRF capital is to be regarded as comprising that TRF capital.</p></content></subsection><subsection><num>(3)</num><content><p>Section 809VI has effect as if references in that section to the disposal proceeds did not include the TRF capital.</p></content></subsection><subsection eId="d25e38676"><num>(4)</num><content><p>Unless section 809VG(2) applies in relation to the potentially chargeable event, the TRF capital is to be treated as remitted to the United Kingdom at the time the potentially chargeable event occurred.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38682"><heading>No tax credits for pre 2016-17 dividends etc</heading><paragraph eId="schedule-10-paragraph-20" class="schProv1"><num>20</num><content><p>Sections 397 to 398 of ITTOIA 2005 (which have been repealed and only have effect in relation to distributions made before tax year 2016-17) do not apply in relation to any amount of designated qualifying overseas capital.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38691"><heading>Commencement</heading><paragraph eId="schedule-10-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-10-paragraph-21-1"><num>(1)</num><content><p>The amendments made by this Part of this Schedule have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-21-2"><num>(2)</num><content><p>Sub-paragraph (1) does not apply to the modifications made by paragraphs 14 and 18.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-10-part-1"><num>Part 1</num><heading>Temporary repatriation facility charge</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e35304"><heading>Introduction and charge</heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-10-paragraph-1-1"><num>(1)</num><content><p><ref href="#schedule-10-part-1">This Part</ref> of <ref href="#schedule-10">this Schedule</ref> sets out a charge on amounts of qualifying overseas capital of individuals previously subject to the remittance basis.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-2"><num>(2)</num><content><p>The charge is to be known as the temporary repatriation facility charge, and is referred to in this Schedule as the “<term refersTo="#term-trf-charge" eId="term-trf-charge">TRF charge</term>”.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-3"><num>(3)</num><content><p><span><ref href="#schedule-10-paragraph-2">Paragraphs 2</ref> to <ref href="#schedule-10-paragraph-6">6</ref></span> set out when amounts are, or are to be treated, as qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-4"><num>(4)</num><content><p>Amounts of qualifying overseas capital of an individual are subject to the TRF charge only if the individual designates them in accordance with this Part of this Schedule.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-5"><num>(5)</num><content><p>An individual may only designate qualifying overseas capital if the individual was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-6"><num>(6)</num><content><p>An individual designates qualifying overseas capital by making an election (a “designation election”) in a return for the tax year 2025-26, 2026-27 or 2027-28 (see <ref href="#schedule-10-paragraph-8">paragraph 8</ref> for further provision about designation elections).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-7"><num>(7)</num><content><p>A designation election may only be made in a return if, for the tax year to which the return relates, the individual is UK resident for the purposes of income tax and capital gains tax (see <a href="https://www.legislation.gov.uk/ukpga/2013/29/schedule/45">Schedule 45</a> to <ref eId="c00286" href="https://www.legislation.gov.uk/ukpga/2013/29">FA 2013</ref>).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-8"><num>(8)</num><intro><p>The amount of the TRF charge on qualifying overseas capital designated by an individual is—</p></intro><level class="para1" eId="schedule-10-paragraph-1-8-a"><num>(a)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2025-26 or 2026-27, the amount equal to 12% of the amount of that capital, and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-8-b"><num>(b)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2027-28, the amount equal to 15% of the amount of that capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-1-9"><num>(9)</num><content><p>Part 2 of this Schedule sets out exemptions and reliefs from income tax and capital gains tax that apply where amounts of qualifying overseas capital are designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-10"><num>(10)</num><content><p><ref href="#schedule-10-part-3">Part 3</ref> of <ref href="#schedule-10">this Schedule</ref> amends or modifies rules about the remittance of amounts where an individual has designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-11"><num>(11)</num><intro><p>For the purposes of <ref href="#schedule-10-part-1">this Part</ref> of <ref href="#schedule-10">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-10-paragraph-1-11-a"><num>(a)</num><intro><p>an individual is subject to the remittance basis for a tax year—</p></intro><level class="para2" eId="schedule-10-paragraph-1-11-a-i"><num>(i)</num><content><p>in relation to the tax years 2008-09 to 2024-25, if any of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">sections 809B</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">809D</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809E">809E</a> of <ref eId="c00287" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> apply to the individual for that year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-1-11-a-ii"><num>(ii)</num><content><p>in relation to any tax year before 2008-2009, if any income or gains of the individual for that year were subject to the remittance basis (including any income or gains that would have been regarded as arising in the tax year but were not as a result of the application of the remittance basis), and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-1-11-b"><num>(b)</num><content><p>“<term refersTo="#term-return" eId="term-return">return</term>” means a return under <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/8">section 8</a> of <ref eId="c00288" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (personal return for income tax and capital gains tax), and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-11-c"><num>(c)</num><content><p>references to an election being included in a return include an election being so included as a result of an amendment of the return.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35474"><heading>Qualifying overseas capital: main cases</heading><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-10-paragraph-2-1"><num>(1)</num><content><p>An amount of capital is “qualifying overseas capital” of an individual if it falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>, <ref href="#schedule-10-paragraph-2-5">(5)</ref> or <ref href="#schedule-10-paragraph-2-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-2"><num>(2)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-2-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-b"><num>(b)</num><content><p>the amount has not been remitted to the United Kingdom, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-c"><num>(c)</num><content><p>the amount, if remitted to the United Kingdom, would have the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-3"><num>(3)</num><intro><p>That effect is that—</p></intro><level class="para1" eId="schedule-10-paragraph-2-3-a"><num>(a)</num><content><p>the individual becomes chargeable to income tax by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">26</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">41F</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">554Z9</a> or 554Z10 of <ref eId="c00289" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> or <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00290" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (income charged on remittance basis), or</p></content></level><level class="para1" eId="schedule-10-paragraph-2-3-b"><num>(b)</num><content><p>a gain is treated as accruing to the individual by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00291" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (gains charged on remittance basis).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-4"><num>(4)</num><content><p>In determining whether an amount of capital falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> for the purposes of making a designation election for a tax year, the condition in <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-10-paragraph-2-2-b">(b)</ref> is to be regarded as met if it was met at the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-5"><num>(5)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-5-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-b"><num>(b)</num><content><p>the amount is remitted to the United Kingdom in the tax year 2025-26, 2026-27 or 2027-28, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-c"><num>(c)</num><content><p>that remittance has the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-6"><num>(6)</num><content><p>An amount that is qualifying overseas capital falling within <ref href="#schedule-10-paragraph-2-5">sub-paragraph (5)</ref> (and that has not previously been designated as result of the amount falling within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>) may only be designated in a designation election for the tax year in which it was remitted.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-7"><num>(7)</num><intro><p>For the purposes of <ref href="#schedule-10-paragraph-2-2">sub-paragraphs (2)</ref><ref href="#schedule-10-paragraph-2-2-c">(c)</ref> and <ref href="#schedule-10-paragraph-2-5">(5)</ref><ref href="#schedule-10-paragraph-2-5-c">(c)</ref>, a remittance is to be treated as having the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref> if it would have that effect ignoring—</p></intro><level class="para1" eId="schedule-10-paragraph-2-7-a"><num>(a)</num><content><p><ref href="#schedule-10-part-2">Part 2</ref> of this Schedule (exemptions etc for designated qualifying overseas capital),</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VA">section 809VA</a> of <ref eId="c00292" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (business investment relief), and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a> of <ref eId="c00293" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (exempt property).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-8"><num>(8)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-8-a"><num>(a)</num><content><p>it does not fall within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> or <ref href="#schedule-10-paragraph-2-5">(5)</ref>,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-b"><num>(b)</num><content><p>it was held by the individual immediately before 6 April 2025,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-c"><num>(c)</num><intro><p>it was situated outside the United Kingdom—</p></intro><level class="para2" eId="schedule-10-paragraph-2-8-c-i"><num>(i)</num><content><p>immediately before it was most recently acquired by the individual before that date, and</p></content></level><level class="para2" eId="schedule-10-paragraph-2-8-c-ii"><num>(ii)</num><content><p>throughout the period beginning with the time referred to in <ref href="#schedule-10-paragraph-2-8-c-i">sub-paragraph (i)</ref> and ending with that date.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-9"><num>(9)</num><content><p>References in <ref href="#schedule-10-part-1">Parts 1</ref> and <ref href="#schedule-10-part-2">2</ref> of <ref href="#schedule-10">this Schedule</ref> to amounts being remitted to the United Kingdom are to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00294" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35761"><heading>Capital payments made by settlement: section 87 and 89 TCGA 1992 cases</heading><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of section 87(2) or 89(2) of TCGA 1992 in relation to a capital payment from the trustees of a settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-1-b"><num>(b)</num><content><p>the settlement has a section 1(3) amount that is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-3-a"><num>(a)</num><content><p>the section 1(3) amount for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-3-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-3-3-b-ii"><num>(ii)</num><content><p>to which section 87(2) or 89(2) of that Act applies.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount for the tax year 2024-25 or an earlier tax year resulting from the application of section 87 or 89(2) of TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-3-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-6"><num>(6)</num><content><p>The section 1(3) amount is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-544c8e842f22544bd470af33cb08a98c-1776847074039" ukl:CommentaryRef="key-544c8e842f22544bd470af33cb08a98c"><noteRef uk:name="commentary" href="#key-544c8e842f22544bd470af33cb08a98c" class="commentary"/>paragraph 5</ins> (and no section 1(3) amounts or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-3-8-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in section 87 of TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-9"><num>(9)</num><intro><p>For the purposes of this paragraph, and <ins class="substitution first last" ukl:ChangeId="key-8c7dfbc4b972e5671ea104100e876f83-1776847074039" ukl:CommentaryRef="key-8c7dfbc4b972e5671ea104100e876f83"><noteRef uk:name="commentary" href="#key-8c7dfbc4b972e5671ea104100e876f83" class="commentary"/>paragraph 5</ins>, an individual is a qualifying individual in a tax year if the individual—</p></intro><level class="para1" eId="schedule-10-paragraph-3-9-a"><num>(a)</num><content><p>is UK resident for the purposes of income tax and capital gains tax for that tax year, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-9-b"><num>(b)</num><content><p>was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35903"><heading>Capital payments made by settlement: offshore income gains cases</heading><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num><noteRef href="#key-b2c7030c15d614327ddf86dccff26e8c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>4</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35913"><heading>Capital payments made by settlement: Schedule 4C cases</heading><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-10-paragraph-5-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of paragraph 8(1) of Schedule 4C to TCGA 1992 in relation to a capital payment from the trustees of a relevant settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-1-b"><num>(b)</num><content><p>the section 1(3) amount in the Schedule 4C pool is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts in the Schedule 4C pool for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-3-a"><num>(a)</num><content><p>the section 1(3) amount in the Schedule 4C pool for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-5-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-5-3-b-ii"><num>(ii)</num><content><p>to which paragraph 8(1) of Schedule 4C to that Act applies in relation to section 1(3) amounts in the Schedule 4C pool.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or an earlier tax year resulting from the application of paragraph 8(1) of Schedule 4C to TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-5-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount in the Schedule 4C pool under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-6"><num>(6)</num><content><p>The section 1(3) amount in the Schedule 4C pool is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-53f680365af6ece2c1f0aed8e72e1394-1776847357884" ukl:CommentaryRef="key-53f680365af6ece2c1f0aed8e72e1394"><noteRef uk:name="commentary" href="#key-53f680365af6ece2c1f0aed8e72e1394" class="commentary"/>paragraph 3</ins> (and no section 1(3) amount in the Schedule 4C pool or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-5-8-a"><num>(a)</num><content><p>“section 1(3) amount in the Schedule 4C pool” and “relevant settlement” are to be construed in accordance with Schedule 4C to TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36031"><heading>Amounts of income treated as qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-10-paragraph-6-1"><num>(1)</num><intro><p><ref href="#schedule-10-paragraph-6">This paragraph</ref> applies—</p></intro><level class="para1" eId="schedule-10-paragraph-6-1-a"><num>(a)</num><content><p>where an individual is treated as having an amount of income as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/643A">section 643A</a> of <ref eId="c00295" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (benefits paid out of protected foreign-source income or transitional trust income) for any of the tax years 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-b"><num>(b)</num><content><p>where an individual would have been treated as having an amount of income as a result of any other provision of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5/chapter/5">Chapter 5</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5">Part 5</a> of <ref eId="c00296" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (settlements: amounts treated as income of settlor or family) in the tax year 2024-25 or an earlier tax year but was not only as a result of the application of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">section 648</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">(3)</a> of <ref eId="c00297" href="https://www.legislation.gov.uk/ukpga/2005/5">that Act</ref> (relevant foreign income treated as arising under settlement only if and when remitted), or</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-c"><num>(c)</num><intro><p>where—</p></intro><level class="para2" eId="schedule-10-paragraph-6-1-c-i"><num>(i)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/732">section 732</a> of <ref eId="c00298" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-ii"><num>(ii)</num><content><p>under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/735A">section 735A</a> of <ref eId="c00299" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (if it applied also for this purpose) that amount would be matched with relevant income that arose in the tax year 2024-25 or an earlier tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-iii"><num>(iii)</num><content><p>that amount would have been treated as relevant foreign income of the individual if it had been treated as accruing in the tax year 2024-25 and the individual had been subject to the remittance basis for that tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-6-2"><num>(2)</num><content><p>An amount of income falling within <ref href="#schedule-10-paragraph-6-1-a">paragraph (a)</ref>, <ref href="#schedule-10-paragraph-6-1-b">(b)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> of <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref> is to be treated as an amount of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-3"><num>(3)</num><content><p>An amount of income treated as qualifying overseas capital falling within <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-10-paragraph-6-1-a">(a)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-4"><num>(4)</num><content><p>For the purposes of <ref href="#schedule-10-paragraph-6">this paragraph</ref> “<term refersTo="#term-relevant-foreign-income" eId="term-relevant-foreign-income">relevant foreign income</term>” has the meaning it has in the Income Tax Acts.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36161"><heading>Deemed income under section 732 of ITA 2007 where pre-2025 gains available for matching</heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-10-paragraph-7-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-7-1-a"><num>(a)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-b"><num>(b)</num><content><p>the amount of income does not fall within paragraph 6(1)(c), and</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-c"><num>(c)</num><content><p>the benefit by reference to which that income is treated as arising would, if it were not chargeable to income tax, be an amount of qualifying overseas capital of the individual by virtue of paragraph 3 or 5 (capital payments).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-1A"><num><ins class="first" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd"><noteRef uk:name="commentary" href="#key-a714d4c53e920634821d9d78d9c849cd" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">For the purposes of applying those paragraphs for the purposes of sub-paragraph (1)(c)—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-7-1A-a"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs have effect as if—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-7-1A-a-i"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(i)</ins></num><content><p><mod><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">for sub-paragraph (1)(a) (in each paragraph) there were substituted—</ins><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</ins></p></content></level></quotedStructure><inline name="appendText"><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">,</ins></inline></mod></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-ii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(ii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the reference in sub-paragraph (2) (in each paragraph) to “the payment” were to the benefit by reference to which the income is treated as arising,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">sub-paragraph (3)(b)(ii) (in each paragraph) were omitted, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iv"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iv)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the references in each paragraph, and in section 87A of TCGA 1992 as applied by those paragraphs, to “capital payments” were to benefits falling within sub-paragraph (1)(c) of this paragraph, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-7-1A-b"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs are to be applied after they have been applied for the purposes of determining whether any amount of a capital payment is qualifying overseas capital.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-2"><num>(2)</num><content><p>The amount is to be treated as an amount <ins class="first last" ukl:ChangeId="key-5afe54cf97ef5cab8f21e8361e836a74-1776849382513" ukl:CommentaryRef="key-5afe54cf97ef5cab8f21e8361e836a74"><noteRef uk:name="commentary" href="#key-5afe54cf97ef5cab8f21e8361e836a74" class="commentary"/>of income</ins> of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-7-3"><num>(3)</num><content><p>The amount may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36275"><heading>Designation of qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-10-paragraph-8-1"><num>(1)</num><content><p>A designation election for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2"><num>(2)</num><intro><p>The designation must—</p></intro><level class="para1" eId="schedule-10-paragraph-8-2-a"><num>(a)</num><content><p>set out the total amount designated, <noteRef href="#key-618a6a5886e1287ff91179a230f38778" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-aa"><num><ins class="first" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55"><noteRef uk:name="commentary" href="#key-2431037c5d02401011ed77937389fc55" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55">for each amount designated, whether or not it is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-b"><num>(b)</num><content><p>identify which (if any) of the amounts designated <ins class="first last" ukl:ChangeId="key-988aec55dba20941dfe651e6fc0cdbee-1776849778990" ukl:CommentaryRef="key-988aec55dba20941dfe651e6fc0cdbee"><noteRef uk:name="commentary" href="#key-988aec55dba20941dfe651e6fc0cdbee" class="commentary"/>on that basis</ins> have been remitted in the tax year to which the return relates.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-2A"><num><ins class="first" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af"><noteRef uk:name="commentary" href="#key-65ee73b2b4a1eeb8133aba3eb5d541af" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">For the purposes of designating an amount of qualifying overseas capital of an individual that—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2A-a"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(a)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is qualifying overseas capital as a result of paragraph 2(2) or (5), or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2A-b"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(b)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is treated as qualifying overseas capital as a result of paragraph 6(1)(b),</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">the value of that amount is the value of the amount when it first arose to the individual.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2B"><num><ins class="first" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa"><noteRef uk:name="commentary" href="#key-dc0713a92959e81f684701908e0759aa" class="commentary"/>(2B)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">In this Part and in Part 2 “</ins><term refersTo="#term-remittance-provision"><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">remittance provision</ins></term><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">” means paragraph 2(2) or (5) or paragraph 6(1)(b).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2C"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2C)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2C-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">an amount is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2C-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">the amount would (ignoring this sub-paragraph) also be regarded as designated under paragraph 3 or 5 (matched capital payments),</ins></p></content></level><wrapUp><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">it is not to be regarded as designated under that paragraph for the purposes of paragraph 10(7) (relief for offshore income gains) or paragraph 13 (relief for matched capital payments) as a result of that designation on that basis.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2D"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2D)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Accordingly two designations of the amount are required to secure the benefit of all of the reliefs that may be available under paragraphs 10(1), 10(7),12(1) and 13—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2D-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">one designation of the amount on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2D-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">another not on that basis.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-3"><num>(3)</num><content><p>Where an amount of relevant foreign tax has been paid, or is payable, in respect of an amount of qualifying overseas capital, only so much of the amount as remains after deducting the amount of relevant foreign tax paid, or payable, may be designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-4"><num>(4)</num><intro><p>For the purposes of this paragraph, relevant foreign tax means a tax imposed by the law of a territory outside the United Kingdom that corresponds to—</p></intro><level class="para1" eId="schedule-10-paragraph-8-4-a"><num>(a)</num><content><p>income tax, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-4-b"><num>(b)</num><content><p>capital gains tax.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-4A"><num><ins class="first" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3"><noteRef uk:name="commentary" href="#key-d2b98820144550a15e507e0a9ff68cf3" class="commentary"/>(4A)</ins></num><intro><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">But where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-4A-a"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">an amount of relevant foreign tax has been paid, or will be paid, in respect of an amount of qualifying overseas capital (“the related qualifying overseas capital”), and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-4A-b"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">it has been, or will be, paid out of funds other than the related qualifying overseas capital,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">sub-paragraph (3) does not apply to the related qualifying overseas capital to the extent that the tax has been, or will be, paid out of those funds.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-5"><num>(5)</num><intro><p>An individual may designate an amount where it has not yet been determined—</p></intro><level class="para1" eId="schedule-10-paragraph-8-5-a"><num>(a)</num><content><p>whether the amount is qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-5-b"><num>(b)</num><content><p>whether, or to what extent, relevant foreign tax is, or was, payable in respect of the amount.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-5A"><num><ins class="first" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1"><noteRef uk:name="commentary" href="#key-7a0c94f10a7604893d15a37e40290eb1" class="commentary"/>(5A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1">Where the individual considers that an amount designated under sub-paragraph (5) could, if it were qualifying overseas capital, be designated on the basis that it is qualifying overseas capital as a result of a remittance provision, the individual may designate it on that basis.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6"><num>(6)</num><intro><p>An amount designated—</p></intro><level class="para1" eId="schedule-10-paragraph-8-6-a"><num>(a)</num><content><p>that is determined to not be qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-6-b"><num>(b)</num><content><p>that should not have been designated as a result of sub-paragraph (3),</p></content></level><wrapUp><p>is to be nevertheless treated as designated qualifying overseas capital, other than for the purpose of Part 2 of this Schedule (exemptions etc).</p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-6A"><num><ins class="first" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52"><noteRef uk:name="commentary" href="#key-faf32870b83f36b1427015ddaafdef52" class="commentary"/>(6A)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Sub-paragraph (6B) applies where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-6A-a"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(a)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">an amount (“the TRF amount”) is treated as designated qualifying overseas capital of an individual as a result of sub-paragraph (6),</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-6A-b"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(b)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">on or after 6 April 2025, an officer of Revenue and Customs, in relation to the tax year 2024-25 or an earlier tax year—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-8-6A-b-i"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(i)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">amends the individual’s self-assessment while an enquiry under section 9A of TMA 1970 (enquiry into return) into the individual’s return for that tax year is in progress,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-ii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(ii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">issues a partial or final closure notice under section 28A of that Act (completion of enquiry) in relation to that return, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-iii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(iii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">makes an assessment under section 29 of that Act, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-8-6A-c"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(c)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">the effect of the officer taking that step is that income tax or capital gains tax is charged in respect of the TRF amount.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-6B"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6B)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">The amount of income tax or capital gains tax due and payable under section 59B of TMA 1970 in respect of the TRF amount is to be treated as reduced (but not below nil) by the amount of the TRF charge paid in respect of the TRF amount.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6C"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Where sub-paragraph (6B) applies, the individual may not amend the return in which the designation election relating to the TRF amount was included to alter or revoke that election (if the return otherwise could have been amended) so as to cause the TRF amount not to be designated.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-7"><num>(7)</num><content><p>Where an amount is designated, it is treated as designated qualifying overseas capital from the beginning of the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-8"><num>(8)</num><content><p>An individual who makes a designation election must keep a record of each amount designated.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36592"><heading>Payment of the TRF charge through the income tax system</heading><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-10-paragraph-9-1"><num>(1)</num><content><p>An amount of designated qualifying overseas capital is chargeable to the TRF charge for the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-2"><num>(2)</num><content><p>Amounts of TRF charge are to be charged as if they were amounts of income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-3"><num>(3)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/23">Section 23</a> of <ref eId="c00300" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (calculation of income tax liability) applies in relation to a person liable to the TRF charge as if paragraph 1(8) were included in the lists of provisions in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">section 30</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">(1)</a> of <ref eId="c00301" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (amounts of tax added at Step 7).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-4"><num>(4)</num><content><p>For the purposes of the collection and management of the TRF charge, all other enactments applying generally to income tax apply to the TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-5"><num>(5)</num><intro><p>Those enactments include—</p></intro><level class="para1" eId="schedule-10-paragraph-9-5-a"><num>(a)</num><content><p>those relating to returns of information and the supply of accounts, statements and reports,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-b"><num>(b)</num><content><p>those relating to the assessing, collecting and receiving of income tax,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-c"><num>(c)</num><content><p>those conferring or regulating a right of appeal, and</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-d"><num>(d)</num><content><p>those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-9-6"><num>(6)</num><content><p>But section 59A of TMA 1970 (payments on account of income tax) does not apply in relation to amounts of TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-7"><num>(7)</num><content><p>For the purposes of section 12B of TMA 1970 (as applied as a result of sub-paragraph (4)), the records required to be kept as a result of paragraph 8(8) are to be regarded as records that must be kept for the purposes of enabling an individual to make and deliver a correct and complete return.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-8"><num><ins class="first" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76"><noteRef uk:name="commentary" href="#key-2c99a990a7f9f8700096951e66076d76" class="commentary"/>(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76">Paragraph 8(6) is not to be taken as preventing the amendment of a return so as to alter or revoke a designation of qualifying overseas capital made in that return, provided that amendment is made in accordance with section 9ZA of TMA 1970 (taxpayer permitted to amend return within 12 months of filing date).</ins></p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e35304"><heading>Introduction and charge</heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-10-paragraph-1-1"><num>(1)</num><content><p><ref href="#schedule-10-part-1">This Part</ref> of <ref href="#schedule-10">this Schedule</ref> sets out a charge on amounts of qualifying overseas capital of individuals previously subject to the remittance basis.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-2"><num>(2)</num><content><p>The charge is to be known as the temporary repatriation facility charge, and is referred to in this Schedule as the “<term refersTo="#term-trf-charge" eId="term-trf-charge">TRF charge</term>”.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-3"><num>(3)</num><content><p><span><ref href="#schedule-10-paragraph-2">Paragraphs 2</ref> to <ref href="#schedule-10-paragraph-6">6</ref></span> set out when amounts are, or are to be treated, as qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-4"><num>(4)</num><content><p>Amounts of qualifying overseas capital of an individual are subject to the TRF charge only if the individual designates them in accordance with this Part of this Schedule.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-5"><num>(5)</num><content><p>An individual may only designate qualifying overseas capital if the individual was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-6"><num>(6)</num><content><p>An individual designates qualifying overseas capital by making an election (a “designation election”) in a return for the tax year 2025-26, 2026-27 or 2027-28 (see <ref href="#schedule-10-paragraph-8">paragraph 8</ref> for further provision about designation elections).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-7"><num>(7)</num><content><p>A designation election may only be made in a return if, for the tax year to which the return relates, the individual is UK resident for the purposes of income tax and capital gains tax (see <a href="https://www.legislation.gov.uk/ukpga/2013/29/schedule/45">Schedule 45</a> to <ref eId="c00286" href="https://www.legislation.gov.uk/ukpga/2013/29">FA 2013</ref>).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-8"><num>(8)</num><intro><p>The amount of the TRF charge on qualifying overseas capital designated by an individual is—</p></intro><level class="para1" eId="schedule-10-paragraph-1-8-a"><num>(a)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2025-26 or 2026-27, the amount equal to 12% of the amount of that capital, and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-8-b"><num>(b)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2027-28, the amount equal to 15% of the amount of that capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-1-9"><num>(9)</num><content><p>Part 2 of this Schedule sets out exemptions and reliefs from income tax and capital gains tax that apply where amounts of qualifying overseas capital are designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-10"><num>(10)</num><content><p><ref href="#schedule-10-part-3">Part 3</ref> of <ref href="#schedule-10">this Schedule</ref> amends or modifies rules about the remittance of amounts where an individual has designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-11"><num>(11)</num><intro><p>For the purposes of <ref href="#schedule-10-part-1">this Part</ref> of <ref href="#schedule-10">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-10-paragraph-1-11-a"><num>(a)</num><intro><p>an individual is subject to the remittance basis for a tax year—</p></intro><level class="para2" eId="schedule-10-paragraph-1-11-a-i"><num>(i)</num><content><p>in relation to the tax years 2008-09 to 2024-25, if any of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">sections 809B</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">809D</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809E">809E</a> of <ref eId="c00287" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> apply to the individual for that year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-1-11-a-ii"><num>(ii)</num><content><p>in relation to any tax year before 2008-2009, if any income or gains of the individual for that year were subject to the remittance basis (including any income or gains that would have been regarded as arising in the tax year but were not as a result of the application of the remittance basis), and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-1-11-b"><num>(b)</num><content><p>“<term refersTo="#term-return" eId="term-return">return</term>” means a return under <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/8">section 8</a> of <ref eId="c00288" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (personal return for income tax and capital gains tax), and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-11-c"><num>(c)</num><content><p>references to an election being included in a return include an election being so included as a result of an amendment of the return.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e35474"><heading>Qualifying overseas capital: main cases</heading><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-10-paragraph-2-1"><num>(1)</num><content><p>An amount of capital is “qualifying overseas capital” of an individual if it falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>, <ref href="#schedule-10-paragraph-2-5">(5)</ref> or <ref href="#schedule-10-paragraph-2-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-2"><num>(2)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-2-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-b"><num>(b)</num><content><p>the amount has not been remitted to the United Kingdom, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-c"><num>(c)</num><content><p>the amount, if remitted to the United Kingdom, would have the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-3"><num>(3)</num><intro><p>That effect is that—</p></intro><level class="para1" eId="schedule-10-paragraph-2-3-a"><num>(a)</num><content><p>the individual becomes chargeable to income tax by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">26</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">41F</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">554Z9</a> or 554Z10 of <ref eId="c00289" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> or <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00290" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (income charged on remittance basis), or</p></content></level><level class="para1" eId="schedule-10-paragraph-2-3-b"><num>(b)</num><content><p>a gain is treated as accruing to the individual by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00291" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (gains charged on remittance basis).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-4"><num>(4)</num><content><p>In determining whether an amount of capital falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> for the purposes of making a designation election for a tax year, the condition in <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-10-paragraph-2-2-b">(b)</ref> is to be regarded as met if it was met at the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-5"><num>(5)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-5-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-b"><num>(b)</num><content><p>the amount is remitted to the United Kingdom in the tax year 2025-26, 2026-27 or 2027-28, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-c"><num>(c)</num><content><p>that remittance has the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-6"><num>(6)</num><content><p>An amount that is qualifying overseas capital falling within <ref href="#schedule-10-paragraph-2-5">sub-paragraph (5)</ref> (and that has not previously been designated as result of the amount falling within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>) may only be designated in a designation election for the tax year in which it was remitted.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-7"><num>(7)</num><intro><p>For the purposes of <ref href="#schedule-10-paragraph-2-2">sub-paragraphs (2)</ref><ref href="#schedule-10-paragraph-2-2-c">(c)</ref> and <ref href="#schedule-10-paragraph-2-5">(5)</ref><ref href="#schedule-10-paragraph-2-5-c">(c)</ref>, a remittance is to be treated as having the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref> if it would have that effect ignoring—</p></intro><level class="para1" eId="schedule-10-paragraph-2-7-a"><num>(a)</num><content><p><ref href="#schedule-10-part-2">Part 2</ref> of this Schedule (exemptions etc for designated qualifying overseas capital),</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VA">section 809VA</a> of <ref eId="c00292" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (business investment relief), and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a> of <ref eId="c00293" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (exempt property).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-8"><num>(8)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-8-a"><num>(a)</num><content><p>it does not fall within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> or <ref href="#schedule-10-paragraph-2-5">(5)</ref>,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-b"><num>(b)</num><content><p>it was held by the individual immediately before 6 April 2025,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-c"><num>(c)</num><intro><p>it was situated outside the United Kingdom—</p></intro><level class="para2" eId="schedule-10-paragraph-2-8-c-i"><num>(i)</num><content><p>immediately before it was most recently acquired by the individual before that date, and</p></content></level><level class="para2" eId="schedule-10-paragraph-2-8-c-ii"><num>(ii)</num><content><p>throughout the period beginning with the time referred to in <ref href="#schedule-10-paragraph-2-8-c-i">sub-paragraph (i)</ref> and ending with that date.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-9"><num>(9)</num><content><p>References in <ref href="#schedule-10-part-1">Parts 1</ref> and <ref href="#schedule-10-part-2">2</ref> of <ref href="#schedule-10">this Schedule</ref> to amounts being remitted to the United Kingdom are to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00294" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e35761"><heading>Capital payments made by settlement: section 87 and 89 TCGA 1992 cases</heading><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of section 87(2) or 89(2) of TCGA 1992 in relation to a capital payment from the trustees of a settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-1-b"><num>(b)</num><content><p>the settlement has a section 1(3) amount that is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-3-a"><num>(a)</num><content><p>the section 1(3) amount for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-3-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-3-3-b-ii"><num>(ii)</num><content><p>to which section 87(2) or 89(2) of that Act applies.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount for the tax year 2024-25 or an earlier tax year resulting from the application of section 87 or 89(2) of TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-3-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-6"><num>(6)</num><content><p>The section 1(3) amount is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-544c8e842f22544bd470af33cb08a98c-1776847074039" ukl:CommentaryRef="key-544c8e842f22544bd470af33cb08a98c"><noteRef uk:name="commentary" href="#key-544c8e842f22544bd470af33cb08a98c" class="commentary"/>paragraph 5</ins> (and no section 1(3) amounts or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-3-8-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in section 87 of TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-9"><num>(9)</num><intro><p>For the purposes of this paragraph, and <ins class="substitution first last" ukl:ChangeId="key-8c7dfbc4b972e5671ea104100e876f83-1776847074039" ukl:CommentaryRef="key-8c7dfbc4b972e5671ea104100e876f83"><noteRef uk:name="commentary" href="#key-8c7dfbc4b972e5671ea104100e876f83" class="commentary"/>paragraph 5</ins>, an individual is a qualifying individual in a tax year if the individual—</p></intro><level class="para1" eId="schedule-10-paragraph-3-9-a"><num>(a)</num><content><p>is UK resident for the purposes of income tax and capital gains tax for that tax year, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-9-b"><num>(b)</num><content><p>was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e35903"><heading>Capital payments made by settlement: offshore income gains cases</heading><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num><noteRef href="#key-b2c7030c15d614327ddf86dccff26e8c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>4</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e35913"><heading>Capital payments made by settlement: Schedule 4C cases</heading><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-10-paragraph-5-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of paragraph 8(1) of Schedule 4C to TCGA 1992 in relation to a capital payment from the trustees of a relevant settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-1-b"><num>(b)</num><content><p>the section 1(3) amount in the Schedule 4C pool is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts in the Schedule 4C pool for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-3-a"><num>(a)</num><content><p>the section 1(3) amount in the Schedule 4C pool for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-5-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-5-3-b-ii"><num>(ii)</num><content><p>to which paragraph 8(1) of Schedule 4C to that Act applies in relation to section 1(3) amounts in the Schedule 4C pool.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or an earlier tax year resulting from the application of paragraph 8(1) of Schedule 4C to TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-5-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount in the Schedule 4C pool under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-6"><num>(6)</num><content><p>The section 1(3) amount in the Schedule 4C pool is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-53f680365af6ece2c1f0aed8e72e1394-1776847357884" ukl:CommentaryRef="key-53f680365af6ece2c1f0aed8e72e1394"><noteRef uk:name="commentary" href="#key-53f680365af6ece2c1f0aed8e72e1394" class="commentary"/>paragraph 3</ins> (and no section 1(3) amount in the Schedule 4C pool or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-5-8-a"><num>(a)</num><content><p>“section 1(3) amount in the Schedule 4C pool” and “relevant settlement” are to be construed in accordance with Schedule 4C to TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e36031"><heading>Amounts of income treated as qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-10-paragraph-6-1"><num>(1)</num><intro><p><ref href="#schedule-10-paragraph-6">This paragraph</ref> applies—</p></intro><level class="para1" eId="schedule-10-paragraph-6-1-a"><num>(a)</num><content><p>where an individual is treated as having an amount of income as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/643A">section 643A</a> of <ref eId="c00295" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (benefits paid out of protected foreign-source income or transitional trust income) for any of the tax years 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-b"><num>(b)</num><content><p>where an individual would have been treated as having an amount of income as a result of any other provision of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5/chapter/5">Chapter 5</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5">Part 5</a> of <ref eId="c00296" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (settlements: amounts treated as income of settlor or family) in the tax year 2024-25 or an earlier tax year but was not only as a result of the application of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">section 648</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">(3)</a> of <ref eId="c00297" href="https://www.legislation.gov.uk/ukpga/2005/5">that Act</ref> (relevant foreign income treated as arising under settlement only if and when remitted), or</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-c"><num>(c)</num><intro><p>where—</p></intro><level class="para2" eId="schedule-10-paragraph-6-1-c-i"><num>(i)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/732">section 732</a> of <ref eId="c00298" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-ii"><num>(ii)</num><content><p>under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/735A">section 735A</a> of <ref eId="c00299" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (if it applied also for this purpose) that amount would be matched with relevant income that arose in the tax year 2024-25 or an earlier tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-iii"><num>(iii)</num><content><p>that amount would have been treated as relevant foreign income of the individual if it had been treated as accruing in the tax year 2024-25 and the individual had been subject to the remittance basis for that tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-6-2"><num>(2)</num><content><p>An amount of income falling within <ref href="#schedule-10-paragraph-6-1-a">paragraph (a)</ref>, <ref href="#schedule-10-paragraph-6-1-b">(b)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> of <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref> is to be treated as an amount of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-3"><num>(3)</num><content><p>An amount of income treated as qualifying overseas capital falling within <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-10-paragraph-6-1-a">(a)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-4"><num>(4)</num><content><p>For the purposes of <ref href="#schedule-10-paragraph-6">this paragraph</ref> “<term refersTo="#term-relevant-foreign-income" eId="term-relevant-foreign-income">relevant foreign income</term>” has the meaning it has in the Income Tax Acts.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e36161"><heading>Deemed income under section 732 of ITA 2007 where pre-2025 gains available for matching</heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-10-paragraph-7-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-7-1-a"><num>(a)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-b"><num>(b)</num><content><p>the amount of income does not fall within paragraph 6(1)(c), and</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-c"><num>(c)</num><content><p>the benefit by reference to which that income is treated as arising would, if it were not chargeable to income tax, be an amount of qualifying overseas capital of the individual by virtue of paragraph 3 or 5 (capital payments).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-1A"><num><ins class="first" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd"><noteRef uk:name="commentary" href="#key-a714d4c53e920634821d9d78d9c849cd" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">For the purposes of applying those paragraphs for the purposes of sub-paragraph (1)(c)—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-7-1A-a"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs have effect as if—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-7-1A-a-i"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(i)</ins></num><content><p><mod><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">for sub-paragraph (1)(a) (in each paragraph) there were substituted—</ins><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</ins></p></content></level></quotedStructure><inline name="appendText"><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">,</ins></inline></mod></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-ii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(ii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the reference in sub-paragraph (2) (in each paragraph) to “the payment” were to the benefit by reference to which the income is treated as arising,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">sub-paragraph (3)(b)(ii) (in each paragraph) were omitted, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iv"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iv)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the references in each paragraph, and in section 87A of TCGA 1992 as applied by those paragraphs, to “capital payments” were to benefits falling within sub-paragraph (1)(c) of this paragraph, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-7-1A-b"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs are to be applied after they have been applied for the purposes of determining whether any amount of a capital payment is qualifying overseas capital.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-2"><num>(2)</num><content><p>The amount is to be treated as an amount <ins class="first last" ukl:ChangeId="key-5afe54cf97ef5cab8f21e8361e836a74-1776849382513" ukl:CommentaryRef="key-5afe54cf97ef5cab8f21e8361e836a74"><noteRef uk:name="commentary" href="#key-5afe54cf97ef5cab8f21e8361e836a74" class="commentary"/>of income</ins> of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-7-3"><num>(3)</num><content><p>The amount may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e36275"><heading>Designation of qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-10-paragraph-8-1"><num>(1)</num><content><p>A designation election for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2"><num>(2)</num><intro><p>The designation must—</p></intro><level class="para1" eId="schedule-10-paragraph-8-2-a"><num>(a)</num><content><p>set out the total amount designated, <noteRef href="#key-618a6a5886e1287ff91179a230f38778" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-aa"><num><ins class="first" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55"><noteRef uk:name="commentary" href="#key-2431037c5d02401011ed77937389fc55" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55">for each amount designated, whether or not it is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-b"><num>(b)</num><content><p>identify which (if any) of the amounts designated <ins class="first last" ukl:ChangeId="key-988aec55dba20941dfe651e6fc0cdbee-1776849778990" ukl:CommentaryRef="key-988aec55dba20941dfe651e6fc0cdbee"><noteRef uk:name="commentary" href="#key-988aec55dba20941dfe651e6fc0cdbee" class="commentary"/>on that basis</ins> have been remitted in the tax year to which the return relates.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-2A"><num><ins class="first" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af"><noteRef uk:name="commentary" href="#key-65ee73b2b4a1eeb8133aba3eb5d541af" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">For the purposes of designating an amount of qualifying overseas capital of an individual that—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2A-a"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(a)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is qualifying overseas capital as a result of paragraph 2(2) or (5), or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2A-b"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(b)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is treated as qualifying overseas capital as a result of paragraph 6(1)(b),</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">the value of that amount is the value of the amount when it first arose to the individual.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2B"><num><ins class="first" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa"><noteRef uk:name="commentary" href="#key-dc0713a92959e81f684701908e0759aa" class="commentary"/>(2B)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">In this Part and in Part 2 “</ins><term refersTo="#term-remittance-provision"><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">remittance provision</ins></term><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">” means paragraph 2(2) or (5) or paragraph 6(1)(b).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2C"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2C)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2C-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">an amount is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2C-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">the amount would (ignoring this sub-paragraph) also be regarded as designated under paragraph 3 or 5 (matched capital payments),</ins></p></content></level><wrapUp><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">it is not to be regarded as designated under that paragraph for the purposes of paragraph 10(7) (relief for offshore income gains) or paragraph 13 (relief for matched capital payments) as a result of that designation on that basis.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2D"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2D)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Accordingly two designations of the amount are required to secure the benefit of all of the reliefs that may be available under paragraphs 10(1), 10(7),12(1) and 13—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2D-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">one designation of the amount on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2D-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">another not on that basis.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-3"><num>(3)</num><content><p>Where an amount of relevant foreign tax has been paid, or is payable, in respect of an amount of qualifying overseas capital, only so much of the amount as remains after deducting the amount of relevant foreign tax paid, or payable, may be designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-4"><num>(4)</num><intro><p>For the purposes of this paragraph, relevant foreign tax means a tax imposed by the law of a territory outside the United Kingdom that corresponds to—</p></intro><level class="para1" eId="schedule-10-paragraph-8-4-a"><num>(a)</num><content><p>income tax, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-4-b"><num>(b)</num><content><p>capital gains tax.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-4A"><num><ins class="first" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3"><noteRef uk:name="commentary" href="#key-d2b98820144550a15e507e0a9ff68cf3" class="commentary"/>(4A)</ins></num><intro><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">But where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-4A-a"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">an amount of relevant foreign tax has been paid, or will be paid, in respect of an amount of qualifying overseas capital (“the related qualifying overseas capital”), and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-4A-b"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">it has been, or will be, paid out of funds other than the related qualifying overseas capital,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">sub-paragraph (3) does not apply to the related qualifying overseas capital to the extent that the tax has been, or will be, paid out of those funds.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-5"><num>(5)</num><intro><p>An individual may designate an amount where it has not yet been determined—</p></intro><level class="para1" eId="schedule-10-paragraph-8-5-a"><num>(a)</num><content><p>whether the amount is qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-5-b"><num>(b)</num><content><p>whether, or to what extent, relevant foreign tax is, or was, payable in respect of the amount.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-5A"><num><ins class="first" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1"><noteRef uk:name="commentary" href="#key-7a0c94f10a7604893d15a37e40290eb1" class="commentary"/>(5A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1">Where the individual considers that an amount designated under sub-paragraph (5) could, if it were qualifying overseas capital, be designated on the basis that it is qualifying overseas capital as a result of a remittance provision, the individual may designate it on that basis.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6"><num>(6)</num><intro><p>An amount designated—</p></intro><level class="para1" eId="schedule-10-paragraph-8-6-a"><num>(a)</num><content><p>that is determined to not be qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-6-b"><num>(b)</num><content><p>that should not have been designated as a result of sub-paragraph (3),</p></content></level><wrapUp><p>is to be nevertheless treated as designated qualifying overseas capital, other than for the purpose of Part 2 of this Schedule (exemptions etc).</p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-6A"><num><ins class="first" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52"><noteRef uk:name="commentary" href="#key-faf32870b83f36b1427015ddaafdef52" class="commentary"/>(6A)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Sub-paragraph (6B) applies where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-6A-a"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(a)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">an amount (“the TRF amount”) is treated as designated qualifying overseas capital of an individual as a result of sub-paragraph (6),</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-6A-b"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(b)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">on or after 6 April 2025, an officer of Revenue and Customs, in relation to the tax year 2024-25 or an earlier tax year—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-8-6A-b-i"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(i)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">amends the individual’s self-assessment while an enquiry under section 9A of TMA 1970 (enquiry into return) into the individual’s return for that tax year is in progress,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-ii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(ii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">issues a partial or final closure notice under section 28A of that Act (completion of enquiry) in relation to that return, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-iii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(iii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">makes an assessment under section 29 of that Act, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-8-6A-c"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(c)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">the effect of the officer taking that step is that income tax or capital gains tax is charged in respect of the TRF amount.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-6B"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6B)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">The amount of income tax or capital gains tax due and payable under section 59B of TMA 1970 in respect of the TRF amount is to be treated as reduced (but not below nil) by the amount of the TRF charge paid in respect of the TRF amount.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6C"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Where sub-paragraph (6B) applies, the individual may not amend the return in which the designation election relating to the TRF amount was included to alter or revoke that election (if the return otherwise could have been amended) so as to cause the TRF amount not to be designated.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-7"><num>(7)</num><content><p>Where an amount is designated, it is treated as designated qualifying overseas capital from the beginning of the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-8"><num>(8)</num><content><p>An individual who makes a designation election must keep a record of each amount designated.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e36592"><heading>Payment of the TRF charge through the income tax system</heading><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-10-paragraph-9-1"><num>(1)</num><content><p>An amount of designated qualifying overseas capital is chargeable to the TRF charge for the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-2"><num>(2)</num><content><p>Amounts of TRF charge are to be charged as if they were amounts of income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-3"><num>(3)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/23">Section 23</a> of <ref eId="c00300" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (calculation of income tax liability) applies in relation to a person liable to the TRF charge as if paragraph 1(8) were included in the lists of provisions in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">section 30</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">(1)</a> of <ref eId="c00301" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (amounts of tax added at Step 7).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-4"><num>(4)</num><content><p>For the purposes of the collection and management of the TRF charge, all other enactments applying generally to income tax apply to the TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-5"><num>(5)</num><intro><p>Those enactments include—</p></intro><level class="para1" eId="schedule-10-paragraph-9-5-a"><num>(a)</num><content><p>those relating to returns of information and the supply of accounts, statements and reports,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-b"><num>(b)</num><content><p>those relating to the assessing, collecting and receiving of income tax,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-c"><num>(c)</num><content><p>those conferring or regulating a right of appeal, and</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-d"><num>(d)</num><content><p>those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-9-6"><num>(6)</num><content><p>But section 59A of TMA 1970 (payments on account of income tax) does not apply in relation to amounts of TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-7"><num>(7)</num><content><p>For the purposes of section 12B of TMA 1970 (as applied as a result of sub-paragraph (4)), the records required to be kept as a result of paragraph 8(8) are to be regarded as records that must be kept for the purposes of enabling an individual to make and deliver a correct and complete return.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-8"><num><ins class="first" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76"><noteRef uk:name="commentary" href="#key-2c99a990a7f9f8700096951e66076d76" class="commentary"/>(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76">Paragraph 8(6) is not to be taken as preventing the amendment of a return so as to alter or revoke a designation of qualifying overseas capital made in that return, provided that amendment is made in accordance with section 9ZA of TMA 1970 (taxpayer permitted to amend return within 12 months of filing date).</ins></p></content></subparagraph></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-10-part-2"><num>Part 2</num><heading>Exemptions etc for designated qualifying overseas capital</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e36691"><heading>Income tax exemptions and relief</heading><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><intro><p>No liability to income tax arises on </p></intro><level class="para1" eId="schedule-10-paragraph-10-1-a"><num><ins class="first last" ukl:ChangeId="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8-1776853132966" ukl:CommentaryRef="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8"><noteRef uk:name="commentary" href="#key-b1095a56ce7bbfabdc9e4e6e3a8b01f8" class="commentary"/>(a)</ins></num><content><p>the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-d10d1a50438566ccae8772e4ce37d1e2-1776853290668" ukl:CommentaryRef="key-d10d1a50438566ccae8772e4ce37d1e2"><noteRef uk:name="commentary" href="#key-d10d1a50438566ccae8772e4ce37d1e2" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision</ins> <ins class="first" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f"><noteRef uk:name="commentary" href="#key-f4964405d862b2748a4c836b21acf08f" class="commentary"/>, or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-10-1-b"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(b)</ins></num><intro><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">an amount of income treated as qualifying overseas capital under paragraph 6 that—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-10-1-b-i"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(i)</ins></num><content><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">falls within sub-paragraph (1)(b) of that paragraph, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-10-1-b-ii"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">is designated on the basis that it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 6 <ins class="first last" ukl:ChangeId="key-630151fc78607bb429cf9a616baf808b-1776853263158" ukl:CommentaryRef="key-630151fc78607bb429cf9a616baf808b"><noteRef uk:name="commentary" href="#key-630151fc78607bb429cf9a616baf808b" class="commentary"/>, and that falls within sub-paragraph (1)(a) or (c) of that paragraph,</ins> if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p>But such an amount is to be treated for the purposes of section 97(1) of TCGA 1992 (capital payments not to include amounts chargeable to income tax) as if it were chargeable to income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 7 if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><intro><p>Accordingly the amount—</p></intro><level class="para1" eId="schedule-10-paragraph-10-5-a"><num>(a)</num><content><p>will be a capital payment for the purposes of sections 86A to 96 of, and Schedule 4C to, TCGA 1992 (see section 97(1) of that Act), and</p></content></level><level class="para1" eId="schedule-10-paragraph-10-5-b"><num>(b)</num><content><p>will, as a result of paragraph 3 or 5 (or both), be qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p>Any such qualifying overseas capital is to be treated as having been designated by the individual (under that paragraph or those paragraphs), but no liability to the TRF charge is to arise as a result of that deemed designation.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-7"><num><noteRef href="#key-f37db8ccd0ef3d5d94e00404966056a9" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(7)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-8"><num><noteRef href="#key-1abc611bdef108e4a81cb2f8fbeee822" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(8)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-9"><num>(9)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36805"><heading>Income tax exemptions: application of transfer of assets abroad rules in future years</heading><paragraph eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content><p>This paragraph applies where an amount of income that is treated as arising to an individual under section 732 of ITA 2007 (“the deemed income”) is exempt from income tax by virtue of paragraph 10.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 6(1)(c), Chapter 2 of Part 13 of ITA 2007 has effect as though the deemed income had been charged to tax under section 731 of that Act.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><intro><p>Accordingly—</p></intro><level class="para1" eId="schedule-10-paragraph-11-3-a"><num>(a)</num><content><p>in the application of section 733(1) of ITA 2007 to the individual for subsequent tax years, the amount of the deemed income will be deducted at Step 2 and at paragraph (a) of Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-3-b"><num>(b)</num><content><p>in the application of section 733(1) of ITA 2007 to any other individual for subsequent tax years, the amount of the deemed income will be deducted at paragraph (b) of Step 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 7, Chapter 2 of Part 13 of ITA 2007 has effect as though the benefit by reference to which the deemed income was treated as arising had never been provided.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><intro><p>Accordingly, in the application of section 733(1) of ITA 2007 to any individual for subsequent tax years—</p></intro><level class="para1" eId="schedule-10-paragraph-11-5-a"><num>(a)</num><content><p>that benefit will not be taken into account at Step 1,</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-b"><num>(b)</num><content><p>no deduction in respect of the deemed income will be made at Step 2 or Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-c"><num>(c)</num><content><p>the total untaxed benefits will not be reduced in respect of that benefit by virtue of section 734 (previous capital gains charge).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36872"><heading>Capital gains tax: main exemption</heading><paragraph eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-10-paragraph-12-1"><num>(1)</num><content><p>No gain is treated as accruing under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00302" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> on the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-8dff72aa92040e88a538c94dba73ba0a-1776854193920" ukl:CommentaryRef="key-8dff72aa92040e88a538c94dba73ba0a"><noteRef uk:name="commentary" href="#key-8dff72aa92040e88a538c94dba73ba0a" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision (other than paragraph 6(1)(b))</ins>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-12-2"><num>(2)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36905"><heading>Capital gains tax: reliefs in respect of matched capital payments</heading><paragraph eId="schedule-10-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-10-paragraph-13-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> or 89(2) of <ref eId="c00303" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-1-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 3.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-2"><num>(2)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-3"><num>(3)</num><intro><p>Sub-paragraph (4) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-3-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00304" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>) of a capital payment with the section 1(3) amount for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00305" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (4)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 3(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">Section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00306" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (3)(a) as is matched with the amount of the section 1(3) amount as would also, in accordance with paragraph 3(2), be matched with the amount of a capital payment mentioned in sub-paragraph (3)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-5-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under paragraph 8(1) of Schedule 4C to TCGA 1992 as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-5-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-6"><num>(6)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-7"><num>(7)</num><intro><p>Sub-paragraph (8) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-7-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00307" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as it has effect for the purposes of paragraph 8(3) of Schedule 4C to that Act) of a capital payment with the section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-b"><num>(b)</num><content><p>paragraph 13(2) of Schedule 4C to that Act (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (8)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 5(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-8"><num>(8)</num><content><p>Paragraph 13(2) of Schedule 4C to TCGA 1992 does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (7)(a) as is matched with the amount of the section 1(3) amount in the Schedule 4C pool as would also, in accordance with paragraph 5(2), be matched with the amount of a capital payment mentioned in sub-paragraph (7)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-9"><num>(9)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-13-9-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a> of <ref eId="c00308" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></level><level class="para1" eId="schedule-10-paragraph-13-9-b"><num>(b)</num><content><p>“<term refersTo="#term-section-13-amount-in-the-schedule-4c-pool" eId="term-section-13-amount-in-the-schedule-4c-pool">section 1(3) amount in the Schedule 4C pool</term>” is to be construed in accordance with Schedule 4C to TCGA 1992.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-10"><num>(10)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37102"><heading><ins class="first" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471"><noteRef uk:name="commentary" href="#key-375a186091df53bad23bcaed69ae4471" class="commentary"/>Amounts derived from designated qualifying overseas capital</ins></heading><paragraph eId="schedule-10-paragraph-13A" class="schProv1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">13A</ins></num><subparagraph eId="schedule-10-paragraph-13A-1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(1)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">This paragraph applies to an amount (“</ins><term refersTo="#term-amount-a"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount A</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) if—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-1-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">either—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-13A-1-a-i"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(i)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount to the United Kingdom would have the effect mentioned in paragraph 2(3)(a) or (b) by reference to income or gains, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-13A-1-a-ii"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(ii)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount would result in income being treated as arising to a settlement in accordance with section 648(3) (and accordingly would result in an amount falling within paragraph 6(1)(b) arising), and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-13A-1-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of an amount (“</ins><term refersTo="#term-amount-b"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount B</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) of designated qualifying overseas capital to the United Kingdom would have one of the effects mentioned in paragraph (a)(i) or (ii) by reference to that same income or those same gains (“the reference income or gains”) if it had not been designated.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-2"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(2)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(i), so much of amount A (so far as it relates to the reference income or gains) as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-2-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-2-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-3"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(3)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(ii), so much of the amount falling within paragraph 6(1)(b) as would result from the remittance of amount A as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-3-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-3-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37209"><heading><ins class="first" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151"><noteRef uk:name="commentary" href="#key-bb44b435d1d2199ab6db0e477c766151" class="commentary"/>Effect of this Schedule on section 65(5) IHTA 1984 and section 260(2) of TCGA 1992</ins></heading><paragraph eId="schedule-10-paragraph-13B" class="schProv1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">13B</ins></num><subparagraph eId="schedule-10-paragraph-13B-1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(1)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">The effects of Parts 1 and 2 of this Schedule are to be ignored for the purposes of section 65(5)(b) of IHTA 1984 (and accordingly will not prevent any amount being regarded as income of a person for the purposes of income tax for the purposes of that section).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13B-2"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(2)</ins></num><intro><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13B-2-a"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(a)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the trustees of a settlement make a capital payment to an individual,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-b"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(b)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the making of that payment results in the individual having qualifying overseas capital,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-c"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(c)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">that qualifying overseas capital is designated,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">so much of the deemed disposal under section 71 of TCGA 1992 arising on the making of the payment as reflects the designated qualifying overseas capital is (despite sub-paragraph (1)) treated as a chargeable transfer within the meaning of IHTA 1984 for the purposes only of section 260(2)(a) of TCGA 1992 (gifts on which inheritance tax is chargeable etc).</ins></p></wrapUp></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e36691"><heading>Income tax exemptions and relief</heading><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><intro><p>No liability to income tax arises on </p></intro><level class="para1" eId="schedule-10-paragraph-10-1-a"><num><ins class="first last" ukl:ChangeId="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8-1776853132966" ukl:CommentaryRef="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8"><noteRef uk:name="commentary" href="#key-b1095a56ce7bbfabdc9e4e6e3a8b01f8" class="commentary"/>(a)</ins></num><content><p>the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-d10d1a50438566ccae8772e4ce37d1e2-1776853290668" ukl:CommentaryRef="key-d10d1a50438566ccae8772e4ce37d1e2"><noteRef uk:name="commentary" href="#key-d10d1a50438566ccae8772e4ce37d1e2" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision</ins> <ins class="first" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f"><noteRef uk:name="commentary" href="#key-f4964405d862b2748a4c836b21acf08f" class="commentary"/>, or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-10-1-b"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(b)</ins></num><intro><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">an amount of income treated as qualifying overseas capital under paragraph 6 that—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-10-1-b-i"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(i)</ins></num><content><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">falls within sub-paragraph (1)(b) of that paragraph, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-10-1-b-ii"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">is designated on the basis that it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 6 <ins class="first last" ukl:ChangeId="key-630151fc78607bb429cf9a616baf808b-1776853263158" ukl:CommentaryRef="key-630151fc78607bb429cf9a616baf808b"><noteRef uk:name="commentary" href="#key-630151fc78607bb429cf9a616baf808b" class="commentary"/>, and that falls within sub-paragraph (1)(a) or (c) of that paragraph,</ins> if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p>But such an amount is to be treated for the purposes of section 97(1) of TCGA 1992 (capital payments not to include amounts chargeable to income tax) as if it were chargeable to income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 7 if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><intro><p>Accordingly the amount—</p></intro><level class="para1" eId="schedule-10-paragraph-10-5-a"><num>(a)</num><content><p>will be a capital payment for the purposes of sections 86A to 96 of, and Schedule 4C to, TCGA 1992 (see section 97(1) of that Act), and</p></content></level><level class="para1" eId="schedule-10-paragraph-10-5-b"><num>(b)</num><content><p>will, as a result of paragraph 3 or 5 (or both), be qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p>Any such qualifying overseas capital is to be treated as having been designated by the individual (under that paragraph or those paragraphs), but no liability to the TRF charge is to arise as a result of that deemed designation.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-7"><num><noteRef href="#key-f37db8ccd0ef3d5d94e00404966056a9" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(7)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-8"><num><noteRef href="#key-1abc611bdef108e4a81cb2f8fbeee822" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(8)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-9"><num>(9)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e36805"><heading>Income tax exemptions: application of transfer of assets abroad rules in future years</heading><paragraph eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content><p>This paragraph applies where an amount of income that is treated as arising to an individual under section 732 of ITA 2007 (“the deemed income”) is exempt from income tax by virtue of paragraph 10.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 6(1)(c), Chapter 2 of Part 13 of ITA 2007 has effect as though the deemed income had been charged to tax under section 731 of that Act.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><intro><p>Accordingly—</p></intro><level class="para1" eId="schedule-10-paragraph-11-3-a"><num>(a)</num><content><p>in the application of section 733(1) of ITA 2007 to the individual for subsequent tax years, the amount of the deemed income will be deducted at Step 2 and at paragraph (a) of Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-3-b"><num>(b)</num><content><p>in the application of section 733(1) of ITA 2007 to any other individual for subsequent tax years, the amount of the deemed income will be deducted at paragraph (b) of Step 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 7, Chapter 2 of Part 13 of ITA 2007 has effect as though the benefit by reference to which the deemed income was treated as arising had never been provided.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><intro><p>Accordingly, in the application of section 733(1) of ITA 2007 to any individual for subsequent tax years—</p></intro><level class="para1" eId="schedule-10-paragraph-11-5-a"><num>(a)</num><content><p>that benefit will not be taken into account at Step 1,</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-b"><num>(b)</num><content><p>no deduction in respect of the deemed income will be made at Step 2 or Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-c"><num>(c)</num><content><p>the total untaxed benefits will not be reduced in respect of that benefit by virtue of section 734 (previous capital gains charge).</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e36872"><heading>Capital gains tax: main exemption</heading><paragraph eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-10-paragraph-12-1"><num>(1)</num><content><p>No gain is treated as accruing under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00302" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> on the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-8dff72aa92040e88a538c94dba73ba0a-1776854193920" ukl:CommentaryRef="key-8dff72aa92040e88a538c94dba73ba0a"><noteRef uk:name="commentary" href="#key-8dff72aa92040e88a538c94dba73ba0a" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision (other than paragraph 6(1)(b))</ins>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-12-2"><num>(2)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e36905"><heading>Capital gains tax: reliefs in respect of matched capital payments</heading><paragraph eId="schedule-10-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-10-paragraph-13-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> or 89(2) of <ref eId="c00303" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-1-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 3.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-2"><num>(2)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-3"><num>(3)</num><intro><p>Sub-paragraph (4) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-3-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00304" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>) of a capital payment with the section 1(3) amount for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00305" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (4)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 3(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">Section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00306" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (3)(a) as is matched with the amount of the section 1(3) amount as would also, in accordance with paragraph 3(2), be matched with the amount of a capital payment mentioned in sub-paragraph (3)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-5-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under paragraph 8(1) of Schedule 4C to TCGA 1992 as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-5-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-6"><num>(6)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-7"><num>(7)</num><intro><p>Sub-paragraph (8) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-7-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00307" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as it has effect for the purposes of paragraph 8(3) of Schedule 4C to that Act) of a capital payment with the section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-b"><num>(b)</num><content><p>paragraph 13(2) of Schedule 4C to that Act (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (8)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 5(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-8"><num>(8)</num><content><p>Paragraph 13(2) of Schedule 4C to TCGA 1992 does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (7)(a) as is matched with the amount of the section 1(3) amount in the Schedule 4C pool as would also, in accordance with paragraph 5(2), be matched with the amount of a capital payment mentioned in sub-paragraph (7)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-9"><num>(9)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-13-9-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a> of <ref eId="c00308" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></level><level class="para1" eId="schedule-10-paragraph-13-9-b"><num>(b)</num><content><p>“<term refersTo="#term-section-13-amount-in-the-schedule-4c-pool" eId="term-section-13-amount-in-the-schedule-4c-pool">section 1(3) amount in the Schedule 4C pool</term>” is to be construed in accordance with Schedule 4C to TCGA 1992.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-10"><num>(10)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e37102"><heading><ins class="first" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471"><noteRef uk:name="commentary" href="#key-375a186091df53bad23bcaed69ae4471" class="commentary"/>Amounts derived from designated qualifying overseas capital</ins></heading><paragraph eId="schedule-10-paragraph-13A" class="schProv1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">13A</ins></num><subparagraph eId="schedule-10-paragraph-13A-1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(1)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">This paragraph applies to an amount (“</ins><term refersTo="#term-amount-a"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount A</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) if—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-1-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">either—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-13A-1-a-i"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(i)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount to the United Kingdom would have the effect mentioned in paragraph 2(3)(a) or (b) by reference to income or gains, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-13A-1-a-ii"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(ii)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount would result in income being treated as arising to a settlement in accordance with section 648(3) (and accordingly would result in an amount falling within paragraph 6(1)(b) arising), and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-13A-1-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of an amount (“</ins><term refersTo="#term-amount-b"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount B</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) of designated qualifying overseas capital to the United Kingdom would have one of the effects mentioned in paragraph (a)(i) or (ii) by reference to that same income or those same gains (“the reference income or gains”) if it had not been designated.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-2"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(2)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(i), so much of amount A (so far as it relates to the reference income or gains) as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-2-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-2-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-3"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(3)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(ii), so much of the amount falling within paragraph 6(1)(b) as would result from the remittance of amount A as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-3-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-3-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-13A" class="schProv1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">13A</ins></num><subparagraph eId="schedule-10-paragraph-13A-1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(1)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">This paragraph applies to an amount (“</ins><term refersTo="#term-amount-a"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount A</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) if—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-1-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">either—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-13A-1-a-i"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(i)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount to the United Kingdom would have the effect mentioned in paragraph 2(3)(a) or (b) by reference to income or gains, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-13A-1-a-ii"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(ii)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount would result in income being treated as arising to a settlement in accordance with section 648(3) (and accordingly would result in an amount falling within paragraph 6(1)(b) arising), and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-13A-1-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of an amount (“</ins><term refersTo="#term-amount-b"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount B</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) of designated qualifying overseas capital to the United Kingdom would have one of the effects mentioned in paragraph (a)(i) or (ii) by reference to that same income or those same gains (“the reference income or gains”) if it had not been designated.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-2"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(2)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(i), so much of amount A (so far as it relates to the reference income or gains) as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-2-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-2-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-3"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(3)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(ii), so much of the amount falling within paragraph 6(1)(b) as would result from the remittance of amount A as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-3-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-3-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e37209"><heading><ins class="first" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151"><noteRef uk:name="commentary" href="#key-bb44b435d1d2199ab6db0e477c766151" class="commentary"/>Effect of this Schedule on section 65(5) IHTA 1984 and section 260(2) of TCGA 1992</ins></heading><paragraph eId="schedule-10-paragraph-13B" class="schProv1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">13B</ins></num><subparagraph eId="schedule-10-paragraph-13B-1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(1)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">The effects of Parts 1 and 2 of this Schedule are to be ignored for the purposes of section 65(5)(b) of IHTA 1984 (and accordingly will not prevent any amount being regarded as income of a person for the purposes of income tax for the purposes of that section).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13B-2"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(2)</ins></num><intro><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13B-2-a"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(a)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the trustees of a settlement make a capital payment to an individual,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-b"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(b)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the making of that payment results in the individual having qualifying overseas capital,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-c"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(c)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">that qualifying overseas capital is designated,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">so much of the deemed disposal under section 71 of TCGA 1992 arising on the making of the payment as reflects the designated qualifying overseas capital is (despite sub-paragraph (1)) treated as a chargeable transfer within the meaning of IHTA 1984 for the purposes only of section 260(2)(a) of TCGA 1992 (gifts on which inheritance tax is chargeable etc).</ins></p></wrapUp></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-13B" class="schProv1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">13B</ins></num><subparagraph eId="schedule-10-paragraph-13B-1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(1)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">The effects of Parts 1 and 2 of this Schedule are to be ignored for the purposes of section 65(5)(b) of IHTA 1984 (and accordingly will not prevent any amount being regarded as income of a person for the purposes of income tax for the purposes of that section).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13B-2"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(2)</ins></num><intro><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13B-2-a"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(a)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the trustees of a settlement make a capital payment to an individual,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-b"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(b)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the making of that payment results in the individual having qualifying overseas capital,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-c"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(c)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">that qualifying overseas capital is designated,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">so much of the deemed disposal under section 71 of TCGA 1992 arising on the making of the payment as reflects the designated qualifying overseas capital is (despite sub-paragraph (1)) treated as a chargeable transfer within the meaning of IHTA 1984 for the purposes only of section 260(2)(a) of TCGA 1992 (gifts on which inheritance tax is chargeable etc).</ins></p></wrapUp></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-part-3"><num>Part 3</num><heading>Effect of designation on when amounts remitted etc</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e37266"><heading>Temporary disapplication of nominated income ordering rules</heading><paragraph eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809I">Section 809I</a> of <ref eId="c00309" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis charge: income and gains treated as remitted) does not apply for a tax year in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content><p>the tax year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><intro><p>the individual—</p></intro><level class="para2" eId="schedule-10-paragraph-14-b-i"><num>(i)</num><content><p>makes a designation of qualifying overseas capital for that tax year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-14-b-ii"><num>(ii)</num><content><p>has made such a designation for a previous tax year, and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-14-c"><num>(c)</num><content><p>that section has not applied in relation to that individual for the tax year 2024-25 or an earlier tax year.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37310"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">section 809Q</a> of <ref eId="c00310" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-10-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">Section 809Q</a> of <ref eId="c00311" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-2-a"><num>(a)</num><content><p><mod>before Step 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step A1</i></p><p>Find the amount (if any) of income or capital of the individual for the relevant tax year in the mixed fund immediately before the transfer that is TRF capital.</p><p>If the amount of the transfer is equal to, or less than, the amount of TRF capital, treat the transfer as containing only TRF capital.</p><p>Otherwise—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>treat so much of the transfer as does not exceed the amount of the TRF capital as being comprised of TRF capital, and</p></item><item><num>(b)</num><p>apply the following steps to the remainder of the transfer.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-15-2-b"><num>(b)</num><content><p><mod>in Steps 2 to 4, and in the first sentence in Step 5, for “transfer”, in each place it occurs, substitute <quotedText>“remainder”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-3-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-15-3-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-4"><num>(4)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e37427"><num>(9)</num><intro><p>For the purposes of this Chapter “<term refersTo="#term-trf-capital">TRF capital</term>” means any amount that—</p></intro><level class="para1"><num>(a)</num><content><p>is qualifying overseas capital (within the meaning of Part 1 of Schedule 10 to FA 2025) as a result of paragraph 2 of that Schedule, and</p></content></level><level class="para1"><num>(b)</num><content><p>is designated qualifying overseas capital for the purposes of that Part of that Schedule (and see paragraph 8(7) which provides for qualifying overseas capital to be treated as designated qualifying overseas capital from the start of the tax year to which the return in which it is designated relates).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-5"><num>(5)</num><content><p><mod>In section 809Z10 of ITA 2007 (general interpretation), after the definition of “the remittance basis user” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-trf-capital">TRF capital</term>” has the meaning given by section 809Q(9).</p></content></hcontainer></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37463"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00312" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-10-paragraph-16-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">Section 809R</a> of <ref eId="c00313" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “This section applies” substitute <quotedText>“Subsections (2) to (8) apply”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>For the purposes of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (5)</a> for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-5-a"><num>(a)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q as not applying in relation to it, if it” substitute <quotedText>“neither section 809Q nor section 809RZA(2) as applying in relation to it, if they”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-6"><num>(6)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (7)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-6-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-16-6-b"><num>(b)</num><content><p><mod> after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-7"><num>(7)</num><intro><p>In subsection (9)—</p></intro><level class="para1" eId="schedule-10-paragraph-16-7-a"><num>(a)</num><content><p><mod>for “step 1” substitute <quotedText>“steps A1 and 1”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-7-b"><num>(b)</num><content><p><mod>for “step 2” substitute <quotedText>“steps A1 and 2”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37625"><heading>Mixed funds: TRF capital account</heading><paragraph eId="schedule-10-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00314" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37644"><num>809RZA</num><heading>Transfers into TRF capital account</heading><subsection eId="d25e37648"><num>(1)</num><intro><p>Subsection (2) applies to a transfer made from a mixed fund if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made from a mixed fund that contains TRF capital,</p></content></level><level class="para1"><num>(b)</num><content><p>the transfer is to a TRF capital account, and</p></content></level><level class="para1" eId="d25e37666"><num>(c)</num><content><p>the amount of the transfer does not exceed the amount of TRF capital in the mixed fund at the time of the transfer.</p></content></level></subsection><subsection eId="d25e37672"><num>(2)</num><content><p>The transfer is to be treated as a transfer of TRF capital.</p></content></subsection><subsection><num>(3)</num><intro><p>Where subsection (2) would apply to a transfer but does not because of paragraph (c) of subsection (1)—</p></intro><level class="para1"><num>(a)</num><content><p>that transfer is to be treated as two separate transfers occurring one immediately after the other, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first of those transfers is to be treated as being in the amount of TRF capital in the mixed fund (and accordingly subsection (2) will apply to that deemed transfer but not the second, which may result in the TRF capital account ceasing to be a TRF capital account).</p></content></level></subsection><subsection><num>(4)</num><content><p>Section 809RZB makes provision about the nomination of an account as a TRF capital account (and see sections 809RZC and 809RZD for the effect of making a transfer that contains amounts that are not TRF capital).</p></content></subsection></section><section eId="d25e37705"><num>809RZB</num><heading>TRF capital account</heading><subsection eId="d25e37709"><num>(1)</num><content><p>An individual may by notice to the Commissioners nominate an account to be a TRF capital account (and more than one nomination may have effect at any time).</p></content></subsection><subsection><num>(2)</num><content><p>The notice must specify the qualifying date for the account.</p></content></subsection><subsection><num>(3)</num><content><p>“The qualifying date” for the account is the first date on which there is paid into the account sums falling within subsection (4) which (in total) are more than £10 at a time when the credit balance of the account was £10 or less.</p></content></subsection><subsection eId="d25e37727"><num>(4)</num><content><p>A sum falls within this subsection if it is TRF capital.</p></content></subsection><subsection eId="d25e37733"><num>(5)</num><content><p>The individual may withdraw the nomination by giving a further notice to the Commissioners, specifying the date with effect from which the nomination is withdrawn.</p></content></subsection><subsection><num>(6)</num><content><p>A notice under subsection (1) or (5) must be in writing and include such information as the Commissioners may reasonably require.</p></content></subsection><subsection><num>(7)</num><intro><p>A notice under subsection (1) or (5) must be given no later than—</p></intro><level class="para1"><num>(a)</num><intro><p>31 January in the tax year following the tax year in which falls, as the case may be—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying date for the account, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn, or</p></content></level></level><level class="para1"><num>(b)</num><content><p>such later date as the Commissioners may allow.</p></content></level></subsection><subsection eId="d25e37775"><num>(8)</num><intro><p>If an individual nominates an account under this section, the account is a “TRF capital account” of the individual throughout the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the qualifying date, and</p></content></level><level class="para1" eId="d25e37787"><num>(b)</num><intro><p>ending with the date before the earliest of the following dates—</p></intro><level class="para2" eId="d25e37793"><num>(i)</num><content><p>the date on which the account is closed or ceases to be an ordinary bank account held by and for the benefit of the individual (alone or jointly with others);</p></content></level><level class="para2" eId="d25e37799"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn under this section;</p></content></level><level class="para2" eId="d25e37805"><num>(iii)</num><content><p>6 April in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></level></level></subsection><subsection><num>(9)</num><intro><p>The account is not to be a TRF capital account at all if—</p></intro><level class="para1"><num>(a)</num><content><p>at any time on the qualifying date, the account is not an ordinary bank account held by and for the benefit of the individual (alone or jointly with others), or</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before the qualifying date, the account has a credit balance of more than £10.</p></content></level></subsection><subsection><num>(10)</num><content><p>Where the account has a credit balance immediately before the qualifying date (which must be £10 or less), that balance is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection><num>(11)</num><content><p>Where interest is payable on TRF capital held in the TRF capital account, any such interest paid into the account is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e37842"><num>(12)</num><content><p>The account is not to be a TRF capital account at all if the qualifying date falls in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></subsection><subsection><num>(13)</num><content><p>Subsection (8)(b)(iii) or (12) (as relevant) is to be ignored if the breach occurs on or after a date falling within subsection (8)(b)(i) or (ii).</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section an account is an “ordinary bank account” if it is a cash account in a bank (whether a current or savings account) where sums standing to the credit of the account from time to time represent a debt owed by the bank to the account-holder.</p></content></subsection><subsection><num>(15)</num><content><p>In this section, and in sections 809RZC and 809RZD, a reference to anything “paid into” an account includes anything credited to the account by whatever means.</p></content></subsection></section><section eId="d25e37869"><num>809RZC</num><heading>Breaches of the TRF deposit rule</heading><subsection><num>(1)</num><content><p>There is a breach of the TRF deposit rule if one or more prohibited sums are paid into a TRF capital account on the qualifying date or any day after the qualifying date.</p></content></subsection><subsection eId="d25e37879"><num>(2)</num><content><p>A breach of the TRF deposit rule is remedied if, within 30 days beginning with the day on which the prohibited sums are paid into the account, the required amount is transferred out of the account by way of a single one-off qualifying transfer.</p></content></subsection><subsection><num>(3)</num><content><p>A transfer is “qualifying” if it does not result in the remittance of any amount to the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>“The required amount” is an amount equal to the total of the prohibited sums paid into the TRF capital account on the day of the breach.</p></content></subsection><subsection><num>(5)</num><content><p>If there are 2 days in a tax year on which one or more breaches of the TRF deposit rule occur, subsection (2) does not apply to any breach on any subsequent day in the tax year (and accordingly any breach occurring on any day after the second day in the tax year on which there has been a breach cannot be remedied).</p></content></subsection><subsection><num>(6)</num><content><p>A “prohibited sum” is anything other than a sum that is TRF capital.</p></content></subsection></section><section eId="d25e37912"><num>809RZD</num><heading>Effect where 30-day deadline is met</heading><subsection><num>(1)</num><content><p>This section applies if the required amount in relation to a breach of the TRF deposit rule was transferred out of the account in accordance with section 809RZC(2).</p></content></subsection><subsection eId="d25e37922"><num>(2)</num><intro><p>Sections 809Q and 809R have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the intervening transactions had never taken place, and</p></content></level><level class="para1"><num>(b)</num><content><p>each prohibited sum represented by the required amount had instead been transferred directly (at the time that sum was paid into the TRF capital account) into the account or other property into which the required amount was transferred by virtue of the single one-off qualifying transfer.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Each of the following is an “intervening transaction”—</p></intro><level class="para1"><num>(a)</num><content><p>each payment into the TRF capital account of a prohibited sum represented by the required amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the single one-off qualifying transfer out of the TRF capital account.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37958"><heading>Temporary application of annualised basis to mixed funds containing TRF capital</heading><paragraph eId="schedule-10-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-10-paragraph-18-1"><num>(1)</num><content><p>This following modifications have effect for the tax years 2025-26, 2026-27 and 2027-28.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-18-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00315" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> has effect as if—</p></intro><level class="para1" eId="schedule-10-paragraph-18-2-a"><num>(a)</num><content><p><mod>after section 809R there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37995"><num>809RZZA</num><heading>Annualised basis for mixed funds containing TRF capital</heading><subsection><num>(1)</num><content><p>This section applies where, at any time in a tax year, a mixed fund contains TRF capital.</p></content></subsection><subsection eId="d25e38005"><num>(2)</num><content><p>If this section applies, the composition of each transfer made from the fund in that tax year at any time is to be determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Suppose that all transfers made from the mixed fund to a TRF capital account in relation to which section 809RZA(2) applies had been a single transfer made from the fund at the end of the tax year.</p><p>Whether that section applies in relation to transfers to a TRF capital account is determined as if all transfers from the mixed fund were made at the end of the tax year but transfers to a TRF capital account were made—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>before any other transfer from the mixed fund was made, and</p></item><item><num>(b)</num><p>sequentially in the order in which the transfers to a TRF capital account were actually made.</p></item></blockList></item><item><p><i>Step 2</i></p><p>Suppose that all the condition A transfers made from the mixed fund in the tax year had been a single transfer made at the end of the tax year immediately after the single transfer mentioned in Step 1.</p></item><item><p><i>Step 3</i></p><p>Suppose that all the other transfers made from the account in the tax year had been a single offshore transfer made at the end of the tax year immediately after the single transfer mentioned in Step 2.</p></item><item><p><i>Step 4</i></p><p>Applying those suppositions—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>find under section 809Q(3) the content of the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>find under section 809R(4) the content of the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Each transfer made from the fund in the tax year, other than a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, is treated as containing the specified proportion of each kind of income or capital contained in the relevant deemed transfer.</p><p>“The specified proportion” is the amount of the transfer divided by the amount of the relevant deemed transfer.</p><p>“The relevant deemed transfer is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the transfer is a condition A transfer, the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>otherwise, the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Each transfer made from the fund in the tax year to which section 809RZA(2) is regarded as applying in accordance with Step 1 is to be treated as a transfer to which that section applies (and no other transfer in the tax year is to be regarded as a transfer in relation to which that section applies).</p></item></blockList></content></subsection><subsection><num>(3)</num><content><p>Subsection (2) applies in determining the composition of a transfer for the purposes of sections 809Q and 809R but it does not otherwise affect the date on which a transfer is considered to occur for the purposes of this Chapter.</p></content></subsection><subsection><num>(4)</num><intro><p>A transfer from the fund is a “condition A transfer” if and to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>condition A in section 809L is met, and</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the property or consideration for the service is (wholly or in part), or derives (wholly or in part, and directly or indirectly) from, the transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the transfer, or anything deriving (wholly or in part, and directly or indirectly) from the transfer, is used as mentioned in section 809L(3)(c).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>A transfer from the fund is an “other transfer” if and to the extent that it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></subsection><subsection><num>(6)</num><intro><p>Treat a transfer as an “other transfer” if and to the extent that, at the end of the tax year—</p></intro><level class="para1"><num>(a)</num><content><p>it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>on the basis of the best estimate that can reasonably be made at that time, it will not become either a condition A transfer or a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of Step 5 in subsection (2)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></section></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-18-2-b"><num>(b)</num><content><p><mod>in section 809RZD (as inserted by paragraph 17), at the end there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><content><p>If it is supposed under Steps 1 to 3 of section 809RZZA(2) that single transfers had been made in the intervening period, re-apply those steps in relation to those transfers taking account of subsection (2) and re-apply sections 809Q and 809R accordingly.</p></content></subsection><subsection><num>(5)</num><intro><p>“The intervening period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the breach occurred, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day on which the single one-off qualifying transfer was made in accordance with section 809RZC(2).</p></content></level></subsection><subsection><num>(6)</num><content><p>If more than one qualifying transfer of a sum equal to the required amount was transferred out of the TRF capital account within the 30-day grace period, the first of those transfers is assumed to be the single one-off qualifying transfer.</p></content></subsection><subsection><num>(7)</num><content><p>“The 30-day grace period” is the period of 30 days mentioned in section 809RZC(2).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38219"><heading>Business investment relief</heading><paragraph eId="schedule-10-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-10-paragraph-19-1"><num>(1)</num><content><p><ref eId="c00316" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">section 809VC</a> (qualifying investments) in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">subsection (4)</a>, after “if” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the investment is made before 6 April 2028,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the money or other property used to make the investment is TRF capital, and</p></content></level><level class="para1"><num>(c)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a> (income or gains treated as remitted following certain events)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (6)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38287"><num>(6A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>the income or gains mentioned in subsection (1)(a) include amounts designated as TRF capital (in a tax year after the tax year in which the investment is made), and</p></content></level><level class="para1"><num>(b)</num><content><p>the portion of the investment affected is less than the whole of the investment,</p></content></level><wrapUp><p>so much of the affected income or gains as does not exceed the amounts designated is to be treated as being comprised of the TRF capital.</p></wrapUp></subsection><subsection><num>(6B)</num><intro><p>Where section 809VO (investments made from mixed funds) applies, subsection (8) of that section applies for the purposes of determining the composition of the amount of the affected income or gains that is not treated as being comprised of TRF capital (referred to as the “<term refersTo="#term-relevant-affected-income-and-gains">relevant affected income and gains</term>” in that subsection) as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>subsection (6A) of this section not applying, or</p></content></level><level class="para1"><num>(b)</num><content><p>that subsection only applying to a part of the affected income or gains.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-3-b"><num>(b)</num><intro><p>in subsection (7)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>for “Sections” substitute <quotedText>“Section”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-3-b-ii"><num>(ii)</num><content><p><mod>for “and 809VO (investments made from mixed funds) make” substitute <quotedText>“makes”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-3-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (9)</a>, after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content><p>any part contained in amounts already treated as remitted under section 809VIA(4) following an earlier event,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">section 809VN</a> (order of disposals etc)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">(b)</a>, for the words from “order” to the end substitute <quotedText>“following order.”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The order is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the qualifying investments as were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and then</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to whatever remains, the order in which the qualifying investments were made (that is to say, on a first in, first out basis).</p></content></level></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (4)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">paragraph (b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>assume that a disposal of all or part of that deemed single holding is—</p></intro><level class="para2" eId="d25e38447"><num>(i)</num><content><p>a disposal of so much of the deemed single holding as is from any qualifying investments that were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if any of the deemed single holding remains after the disposal referred to in sub-paragraph (i), a disposal of a holding from qualifying investments until the holdings from all the qualifying investments have been disposed of.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">section 809VO</a> (investments made from mixed funds)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-5-a"><num>(a)</num><content><p><mod>for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38475"><num>(4)</num><content><p>The “fixed proportion” is, unless subsection (4B) applies, the proportion of that kind of income or capital contained in the invested property by virtue of subsection (2).</p></content></subsection><subsection><num>(4A)</num><content><p>Subsection (4B) applies, instead of subsection (3), for determining the composition of the holding in connection with the application of subsections (7) and (8) where the holding contains TRF capital (as a result of the designation of income or capital in the holding as TRF capital in the tax year after the tax year in which the relevant event occurred).</p></content></subsection><subsection eId="d25e38487"><num>(4B)</num><content><p>Where this subsection applies, take the following steps to determine the composition of the holding in connection with the application of those subsections—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the amounts of each kind of income and capital that the holding was treated as containing by virtue of subsection (3).</p></item><item><p><i>Step 2</i></p><p>Reduce the amount of each kind of income and capital by the amount (if any) of that income or capital as is TRF capital.</p></item></blockList></content></subsection><subsection eId="d25e38510"><num>(4C)</num><content><p>Where subsection (4B) applies, the “fixed proportion” is the proportion of that kind of income or capital treated as contained in the invested property by virtue of that subsection (instead of subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-b"><num>(b)</num><content><p><mod>in subsection (7), after “proportion” insert <quotedText>“(determined under subsection (4) or (4C) as the case may be)”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-c"><num>(c)</num><intro><p>in subsection (8)(a)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-5-c-i"><num>(i)</num><content><p><mod>before “affected” insert <quotedText>“relevant”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-5-c-ii"><num>(ii)</num><content><p><mod>before “portion” insert <quotedText>“relevant proportion of the”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-5-d"><num>(d)</num><content><p><mod>in subsection (8)(b), after “(3)” insert <quotedText>“or (4B) (as the case may be)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-e"><num>(e)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p>For the purposes of subsection (8)(a)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “<term refersTo="#term-relevant-affected-income-or-gains">relevant affected income or gains</term>” means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, so much of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, all of the affected income or gains, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “relevant proportion” of the portion of the investment means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, the proportion of the portion of the investment that is equal to the proportion of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, the whole of the portion of the investment.</p></content></level></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VI">section 809VI</a> (the appropriate mitigation steps), in subsection (3), after “But” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>see also section 809VIA (which makes provision treating the disposal proceeds as reduced where TRF capital is involved), and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-7"><num>(7)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e38654"><num>809VIA</num><heading>Application of appropriate mitigation steps where TRF capital involved</heading><subsection><num>(1)</num><content><p>This section applies in relation to a potentially chargeable event where, if no appropriate mitigation steps were regarded as taken, an amount of TRF capital would (ignoring this section) be treated as remitted to the United Kingdom immediately after the end of the relevant grace period as a result of section 809VG(2).</p></content></subsection><subsection><num>(2)</num><content><p>Where there has been a disposal of all or part of the holding (see section 809VI(1) or (2)(b)), so much of the proceeds of that disposal as are equal to that amount of TRF capital is to be regarded as comprising that TRF capital.</p></content></subsection><subsection><num>(3)</num><content><p>Section 809VI has effect as if references in that section to the disposal proceeds did not include the TRF capital.</p></content></subsection><subsection eId="d25e38676"><num>(4)</num><content><p>Unless section 809VG(2) applies in relation to the potentially chargeable event, the TRF capital is to be treated as remitted to the United Kingdom at the time the potentially chargeable event occurred.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38682"><heading>No tax credits for pre 2016-17 dividends etc</heading><paragraph eId="schedule-10-paragraph-20" class="schProv1"><num>20</num><content><p>Sections 397 to 398 of ITTOIA 2005 (which have been repealed and only have effect in relation to distributions made before tax year 2016-17) do not apply in relation to any amount of designated qualifying overseas capital.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38691"><heading>Commencement</heading><paragraph eId="schedule-10-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-10-paragraph-21-1"><num>(1)</num><content><p>The amendments made by this Part of this Schedule have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-21-2"><num>(2)</num><content><p>Sub-paragraph (1) does not apply to the modifications made by paragraphs 14 and 18.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e37266"><heading>Temporary disapplication of nominated income ordering rules</heading><paragraph eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809I">Section 809I</a> of <ref eId="c00309" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis charge: income and gains treated as remitted) does not apply for a tax year in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content><p>the tax year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><intro><p>the individual—</p></intro><level class="para2" eId="schedule-10-paragraph-14-b-i"><num>(i)</num><content><p>makes a designation of qualifying overseas capital for that tax year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-14-b-ii"><num>(ii)</num><content><p>has made such a designation for a previous tax year, and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-14-c"><num>(c)</num><content><p>that section has not applied in relation to that individual for the tax year 2024-25 or an earlier tax year.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e37310"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">section 809Q</a> of <ref eId="c00310" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-10-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">Section 809Q</a> of <ref eId="c00311" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-2-a"><num>(a)</num><content><p><mod>before Step 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step A1</i></p><p>Find the amount (if any) of income or capital of the individual for the relevant tax year in the mixed fund immediately before the transfer that is TRF capital.</p><p>If the amount of the transfer is equal to, or less than, the amount of TRF capital, treat the transfer as containing only TRF capital.</p><p>Otherwise—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>treat so much of the transfer as does not exceed the amount of the TRF capital as being comprised of TRF capital, and</p></item><item><num>(b)</num><p>apply the following steps to the remainder of the transfer.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-15-2-b"><num>(b)</num><content><p><mod>in Steps 2 to 4, and in the first sentence in Step 5, for “transfer”, in each place it occurs, substitute <quotedText>“remainder”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-3-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-15-3-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-4"><num>(4)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e37427"><num>(9)</num><intro><p>For the purposes of this Chapter “<term refersTo="#term-trf-capital">TRF capital</term>” means any amount that—</p></intro><level class="para1"><num>(a)</num><content><p>is qualifying overseas capital (within the meaning of Part 1 of Schedule 10 to FA 2025) as a result of paragraph 2 of that Schedule, and</p></content></level><level class="para1"><num>(b)</num><content><p>is designated qualifying overseas capital for the purposes of that Part of that Schedule (and see paragraph 8(7) which provides for qualifying overseas capital to be treated as designated qualifying overseas capital from the start of the tax year to which the return in which it is designated relates).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-5"><num>(5)</num><content><p><mod>In section 809Z10 of ITA 2007 (general interpretation), after the definition of “the remittance basis user” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-trf-capital">TRF capital</term>” has the meaning given by section 809Q(9).</p></content></hcontainer></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e37463"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00312" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-10-paragraph-16-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">Section 809R</a> of <ref eId="c00313" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “This section applies” substitute <quotedText>“Subsections (2) to (8) apply”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>For the purposes of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (5)</a> for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-5-a"><num>(a)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q as not applying in relation to it, if it” substitute <quotedText>“neither section 809Q nor section 809RZA(2) as applying in relation to it, if they”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-6"><num>(6)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (7)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-6-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-16-6-b"><num>(b)</num><content><p><mod> after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-7"><num>(7)</num><intro><p>In subsection (9)—</p></intro><level class="para1" eId="schedule-10-paragraph-16-7-a"><num>(a)</num><content><p><mod>for “step 1” substitute <quotedText>“steps A1 and 1”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-7-b"><num>(b)</num><content><p><mod>for “step 2” substitute <quotedText>“steps A1 and 2”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e37625"><heading>Mixed funds: TRF capital account</heading><paragraph eId="schedule-10-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00314" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37644"><num>809RZA</num><heading>Transfers into TRF capital account</heading><subsection eId="d25e37648"><num>(1)</num><intro><p>Subsection (2) applies to a transfer made from a mixed fund if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made from a mixed fund that contains TRF capital,</p></content></level><level class="para1"><num>(b)</num><content><p>the transfer is to a TRF capital account, and</p></content></level><level class="para1" eId="d25e37666"><num>(c)</num><content><p>the amount of the transfer does not exceed the amount of TRF capital in the mixed fund at the time of the transfer.</p></content></level></subsection><subsection eId="d25e37672"><num>(2)</num><content><p>The transfer is to be treated as a transfer of TRF capital.</p></content></subsection><subsection><num>(3)</num><intro><p>Where subsection (2) would apply to a transfer but does not because of paragraph (c) of subsection (1)—</p></intro><level class="para1"><num>(a)</num><content><p>that transfer is to be treated as two separate transfers occurring one immediately after the other, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first of those transfers is to be treated as being in the amount of TRF capital in the mixed fund (and accordingly subsection (2) will apply to that deemed transfer but not the second, which may result in the TRF capital account ceasing to be a TRF capital account).</p></content></level></subsection><subsection><num>(4)</num><content><p>Section 809RZB makes provision about the nomination of an account as a TRF capital account (and see sections 809RZC and 809RZD for the effect of making a transfer that contains amounts that are not TRF capital).</p></content></subsection></section><section eId="d25e37705"><num>809RZB</num><heading>TRF capital account</heading><subsection eId="d25e37709"><num>(1)</num><content><p>An individual may by notice to the Commissioners nominate an account to be a TRF capital account (and more than one nomination may have effect at any time).</p></content></subsection><subsection><num>(2)</num><content><p>The notice must specify the qualifying date for the account.</p></content></subsection><subsection><num>(3)</num><content><p>“The qualifying date” for the account is the first date on which there is paid into the account sums falling within subsection (4) which (in total) are more than £10 at a time when the credit balance of the account was £10 or less.</p></content></subsection><subsection eId="d25e37727"><num>(4)</num><content><p>A sum falls within this subsection if it is TRF capital.</p></content></subsection><subsection eId="d25e37733"><num>(5)</num><content><p>The individual may withdraw the nomination by giving a further notice to the Commissioners, specifying the date with effect from which the nomination is withdrawn.</p></content></subsection><subsection><num>(6)</num><content><p>A notice under subsection (1) or (5) must be in writing and include such information as the Commissioners may reasonably require.</p></content></subsection><subsection><num>(7)</num><intro><p>A notice under subsection (1) or (5) must be given no later than—</p></intro><level class="para1"><num>(a)</num><intro><p>31 January in the tax year following the tax year in which falls, as the case may be—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying date for the account, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn, or</p></content></level></level><level class="para1"><num>(b)</num><content><p>such later date as the Commissioners may allow.</p></content></level></subsection><subsection eId="d25e37775"><num>(8)</num><intro><p>If an individual nominates an account under this section, the account is a “TRF capital account” of the individual throughout the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the qualifying date, and</p></content></level><level class="para1" eId="d25e37787"><num>(b)</num><intro><p>ending with the date before the earliest of the following dates—</p></intro><level class="para2" eId="d25e37793"><num>(i)</num><content><p>the date on which the account is closed or ceases to be an ordinary bank account held by and for the benefit of the individual (alone or jointly with others);</p></content></level><level class="para2" eId="d25e37799"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn under this section;</p></content></level><level class="para2" eId="d25e37805"><num>(iii)</num><content><p>6 April in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></level></level></subsection><subsection><num>(9)</num><intro><p>The account is not to be a TRF capital account at all if—</p></intro><level class="para1"><num>(a)</num><content><p>at any time on the qualifying date, the account is not an ordinary bank account held by and for the benefit of the individual (alone or jointly with others), or</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before the qualifying date, the account has a credit balance of more than £10.</p></content></level></subsection><subsection><num>(10)</num><content><p>Where the account has a credit balance immediately before the qualifying date (which must be £10 or less), that balance is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection><num>(11)</num><content><p>Where interest is payable on TRF capital held in the TRF capital account, any such interest paid into the account is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e37842"><num>(12)</num><content><p>The account is not to be a TRF capital account at all if the qualifying date falls in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></subsection><subsection><num>(13)</num><content><p>Subsection (8)(b)(iii) or (12) (as relevant) is to be ignored if the breach occurs on or after a date falling within subsection (8)(b)(i) or (ii).</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section an account is an “ordinary bank account” if it is a cash account in a bank (whether a current or savings account) where sums standing to the credit of the account from time to time represent a debt owed by the bank to the account-holder.</p></content></subsection><subsection><num>(15)</num><content><p>In this section, and in sections 809RZC and 809RZD, a reference to anything “paid into” an account includes anything credited to the account by whatever means.</p></content></subsection></section><section eId="d25e37869"><num>809RZC</num><heading>Breaches of the TRF deposit rule</heading><subsection><num>(1)</num><content><p>There is a breach of the TRF deposit rule if one or more prohibited sums are paid into a TRF capital account on the qualifying date or any day after the qualifying date.</p></content></subsection><subsection eId="d25e37879"><num>(2)</num><content><p>A breach of the TRF deposit rule is remedied if, within 30 days beginning with the day on which the prohibited sums are paid into the account, the required amount is transferred out of the account by way of a single one-off qualifying transfer.</p></content></subsection><subsection><num>(3)</num><content><p>A transfer is “qualifying” if it does not result in the remittance of any amount to the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>“The required amount” is an amount equal to the total of the prohibited sums paid into the TRF capital account on the day of the breach.</p></content></subsection><subsection><num>(5)</num><content><p>If there are 2 days in a tax year on which one or more breaches of the TRF deposit rule occur, subsection (2) does not apply to any breach on any subsequent day in the tax year (and accordingly any breach occurring on any day after the second day in the tax year on which there has been a breach cannot be remedied).</p></content></subsection><subsection><num>(6)</num><content><p>A “prohibited sum” is anything other than a sum that is TRF capital.</p></content></subsection></section><section eId="d25e37912"><num>809RZD</num><heading>Effect where 30-day deadline is met</heading><subsection><num>(1)</num><content><p>This section applies if the required amount in relation to a breach of the TRF deposit rule was transferred out of the account in accordance with section 809RZC(2).</p></content></subsection><subsection eId="d25e37922"><num>(2)</num><intro><p>Sections 809Q and 809R have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the intervening transactions had never taken place, and</p></content></level><level class="para1"><num>(b)</num><content><p>each prohibited sum represented by the required amount had instead been transferred directly (at the time that sum was paid into the TRF capital account) into the account or other property into which the required amount was transferred by virtue of the single one-off qualifying transfer.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Each of the following is an “intervening transaction”—</p></intro><level class="para1"><num>(a)</num><content><p>each payment into the TRF capital account of a prohibited sum represented by the required amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the single one-off qualifying transfer out of the TRF capital account.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e37958"><heading>Temporary application of annualised basis to mixed funds containing TRF capital</heading><paragraph eId="schedule-10-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-10-paragraph-18-1"><num>(1)</num><content><p>This following modifications have effect for the tax years 2025-26, 2026-27 and 2027-28.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-18-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00315" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> has effect as if—</p></intro><level class="para1" eId="schedule-10-paragraph-18-2-a"><num>(a)</num><content><p><mod>after section 809R there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37995"><num>809RZZA</num><heading>Annualised basis for mixed funds containing TRF capital</heading><subsection><num>(1)</num><content><p>This section applies where, at any time in a tax year, a mixed fund contains TRF capital.</p></content></subsection><subsection eId="d25e38005"><num>(2)</num><content><p>If this section applies, the composition of each transfer made from the fund in that tax year at any time is to be determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Suppose that all transfers made from the mixed fund to a TRF capital account in relation to which section 809RZA(2) applies had been a single transfer made from the fund at the end of the tax year.</p><p>Whether that section applies in relation to transfers to a TRF capital account is determined as if all transfers from the mixed fund were made at the end of the tax year but transfers to a TRF capital account were made—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>before any other transfer from the mixed fund was made, and</p></item><item><num>(b)</num><p>sequentially in the order in which the transfers to a TRF capital account were actually made.</p></item></blockList></item><item><p><i>Step 2</i></p><p>Suppose that all the condition A transfers made from the mixed fund in the tax year had been a single transfer made at the end of the tax year immediately after the single transfer mentioned in Step 1.</p></item><item><p><i>Step 3</i></p><p>Suppose that all the other transfers made from the account in the tax year had been a single offshore transfer made at the end of the tax year immediately after the single transfer mentioned in Step 2.</p></item><item><p><i>Step 4</i></p><p>Applying those suppositions—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>find under section 809Q(3) the content of the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>find under section 809R(4) the content of the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Each transfer made from the fund in the tax year, other than a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, is treated as containing the specified proportion of each kind of income or capital contained in the relevant deemed transfer.</p><p>“The specified proportion” is the amount of the transfer divided by the amount of the relevant deemed transfer.</p><p>“The relevant deemed transfer is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the transfer is a condition A transfer, the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>otherwise, the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Each transfer made from the fund in the tax year to which section 809RZA(2) is regarded as applying in accordance with Step 1 is to be treated as a transfer to which that section applies (and no other transfer in the tax year is to be regarded as a transfer in relation to which that section applies).</p></item></blockList></content></subsection><subsection><num>(3)</num><content><p>Subsection (2) applies in determining the composition of a transfer for the purposes of sections 809Q and 809R but it does not otherwise affect the date on which a transfer is considered to occur for the purposes of this Chapter.</p></content></subsection><subsection><num>(4)</num><intro><p>A transfer from the fund is a “condition A transfer” if and to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>condition A in section 809L is met, and</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the property or consideration for the service is (wholly or in part), or derives (wholly or in part, and directly or indirectly) from, the transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the transfer, or anything deriving (wholly or in part, and directly or indirectly) from the transfer, is used as mentioned in section 809L(3)(c).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>A transfer from the fund is an “other transfer” if and to the extent that it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></subsection><subsection><num>(6)</num><intro><p>Treat a transfer as an “other transfer” if and to the extent that, at the end of the tax year—</p></intro><level class="para1"><num>(a)</num><content><p>it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>on the basis of the best estimate that can reasonably be made at that time, it will not become either a condition A transfer or a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of Step 5 in subsection (2)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></section></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-18-2-b"><num>(b)</num><content><p><mod>in section 809RZD (as inserted by paragraph 17), at the end there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><content><p>If it is supposed under Steps 1 to 3 of section 809RZZA(2) that single transfers had been made in the intervening period, re-apply those steps in relation to those transfers taking account of subsection (2) and re-apply sections 809Q and 809R accordingly.</p></content></subsection><subsection><num>(5)</num><intro><p>“The intervening period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the breach occurred, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day on which the single one-off qualifying transfer was made in accordance with section 809RZC(2).</p></content></level></subsection><subsection><num>(6)</num><content><p>If more than one qualifying transfer of a sum equal to the required amount was transferred out of the TRF capital account within the 30-day grace period, the first of those transfers is assumed to be the single one-off qualifying transfer.</p></content></subsection><subsection><num>(7)</num><content><p>“The 30-day grace period” is the period of 30 days mentioned in section 809RZC(2).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e38219"><heading>Business investment relief</heading><paragraph eId="schedule-10-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-10-paragraph-19-1"><num>(1)</num><content><p><ref eId="c00316" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">section 809VC</a> (qualifying investments) in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">subsection (4)</a>, after “if” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the investment is made before 6 April 2028,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the money or other property used to make the investment is TRF capital, and</p></content></level><level class="para1"><num>(c)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a> (income or gains treated as remitted following certain events)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (6)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38287"><num>(6A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>the income or gains mentioned in subsection (1)(a) include amounts designated as TRF capital (in a tax year after the tax year in which the investment is made), and</p></content></level><level class="para1"><num>(b)</num><content><p>the portion of the investment affected is less than the whole of the investment,</p></content></level><wrapUp><p>so much of the affected income or gains as does not exceed the amounts designated is to be treated as being comprised of the TRF capital.</p></wrapUp></subsection><subsection><num>(6B)</num><intro><p>Where section 809VO (investments made from mixed funds) applies, subsection (8) of that section applies for the purposes of determining the composition of the amount of the affected income or gains that is not treated as being comprised of TRF capital (referred to as the “<term refersTo="#term-relevant-affected-income-and-gains">relevant affected income and gains</term>” in that subsection) as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>subsection (6A) of this section not applying, or</p></content></level><level class="para1"><num>(b)</num><content><p>that subsection only applying to a part of the affected income or gains.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-3-b"><num>(b)</num><intro><p>in subsection (7)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>for “Sections” substitute <quotedText>“Section”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-3-b-ii"><num>(ii)</num><content><p><mod>for “and 809VO (investments made from mixed funds) make” substitute <quotedText>“makes”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-3-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (9)</a>, after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content><p>any part contained in amounts already treated as remitted under section 809VIA(4) following an earlier event,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">section 809VN</a> (order of disposals etc)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">(b)</a>, for the words from “order” to the end substitute <quotedText>“following order.”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The order is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the qualifying investments as were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and then</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to whatever remains, the order in which the qualifying investments were made (that is to say, on a first in, first out basis).</p></content></level></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (4)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">paragraph (b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>assume that a disposal of all or part of that deemed single holding is—</p></intro><level class="para2" eId="d25e38447"><num>(i)</num><content><p>a disposal of so much of the deemed single holding as is from any qualifying investments that were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if any of the deemed single holding remains after the disposal referred to in sub-paragraph (i), a disposal of a holding from qualifying investments until the holdings from all the qualifying investments have been disposed of.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">section 809VO</a> (investments made from mixed funds)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-5-a"><num>(a)</num><content><p><mod>for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38475"><num>(4)</num><content><p>The “fixed proportion” is, unless subsection (4B) applies, the proportion of that kind of income or capital contained in the invested property by virtue of subsection (2).</p></content></subsection><subsection><num>(4A)</num><content><p>Subsection (4B) applies, instead of subsection (3), for determining the composition of the holding in connection with the application of subsections (7) and (8) where the holding contains TRF capital (as a result of the designation of income or capital in the holding as TRF capital in the tax year after the tax year in which the relevant event occurred).</p></content></subsection><subsection eId="d25e38487"><num>(4B)</num><content><p>Where this subsection applies, take the following steps to determine the composition of the holding in connection with the application of those subsections—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the amounts of each kind of income and capital that the holding was treated as containing by virtue of subsection (3).</p></item><item><p><i>Step 2</i></p><p>Reduce the amount of each kind of income and capital by the amount (if any) of that income or capital as is TRF capital.</p></item></blockList></content></subsection><subsection eId="d25e38510"><num>(4C)</num><content><p>Where subsection (4B) applies, the “fixed proportion” is the proportion of that kind of income or capital treated as contained in the invested property by virtue of that subsection (instead of subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-b"><num>(b)</num><content><p><mod>in subsection (7), after “proportion” insert <quotedText>“(determined under subsection (4) or (4C) as the case may be)”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-c"><num>(c)</num><intro><p>in subsection (8)(a)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-5-c-i"><num>(i)</num><content><p><mod>before “affected” insert <quotedText>“relevant”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-5-c-ii"><num>(ii)</num><content><p><mod>before “portion” insert <quotedText>“relevant proportion of the”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-5-d"><num>(d)</num><content><p><mod>in subsection (8)(b), after “(3)” insert <quotedText>“or (4B) (as the case may be)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-e"><num>(e)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p>For the purposes of subsection (8)(a)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “<term refersTo="#term-relevant-affected-income-or-gains">relevant affected income or gains</term>” means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, so much of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, all of the affected income or gains, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “relevant proportion” of the portion of the investment means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, the proportion of the portion of the investment that is equal to the proportion of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, the whole of the portion of the investment.</p></content></level></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VI">section 809VI</a> (the appropriate mitigation steps), in subsection (3), after “But” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>see also section 809VIA (which makes provision treating the disposal proceeds as reduced where TRF capital is involved), and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-7"><num>(7)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e38654"><num>809VIA</num><heading>Application of appropriate mitigation steps where TRF capital involved</heading><subsection><num>(1)</num><content><p>This section applies in relation to a potentially chargeable event where, if no appropriate mitigation steps were regarded as taken, an amount of TRF capital would (ignoring this section) be treated as remitted to the United Kingdom immediately after the end of the relevant grace period as a result of section 809VG(2).</p></content></subsection><subsection><num>(2)</num><content><p>Where there has been a disposal of all or part of the holding (see section 809VI(1) or (2)(b)), so much of the proceeds of that disposal as are equal to that amount of TRF capital is to be regarded as comprising that TRF capital.</p></content></subsection><subsection><num>(3)</num><content><p>Section 809VI has effect as if references in that section to the disposal proceeds did not include the TRF capital.</p></content></subsection><subsection eId="d25e38676"><num>(4)</num><content><p>Unless section 809VG(2) applies in relation to the potentially chargeable event, the TRF capital is to be treated as remitted to the United Kingdom at the time the potentially chargeable event occurred.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e38682"><heading>No tax credits for pre 2016-17 dividends etc</heading><paragraph eId="schedule-10-paragraph-20" class="schProv1"><num>20</num><content><p>Sections 397 to 398 of ITTOIA 2005 (which have been repealed and only have effect in relation to distributions made before tax year 2016-17) do not apply in relation to any amount of designated qualifying overseas capital.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e38691"><heading>Commencement</heading><paragraph eId="schedule-10-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-10-paragraph-21-1"><num>(1)</num><content><p>The amendments made by this Part of this Schedule have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-21-2"><num>(2)</num><content><p>Sub-paragraph (1) does not apply to the modifications made by paragraphs 14 and 18.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="schedule" eId="schedule-11"><num>Schedule 11<authorialNote class="referenceNote"><p>Section 42</p></authorialNote></num><heading>Rebasing of assets</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e38720"><heading>Rebasing of assets for individuals who have been subject to the remittance basis</heading><paragraph eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><intro><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> applies to the disposal of an asset by an individual (“<term refersTo="#term-p" eId="term-p">P</term>”) where—</p></intro><level class="para1" eId="schedule-11-paragraph-1-1-a"><num>(a)</num><content><p>the asset was held by P on 5 April 2017,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-b"><num>(b)</num><content><p>the disposal is made on or after 6 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-c"><num>(c)</num><content><p>the asset was not situated in the United Kingdom at any time in the period beginning with 6 March 2024 and ending with 5 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-d"><num>(d)</num><content><p>P was not domiciled in the United Kingdom at any time in a tax year before tax year 2025-26, and</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-e"><num>(e)</num><intro><p>P has made a claim under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">section 809B</a> of <ref eId="c00317" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (claim for remittance basis) for at least one tax year that is—</p></intro><level class="para2" eId="schedule-11-paragraph-1-1-e-i"><num>(i)</num><content><p>one of the tax years from tax year 2017-18 to tax year 2024-25, and</p></content></level><level class="para2" eId="schedule-11-paragraph-1-1-e-ii"><num>(ii)</num><content><p>a tax year for which neither <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">section 809D</a> nor 809E of <ref eId="c00318" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> applied to P (remittance basis applies without claim).</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><content><p>In computing, for the purpose of <ref eId="c00319" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, the gain or loss accruing on the disposal, it is to be assumed that P acquired the asset on 5 April 2017 for a consideration equal to its market value on that date.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content><p><ref href="#schedule-11-paragraph-1-2">Sub-paragraph (2)</ref> applies notwithstanding <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">section 58</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">(1)</a> of <ref eId="c00320" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (disposals between spouses).</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-4"><num>(4)</num><content><p>Where under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">section 127</a> of <ref eId="c00321" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (including that section as applied by sections 132, 135 and 136 of that Act) an original and a new holding of shares or other securities are treated as the same asset, the condition in <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> applies to both the original and the new holding.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/835BA">Section 835BA</a> of <ref eId="c00322" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (deemed domicile) applies for the purposes of <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-d">(d)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-6"><num>(6)</num><content><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> and <ref href="#schedule-11-paragraph-2">paragraphs 2</ref> and <ref href="#schedule-11-paragraph-3">3</ref> have effect as if they were included in <ref eId="c00323" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38867"><heading>Assets becoming situated in the United Kingdom before 6 April 2025</heading><paragraph eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purposes of <ref href="#schedule-11-paragraph-1">paragraph 1</ref><ref href="#schedule-11-paragraph-1-1">(1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> in the case of an asset which, having been situated outside the United Kingdom, becomes situated in the United Kingdom before the end of the relevant period.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at a time in the relevant period when—</p></intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">section 809Z</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(c)</a> of <ref eId="c00324" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (public access),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">section 809Z3</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(c)</a> of <ref eId="c00325" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (repairs),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-c"><num>(c)</num><content><p>the sole or principal purpose of its being situated in the United Kingdom is to sell it or put it up for sale, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-d"><num>(d)</num><intro><p>in the case of clothing, footwear, jewellery or a watch, it is for the personal use of—</p></intro><level class="para2" eId="schedule-11-paragraph-2-2-d-i"><num>(i)</num><content><p>P or a husband, wife or civil partner of P, or</p></content></level><level class="para2" eId="schedule-11-paragraph-2-2-d-ii"><num>(ii)</num><content><p>a child or grandchild of a person within <ref href="#schedule-11-paragraph-2-2-d-i">sub-paragraph (i)</ref>, if the child or grandchild has not reached the age of 18.</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at any time in the relevant period if it is brought to, or received or used in, the United Kingdom in circumstances in which <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">section 809L</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(a)</a> of <ref eId="c00326" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> applies but—</p></intro><level class="para1" eId="schedule-11-paragraph-2-3-a"><num>(a)</num><content><p>by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(5)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(c)</a> of <ref eId="c00327" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (notional remitted amount less than £1000) it is treated as not remitted to the United Kingdom, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-3-b"><num>(b)</num><content><p>by the end of the relevant period it has not failed to meet the temporary importation rule in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z4">section 809Z4</a> of <ref eId="c00328" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">Section 809M</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(a)</a> of <ref eId="c00329" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (persons living together) apply for the purposes of <ref href="#schedule-11-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-11-paragraph-2-2-d">(d)</ref><ref href="#schedule-11-paragraph-2-2-d-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-5"><num>(5)</num><content><p>In this paragraph the “<term refersTo="#term-relevant-period" eId="term-relevant-period">relevant period</term>” means the period beginning with 6 March 2024 and ending with 5 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e39039"><heading>Election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply</heading><paragraph eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content><p>An individual may make an election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply to a disposal made by the individual.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">Sections 42</a> and <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/43">43</a> of <ref eId="c00330" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (procedure and time limit for claims), except <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">section 42</a><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">(1A)</a> of <ref eId="c00331" href="https://www.legislation.gov.uk/ukpga/1970/9">that Act</ref>, apply in relation to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> as they apply in relation to a claim for relief.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-3"><num>(3)</num><content><p>An election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> is irrevocable.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-4"><num>(4)</num><content><p>All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e39102"><heading>Rebasing under Schedule 8 to F(No.2)A 2017</heading><paragraph eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><p><mod>In Schedule 8 to F(No.2)A 2017, in paragraph 41(4)(b), for “that in which the disposal was made” substitute <quotedText>“the tax year 2024-25”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content><p>The amendment made by this paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e38720"><heading>Rebasing of assets for individuals who have been subject to the remittance basis</heading><paragraph eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><intro><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> applies to the disposal of an asset by an individual (“<term refersTo="#term-p" eId="term-p">P</term>”) where—</p></intro><level class="para1" eId="schedule-11-paragraph-1-1-a"><num>(a)</num><content><p>the asset was held by P on 5 April 2017,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-b"><num>(b)</num><content><p>the disposal is made on or after 6 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-c"><num>(c)</num><content><p>the asset was not situated in the United Kingdom at any time in the period beginning with 6 March 2024 and ending with 5 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-d"><num>(d)</num><content><p>P was not domiciled in the United Kingdom at any time in a tax year before tax year 2025-26, and</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-e"><num>(e)</num><intro><p>P has made a claim under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">section 809B</a> of <ref eId="c00317" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (claim for remittance basis) for at least one tax year that is—</p></intro><level class="para2" eId="schedule-11-paragraph-1-1-e-i"><num>(i)</num><content><p>one of the tax years from tax year 2017-18 to tax year 2024-25, and</p></content></level><level class="para2" eId="schedule-11-paragraph-1-1-e-ii"><num>(ii)</num><content><p>a tax year for which neither <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">section 809D</a> nor 809E of <ref eId="c00318" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> applied to P (remittance basis applies without claim).</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><content><p>In computing, for the purpose of <ref eId="c00319" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, the gain or loss accruing on the disposal, it is to be assumed that P acquired the asset on 5 April 2017 for a consideration equal to its market value on that date.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content><p><ref href="#schedule-11-paragraph-1-2">Sub-paragraph (2)</ref> applies notwithstanding <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">section 58</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">(1)</a> of <ref eId="c00320" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (disposals between spouses).</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-4"><num>(4)</num><content><p>Where under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">section 127</a> of <ref eId="c00321" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (including that section as applied by sections 132, 135 and 136 of that Act) an original and a new holding of shares or other securities are treated as the same asset, the condition in <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> applies to both the original and the new holding.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/835BA">Section 835BA</a> of <ref eId="c00322" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (deemed domicile) applies for the purposes of <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-d">(d)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-6"><num>(6)</num><content><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> and <ref href="#schedule-11-paragraph-2">paragraphs 2</ref> and <ref href="#schedule-11-paragraph-3">3</ref> have effect as if they were included in <ref eId="c00323" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Assets becoming situated in the United Kingdom before 6 April 2025</heading><paragraph eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purposes of <ref href="#schedule-11-paragraph-1">paragraph 1</ref><ref href="#schedule-11-paragraph-1-1">(1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> in the case of an asset which, having been situated outside the United Kingdom, becomes situated in the United Kingdom before the end of the relevant period.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at a time in the relevant period when—</p></intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">section 809Z</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(c)</a> of <ref eId="c00324" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (public access),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">section 809Z3</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(c)</a> of <ref eId="c00325" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (repairs),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-c"><num>(c)</num><content><p>the sole or principal purpose of its being situated in the United Kingdom is to sell it or put it up for sale, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-d"><num>(d)</num><intro><p>in the case of clothing, footwear, jewellery or a watch, it is for the personal use of—</p></intro><level class="para2" eId="schedule-11-paragraph-2-2-d-i"><num>(i)</num><content><p>P or a husband, wife or civil partner of P, or</p></content></level><level class="para2" eId="schedule-11-paragraph-2-2-d-ii"><num>(ii)</num><content><p>a child or grandchild of a person within <ref href="#schedule-11-paragraph-2-2-d-i">sub-paragraph (i)</ref>, if the child or grandchild has not reached the age of 18.</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at any time in the relevant period if it is brought to, or received or used in, the United Kingdom in circumstances in which <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">section 809L</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(a)</a> of <ref eId="c00326" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> applies but—</p></intro><level class="para1" eId="schedule-11-paragraph-2-3-a"><num>(a)</num><content><p>by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(5)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(c)</a> of <ref eId="c00327" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (notional remitted amount less than £1000) it is treated as not remitted to the United Kingdom, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-3-b"><num>(b)</num><content><p>by the end of the relevant period it has not failed to meet the temporary importation rule in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z4">section 809Z4</a> of <ref eId="c00328" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">Section 809M</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(a)</a> of <ref eId="c00329" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (persons living together) apply for the purposes of <ref href="#schedule-11-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-11-paragraph-2-2-d">(d)</ref><ref href="#schedule-11-paragraph-2-2-d-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-5"><num>(5)</num><content><p>In this paragraph the “<term refersTo="#term-relevant-period" eId="term-relevant-period">relevant period</term>” means the period beginning with 6 March 2024 and ending with 5 April 2025.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purposes of <ref href="#schedule-11-paragraph-1">paragraph 1</ref><ref href="#schedule-11-paragraph-1-1">(1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> in the case of an asset which, having been situated outside the United Kingdom, becomes situated in the United Kingdom before the end of the relevant period.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at a time in the relevant period when—</p></intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">section 809Z</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(c)</a> of <ref eId="c00324" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (public access),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">section 809Z3</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(c)</a> of <ref eId="c00325" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (repairs),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-c"><num>(c)</num><content><p>the sole or principal purpose of its being situated in the United Kingdom is to sell it or put it up for sale, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-d"><num>(d)</num><intro><p>in the case of clothing, footwear, jewellery or a watch, it is for the personal use of—</p></intro><level class="para2" eId="schedule-11-paragraph-2-2-d-i"><num>(i)</num><content><p>P or a husband, wife or civil partner of P, or</p></content></level><level class="para2" eId="schedule-11-paragraph-2-2-d-ii"><num>(ii)</num><content><p>a child or grandchild of a person within <ref href="#schedule-11-paragraph-2-2-d-i">sub-paragraph (i)</ref>, if the child or grandchild has not reached the age of 18.</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at any time in the relevant period if it is brought to, or received or used in, the United Kingdom in circumstances in which <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">section 809L</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(a)</a> of <ref eId="c00326" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> applies but—</p></intro><level class="para1" eId="schedule-11-paragraph-2-3-a"><num>(a)</num><content><p>by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(5)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(c)</a> of <ref eId="c00327" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (notional remitted amount less than £1000) it is treated as not remitted to the United Kingdom, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-3-b"><num>(b)</num><content><p>by the end of the relevant period it has not failed to meet the temporary importation rule in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z4">section 809Z4</a> of <ref eId="c00328" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">Section 809M</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(a)</a> of <ref eId="c00329" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (persons living together) apply for the purposes of <ref href="#schedule-11-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-11-paragraph-2-2-d">(d)</ref><ref href="#schedule-11-paragraph-2-2-d-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-5"><num>(5)</num><content><p>In this paragraph the “<term refersTo="#term-relevant-period" eId="term-relevant-period">relevant period</term>” means the period beginning with 6 March 2024 and ending with 5 April 2025.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e38867"><heading>Assets becoming situated in the United Kingdom before 6 April 2025</heading><paragraph eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purposes of <ref href="#schedule-11-paragraph-1">paragraph 1</ref><ref href="#schedule-11-paragraph-1-1">(1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> in the case of an asset which, having been situated outside the United Kingdom, becomes situated in the United Kingdom before the end of the relevant period.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at a time in the relevant period when—</p></intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">section 809Z</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(c)</a> of <ref eId="c00324" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (public access),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">section 809Z3</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(c)</a> of <ref eId="c00325" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (repairs),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-c"><num>(c)</num><content><p>the sole or principal purpose of its being situated in the United Kingdom is to sell it or put it up for sale, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-d"><num>(d)</num><intro><p>in the case of clothing, footwear, jewellery or a watch, it is for the personal use of—</p></intro><level class="para2" eId="schedule-11-paragraph-2-2-d-i"><num>(i)</num><content><p>P or a husband, wife or civil partner of P, or</p></content></level><level class="para2" eId="schedule-11-paragraph-2-2-d-ii"><num>(ii)</num><content><p>a child or grandchild of a person within <ref href="#schedule-11-paragraph-2-2-d-i">sub-paragraph (i)</ref>, if the child or grandchild has not reached the age of 18.</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at any time in the relevant period if it is brought to, or received or used in, the United Kingdom in circumstances in which <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">section 809L</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(a)</a> of <ref eId="c00326" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> applies but—</p></intro><level class="para1" eId="schedule-11-paragraph-2-3-a"><num>(a)</num><content><p>by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(5)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(c)</a> of <ref eId="c00327" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (notional remitted amount less than £1000) it is treated as not remitted to the United Kingdom, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-3-b"><num>(b)</num><content><p>by the end of the relevant period it has not failed to meet the temporary importation rule in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z4">section 809Z4</a> of <ref eId="c00328" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">Section 809M</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(a)</a> of <ref eId="c00329" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (persons living together) apply for the purposes of <ref href="#schedule-11-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-11-paragraph-2-2-d">(d)</ref><ref href="#schedule-11-paragraph-2-2-d-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-5"><num>(5)</num><content><p>In this paragraph the “<term refersTo="#term-relevant-period" eId="term-relevant-period">relevant period</term>” means the period beginning with 6 March 2024 and ending with 5 April 2025.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e39039"><heading>Election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply</heading><paragraph eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content><p>An individual may make an election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply to a disposal made by the individual.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">Sections 42</a> and <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/43">43</a> of <ref eId="c00330" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (procedure and time limit for claims), except <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">section 42</a><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">(1A)</a> of <ref eId="c00331" href="https://www.legislation.gov.uk/ukpga/1970/9">that Act</ref>, apply in relation to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> as they apply in relation to a claim for relief.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-3"><num>(3)</num><content><p>An election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> is irrevocable.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-4"><num>(4)</num><content><p>All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref>.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e39102"><heading>Rebasing under Schedule 8 to F(No.2)A 2017</heading><paragraph eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><p><mod>In Schedule 8 to F(No.2)A 2017, in paragraph 41(4)(b), for “that in which the disposal was made” substitute <quotedText>“the tax year 2024-25”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content><p>The amendment made by this paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" name="schedule" eId="schedule-12"><num>Schedule 12<authorialNote class="referenceNote"><p>Section 43</p></authorialNote></num><heading>Trusts: connected amendments, transitional provision etc</heading><part eId="schedule-12-part-1"><num>Part 1</num><heading>Settlements (income)</heading><paragraph eId="schedule-12-paragraph-1" class="schProv1"><num>1</num><content><p>Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family) is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-2" class="schProv1"><num>2</num><intro><p>In section 619 (charge to tax under Chapter 5), in subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-2-a"><num>(a)</num><content><p><mod>at the end of paragraph (d), insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-b"><num>(b)</num><content><p><mod>in paragraph (e), after “protected foreign-source income” insert <quotedText>“or transitional trust income”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-c"><num>(c)</num><content><p>omit paragraph (f) and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 622 (person liable), for “sections 643A and 643I to 643M” substitute <quotedText>“section 643A (under which a close member of the settlor’s family may instead be liable)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-4" class="schProv1"><num>4</num><intro><p>In section 624 (income where settlor retains an interest), in subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-4-a"><num>(a)</num><content><p><mod>after “section 627 (exceptions for certain types of income),” insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-4-b"><num>(b)</num><content><p>omit “section 628A (exception for protected foreign-source income)” and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-5" class="schProv1"><num>5</num><content><p>Omit sections 628A to 628C (protected foreign-source income and transitional trust income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-6" class="schProv1"><num>6</num><content><p>In section 629 (income paid to relevant children of settlor), in subsection (5), omit “or section 630A (exception for protected foreign-source income)”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-7" class="schProv1"><num>7</num><content><p>Omit section 630A (exception to section 629 for protected foreign-source income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-8" class="schProv1"><num>8</num><intro><p>In section 635 (capital sums charge: amount of available income)—</p></intro><level class="para1" eId="schedule-12-paragraph-8-a"><num>(a)</num><content><p>in subsections (2) and (3)(d)(i), omit “unprotected”;</p></content></level><level class="para1" eId="schedule-12-paragraph-8-b"><num>(b)</num><content><p><mod>for subsection (5) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>See also <ref href="#d25e39376">section 643ZB</ref>(2) (which provides for certain income not to be counted towards available income for the purposes of this section).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-9" class="schProv1"><num>9</num><intro><p>In section 636 (capital sums charge: calculation of undistributed income)—</p></intro><level class="para1" eId="schedule-12-paragraph-9-a"><num>(a)</num><intro><p>omit “unprotected” in the following places—</p></intro><level class="para2" eId="schedule-12-paragraph-9-a-i"><num>(i)</num><content><p>subsection (1);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-ii"><num>(ii)</num><content><p>subsection (2) (in both places it occurs);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iii"><num>(iii)</num><content><p>subsection (4);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iv"><num>(iv)</num><content><p>subsection (6);</p></content></level></level><level class="para1" eId="schedule-12-paragraph-9-b"><num>(b)</num><content><p>in subsection (2)(b), omit “domiciled and”.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-10" class="schProv1"><num>10</num><content><p>In section 637 (qualifications to section 636), in subsections (5) and (7A), omit “unprotected”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-11" class="schProv1"><num>11</num><content><p><mod>For the italic heading before section 643A, substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><heading ukl:Context="Pblock">Transitional provision about protected foreign-source income and transitional trust income</heading></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-12" class="schProv1"><num>12</num><content><p><mod>Before section 643A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643ZA</num><heading>“Protected foreign-source income” and “transitional trust income”</heading><subsection eId="d25e39325"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2017-18 to 2024-25, and</p></content></level><level class="para1"><num>(b)</num><content><p>was protected foreign-source income for that tax year within the meaning of section 628A (as that section had effect for that tax year).</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitional-trust-income">transitional trust income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2008-09 to 2016-17, and</p></content></level><level class="para1"><num>(b)</num><content><p>was transitional trust income throughout the tax years 2017-18 to 2024-25 within the meaning of section 628C (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e39325">subsection (1)</ref> ignore section 648(3) to (5) (foreign income treated as arising under settlement only if and when remitted).</p></content></subsection></section><section eId="d25e39376"><num>643ZB</num><heading>Protected foreign-source income and transitional trust income not to be taxed elsewhere in Chapter</heading><subsection><num>(1)</num><content><p>The rules in sections 624(1) and 629(1) do not apply to protected foreign-source income or transitional trust income (which, by virtue of section 648(3) to (5), may be treated as income arising under the settlement in the tax year 2025-26 or a subsequent tax year).</p></content></subsection><subsection><num>(2)</num><content><p>In the following provisions, “<term refersTo="#term-income">income</term>” does not include protected foreign-source income or transitional trust income—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 635(2) and (3)(d)(i);</p></item><item><p>section 636(1), (2) (in the words before paragraph (a)), (4) and (6);</p></item><item><p>section 637(5) and (7A).</p></item></blockList></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-13" class="schProv1"><num>13</num><content><p><mod>For section 643A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643A</num><heading>Benefits paid out of protected foreign-source income or transitional trust income</heading><subsection eId="d25e39422"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an individual to whom this section applies has an untaxed benefits total for a settlement for a tax year (see section 643B),</p></content></level><level class="para1"><num>(b)</num><content><p>there is available protected income in relation to the individual, the settlement and the tax year (see section 643C), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is UK resident for the tax year,</p></content></level><wrapUp><p>an amount equal to so much of the untaxed benefits total as does not exceed the available protected income is treated for income tax purposes as income of the individual for the tax year.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1"><num>(a)</num><content><p>the settlor, and</p></content></level><level class="para1"><num>(b)</num><content><p>anyone who has at any time been a close member of the settlor’s family.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If there is a choice about the individuals in whose case income is to be treated as arising under subsection <ref href="#d25e39422">(1)</ref>, income is to be treated as arising—</p></intro><level class="para1"><num>(a)</num><content><p>to such one or more of them as appears to an officer of Revenue and Customs to be just and reasonable, and</p></content></level><level class="para1"><num>(b)</num><content><p>if more than one, in such respective proportions as appear to the officer to be just and reasonable.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-12-paragraph-14-1"><num>(1)</num><content><p>Section 643B (meaning of “<term refersTo="#term-untaxed-benefits-total" eId="term-untaxed-benefits-total">untaxed benefits total</term>” in section 643A) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-2"><num>(2)</num><content><p><mod>In subsection (1), for Step 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify each benefit provided by the trustees to the individual—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in the current tax year, or an earlier tax year for which the individual was UK resident, and</p></item><item><num>(b)</num><p>if the individual is not the settlor, at a time when the individual was a close member of the settlor’s family.</p></item></blockList></item></blockList></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>For the purposes of Step 1 in subsection (1), if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees provide a benefit to an individual in a given tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for the tax year,</p></content></level><wrapUp><p>the benefit is instead treated as provided to the settlor.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “643M” substitute <quotedText>“643EA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-15" class="schProv1"><num>15</num><content><p><mod>For section 643C substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643C</num><heading>Meaning of “available protected income” in section 643A</heading><subsection eId="d25e39587"><num>(1)</num><content><p>For the purposes of section 643A, take the following steps to determine the amount of available protected income in relation to an individual (“<term refersTo="#term-p">P</term>”), a settlement and a tax year (“the current tax year”)—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify the total amount of protected foreign-source income and transitional trust income that arose (at any time) under the settlement (“the total protected income”).</p></item><item><p><i>Step 2</i></p><p>Deduct any amount of the total protected income that is matched under the transfer of assets abroad code in the current tax year or an earlier tax year.</p></item><item><p><i>Step 3</i></p><p>Deduct any amount of the total protected income on which P or any other individual is liable to income tax in the current tax year or an earlier tax year.</p></item><item><p><i>Step 4</i></p><p>Deduct any amount that, in relation to the settlement, is treated under section 643A as P’s income in an earlier tax year or as another individual’s income in any tax year.</p></item><item><p><i>Step 5</i></p><p>Add back the amount of any income falling within Step 4 that is identified as qualifying foreign income on a foreign income claim made by P or any other individual for any tax year.</p></item></blockList></content></subsection><subsection><num>(2)</num><content><p>For the purposes of Step 1 in subsection <ref href="#d25e39587">(1)</ref>, ignore section 648(3) to (5) (foreign income treated as “arising” under settlement only if and when remitted).</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of Step 2 in subsection <ref href="#d25e39587">(1)</ref>, an amount of the total protected income is “matched under the transfer of assets abroad code” if it is matched under section 735A of ITA 2007 with—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided by the trustees to P or any other individual in the current tax year or in an earlier tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount of income treated as arising to P or any other individual under section 732 of ITA 2007</p></content></level><wrapUp><p>(or if it would be so matched if section 735A applied for those purposes).</p></wrapUp></subsection><subsection eId="d25e39669"><num>(4)</num><content><p>For the purposes of Step 3 in subsection <ref href="#d25e39587">(1)</ref>, ignore any liability to income tax arising under section 643A above or under section 731 of ITA 2007 (transfer of assets abroad: benefits charge).</p></content></subsection><subsection><num>(5)</num><content><p>In Step 4 in subsection <ref href="#d25e39587">(1)</ref> and in <ref href="#d25e39669">subsection (4)</ref>, a reference to section 643A includes, in relation to any of the tax years 2018-19 to 2024-25, section 643J and 643L (old onward gifting rules).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-12-paragraph-16-1"><num>(1)</num><content><p>Section 643E (reimbursement of tax paid by settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-2"><num>(2)</num><content><p><mod>In the heading, for “section 643A” substitute <quotedText>“643B(2)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-3"><num>(3)</num><content><p><mod>In subsection (1), for “section 643A(3) or (4)” substitute <quotedText>“section 643B(2) (benefit received by close family member attributed to settlor)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 643A as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After section 643E insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643EA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e39759"><num>(1)</num><intro><p>Subsection <ref href="#d25e39886">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of a settlement provide a benefit (“the original benefit”) to an individual (“the original recipient”),</p></content></level><level class="para1"><num>(b)</num><intro><p>the original recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is liable neither to income tax nor to capital gains tax by reference to the amount or value of the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a qualifying new resident for the tax year in which the original benefit is provided,</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 643B(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e39798"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e39816"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e39828"><num>(ii)</num><content><p>at any time before the original benefit is provided to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided,</p></content></level></level><level class="para1" eId="d25e39834"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e39858"><num>(g)</num><intro><p>the subsequent recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is the settlor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a close member of the settlor's family at the time when they receive the onward gift or, where the onward gift is provided as mentioned in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref><ref href="#d25e39828">(ii)</ref>, at the time given by <ref href="#d25e39930">subsection (4)</ref>.</p></content></level></level></subsection><subsection eId="d25e39886"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39834">(f)</ref> is treated for the purposes of section 643B(1) and (2)(a) as a benefit provided by the trustees to the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39834">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection eId="d25e39930"><num>(4)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref><ref href="#d25e39828">(ii)</ref>, it is treated for the purposes of <ref href="#d25e39886">subsection (2)</ref> as made immediately after, and in the tax year in which, the original benefit is provided to the original recipient.</p></content></subsection><subsection><num>(5)</num><content><p>Where the conditions in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref> to <ref href="#d25e39858">(g)</ref> are met in any case, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39798">(d)</ref> is also met in that case.</p></content></subsection><subsection><num>(6)</num><content><p>Where the original recipient is liable neither to income tax nor to capital gains tax by reference to the amount or value of part only of the original benefit, this section applies as if the two parts of the original benefit were separate benefits.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-12-paragraph-18-1"><num>(1)</num><content><p>Section 643F (income attributed by section 643A to user of remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-18-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for the words from “is treated” to the end substitute <quotedText>“was treated by section 643A as arising to an individual for any of the tax years 2018-19 to 2024-25, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-3"><num>(3)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-3-a"><num>(a)</num><content><p><mod>in the definition of “protected income”, for “forms” substitute <quotedText>“under section 643C formed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-3-b"><num>(b)</num><content><p><mod>in the definition of “the relevant individual”, in paragraphs (a) and (b), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>A reference in this section to section 643A or 643C (or to any provision of that section) is to that section (or provision) as it had effect for the tax year in which the deemed income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-12-paragraph-19-1"><num>(1)</num><content><p>Section 643G (section 643F(4): benefits and income “relating” to deemed income) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-19-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(aa)</num><content><p>references to section 643A, 643J or 643L (or to a provision of any of those sections) are to that section (or provision) as it had effect for the year,</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-19-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “is allowed” substitute <quotedText>“was allowed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-b"><num>(b)</num><content><p><mod>in paragraph (d), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-c"><num>(c)</num><content><p><mod>in paragraph (e), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-d"><num>(d)</num><content><p><mod>in paragraph (f), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 643H (meaning of close member of settlor’s family), in the heading and in subsection (1), for “643B to 643M” substitute <quotedText>“643A to 643EA”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-21" class="schProv1"><num>21</num><content><p>Omit sections 643I to 643M (old onward gift provisions).</p></content></paragraph><paragraph eId="schedule-12-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-12-paragraph-22-1"><num>(1)</num><content><p>Section 643N (person liable under section 643J or 643L and remittance basis applies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-2"><num>(2)</num><content><p><mod>In the heading, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-22-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-22-3-a-i"><num>(i)</num><content><p><mod>in the words before sub-paragraph (i), for “is treated as arising to an individual for a tax year” substitute <quotedText>“was treated as arising to an individual for the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-22-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-22-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-22-4"><num>(4)</num><content><p><mod>In subsection (3), after “onward payment” insert <quotedText>“referred to in section 643I(1)(d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in this section to section 643I, 643J or 643L (or to a provision of any of those sections) is to that section (or provision) as it had effect for the tax year in which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-12-paragraph-23-1"><num>(1)</num><content><p>Section 645 (property or income originating from settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-2"><num>(2)</num><content><p><mod>In subsection (1), for “sections 628A and 644” substitute <quotedText>“section 644”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>If the same property has been provided by more than one settlor for the purposes of the settlement, so much of the property as is attributable to each settlor on a just and reasonable apportionment is treated for the purposes of this section as provided by that settlor.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-12-paragraph-24-1"><num>(1)</num><content><p>Section 646 (adjustments between settlor and trustees etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-2"><num>(2)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor under section 624 or 629 (as the case may be),</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the income in respect of which the settlor has paid tax, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-3"><num>(3)</num><intro><p>In subsection (6A)—</p></intro><level class="para1" eId="schedule-12-paragraph-24-3-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-24-3-b"><num>(b)</num><content><p><mod>at the end insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which the income to which the repayment relates was treated as arising to the settlor.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-12-paragraph-25-1"><num>(1)</num><content><p>Section 648 (income arising under a settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-2"><num>(2)</num><content><p>In subsection (1)(b), omit “domiciled and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-3"><num>(3)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-25-3-a"><num>(a)</num><content><p><mod>for “if, for a tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applies”, substitute <quotedText>“if, for the tax year 2024-25 or an earlier tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-25-3-b"><num>(b)</num><content><p><mod>for “relevant foreign income” substitute <quotedText>“specified foreign income”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-25-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>In subsection (3), “<term refersTo="#term-specified-foreign-income">specified foreign income</term>” means income that would be relevant foreign income if it were the income of a UK resident individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></part><part eId="schedule-12-part-2"><num>Part 2</num><heading>Transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-26" class="schProv1"><num>26</num><content><p>Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-27" class="schProv1"><num>27</num><intro><p>In section 718 (meaning of “person abroad” etc)—</p></intro><level class="para1" eId="schedule-12-paragraph-27-a"><num>(a)</num><content><p><mod>in subsection (1), for the words from “means” to the end, substitute <quotedText>“means a person who is resident outside the United Kingdom.”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-27-b"><num>(b)</num><content><p>omit subsection (3).</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-28" class="schProv1"><num>28</num><intro><p>In section 720 (charge to tax on income treated as arising under section 721)—</p></intro><level class="para1" eId="schedule-12-paragraph-28-a"><num>(a)</num><content><p>in subsection (4), omit “and section 726 (non-UK domiciled individuals to whom remittance basis applies)”;</p></content></level><level class="para1" eId="schedule-12-paragraph-28-b"><num>(b)</num><content><p><mod>in subsection (7), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-29" class="schProv1"><num>29</num><content><p><mod>In section 721 (individuals with power to enjoy income as a result of relevant transactions), for subsections (3B) and (3BA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3B)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to sections 724 and 725).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-30" class="schProv1"><num>30</num><content><p>Omit sections 721A and 721B (meaning of “protected foreign-source income” etc).</p></content></paragraph><paragraph eId="schedule-12-paragraph-31" class="schProv1"><num>31</num><content><p><mod>After section 725 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>725A</num><heading>Recovery of tax paid as a result of section 721</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 721 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 721 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-12-paragraph-32-1"><num>(1)</num><content><p>Section 726 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 721 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-33" class="schProv1"><num>33</num><intro><p>In section 727 (charge to tax on income treated as arising under section 728)—</p></intro><level class="para1" eId="schedule-12-paragraph-33-a"><num>(a)</num><content><p>omit subsection (3A);</p></content></level><level class="para1" eId="schedule-12-paragraph-33-b"><num>(b)</num><content><p><mod>in subsection (5), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 728 (individuals receiving capital sums as a result of relevant transactions), for subsections (1A) and (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-35" class="schProv1"><num>35</num><content><p>Omit section 729A (meaning of “<term refersTo="#term-protected-foreign-source-income" eId="term-protected-foreign-source-income">protected foreign-source income</term>”).</p></content></paragraph><paragraph eId="schedule-12-paragraph-36" class="schProv1"><num>36</num><content><p><mod>Before section 730 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>729B</num><heading>Recovery of tax paid as a result of section 728</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 728 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 728 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-12-paragraph-37-1"><num>(1)</num><content><p>Section 730 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 728 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-12-paragraph-38-1"><num>(1)</num><content><p>Section 731 (charge to tax on income treated as arising under section 732) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-2"><num>(2)</num><content><p><mod>In subsection (1), for “individuals receiving a benefit” substitute <quotedText>“non-transferors receiving a benefit”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-3"><num>(3)</num><content><p>Omit subsections (1A) to (1C) and (2A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-4"><num>(4)</num><content><p>In subsection (3), omit “, but this is subject to section 733A”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-5"><num>(5)</num><content><p><mod>In subsection (4), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-12-paragraph-39-1"><num>(1)</num><content><p>Section 732 (deemed income where benefit received) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-2"><num>(2)</num><content><p><mod>In the heading, for “Individuals” substitute <quotedText>“Non-transferors”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-39-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “receives a benefit in a tax year” substitute <quotedText>“who is UK resident for a tax year receives a benefit in that tax year”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-39-3-b"><num>(b)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual is not liable to income tax under section 720 or 727 by reference to the transfer and would not be so liable if the effect of sections 726 and 730 were ignored,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-39-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-12-paragraph-40-1"><num>(1)</num><content><p>Section 733 (income charged under section 731) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-2"><num>(2)</num><content><p>In subsection (1), in Step 2, omit the words from “except that” to “for an earlier tax year”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>For the purposes of subsection (1), the amount deducted at Step 2 does not include the amount of any income on which tax was not charged under section 731 by virtue of—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e41272">735AD</ref><ref href="#d25e41282">(2)</ref> (transferor not taxable under benefits charge except where benefit matched to protected foreign-source income etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 731(1A) (equivalent provision for tax years 2024-25 and earlier).</p></content></level></subsection><subsection eId="d25e40886"><num>(2B)</num><intro><p>For the purposes of subsection (1), if in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>income is treated as arising to an individual under section 732(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>the income is identified as qualifying foreign income on a foreign income claim,</p></content></level><wrapUp><p>the income is treated for later tax years as not having been charged to income tax under section 731.</p></wrapUp></subsection><subsection><num>(2C)</num><intro><p>It follows from subsection <ref href="#d25e40886">(2B)</ref> that—</p></intro><level class="para1"><num>(a)</num><content><p>in the application of subsection (1) to the individual for subsequent tax years, the amount of the income will be deducted at Step 2 and at paragraph (a) of Step 5, but</p></content></level><level class="para1"><num>(b)</num><content><p>in the application of subsection (1) to any other individual for subsequent tax years, the amount of the income will not be deducted at paragraph (b) of Step 5.</p></content></level></subsection><subsection><num>(2D)</num><content><p>See <ref href="#schedule-10-paragraph-11">paragraph 11</ref> of Schedule <ref href="#schedule-10">10</ref> to FA 2025 (temporary repatriation facility) for special provision about income that is treated as arising under section 732 but that is exempt from income tax under that Schedule.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-41" class="schProv1"><num>41</num><content><p>Omit sections 733A to 733E and 734A (old provision about protected foreign-source income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-12-paragraph-42-1"><num>(1)</num><content><p>Section 735 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 732 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-12-paragraph-43-1"><num>(1)</num><content><p>Section 735A (matching rules) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-2"><num>(2)</num><content><p><mod>In subsection (1), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>deduct from those benefits any benefit so far as—</p></intro><level class="para2"><num>(i)</num><content><p>chargeable gains (or offshore income gains) are treated as mentioned in section 734(1)(d) as accruing by reference to the benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>income is treated as mentioned in <ref href="#d25e41615">section 735AG</ref><ref href="#d25e41619">(1)</ref><ref href="#d25e41631">(b)</ref> as arising by reference to the benefit under section 643A, 643J or 643L of ITTOIA 2005 (settlements: benefits charge), or</p></content></level><level class="para2"><num>(iii)</num><content><p>income is treated as arising by reference to the benefit under section 732(2) and that income is identified in a foreign income claim,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-3"><num>(3)</num><content><p><mod>in subsection (6), for “the individual, or as a result of section 733A another person” substitute <quotedText>“a person”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-44" class="schProv1"><num>44</num><content><p><mod>After section 735A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Transitional provision about protected foreign-source income and transitionally protected income</heading><section eId="d25e41090"><num>735AA</num><heading>Settlements to which following sections apply</heading><subsection eId="d25e41094"><num>(1)</num><intro><p>Sections <ref href="#d25e41195">735AB</ref> to 735C apply if—</p></intro><level class="para1" eId="d25e41103"><num>(a)</num><content><p>a relevant transfer occurred before 6 April 2025,</p></content></level><level class="para1" eId="d25e41109"><num>(b)</num><intro><p>the person abroad was—</p></intro><level class="para2" eId="d25e41115"><num>(i)</num><content><p>the trustees of a settlement, or</p></content></level><level class="para2" eId="d25e41121"><num>(ii)</num><content><p>a company in which the trustees of a settlement were participators or indirect participators, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>protected foreign-source income or transitionally protected income arose in relation to the transfer.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In sections <ref href="#d25e41195">735AB</ref> to 735C—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-transfer">the relevant transfer</term>” means the transfer referred to in <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41103">(a)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlement">the settlement</term>” means the settlement referred to in <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41109">(b)</ref><ref href="#d25e41115">(i)</ref> or <ref href="#d25e41121">(ii)</ref> (as the case may be);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlor">the settlor</term>” means the settlor of that settlement.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41109">(b)</ref><ref href="#d25e41121">(ii)</ref>, the trustees of a settlement are “indirect participators” in a company if they are participators in the first in a chain of two or more companies where the last company in the chain is the person abroad and where each company in the chain (except the last) is a participator in the next company in the chain.</p></content></subsection></section><section eId="d25e41195"><num>735AB</num><heading>“Protected foreign-source income” and “transitionally protected income”</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e41090">sections 735AA</ref> to <ref href="#d25e41418">735AF</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>would have been treated as arising to the settlor under section 721 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 721A (as that section had effect for that tax year), or</p></content></level><level class="para1"><num>(b)</num><content><p>would have been treated as arising to the settlor under section 728 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 729A (as that section had effect for that tax year);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitionally-protected-income">transitionally protected income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>was treated as arising to the settlor under section 721 or 728 in a tax year earlier than the tax year 2017-18,</p></content></level><level class="para1"><num>(b)</num><content><p>was not remitted to the United Kingdom in a tax year earlier than the tax year 2017-18, and</p></content></level><level class="para1"><num>(c)</num><content><p>was transitionally protected income within the meaning of section 726(7) or 730(7) throughout the tax years 2017-18 to 2024-25 (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>In subsection (1), in <ref href="#d25e41240">paragraph (b)</ref> of the definition of “transitionally protected income”, “<term refersTo="#term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>” is to be read in accordance with Chapter A1 of Part 14 (read with section 726 or 730 as the case may be).</p></content></subsection></section><section><num>735AC</num><heading>Transitionally protected income not to be taxed on remittance</heading><content><p>Section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis) does not apply to transitionally protected income.</p></content></section><section eId="d25e41272"><num>735AD</num><heading>Settlor liable for benefits charge despite being transferor</heading><subsection eId="d25e41276"><num>(1)</num><content><p>For the purposes of section 732 (benefits charge: deemed income), subsection (1)(d) of that section (benefits charge confined to individuals not liable under section 720 or 727) is to be disregarded where the individual who receives the benefit is the settlor.</p></content></subsection><subsection eId="d25e41282"><num>(2)</num><content><p>But any income treated as arising to the settlor under section 732(2) is not taxed under section 731 unless the income would, assuming that section 735A applied for this purpose by reference to the settlor, be matched under that section with an amount of relevant income that is protected foreign-source income or transitionally protected income in relation to the relevant transfer.</p></content></subsection></section><section eId="d25e41291"><num>735AE</num><heading>Settlor liable in place of close family member</heading><subsection eId="d25e41295"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit is provided to an individual in a given tax year out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family at the time when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year in which the benefit is provided, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for that tax year,</p></content></level><wrapUp><p>the benefit is instead treated for the purposes of section 732 and <ref href="#d25e41272">section 735AD</ref><ref href="#d25e41276">(1)</ref> as provided to the settlor.</p></wrapUp></subsection><subsection eId="d25e41344"><num>(2)</num><intro><p>For the purposes of this section, a person is a “close member of the settlor’s family” at any time if the settlor is living at that time and—</p></intro><level class="para1"><num>(a)</num><content><p>the person is the settlor’s spouse or civil partner at that time, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>is a child of the settlor, or of a person who at that time is the settlor’s spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>at that time has not reached the age of 18.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41344">subsection (2)</ref>, two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other.</p></content></subsection><subsection><num>(4)</num><content><p>Where any tax for which the settlor is liable as a result of this section is paid, the settlor is entitled to recover the amount of the tax from the individual concerned.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to provide the settlor with a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section><section eId="d25e41418"><num>735AF</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e41422"><num>(1)</num><intro><p>Subsection <ref href="#d25e41525">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit (“the original benefit”) is provided to an individual (“the original recipient”) out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the original recipient is non-UK resident, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p><ref href="#d25e41291">section 735AE</ref><ref href="#d25e41295">(1)</ref> (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e41465"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or there is an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e41483"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is received by the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before the original benefit is received by the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided, and</p></content></level></level><level class="para1" eId="d25e41501"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient.</p></content></level></level></subsection><subsection eId="d25e41525"><num>(2)</num><content><p>For the purposes of sections 732, <ref href="#d25e41272">735AD</ref><ref href="#d25e41276">(1)</ref> and <ref href="#d25e41291">735AE</ref><ref href="#d25e41295">(1)</ref>, so much of the onward gift as falls within <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41501">(f)</ref> is (so far as would not otherwise be the case) treated as a benefit provided to the subsequent recipient out of assets which are available for the purpose as a result of an associated operation in relation to the relevant transfer.</p></content></subsection><subsection eId="d25e41546"><num>(3)</num><intro><p>For the purposes of <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41501">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the conditions in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref> and <ref href="#d25e41501">(f)</ref> are met, it is to be presumed, unless the contrary is shown, that the condition in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41465">(d)</ref> is also met.</p></content></subsection><subsection><num>(5)</num><content><p>In <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41465">(d)</ref>, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section eId="d25e41615"><num>735AG</num><heading>Deduction allowed for previous settlements charge</heading><subsection eId="d25e41619"><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided as mentioned in section 732(1)(c) are received in a tax year, and</p></content></level><level class="para1" eId="d25e41631"><num>(b)</num><content><p>income is treated under section 643A of ITTOIA 2005 as arising to a person in that or a subsequent tax year by reference (direct or indirect) to the whole or part of any benefits so provided.</p></content></level></subsection><subsection><num>(2)</num><content><p>For any tax year after one in which such income is so treated, the amount of income treated as arising to the individual under section 732(2) in respect of benefits provided as mentioned in section 732(1)(c) as a result of the transfer or operations in question is calculated as follows.</p></content></subsection><subsection><num>(3)</num><content><p>The amount is calculated under section 733(1) as if the total untaxed benefits were reduced by the amount of that income.</p></content></subsection><subsection><num>(4)</num><content><p>The reference in <ref href="#d25e41619">subsection (1)</ref><ref href="#d25e41631">(b)</ref> to income treated as arising under section 643A of ITTOIA 2005 includes, in relation to any of the tax years 2018-19 to 2024-25, a reference to income treated as arising under section 643J or 643L of ITTOIA 2005 (settlements code: old onward gift provisions).</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-the-total-untaxed-benefits">the total untaxed benefits</term>” has the same meaning as in section 733(1) (see Step 2).</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-12-paragraph-45-1"><num>(1)</num><content><p>Section 735B (settlor charge: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical liability under section 733A where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This section applies in relation to income if—</p></intro><level class="para1"><num>(a)</num><content><p>the income was treated under section 732 as arising to an individual (“<term refersTo="#term-the-beneficiary">the beneficiary</term>”) for any of the tax years 2017-18 to 2024-25,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor was under section 733A(2) or (3) (as it had effect for that tax year) liable for tax on the income, and</p></content></level><level class="para1"><num>(c)</num><content><p>section 809B, 809D or 809E (remittance basis) applied to the settlor for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-12-paragraph-46-1"><num>(1)</num><content><p>Section 735C (old onward gifts provisions: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical operation of section 733C or 733E where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for the words before sub-paragraph (i) substitute <quotedText>“the income was treated as arising to an individual for any of the tax years 2018-19 to 2024-25”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-46-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-46-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in subsection (1) to section 733C or 733E (or to any provision of either section) is to that section (or provision) as it had effect for the tax year for which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-47" class="schProv1"><num>47</num><intro><p>In section 736 (exemptions: introduction)—</p></intro><level class="para1" eId="schedule-12-paragraph-47-a"><num>(a)</num><content><p><mod>in subsection (1), for “742A” substitute <quotedText>“742”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-47-b"><num>(b)</num><content><p>omit subsection (2A).</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-48" class="schProv1"><num>48</num><content><p>Omit section 742A (post-5 April 2012 transactions: exemption for genuine transactions).</p></content></paragraph><paragraph eId="schedule-12-paragraph-49" class="schProv1"><num>49</num><content><p>In section 747 (amounts corresponding to accrued income profits and related interest), in subsection (1)(b) and subsection (4)(b), omit “or domiciled”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-50" class="schProv1"><num>50</num><content><p>In section 751 (tribunal’s jurisdiction on appeals), omit paragraph (da).</p></content></paragraph></part><part eId="schedule-12-part-3"><num>Part 3</num><heading>Settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-51" class="schProv1"><num>51</num><content><p><ref eId="c00332" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-52" class="schProv1"><num>52</num><content><p>In section 1A (territorial scope), in subsection (2)(e), omit “87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-53" class="schProv1"><num>53</num><content><p>In section 1E (losses deductible only when within scope of tax etc), omit subsection (4).</p></content></paragraph><paragraph eId="schedule-12-paragraph-54" class="schProv1"><num>54</num><content><p>In section 62 (death: general provisions), in subsection (2A), omit paragraph (a).</p></content></paragraph><paragraph eId="schedule-12-paragraph-55" class="schProv1"><num>55</num><subparagraph eId="schedule-12-paragraph-55-1"><num>(1)</num><content><p>Section 86 (attribution of gains to settlors with interest in non-resident or dual resident settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-2"><num>(2)</num><content><p>In subsection (1)(c), omit “is domiciled in the United Kingdom at some time in the year and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-3"><num>(3)</num><content><p>Omit subsection (3A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-4"><num>(4)</num><content><p>In subsection (4), omit paragraph (b) and the “and” before it.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>See also <ref href="#d25e6482">paragraph 3</ref> of <ref href="#d25e6378">Schedule D1</ref> (foreign gain claims: foreign gains and losses of the trustees ignored for the purposes of subsection (1)(e)).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-56" class="schProv1"><num>56</num><content><p>In section 86A (attribution of gains to settlor where temporarily non-resident), in subsection (1)(b), omit “, 87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 87 (non-UK resident settlements: attribution of gains to beneficiaries), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>See also <ref href="#d25e6539">paragraph 4</ref> of <ref href="#d25e6378">Schedule D1</ref> (foreign gain claims: capital payments ignored for the purposes of this section and Schedule 4C).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-58" class="schProv1"><num>58</num><subparagraph eId="schedule-12-paragraph-58-1"><num>(1)</num><content><p>Section 87B (section 87: remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-58-2-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-58-2-a-i"><num>(i)</num><content><p><mod>for “are treated” substitute <quotedText>“were treated”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-58-2-a-ii"><num>(ii)</num><content><p><mod>for “a tax year” substitute <quotedText>“the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-58-3"><num>(3)</num><content><p><mod>In subsection (2), for “chargeable gains accruing” substitute <quotedText>“treated as having accrued”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-4"><num>(4)</num><content><p><mod>In subsection (4), for “are treated as accruing consists of” substitute <quotedText>“were treated as accruing consisted of”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>The references in this section to sections 87I(1)(c), 87K and 87L (which were repealed by <ref href="#schedule-12-part-3">Part 3</ref> of <ref href="#schedule-12">Schedule 12</ref> to the Finance Act 2025) are to those provisions as they had effect for the tax year in which the chargeable gains were treated as accruing to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-59" class="schProv1"><num>59</num><content><p>In section 87D (sections 87 and 87A: capital payments to non-residents disregarded), in subsection (1) omit paragraph (b) and the “and” before it.</p></content></paragraph><paragraph eId="schedule-12-paragraph-60" class="schProv1"><num>60</num><subparagraph eId="schedule-12-paragraph-60-1"><num>(1)</num><content><p>Section 87G (settlor liable if capital payment received by close family member) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-2"><num>(2)</num><content><p><mod>In subsection (1)(b), for “at any time in that year” substitute <quotedText>“for that tax year”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>But subsection (2) does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the original recipient is resident in the United Kingdom for the tax year in which they receive the capital payment, and</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is a qualifying new resident for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-12-paragraph-60-4-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-60-4-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which those gains were treated as arising,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 87H (meaning of “<term refersTo="#term-close-member-of-the-settlors-family" eId="term-close-member-of-the-settlors-family">close member of the settlor’s family</term>”), in subsection (1), for “87D, 87G and 87L” substitute <quotedText>“87D and 87G”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-62" class="schProv1"><num>62</num><content><p><mod>For sections 87I to 87M (old onward gifting provisions) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e42124"><num>87HA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e42128"><num>(1)</num><intro><p>Subsection <ref href="#d25e42221">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the original recipient”) receives a capital payment (“the original benefit”) from the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the original recipient is not resident in the United Kingdom, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p>section 87G(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e42155"><num>(d)</num><intro><p>at the time when the person receives the original benefit—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be resident in the United Kingdom when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e42173"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to a person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e42185"><num>(ii)</num><content><p>at any time before the original benefit is made to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being made,</p></content></level></level><level class="para1" eId="d25e42191"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the providing of the onward gift to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e42215"><num>(g)</num><content><p>the subsequent recipient is resident in the United Kingdom for the tax year in which they receive the onward gift.</p></content></level></subsection><subsection eId="d25e42221"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42191">(f)</ref> is treated for the purposes of sections 87, 87A , 87D(2) and 87G(2) as a capital payment received from the trustees by the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><content><p>Where <ref href="#d25e42221">subsection (2)</ref> applies, the subsequent recipient is treated as having received the capital payment as a beneficiary of the settlement (whether or not they are otherwise a beneficiary of it).</p></content></subsection><subsection eId="d25e42241"><num>(4)</num><intro><p>For the purposes of <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42191">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(5)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref><ref href="#d25e42185">(ii)</ref>, the onward gift is treated for the purposes of subsection <ref href="#d25e42221">(2)</ref> as made in the tax year in which the original benefit is made to the original recipient.</p></content></subsection><subsection><num>(6)</num><content><p>Where the conditions in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref> to <ref href="#d25e42215">(g)</ref> are met, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42155">(d)</ref> is also met.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-63" class="schProv1"><num>63</num><content><p>In section 91 (increase in tax payable under section 87 or 89(2)), in subsection (1)(a), omit “, 87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-64" class="schProv1"><num>64</num><intro><p>In section 97 (supplementary provisions)—</p></intro><level class="para1" eId="schedule-12-paragraph-64-a"><num>(a)</num><content><p><mod>in subsection (1)(a)(ii), for the words from “any of sections 643A” to the end of the sub-paragraph, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-64-b"><num>(b)</num><content><p><mod>in subsection (3), for the words from “section 643A” to “ITA 2007”, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-65" class="schProv1"><num>65</num><content><p>In section 279A (deferred unascertainable consideration: election for treatment of loss), in subsection (7), omit paragraph (b) (but not the “and” after it).</p></content></paragraph><paragraph eId="schedule-12-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 279C (effect of election under section 279A), in subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-66-a"><num>(a)</num><content><p><mod>after paragraph (a) insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-66-b"><num>(b)</num><content><p>omit paragraph (c) and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-67" class="schProv1"><num>67</num><content><p>In Schedule 1 (UK resident individuals not domiciled in UK), in paragraph 3(5), omit paragraph (b) and the “and” before it.</p></content></paragraph><paragraph eId="schedule-12-paragraph-68" class="schProv1"><num>68</num><subparagraph eId="schedule-12-paragraph-68-1"><num>(1)</num><content><p>Schedule 4C (transfers of value: attribution of gains to beneficiaries) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-68-2"><num>(2)</num><content><p><mod>In paragraph 8(6), after “87G(2),” insert <quotedText>“87HA(2),”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-69" class="schProv1"><num>69</num><subparagraph eId="schedule-12-paragraph-69-1"><num>(1)</num><content><p>Schedule 5 (attribution of gains to settlors with interest in non-resident or dual resident settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-2"><num>(2)</num><content><p><mod>In paragraph 1 (construction of section 86(1)(e): losses etc), after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><intro><p>In construing section 86(1)(e) as regards a particular year of assessment, if—</p></intro><level class="para1"><num>(a)</num><content><p>section 86 did not apply to the settlement in a year of assessment ending before 6 April 2025 (“the earlier year”), but</p></content></level><level class="para1"><num>(b)</num><content><p>that section would have applied to the settlement in the earlier year if the condition in section 86(1)(e) (settlor domiciled in the United Kingdom) had been met in the earlier year,</p></content></level><wrapUp><p>deductions shall be made in respect of losses accruing in the earlier year, but only so far as those losses have not been taken into account for the purposes of section 87 in determining the section 1(3) amount for the settlement for the earlier year.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-3"><num>(3)</num><content><p>Omit paragraphs 5A and 5B (protections for deemed domiciles etc).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-4"><num>(4)</num><content><p><mod>After paragraph 5 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Old section 87 rebasing elections to apply in relation to section 86</heading><paragraph class="schProv1"><num>5C</num><subparagraph eId="d25e42457"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of the settlement made (at any time) an election under paragraph 126(1) of Schedule 7 to the Finance Act 2008 (remittance basis: capital gains rebasing), and</p></content></level><level class="para1" eId="d25e42469"><num>(b)</num><content><p>an amount of chargeable gains would (apart from this paragraph) be treated as accruing to the settlor under section 86(4) in a tax year (“the relevant tax year”).</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The settlor is not charged to capital gains tax on so much of the chargeable gains as exceeds the relevant proportion of those gains.</p></content></subparagraph><subparagraph eId="d25e42481"><num>(3)</num><content><p>For that purpose “the relevant proportion” is—</p><tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" altimg="http://www.legislation.gov.uk/ukpga/2025/8/images/ukpga_20250008_en_001"><default:mfrac><default:mi>A</default:mi><default:mi>B</default:mi></default:mfrac></default:math></foreign><blockContainer class="where"><p>where—</p><tblock class="definition"><p>A is the amount that would be treated under section 86(4) as accruing to the settlor in the relevant tax year if immediately before 6 April 2008 every relevant asset had been sold by the trustees and immediately re-acquired by them at its market value at that time, and</p></tblock><tblock class="definition"><p>B is the amount mentioned in <ref href="#d25e42457">sub-paragraph (1)</ref><ref href="#d25e42469">(b)</ref>.</p></tblock></blockContainer></tblock></content></subparagraph><subparagraph><num>(4)</num><intro><p>In <ref href="#d25e42481">sub-paragraph (3)</ref>, “<term refersTo="#term-relevant-asset">relevant asset</term>” means an asset—</p></intro><level class="para1"><num>(a)</num><content><p>that was disposed of in the relevant tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>that was comprised in the settlement from the beginning of 6 April 2008 until its disposal.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-5"><num>(5)</num><intro><p>In paragraph 6 (right of recovery), in sub-paragraph (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-69-5-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-69-5-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which gains were treated as accruing under section 86(4),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph></part><part eId="schedule-12-part-4"><num>Part 4</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e42570"><heading>Commencement</heading><paragraph eId="schedule-12-paragraph-70" class="schProv1"><num>70</num><subparagraph eId="schedule-12-paragraph-70-1"><num>(1)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-1">1</ref> to <ref href="#schedule-12-paragraph-53">53</ref>, <ref href="#schedule-12-paragraph-55">55</ref> to <ref href="#schedule-12-paragraph-64">64</ref> and <ref href="#schedule-12-paragraph-67">67</ref> to <ref href="#schedule-12-paragraph-69">69</ref> have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-2"><num>(2)</num><content><p>The amendment made by paragraph <ref href="#schedule-12-paragraph-54">54</ref> to section 62 of TCGA 1992 (death: general provisions) has effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-3"><num>(3)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-65">65</ref> and <ref href="#schedule-12-paragraph-66">66</ref> to sections 279A and 279C of TCGA 1992 (deferred unascertainable consideration: election for treatment of loss) have effect in relation to disposals made on or after 6 April 2025 of rights to which section 279A of that Act applies.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42623"><heading><ins class="first" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc"><noteRef uk:name="commentary" href="#key-d8e412a16d7c81b275bfa9b3086758bc" class="commentary"/>Settlements: transitional protection where available protected income is increased by this Schedule</ins></heading><paragraph eId="schedule-12-paragraph-70A" class="schProv1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">70A</ins></num><subparagraph eId="schedule-12-paragraph-70A-1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(1)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">This paragraph applies for the purposes of section 643A of ITTOIA 2005 if an individual’s untaxed benefits total in relation to a settlement for the tax year 2024-25 exceeded the available protected income up to the end of that tax year.</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-2"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(2)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In determining under section 643B of that Act the individual’s untaxed benefits total for the tax year 2025-26 or a later tax year, any benefit provided to the individual in the tax year 2024-25 or an earlier tax year is to be disregarded at Step 1 in subsection (1).</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-3"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(3)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In this paragraph “untaxed benefits total” and “</ins><term refersTo="#term-available-protected-income"><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">available protected income</ins></term><ins class="last" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">”, in relation to an individual, a settlement and a tax year, are to be construed in accordance with sections 643B and 643C of ITTOIA 2005 (as they have or had effect for the tax year in question).</ins></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42661"><heading>Onward gifts: settlements (income)</heading><paragraph eId="schedule-12-paragraph-71" class="schProv1"><num>71</num><subparagraph eId="schedule-12-paragraph-71-1"><num>(1)</num><content><p>Section 643EA of ITTOIA 2005 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-17">paragraph 17</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 643EA of ITTOIA 2005; and in a case within section 643EA(3) “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-72" class="schProv1"><num>72</num><intro><p>Despite the repeal of section 643M of ITTOIA 2005 by <ref href="#schedule-12-paragraph-21">paragraph 21</ref> of this Schedule, that section continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-72-a"><num>(a)</num><content><p>it provided before its repeal for a benefit of a particular amount to be treated for the purposes of section 643B of that Act as having been provided to a particular person at a particular time, and</p></content></level><level class="para1" eId="schedule-12-paragraph-72-b"><num>(b)</num><content><p>the receipt of the benefit by the person is relevant to the application of section 643B of that Act in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42740"><heading>Onward gifts: transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-73" class="schProv1"><num>73</num><subparagraph eId="schedule-12-paragraph-73-1"><num>(1)</num><content><p><ref href="#d25e41418">Section 735AF</ref> of ITA 2007 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-44">paragraph 44</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in <ref href="#d25e41418">section 735AF</ref> of ITA 2007; and in a case within <ref href="#d25e41418">section 735AF</ref><ref href="#d25e41546">(3)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42808"><heading>Onward gifts: settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-74" class="schProv1"><num>74</num><subparagraph eId="schedule-12-paragraph-74-1"><num>(1)</num><content><p>Section 87HA of TCGA 1992 (benefits routed via non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-62">paragraph 62</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which they receive the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 87HA of TCGA 1992; and in a case within section <ref href="#d25e42124">87HA</ref><ref href="#d25e42241">(4)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-75" class="schProv1"><num>75</num><intro><p>Despite the repeal of sections 87K and 87L of TCGA 1992 (old onward gifting rules) by paragraph <ref href="#schedule-12-paragraph-62">62</ref> of this Schedule, each of those sections continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-75-a"><num>(a)</num><content><p>before its repeal, it provided for section 87 and 87A of that Act to have effect as if a capital payment of a particular amount had been received at a particular time by a particular person, and</p></content></level><level class="para1" eId="schedule-12-paragraph-75-b"><num>(b)</num><content><p>the receipt of the capital payment by that person is relevant to the application of sections 87 and 87A in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-part-1"><num>Part 1</num><heading>Settlements (income)</heading><paragraph eId="schedule-12-paragraph-1" class="schProv1"><num>1</num><content><p>Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family) is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-2" class="schProv1"><num>2</num><intro><p>In section 619 (charge to tax under Chapter 5), in subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-2-a"><num>(a)</num><content><p><mod>at the end of paragraph (d), insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-b"><num>(b)</num><content><p><mod>in paragraph (e), after “protected foreign-source income” insert <quotedText>“or transitional trust income”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-c"><num>(c)</num><content><p>omit paragraph (f) and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 622 (person liable), for “sections 643A and 643I to 643M” substitute <quotedText>“section 643A (under which a close member of the settlor’s family may instead be liable)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-4" class="schProv1"><num>4</num><intro><p>In section 624 (income where settlor retains an interest), in subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-4-a"><num>(a)</num><content><p><mod>after “section 627 (exceptions for certain types of income),” insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-4-b"><num>(b)</num><content><p>omit “section 628A (exception for protected foreign-source income)” and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-5" class="schProv1"><num>5</num><content><p>Omit sections 628A to 628C (protected foreign-source income and transitional trust income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-6" class="schProv1"><num>6</num><content><p>In section 629 (income paid to relevant children of settlor), in subsection (5), omit “or section 630A (exception for protected foreign-source income)”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-7" class="schProv1"><num>7</num><content><p>Omit section 630A (exception to section 629 for protected foreign-source income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-8" class="schProv1"><num>8</num><intro><p>In section 635 (capital sums charge: amount of available income)—</p></intro><level class="para1" eId="schedule-12-paragraph-8-a"><num>(a)</num><content><p>in subsections (2) and (3)(d)(i), omit “unprotected”;</p></content></level><level class="para1" eId="schedule-12-paragraph-8-b"><num>(b)</num><content><p><mod>for subsection (5) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>See also <ref href="#d25e39376">section 643ZB</ref>(2) (which provides for certain income not to be counted towards available income for the purposes of this section).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-9" class="schProv1"><num>9</num><intro><p>In section 636 (capital sums charge: calculation of undistributed income)—</p></intro><level class="para1" eId="schedule-12-paragraph-9-a"><num>(a)</num><intro><p>omit “unprotected” in the following places—</p></intro><level class="para2" eId="schedule-12-paragraph-9-a-i"><num>(i)</num><content><p>subsection (1);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-ii"><num>(ii)</num><content><p>subsection (2) (in both places it occurs);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iii"><num>(iii)</num><content><p>subsection (4);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iv"><num>(iv)</num><content><p>subsection (6);</p></content></level></level><level class="para1" eId="schedule-12-paragraph-9-b"><num>(b)</num><content><p>in subsection (2)(b), omit “domiciled and”.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-10" class="schProv1"><num>10</num><content><p>In section 637 (qualifications to section 636), in subsections (5) and (7A), omit “unprotected”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-11" class="schProv1"><num>11</num><content><p><mod>For the italic heading before section 643A, substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><heading ukl:Context="Pblock">Transitional provision about protected foreign-source income and transitional trust income</heading></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-12" class="schProv1"><num>12</num><content><p><mod>Before section 643A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643ZA</num><heading>“Protected foreign-source income” and “transitional trust income”</heading><subsection eId="d25e39325"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2017-18 to 2024-25, and</p></content></level><level class="para1"><num>(b)</num><content><p>was protected foreign-source income for that tax year within the meaning of section 628A (as that section had effect for that tax year).</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitional-trust-income">transitional trust income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2008-09 to 2016-17, and</p></content></level><level class="para1"><num>(b)</num><content><p>was transitional trust income throughout the tax years 2017-18 to 2024-25 within the meaning of section 628C (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e39325">subsection (1)</ref> ignore section 648(3) to (5) (foreign income treated as arising under settlement only if and when remitted).</p></content></subsection></section><section eId="d25e39376"><num>643ZB</num><heading>Protected foreign-source income and transitional trust income not to be taxed elsewhere in Chapter</heading><subsection><num>(1)</num><content><p>The rules in sections 624(1) and 629(1) do not apply to protected foreign-source income or transitional trust income (which, by virtue of section 648(3) to (5), may be treated as income arising under the settlement in the tax year 2025-26 or a subsequent tax year).</p></content></subsection><subsection><num>(2)</num><content><p>In the following provisions, “<term refersTo="#term-income">income</term>” does not include protected foreign-source income or transitional trust income—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 635(2) and (3)(d)(i);</p></item><item><p>section 636(1), (2) (in the words before paragraph (a)), (4) and (6);</p></item><item><p>section 637(5) and (7A).</p></item></blockList></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-13" class="schProv1"><num>13</num><content><p><mod>For section 643A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643A</num><heading>Benefits paid out of protected foreign-source income or transitional trust income</heading><subsection eId="d25e39422"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an individual to whom this section applies has an untaxed benefits total for a settlement for a tax year (see section 643B),</p></content></level><level class="para1"><num>(b)</num><content><p>there is available protected income in relation to the individual, the settlement and the tax year (see section 643C), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is UK resident for the tax year,</p></content></level><wrapUp><p>an amount equal to so much of the untaxed benefits total as does not exceed the available protected income is treated for income tax purposes as income of the individual for the tax year.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1"><num>(a)</num><content><p>the settlor, and</p></content></level><level class="para1"><num>(b)</num><content><p>anyone who has at any time been a close member of the settlor’s family.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If there is a choice about the individuals in whose case income is to be treated as arising under subsection <ref href="#d25e39422">(1)</ref>, income is to be treated as arising—</p></intro><level class="para1"><num>(a)</num><content><p>to such one or more of them as appears to an officer of Revenue and Customs to be just and reasonable, and</p></content></level><level class="para1"><num>(b)</num><content><p>if more than one, in such respective proportions as appear to the officer to be just and reasonable.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-12-paragraph-14-1"><num>(1)</num><content><p>Section 643B (meaning of “<term refersTo="#term-untaxed-benefits-total" eId="term-untaxed-benefits-total">untaxed benefits total</term>” in section 643A) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-2"><num>(2)</num><content><p><mod>In subsection (1), for Step 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify each benefit provided by the trustees to the individual—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in the current tax year, or an earlier tax year for which the individual was UK resident, and</p></item><item><num>(b)</num><p>if the individual is not the settlor, at a time when the individual was a close member of the settlor’s family.</p></item></blockList></item></blockList></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>For the purposes of Step 1 in subsection (1), if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees provide a benefit to an individual in a given tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for the tax year,</p></content></level><wrapUp><p>the benefit is instead treated as provided to the settlor.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “643M” substitute <quotedText>“643EA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-15" class="schProv1"><num>15</num><content><p><mod>For section 643C substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643C</num><heading>Meaning of “available protected income” in section 643A</heading><subsection eId="d25e39587"><num>(1)</num><content><p>For the purposes of section 643A, take the following steps to determine the amount of available protected income in relation to an individual (“<term refersTo="#term-p">P</term>”), a settlement and a tax year (“the current tax year”)—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify the total amount of protected foreign-source income and transitional trust income that arose (at any time) under the settlement (“the total protected income”).</p></item><item><p><i>Step 2</i></p><p>Deduct any amount of the total protected income that is matched under the transfer of assets abroad code in the current tax year or an earlier tax year.</p></item><item><p><i>Step 3</i></p><p>Deduct any amount of the total protected income on which P or any other individual is liable to income tax in the current tax year or an earlier tax year.</p></item><item><p><i>Step 4</i></p><p>Deduct any amount that, in relation to the settlement, is treated under section 643A as P’s income in an earlier tax year or as another individual’s income in any tax year.</p></item><item><p><i>Step 5</i></p><p>Add back the amount of any income falling within Step 4 that is identified as qualifying foreign income on a foreign income claim made by P or any other individual for any tax year.</p></item></blockList></content></subsection><subsection><num>(2)</num><content><p>For the purposes of Step 1 in subsection <ref href="#d25e39587">(1)</ref>, ignore section 648(3) to (5) (foreign income treated as “arising” under settlement only if and when remitted).</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of Step 2 in subsection <ref href="#d25e39587">(1)</ref>, an amount of the total protected income is “matched under the transfer of assets abroad code” if it is matched under section 735A of ITA 2007 with—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided by the trustees to P or any other individual in the current tax year or in an earlier tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount of income treated as arising to P or any other individual under section 732 of ITA 2007</p></content></level><wrapUp><p>(or if it would be so matched if section 735A applied for those purposes).</p></wrapUp></subsection><subsection eId="d25e39669"><num>(4)</num><content><p>For the purposes of Step 3 in subsection <ref href="#d25e39587">(1)</ref>, ignore any liability to income tax arising under section 643A above or under section 731 of ITA 2007 (transfer of assets abroad: benefits charge).</p></content></subsection><subsection><num>(5)</num><content><p>In Step 4 in subsection <ref href="#d25e39587">(1)</ref> and in <ref href="#d25e39669">subsection (4)</ref>, a reference to section 643A includes, in relation to any of the tax years 2018-19 to 2024-25, section 643J and 643L (old onward gifting rules).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-12-paragraph-16-1"><num>(1)</num><content><p>Section 643E (reimbursement of tax paid by settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-2"><num>(2)</num><content><p><mod>In the heading, for “section 643A” substitute <quotedText>“643B(2)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-3"><num>(3)</num><content><p><mod>In subsection (1), for “section 643A(3) or (4)” substitute <quotedText>“section 643B(2) (benefit received by close family member attributed to settlor)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 643A as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After section 643E insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643EA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e39759"><num>(1)</num><intro><p>Subsection <ref href="#d25e39886">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of a settlement provide a benefit (“the original benefit”) to an individual (“the original recipient”),</p></content></level><level class="para1"><num>(b)</num><intro><p>the original recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is liable neither to income tax nor to capital gains tax by reference to the amount or value of the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a qualifying new resident for the tax year in which the original benefit is provided,</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 643B(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e39798"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e39816"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e39828"><num>(ii)</num><content><p>at any time before the original benefit is provided to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided,</p></content></level></level><level class="para1" eId="d25e39834"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e39858"><num>(g)</num><intro><p>the subsequent recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is the settlor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a close member of the settlor's family at the time when they receive the onward gift or, where the onward gift is provided as mentioned in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref><ref href="#d25e39828">(ii)</ref>, at the time given by <ref href="#d25e39930">subsection (4)</ref>.</p></content></level></level></subsection><subsection eId="d25e39886"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39834">(f)</ref> is treated for the purposes of section 643B(1) and (2)(a) as a benefit provided by the trustees to the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39834">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection eId="d25e39930"><num>(4)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref><ref href="#d25e39828">(ii)</ref>, it is treated for the purposes of <ref href="#d25e39886">subsection (2)</ref> as made immediately after, and in the tax year in which, the original benefit is provided to the original recipient.</p></content></subsection><subsection><num>(5)</num><content><p>Where the conditions in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref> to <ref href="#d25e39858">(g)</ref> are met in any case, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39798">(d)</ref> is also met in that case.</p></content></subsection><subsection><num>(6)</num><content><p>Where the original recipient is liable neither to income tax nor to capital gains tax by reference to the amount or value of part only of the original benefit, this section applies as if the two parts of the original benefit were separate benefits.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-12-paragraph-18-1"><num>(1)</num><content><p>Section 643F (income attributed by section 643A to user of remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-18-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for the words from “is treated” to the end substitute <quotedText>“was treated by section 643A as arising to an individual for any of the tax years 2018-19 to 2024-25, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-3"><num>(3)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-3-a"><num>(a)</num><content><p><mod>in the definition of “protected income”, for “forms” substitute <quotedText>“under section 643C formed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-3-b"><num>(b)</num><content><p><mod>in the definition of “the relevant individual”, in paragraphs (a) and (b), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>A reference in this section to section 643A or 643C (or to any provision of that section) is to that section (or provision) as it had effect for the tax year in which the deemed income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-12-paragraph-19-1"><num>(1)</num><content><p>Section 643G (section 643F(4): benefits and income “relating” to deemed income) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-19-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(aa)</num><content><p>references to section 643A, 643J or 643L (or to a provision of any of those sections) are to that section (or provision) as it had effect for the year,</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-19-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “is allowed” substitute <quotedText>“was allowed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-b"><num>(b)</num><content><p><mod>in paragraph (d), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-c"><num>(c)</num><content><p><mod>in paragraph (e), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-d"><num>(d)</num><content><p><mod>in paragraph (f), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 643H (meaning of close member of settlor’s family), in the heading and in subsection (1), for “643B to 643M” substitute <quotedText>“643A to 643EA”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-21" class="schProv1"><num>21</num><content><p>Omit sections 643I to 643M (old onward gift provisions).</p></content></paragraph><paragraph eId="schedule-12-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-12-paragraph-22-1"><num>(1)</num><content><p>Section 643N (person liable under section 643J or 643L and remittance basis applies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-2"><num>(2)</num><content><p><mod>In the heading, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-22-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-22-3-a-i"><num>(i)</num><content><p><mod>in the words before sub-paragraph (i), for “is treated as arising to an individual for a tax year” substitute <quotedText>“was treated as arising to an individual for the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-22-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-22-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-22-4"><num>(4)</num><content><p><mod>In subsection (3), after “onward payment” insert <quotedText>“referred to in section 643I(1)(d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in this section to section 643I, 643J or 643L (or to a provision of any of those sections) is to that section (or provision) as it had effect for the tax year in which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-12-paragraph-23-1"><num>(1)</num><content><p>Section 645 (property or income originating from settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-2"><num>(2)</num><content><p><mod>In subsection (1), for “sections 628A and 644” substitute <quotedText>“section 644”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>If the same property has been provided by more than one settlor for the purposes of the settlement, so much of the property as is attributable to each settlor on a just and reasonable apportionment is treated for the purposes of this section as provided by that settlor.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-12-paragraph-24-1"><num>(1)</num><content><p>Section 646 (adjustments between settlor and trustees etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-2"><num>(2)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor under section 624 or 629 (as the case may be),</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the income in respect of which the settlor has paid tax, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-3"><num>(3)</num><intro><p>In subsection (6A)—</p></intro><level class="para1" eId="schedule-12-paragraph-24-3-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-24-3-b"><num>(b)</num><content><p><mod>at the end insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which the income to which the repayment relates was treated as arising to the settlor.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-12-paragraph-25-1"><num>(1)</num><content><p>Section 648 (income arising under a settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-2"><num>(2)</num><content><p>In subsection (1)(b), omit “domiciled and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-3"><num>(3)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-25-3-a"><num>(a)</num><content><p><mod>for “if, for a tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applies”, substitute <quotedText>“if, for the tax year 2024-25 or an earlier tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-25-3-b"><num>(b)</num><content><p><mod>for “relevant foreign income” substitute <quotedText>“specified foreign income”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-25-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>In subsection (3), “<term refersTo="#term-specified-foreign-income">specified foreign income</term>” means income that would be relevant foreign income if it were the income of a UK resident individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-1" class="schProv1"><num>1</num><content><p>Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family) is amended in accordance with this Part of this Schedule.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-2" class="schProv1"><num>2</num><intro><p>In section 619 (charge to tax under Chapter 5), in subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-2-a"><num>(a)</num><content><p><mod>at the end of paragraph (d), insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-b"><num>(b)</num><content><p><mod>in paragraph (e), after “protected foreign-source income” insert <quotedText>“or transitional trust income”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-c"><num>(c)</num><content><p>omit paragraph (f) and the “and” before it.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-2-a"><num>(a)</num><content><p><mod>at the end of paragraph (d), insert <quotedText>“, and”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-2-b"><num>(b)</num><content><p><mod>in paragraph (e), after “protected foreign-source income” insert <quotedText>“or transitional trust income”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-2-c"><num>(c)</num><content><p>omit paragraph (f) and the “and” before it.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 622 (person liable), for “sections 643A and 643I to 643M” substitute <quotedText>“section 643A (under which a close member of the settlor’s family may instead be liable)”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-4" class="schProv1"><num>4</num><intro><p>In section 624 (income where settlor retains an interest), in subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-4-a"><num>(a)</num><content><p><mod>after “section 627 (exceptions for certain types of income),” insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-4-b"><num>(b)</num><content><p>omit “section 628A (exception for protected foreign-source income)” and the “and” before it.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-4-a"><num>(a)</num><content><p><mod>after “section 627 (exceptions for certain types of income),” insert <quotedText>“and”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-4-b"><num>(b)</num><content><p>omit “section 628A (exception for protected foreign-source income)” and the “and” before it.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-5" class="schProv1"><num>5</num><content><p>Omit sections 628A to 628C (protected foreign-source income and transitional trust income).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-6" class="schProv1"><num>6</num><content><p>In section 629 (income paid to relevant children of settlor), in subsection (5), omit “or section 630A (exception for protected foreign-source income)”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-7" class="schProv1"><num>7</num><content><p>Omit section 630A (exception to section 629 for protected foreign-source income).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-8" class="schProv1"><num>8</num><intro><p>In section 635 (capital sums charge: amount of available income)—</p></intro><level class="para1" eId="schedule-12-paragraph-8-a"><num>(a)</num><content><p>in subsections (2) and (3)(d)(i), omit “unprotected”;</p></content></level><level class="para1" eId="schedule-12-paragraph-8-b"><num>(b)</num><content><p><mod>for subsection (5) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>See also <ref href="#d25e39376">section 643ZB</ref>(2) (which provides for certain income not to be counted towards available income for the purposes of this section).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-8-a"><num>(a)</num><content><p>in subsections (2) and (3)(d)(i), omit “unprotected”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-12-paragraph-8-b"><num>(b)</num><content><p><mod>for subsection (5) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>See also <ref href="#d25e39376">section 643ZB</ref>(2) (which provides for certain income not to be counted towards available income for the purposes of this section).</p></content></subsection></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-9" class="schProv1"><num>9</num><intro><p>In section 636 (capital sums charge: calculation of undistributed income)—</p></intro><level class="para1" eId="schedule-12-paragraph-9-a"><num>(a)</num><intro><p>omit “unprotected” in the following places—</p></intro><level class="para2" eId="schedule-12-paragraph-9-a-i"><num>(i)</num><content><p>subsection (1);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-ii"><num>(ii)</num><content><p>subsection (2) (in both places it occurs);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iii"><num>(iii)</num><content><p>subsection (4);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iv"><num>(iv)</num><content><p>subsection (6);</p></content></level></level><level class="para1" eId="schedule-12-paragraph-9-b"><num>(b)</num><content><p>in subsection (2)(b), omit “domiciled and”.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-9-a"><num>(a)</num><intro><p>omit “unprotected” in the following places—</p></intro><level class="para2" eId="schedule-12-paragraph-9-a-i"><num>(i)</num><content><p>subsection (1);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-ii"><num>(ii)</num><content><p>subsection (2) (in both places it occurs);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iii"><num>(iii)</num><content><p>subsection (4);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iv"><num>(iv)</num><content><p>subsection (6);</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-12-paragraph-9-a-i"><num>(i)</num><content><p>subsection (1);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-12-paragraph-9-a-ii"><num>(ii)</num><content><p>subsection (2) (in both places it occurs);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-12-paragraph-9-a-iii"><num>(iii)</num><content><p>subsection (4);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-12-paragraph-9-a-iv"><num>(iv)</num><content><p>subsection (6);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-9-b"><num>(b)</num><content><p>in subsection (2)(b), omit “domiciled and”.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-10" class="schProv1"><num>10</num><content><p>In section 637 (qualifications to section 636), in subsections (5) and (7A), omit “unprotected”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-11" class="schProv1"><num>11</num><content><p><mod>For the italic heading before section 643A, substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><heading ukl:Context="Pblock">Transitional provision about protected foreign-source income and transitional trust income</heading></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-12" class="schProv1"><num>12</num><content><p><mod>Before section 643A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643ZA</num><heading>“Protected foreign-source income” and “transitional trust income”</heading><subsection eId="d25e39325"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2017-18 to 2024-25, and</p></content></level><level class="para1"><num>(b)</num><content><p>was protected foreign-source income for that tax year within the meaning of section 628A (as that section had effect for that tax year).</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitional-trust-income">transitional trust income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2008-09 to 2016-17, and</p></content></level><level class="para1"><num>(b)</num><content><p>was transitional trust income throughout the tax years 2017-18 to 2024-25 within the meaning of section 628C (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e39325">subsection (1)</ref> ignore section 648(3) to (5) (foreign income treated as arising under settlement only if and when remitted).</p></content></subsection></section><section eId="d25e39376"><num>643ZB</num><heading>Protected foreign-source income and transitional trust income not to be taxed elsewhere in Chapter</heading><subsection><num>(1)</num><content><p>The rules in sections 624(1) and 629(1) do not apply to protected foreign-source income or transitional trust income (which, by virtue of section 648(3) to (5), may be treated as income arising under the settlement in the tax year 2025-26 or a subsequent tax year).</p></content></subsection><subsection><num>(2)</num><content><p>In the following provisions, “<term refersTo="#term-income">income</term>” does not include protected foreign-source income or transitional trust income—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 635(2) and (3)(d)(i);</p></item><item><p>section 636(1), (2) (in the words before paragraph (a)), (4) and (6);</p></item><item><p>section 637(5) and (7A).</p></item></blockList></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-13" class="schProv1"><num>13</num><content><p><mod>For section 643A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643A</num><heading>Benefits paid out of protected foreign-source income or transitional trust income</heading><subsection eId="d25e39422"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an individual to whom this section applies has an untaxed benefits total for a settlement for a tax year (see section 643B),</p></content></level><level class="para1"><num>(b)</num><content><p>there is available protected income in relation to the individual, the settlement and the tax year (see section 643C), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is UK resident for the tax year,</p></content></level><wrapUp><p>an amount equal to so much of the untaxed benefits total as does not exceed the available protected income is treated for income tax purposes as income of the individual for the tax year.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1"><num>(a)</num><content><p>the settlor, and</p></content></level><level class="para1"><num>(b)</num><content><p>anyone who has at any time been a close member of the settlor’s family.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If there is a choice about the individuals in whose case income is to be treated as arising under subsection <ref href="#d25e39422">(1)</ref>, income is to be treated as arising—</p></intro><level class="para1"><num>(a)</num><content><p>to such one or more of them as appears to an officer of Revenue and Customs to be just and reasonable, and</p></content></level><level class="para1"><num>(b)</num><content><p>if more than one, in such respective proportions as appear to the officer to be just and reasonable.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-12-paragraph-14-1"><num>(1)</num><content><p>Section 643B (meaning of “<term refersTo="#term-untaxed-benefits-total" eId="term-untaxed-benefits-total">untaxed benefits total</term>” in section 643A) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-2"><num>(2)</num><content><p><mod>In subsection (1), for Step 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify each benefit provided by the trustees to the individual—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in the current tax year, or an earlier tax year for which the individual was UK resident, and</p></item><item><num>(b)</num><p>if the individual is not the settlor, at a time when the individual was a close member of the settlor’s family.</p></item></blockList></item></blockList></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>For the purposes of Step 1 in subsection (1), if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees provide a benefit to an individual in a given tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for the tax year,</p></content></level><wrapUp><p>the benefit is instead treated as provided to the settlor.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “643M” substitute <quotedText>“643EA”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-15" class="schProv1"><num>15</num><content><p><mod>For section 643C substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643C</num><heading>Meaning of “available protected income” in section 643A</heading><subsection eId="d25e39587"><num>(1)</num><content><p>For the purposes of section 643A, take the following steps to determine the amount of available protected income in relation to an individual (“<term refersTo="#term-p">P</term>”), a settlement and a tax year (“the current tax year”)—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify the total amount of protected foreign-source income and transitional trust income that arose (at any time) under the settlement (“the total protected income”).</p></item><item><p><i>Step 2</i></p><p>Deduct any amount of the total protected income that is matched under the transfer of assets abroad code in the current tax year or an earlier tax year.</p></item><item><p><i>Step 3</i></p><p>Deduct any amount of the total protected income on which P or any other individual is liable to income tax in the current tax year or an earlier tax year.</p></item><item><p><i>Step 4</i></p><p>Deduct any amount that, in relation to the settlement, is treated under section 643A as P’s income in an earlier tax year or as another individual’s income in any tax year.</p></item><item><p><i>Step 5</i></p><p>Add back the amount of any income falling within Step 4 that is identified as qualifying foreign income on a foreign income claim made by P or any other individual for any tax year.</p></item></blockList></content></subsection><subsection><num>(2)</num><content><p>For the purposes of Step 1 in subsection <ref href="#d25e39587">(1)</ref>, ignore section 648(3) to (5) (foreign income treated as “arising” under settlement only if and when remitted).</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of Step 2 in subsection <ref href="#d25e39587">(1)</ref>, an amount of the total protected income is “matched under the transfer of assets abroad code” if it is matched under section 735A of ITA 2007 with—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided by the trustees to P or any other individual in the current tax year or in an earlier tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount of income treated as arising to P or any other individual under section 732 of ITA 2007</p></content></level><wrapUp><p>(or if it would be so matched if section 735A applied for those purposes).</p></wrapUp></subsection><subsection eId="d25e39669"><num>(4)</num><content><p>For the purposes of Step 3 in subsection <ref href="#d25e39587">(1)</ref>, ignore any liability to income tax arising under section 643A above or under section 731 of ITA 2007 (transfer of assets abroad: benefits charge).</p></content></subsection><subsection><num>(5)</num><content><p>In Step 4 in subsection <ref href="#d25e39587">(1)</ref> and in <ref href="#d25e39669">subsection (4)</ref>, a reference to section 643A includes, in relation to any of the tax years 2018-19 to 2024-25, section 643J and 643L (old onward gifting rules).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-12-paragraph-16-1"><num>(1)</num><content><p>Section 643E (reimbursement of tax paid by settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-2"><num>(2)</num><content><p><mod>In the heading, for “section 643A” substitute <quotedText>“643B(2)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-3"><num>(3)</num><content><p><mod>In subsection (1), for “section 643A(3) or (4)” substitute <quotedText>“section 643B(2) (benefit received by close family member attributed to settlor)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 643A as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After section 643E insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643EA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e39759"><num>(1)</num><intro><p>Subsection <ref href="#d25e39886">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of a settlement provide a benefit (“the original benefit”) to an individual (“the original recipient”),</p></content></level><level class="para1"><num>(b)</num><intro><p>the original recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is liable neither to income tax nor to capital gains tax by reference to the amount or value of the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a qualifying new resident for the tax year in which the original benefit is provided,</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 643B(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e39798"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e39816"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e39828"><num>(ii)</num><content><p>at any time before the original benefit is provided to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided,</p></content></level></level><level class="para1" eId="d25e39834"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e39858"><num>(g)</num><intro><p>the subsequent recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is the settlor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a close member of the settlor's family at the time when they receive the onward gift or, where the onward gift is provided as mentioned in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref><ref href="#d25e39828">(ii)</ref>, at the time given by <ref href="#d25e39930">subsection (4)</ref>.</p></content></level></level></subsection><subsection eId="d25e39886"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39834">(f)</ref> is treated for the purposes of section 643B(1) and (2)(a) as a benefit provided by the trustees to the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39834">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection eId="d25e39930"><num>(4)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref><ref href="#d25e39828">(ii)</ref>, it is treated for the purposes of <ref href="#d25e39886">subsection (2)</ref> as made immediately after, and in the tax year in which, the original benefit is provided to the original recipient.</p></content></subsection><subsection><num>(5)</num><content><p>Where the conditions in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref> to <ref href="#d25e39858">(g)</ref> are met in any case, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39798">(d)</ref> is also met in that case.</p></content></subsection><subsection><num>(6)</num><content><p>Where the original recipient is liable neither to income tax nor to capital gains tax by reference to the amount or value of part only of the original benefit, this section applies as if the two parts of the original benefit were separate benefits.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-12-paragraph-18-1"><num>(1)</num><content><p>Section 643F (income attributed by section 643A to user of remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-18-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for the words from “is treated” to the end substitute <quotedText>“was treated by section 643A as arising to an individual for any of the tax years 2018-19 to 2024-25, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-3"><num>(3)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-3-a"><num>(a)</num><content><p><mod>in the definition of “protected income”, for “forms” substitute <quotedText>“under section 643C formed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-3-b"><num>(b)</num><content><p><mod>in the definition of “the relevant individual”, in paragraphs (a) and (b), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>A reference in this section to section 643A or 643C (or to any provision of that section) is to that section (or provision) as it had effect for the tax year in which the deemed income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-12-paragraph-19-1"><num>(1)</num><content><p>Section 643G (section 643F(4): benefits and income “relating” to deemed income) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-19-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(aa)</num><content><p>references to section 643A, 643J or 643L (or to a provision of any of those sections) are to that section (or provision) as it had effect for the year,</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-19-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “is allowed” substitute <quotedText>“was allowed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-b"><num>(b)</num><content><p><mod>in paragraph (d), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-c"><num>(c)</num><content><p><mod>in paragraph (e), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-d"><num>(d)</num><content><p><mod>in paragraph (f), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 643H (meaning of close member of settlor’s family), in the heading and in subsection (1), for “643B to 643M” substitute <quotedText>“643A to 643EA”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-21" class="schProv1"><num>21</num><content><p>Omit sections 643I to 643M (old onward gift provisions).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-12-paragraph-22-1"><num>(1)</num><content><p>Section 643N (person liable under section 643J or 643L and remittance basis applies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-2"><num>(2)</num><content><p><mod>In the heading, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-22-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-22-3-a-i"><num>(i)</num><content><p><mod>in the words before sub-paragraph (i), for “is treated as arising to an individual for a tax year” substitute <quotedText>“was treated as arising to an individual for the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-22-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-22-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-22-4"><num>(4)</num><content><p><mod>In subsection (3), after “onward payment” insert <quotedText>“referred to in section 643I(1)(d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in this section to section 643I, 643J or 643L (or to a provision of any of those sections) is to that section (or provision) as it had effect for the tax year in which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-12-paragraph-23-1"><num>(1)</num><content><p>Section 645 (property or income originating from settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-2"><num>(2)</num><content><p><mod>In subsection (1), for “sections 628A and 644” substitute <quotedText>“section 644”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>If the same property has been provided by more than one settlor for the purposes of the settlement, so much of the property as is attributable to each settlor on a just and reasonable apportionment is treated for the purposes of this section as provided by that settlor.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-12-paragraph-24-1"><num>(1)</num><content><p>Section 646 (adjustments between settlor and trustees etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-2"><num>(2)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor under section 624 or 629 (as the case may be),</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the income in respect of which the settlor has paid tax, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-3"><num>(3)</num><intro><p>In subsection (6A)—</p></intro><level class="para1" eId="schedule-12-paragraph-24-3-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-24-3-b"><num>(b)</num><content><p><mod>at the end insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which the income to which the repayment relates was treated as arising to the settlor.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-12-paragraph-25-1"><num>(1)</num><content><p>Section 648 (income arising under a settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-2"><num>(2)</num><content><p>In subsection (1)(b), omit “domiciled and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-3"><num>(3)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-25-3-a"><num>(a)</num><content><p><mod>for “if, for a tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applies”, substitute <quotedText>“if, for the tax year 2024-25 or an earlier tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-25-3-b"><num>(b)</num><content><p><mod>for “relevant foreign income” substitute <quotedText>“specified foreign income”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-25-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>In subsection (3), “<term refersTo="#term-specified-foreign-income">specified foreign income</term>” means income that would be relevant foreign income if it were the income of a UK resident individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-part-2"><num>Part 2</num><heading>Transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-26" class="schProv1"><num>26</num><content><p>Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-27" class="schProv1"><num>27</num><intro><p>In section 718 (meaning of “person abroad” etc)—</p></intro><level class="para1" eId="schedule-12-paragraph-27-a"><num>(a)</num><content><p><mod>in subsection (1), for the words from “means” to the end, substitute <quotedText>“means a person who is resident outside the United Kingdom.”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-27-b"><num>(b)</num><content><p>omit subsection (3).</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-28" class="schProv1"><num>28</num><intro><p>In section 720 (charge to tax on income treated as arising under section 721)—</p></intro><level class="para1" eId="schedule-12-paragraph-28-a"><num>(a)</num><content><p>in subsection (4), omit “and section 726 (non-UK domiciled individuals to whom remittance basis applies)”;</p></content></level><level class="para1" eId="schedule-12-paragraph-28-b"><num>(b)</num><content><p><mod>in subsection (7), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-29" class="schProv1"><num>29</num><content><p><mod>In section 721 (individuals with power to enjoy income as a result of relevant transactions), for subsections (3B) and (3BA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3B)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to sections 724 and 725).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-30" class="schProv1"><num>30</num><content><p>Omit sections 721A and 721B (meaning of “protected foreign-source income” etc).</p></content></paragraph><paragraph eId="schedule-12-paragraph-31" class="schProv1"><num>31</num><content><p><mod>After section 725 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>725A</num><heading>Recovery of tax paid as a result of section 721</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 721 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 721 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-12-paragraph-32-1"><num>(1)</num><content><p>Section 726 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 721 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-33" class="schProv1"><num>33</num><intro><p>In section 727 (charge to tax on income treated as arising under section 728)—</p></intro><level class="para1" eId="schedule-12-paragraph-33-a"><num>(a)</num><content><p>omit subsection (3A);</p></content></level><level class="para1" eId="schedule-12-paragraph-33-b"><num>(b)</num><content><p><mod>in subsection (5), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 728 (individuals receiving capital sums as a result of relevant transactions), for subsections (1A) and (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-35" class="schProv1"><num>35</num><content><p>Omit section 729A (meaning of “<term refersTo="#term-protected-foreign-source-income" eId="term-protected-foreign-source-income">protected foreign-source income</term>”).</p></content></paragraph><paragraph eId="schedule-12-paragraph-36" class="schProv1"><num>36</num><content><p><mod>Before section 730 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>729B</num><heading>Recovery of tax paid as a result of section 728</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 728 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 728 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-12-paragraph-37-1"><num>(1)</num><content><p>Section 730 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 728 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-12-paragraph-38-1"><num>(1)</num><content><p>Section 731 (charge to tax on income treated as arising under section 732) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-2"><num>(2)</num><content><p><mod>In subsection (1), for “individuals receiving a benefit” substitute <quotedText>“non-transferors receiving a benefit”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-3"><num>(3)</num><content><p>Omit subsections (1A) to (1C) and (2A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-4"><num>(4)</num><content><p>In subsection (3), omit “, but this is subject to section 733A”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-5"><num>(5)</num><content><p><mod>In subsection (4), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-12-paragraph-39-1"><num>(1)</num><content><p>Section 732 (deemed income where benefit received) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-2"><num>(2)</num><content><p><mod>In the heading, for “Individuals” substitute <quotedText>“Non-transferors”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-39-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “receives a benefit in a tax year” substitute <quotedText>“who is UK resident for a tax year receives a benefit in that tax year”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-39-3-b"><num>(b)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual is not liable to income tax under section 720 or 727 by reference to the transfer and would not be so liable if the effect of sections 726 and 730 were ignored,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-39-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-12-paragraph-40-1"><num>(1)</num><content><p>Section 733 (income charged under section 731) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-2"><num>(2)</num><content><p>In subsection (1), in Step 2, omit the words from “except that” to “for an earlier tax year”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>For the purposes of subsection (1), the amount deducted at Step 2 does not include the amount of any income on which tax was not charged under section 731 by virtue of—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e41272">735AD</ref><ref href="#d25e41282">(2)</ref> (transferor not taxable under benefits charge except where benefit matched to protected foreign-source income etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 731(1A) (equivalent provision for tax years 2024-25 and earlier).</p></content></level></subsection><subsection eId="d25e40886"><num>(2B)</num><intro><p>For the purposes of subsection (1), if in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>income is treated as arising to an individual under section 732(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>the income is identified as qualifying foreign income on a foreign income claim,</p></content></level><wrapUp><p>the income is treated for later tax years as not having been charged to income tax under section 731.</p></wrapUp></subsection><subsection><num>(2C)</num><intro><p>It follows from subsection <ref href="#d25e40886">(2B)</ref> that—</p></intro><level class="para1"><num>(a)</num><content><p>in the application of subsection (1) to the individual for subsequent tax years, the amount of the income will be deducted at Step 2 and at paragraph (a) of Step 5, but</p></content></level><level class="para1"><num>(b)</num><content><p>in the application of subsection (1) to any other individual for subsequent tax years, the amount of the income will not be deducted at paragraph (b) of Step 5.</p></content></level></subsection><subsection><num>(2D)</num><content><p>See <ref href="#schedule-10-paragraph-11">paragraph 11</ref> of Schedule <ref href="#schedule-10">10</ref> to FA 2025 (temporary repatriation facility) for special provision about income that is treated as arising under section 732 but that is exempt from income tax under that Schedule.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-41" class="schProv1"><num>41</num><content><p>Omit sections 733A to 733E and 734A (old provision about protected foreign-source income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-12-paragraph-42-1"><num>(1)</num><content><p>Section 735 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 732 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-12-paragraph-43-1"><num>(1)</num><content><p>Section 735A (matching rules) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-2"><num>(2)</num><content><p><mod>In subsection (1), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>deduct from those benefits any benefit so far as—</p></intro><level class="para2"><num>(i)</num><content><p>chargeable gains (or offshore income gains) are treated as mentioned in section 734(1)(d) as accruing by reference to the benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>income is treated as mentioned in <ref href="#d25e41615">section 735AG</ref><ref href="#d25e41619">(1)</ref><ref href="#d25e41631">(b)</ref> as arising by reference to the benefit under section 643A, 643J or 643L of ITTOIA 2005 (settlements: benefits charge), or</p></content></level><level class="para2"><num>(iii)</num><content><p>income is treated as arising by reference to the benefit under section 732(2) and that income is identified in a foreign income claim,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-3"><num>(3)</num><content><p><mod>in subsection (6), for “the individual, or as a result of section 733A another person” substitute <quotedText>“a person”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-44" class="schProv1"><num>44</num><content><p><mod>After section 735A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Transitional provision about protected foreign-source income and transitionally protected income</heading><section eId="d25e41090"><num>735AA</num><heading>Settlements to which following sections apply</heading><subsection eId="d25e41094"><num>(1)</num><intro><p>Sections <ref href="#d25e41195">735AB</ref> to 735C apply if—</p></intro><level class="para1" eId="d25e41103"><num>(a)</num><content><p>a relevant transfer occurred before 6 April 2025,</p></content></level><level class="para1" eId="d25e41109"><num>(b)</num><intro><p>the person abroad was—</p></intro><level class="para2" eId="d25e41115"><num>(i)</num><content><p>the trustees of a settlement, or</p></content></level><level class="para2" eId="d25e41121"><num>(ii)</num><content><p>a company in which the trustees of a settlement were participators or indirect participators, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>protected foreign-source income or transitionally protected income arose in relation to the transfer.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In sections <ref href="#d25e41195">735AB</ref> to 735C—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-transfer">the relevant transfer</term>” means the transfer referred to in <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41103">(a)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlement">the settlement</term>” means the settlement referred to in <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41109">(b)</ref><ref href="#d25e41115">(i)</ref> or <ref href="#d25e41121">(ii)</ref> (as the case may be);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlor">the settlor</term>” means the settlor of that settlement.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41109">(b)</ref><ref href="#d25e41121">(ii)</ref>, the trustees of a settlement are “indirect participators” in a company if they are participators in the first in a chain of two or more companies where the last company in the chain is the person abroad and where each company in the chain (except the last) is a participator in the next company in the chain.</p></content></subsection></section><section eId="d25e41195"><num>735AB</num><heading>“Protected foreign-source income” and “transitionally protected income”</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e41090">sections 735AA</ref> to <ref href="#d25e41418">735AF</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>would have been treated as arising to the settlor under section 721 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 721A (as that section had effect for that tax year), or</p></content></level><level class="para1"><num>(b)</num><content><p>would have been treated as arising to the settlor under section 728 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 729A (as that section had effect for that tax year);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitionally-protected-income">transitionally protected income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>was treated as arising to the settlor under section 721 or 728 in a tax year earlier than the tax year 2017-18,</p></content></level><level class="para1"><num>(b)</num><content><p>was not remitted to the United Kingdom in a tax year earlier than the tax year 2017-18, and</p></content></level><level class="para1"><num>(c)</num><content><p>was transitionally protected income within the meaning of section 726(7) or 730(7) throughout the tax years 2017-18 to 2024-25 (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>In subsection (1), in <ref href="#d25e41240">paragraph (b)</ref> of the definition of “transitionally protected income”, “<term refersTo="#term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>” is to be read in accordance with Chapter A1 of Part 14 (read with section 726 or 730 as the case may be).</p></content></subsection></section><section><num>735AC</num><heading>Transitionally protected income not to be taxed on remittance</heading><content><p>Section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis) does not apply to transitionally protected income.</p></content></section><section eId="d25e41272"><num>735AD</num><heading>Settlor liable for benefits charge despite being transferor</heading><subsection eId="d25e41276"><num>(1)</num><content><p>For the purposes of section 732 (benefits charge: deemed income), subsection (1)(d) of that section (benefits charge confined to individuals not liable under section 720 or 727) is to be disregarded where the individual who receives the benefit is the settlor.</p></content></subsection><subsection eId="d25e41282"><num>(2)</num><content><p>But any income treated as arising to the settlor under section 732(2) is not taxed under section 731 unless the income would, assuming that section 735A applied for this purpose by reference to the settlor, be matched under that section with an amount of relevant income that is protected foreign-source income or transitionally protected income in relation to the relevant transfer.</p></content></subsection></section><section eId="d25e41291"><num>735AE</num><heading>Settlor liable in place of close family member</heading><subsection eId="d25e41295"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit is provided to an individual in a given tax year out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family at the time when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year in which the benefit is provided, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for that tax year,</p></content></level><wrapUp><p>the benefit is instead treated for the purposes of section 732 and <ref href="#d25e41272">section 735AD</ref><ref href="#d25e41276">(1)</ref> as provided to the settlor.</p></wrapUp></subsection><subsection eId="d25e41344"><num>(2)</num><intro><p>For the purposes of this section, a person is a “close member of the settlor’s family” at any time if the settlor is living at that time and—</p></intro><level class="para1"><num>(a)</num><content><p>the person is the settlor’s spouse or civil partner at that time, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>is a child of the settlor, or of a person who at that time is the settlor’s spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>at that time has not reached the age of 18.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41344">subsection (2)</ref>, two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other.</p></content></subsection><subsection><num>(4)</num><content><p>Where any tax for which the settlor is liable as a result of this section is paid, the settlor is entitled to recover the amount of the tax from the individual concerned.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to provide the settlor with a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section><section eId="d25e41418"><num>735AF</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e41422"><num>(1)</num><intro><p>Subsection <ref href="#d25e41525">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit (“the original benefit”) is provided to an individual (“the original recipient”) out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the original recipient is non-UK resident, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p><ref href="#d25e41291">section 735AE</ref><ref href="#d25e41295">(1)</ref> (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e41465"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or there is an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e41483"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is received by the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before the original benefit is received by the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided, and</p></content></level></level><level class="para1" eId="d25e41501"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient.</p></content></level></level></subsection><subsection eId="d25e41525"><num>(2)</num><content><p>For the purposes of sections 732, <ref href="#d25e41272">735AD</ref><ref href="#d25e41276">(1)</ref> and <ref href="#d25e41291">735AE</ref><ref href="#d25e41295">(1)</ref>, so much of the onward gift as falls within <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41501">(f)</ref> is (so far as would not otherwise be the case) treated as a benefit provided to the subsequent recipient out of assets which are available for the purpose as a result of an associated operation in relation to the relevant transfer.</p></content></subsection><subsection eId="d25e41546"><num>(3)</num><intro><p>For the purposes of <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41501">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the conditions in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref> and <ref href="#d25e41501">(f)</ref> are met, it is to be presumed, unless the contrary is shown, that the condition in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41465">(d)</ref> is also met.</p></content></subsection><subsection><num>(5)</num><content><p>In <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41465">(d)</ref>, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section eId="d25e41615"><num>735AG</num><heading>Deduction allowed for previous settlements charge</heading><subsection eId="d25e41619"><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided as mentioned in section 732(1)(c) are received in a tax year, and</p></content></level><level class="para1" eId="d25e41631"><num>(b)</num><content><p>income is treated under section 643A of ITTOIA 2005 as arising to a person in that or a subsequent tax year by reference (direct or indirect) to the whole or part of any benefits so provided.</p></content></level></subsection><subsection><num>(2)</num><content><p>For any tax year after one in which such income is so treated, the amount of income treated as arising to the individual under section 732(2) in respect of benefits provided as mentioned in section 732(1)(c) as a result of the transfer or operations in question is calculated as follows.</p></content></subsection><subsection><num>(3)</num><content><p>The amount is calculated under section 733(1) as if the total untaxed benefits were reduced by the amount of that income.</p></content></subsection><subsection><num>(4)</num><content><p>The reference in <ref href="#d25e41619">subsection (1)</ref><ref href="#d25e41631">(b)</ref> to income treated as arising under section 643A of ITTOIA 2005 includes, in relation to any of the tax years 2018-19 to 2024-25, a reference to income treated as arising under section 643J or 643L of ITTOIA 2005 (settlements code: old onward gift provisions).</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-the-total-untaxed-benefits">the total untaxed benefits</term>” has the same meaning as in section 733(1) (see Step 2).</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-12-paragraph-45-1"><num>(1)</num><content><p>Section 735B (settlor charge: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical liability under section 733A where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This section applies in relation to income if—</p></intro><level class="para1"><num>(a)</num><content><p>the income was treated under section 732 as arising to an individual (“<term refersTo="#term-the-beneficiary">the beneficiary</term>”) for any of the tax years 2017-18 to 2024-25,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor was under section 733A(2) or (3) (as it had effect for that tax year) liable for tax on the income, and</p></content></level><level class="para1"><num>(c)</num><content><p>section 809B, 809D or 809E (remittance basis) applied to the settlor for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-12-paragraph-46-1"><num>(1)</num><content><p>Section 735C (old onward gifts provisions: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical operation of section 733C or 733E where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for the words before sub-paragraph (i) substitute <quotedText>“the income was treated as arising to an individual for any of the tax years 2018-19 to 2024-25”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-46-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-46-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in subsection (1) to section 733C or 733E (or to any provision of either section) is to that section (or provision) as it had effect for the tax year for which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-47" class="schProv1"><num>47</num><intro><p>In section 736 (exemptions: introduction)—</p></intro><level class="para1" eId="schedule-12-paragraph-47-a"><num>(a)</num><content><p><mod>in subsection (1), for “742A” substitute <quotedText>“742”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-47-b"><num>(b)</num><content><p>omit subsection (2A).</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-48" class="schProv1"><num>48</num><content><p>Omit section 742A (post-5 April 2012 transactions: exemption for genuine transactions).</p></content></paragraph><paragraph eId="schedule-12-paragraph-49" class="schProv1"><num>49</num><content><p>In section 747 (amounts corresponding to accrued income profits and related interest), in subsection (1)(b) and subsection (4)(b), omit “or domiciled”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-50" class="schProv1"><num>50</num><content><p>In section 751 (tribunal’s jurisdiction on appeals), omit paragraph (da).</p></content></paragraph></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-26" class="schProv1"><num>26</num><content><p>Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) is amended in accordance with this Part of this Schedule.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-27" class="schProv1"><num>27</num><intro><p>In section 718 (meaning of “person abroad” etc)—</p></intro><level class="para1" eId="schedule-12-paragraph-27-a"><num>(a)</num><content><p><mod>in subsection (1), for the words from “means” to the end, substitute <quotedText>“means a person who is resident outside the United Kingdom.”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-27-b"><num>(b)</num><content><p>omit subsection (3).</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-27-a"><num>(a)</num><content><p><mod>in subsection (1), for the words from “means” to the end, substitute <quotedText>“means a person who is resident outside the United Kingdom.”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-27-b"><num>(b)</num><content><p>omit subsection (3).</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-28" class="schProv1"><num>28</num><intro><p>In section 720 (charge to tax on income treated as arising under section 721)—</p></intro><level class="para1" eId="schedule-12-paragraph-28-a"><num>(a)</num><content><p>in subsection (4), omit “and section 726 (non-UK domiciled individuals to whom remittance basis applies)”;</p></content></level><level class="para1" eId="schedule-12-paragraph-28-b"><num>(b)</num><content><p><mod>in subsection (7), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-28-a"><num>(a)</num><content><p>in subsection (4), omit “and section 726 (non-UK domiciled individuals to whom remittance basis applies)”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-28-b"><num>(b)</num><content><p><mod>in subsection (7), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-29" class="schProv1"><num>29</num><content><p><mod>In section 721 (individuals with power to enjoy income as a result of relevant transactions), for subsections (3B) and (3BA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3B)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to sections 724 and 725).</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-30" class="schProv1"><num>30</num><content><p>Omit sections 721A and 721B (meaning of “protected foreign-source income” etc).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-31" class="schProv1"><num>31</num><content><p><mod>After section 725 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>725A</num><heading>Recovery of tax paid as a result of section 721</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 721 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 721 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-12-paragraph-32-1"><num>(1)</num><content><p>Section 726 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 721 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-33" class="schProv1"><num>33</num><intro><p>In section 727 (charge to tax on income treated as arising under section 728)—</p></intro><level class="para1" eId="schedule-12-paragraph-33-a"><num>(a)</num><content><p>omit subsection (3A);</p></content></level><level class="para1" eId="schedule-12-paragraph-33-b"><num>(b)</num><content><p><mod>in subsection (5), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-33-a"><num>(a)</num><content><p>omit subsection (3A);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-33-b"><num>(b)</num><content><p><mod>in subsection (5), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 728 (individuals receiving capital sums as a result of relevant transactions), for subsections (1A) and (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-35" class="schProv1"><num>35</num><content><p>Omit section 729A (meaning of “<term refersTo="#term-protected-foreign-source-income" eId="term-protected-foreign-source-income">protected foreign-source income</term>”).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-36" class="schProv1"><num>36</num><content><p><mod>Before section 730 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>729B</num><heading>Recovery of tax paid as a result of section 728</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 728 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 728 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-12-paragraph-37-1"><num>(1)</num><content><p>Section 730 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 728 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-12-paragraph-38-1"><num>(1)</num><content><p>Section 731 (charge to tax on income treated as arising under section 732) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-2"><num>(2)</num><content><p><mod>In subsection (1), for “individuals receiving a benefit” substitute <quotedText>“non-transferors receiving a benefit”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-3"><num>(3)</num><content><p>Omit subsections (1A) to (1C) and (2A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-4"><num>(4)</num><content><p>In subsection (3), omit “, but this is subject to section 733A”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-5"><num>(5)</num><content><p><mod>In subsection (4), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-12-paragraph-39-1"><num>(1)</num><content><p>Section 732 (deemed income where benefit received) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-2"><num>(2)</num><content><p><mod>In the heading, for “Individuals” substitute <quotedText>“Non-transferors”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-39-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “receives a benefit in a tax year” substitute <quotedText>“who is UK resident for a tax year receives a benefit in that tax year”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-39-3-b"><num>(b)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual is not liable to income tax under section 720 or 727 by reference to the transfer and would not be so liable if the effect of sections 726 and 730 were ignored,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-39-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-12-paragraph-40-1"><num>(1)</num><content><p>Section 733 (income charged under section 731) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-2"><num>(2)</num><content><p>In subsection (1), in Step 2, omit the words from “except that” to “for an earlier tax year”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>For the purposes of subsection (1), the amount deducted at Step 2 does not include the amount of any income on which tax was not charged under section 731 by virtue of—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e41272">735AD</ref><ref href="#d25e41282">(2)</ref> (transferor not taxable under benefits charge except where benefit matched to protected foreign-source income etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 731(1A) (equivalent provision for tax years 2024-25 and earlier).</p></content></level></subsection><subsection eId="d25e40886"><num>(2B)</num><intro><p>For the purposes of subsection (1), if in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>income is treated as arising to an individual under section 732(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>the income is identified as qualifying foreign income on a foreign income claim,</p></content></level><wrapUp><p>the income is treated for later tax years as not having been charged to income tax under section 731.</p></wrapUp></subsection><subsection><num>(2C)</num><intro><p>It follows from subsection <ref href="#d25e40886">(2B)</ref> that—</p></intro><level class="para1"><num>(a)</num><content><p>in the application of subsection (1) to the individual for subsequent tax years, the amount of the income will be deducted at Step 2 and at paragraph (a) of Step 5, but</p></content></level><level class="para1"><num>(b)</num><content><p>in the application of subsection (1) to any other individual for subsequent tax years, the amount of the income will not be deducted at paragraph (b) of Step 5.</p></content></level></subsection><subsection><num>(2D)</num><content><p>See <ref href="#schedule-10-paragraph-11">paragraph 11</ref> of Schedule <ref href="#schedule-10">10</ref> to FA 2025 (temporary repatriation facility) for special provision about income that is treated as arising under section 732 but that is exempt from income tax under that Schedule.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-41" class="schProv1"><num>41</num><content><p>Omit sections 733A to 733E and 734A (old provision about protected foreign-source income).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-12-paragraph-42-1"><num>(1)</num><content><p>Section 735 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 732 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-12-paragraph-43-1"><num>(1)</num><content><p>Section 735A (matching rules) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-2"><num>(2)</num><content><p><mod>In subsection (1), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>deduct from those benefits any benefit so far as—</p></intro><level class="para2"><num>(i)</num><content><p>chargeable gains (or offshore income gains) are treated as mentioned in section 734(1)(d) as accruing by reference to the benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>income is treated as mentioned in <ref href="#d25e41615">section 735AG</ref><ref href="#d25e41619">(1)</ref><ref href="#d25e41631">(b)</ref> as arising by reference to the benefit under section 643A, 643J or 643L of ITTOIA 2005 (settlements: benefits charge), or</p></content></level><level class="para2"><num>(iii)</num><content><p>income is treated as arising by reference to the benefit under section 732(2) and that income is identified in a foreign income claim,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-3"><num>(3)</num><content><p><mod>in subsection (6), for “the individual, or as a result of section 733A another person” substitute <quotedText>“a person”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-44" class="schProv1"><num>44</num><content><p><mod>After section 735A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Transitional provision about protected foreign-source income and transitionally protected income</heading><section eId="d25e41090"><num>735AA</num><heading>Settlements to which following sections apply</heading><subsection eId="d25e41094"><num>(1)</num><intro><p>Sections <ref href="#d25e41195">735AB</ref> to 735C apply if—</p></intro><level class="para1" eId="d25e41103"><num>(a)</num><content><p>a relevant transfer occurred before 6 April 2025,</p></content></level><level class="para1" eId="d25e41109"><num>(b)</num><intro><p>the person abroad was—</p></intro><level class="para2" eId="d25e41115"><num>(i)</num><content><p>the trustees of a settlement, or</p></content></level><level class="para2" eId="d25e41121"><num>(ii)</num><content><p>a company in which the trustees of a settlement were participators or indirect participators, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>protected foreign-source income or transitionally protected income arose in relation to the transfer.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In sections <ref href="#d25e41195">735AB</ref> to 735C—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-transfer">the relevant transfer</term>” means the transfer referred to in <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41103">(a)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlement">the settlement</term>” means the settlement referred to in <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41109">(b)</ref><ref href="#d25e41115">(i)</ref> or <ref href="#d25e41121">(ii)</ref> (as the case may be);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlor">the settlor</term>” means the settlor of that settlement.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41109">(b)</ref><ref href="#d25e41121">(ii)</ref>, the trustees of a settlement are “indirect participators” in a company if they are participators in the first in a chain of two or more companies where the last company in the chain is the person abroad and where each company in the chain (except the last) is a participator in the next company in the chain.</p></content></subsection></section><section eId="d25e41195"><num>735AB</num><heading>“Protected foreign-source income” and “transitionally protected income”</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e41090">sections 735AA</ref> to <ref href="#d25e41418">735AF</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>would have been treated as arising to the settlor under section 721 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 721A (as that section had effect for that tax year), or</p></content></level><level class="para1"><num>(b)</num><content><p>would have been treated as arising to the settlor under section 728 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 729A (as that section had effect for that tax year);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitionally-protected-income">transitionally protected income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>was treated as arising to the settlor under section 721 or 728 in a tax year earlier than the tax year 2017-18,</p></content></level><level class="para1"><num>(b)</num><content><p>was not remitted to the United Kingdom in a tax year earlier than the tax year 2017-18, and</p></content></level><level class="para1"><num>(c)</num><content><p>was transitionally protected income within the meaning of section 726(7) or 730(7) throughout the tax years 2017-18 to 2024-25 (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>In subsection (1), in <ref href="#d25e41240">paragraph (b)</ref> of the definition of “transitionally protected income”, “<term refersTo="#term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>” is to be read in accordance with Chapter A1 of Part 14 (read with section 726 or 730 as the case may be).</p></content></subsection></section><section><num>735AC</num><heading>Transitionally protected income not to be taxed on remittance</heading><content><p>Section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis) does not apply to transitionally protected income.</p></content></section><section eId="d25e41272"><num>735AD</num><heading>Settlor liable for benefits charge despite being transferor</heading><subsection eId="d25e41276"><num>(1)</num><content><p>For the purposes of section 732 (benefits charge: deemed income), subsection (1)(d) of that section (benefits charge confined to individuals not liable under section 720 or 727) is to be disregarded where the individual who receives the benefit is the settlor.</p></content></subsection><subsection eId="d25e41282"><num>(2)</num><content><p>But any income treated as arising to the settlor under section 732(2) is not taxed under section 731 unless the income would, assuming that section 735A applied for this purpose by reference to the settlor, be matched under that section with an amount of relevant income that is protected foreign-source income or transitionally protected income in relation to the relevant transfer.</p></content></subsection></section><section eId="d25e41291"><num>735AE</num><heading>Settlor liable in place of close family member</heading><subsection eId="d25e41295"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit is provided to an individual in a given tax year out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family at the time when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year in which the benefit is provided, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for that tax year,</p></content></level><wrapUp><p>the benefit is instead treated for the purposes of section 732 and <ref href="#d25e41272">section 735AD</ref><ref href="#d25e41276">(1)</ref> as provided to the settlor.</p></wrapUp></subsection><subsection eId="d25e41344"><num>(2)</num><intro><p>For the purposes of this section, a person is a “close member of the settlor’s family” at any time if the settlor is living at that time and—</p></intro><level class="para1"><num>(a)</num><content><p>the person is the settlor’s spouse or civil partner at that time, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>is a child of the settlor, or of a person who at that time is the settlor’s spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>at that time has not reached the age of 18.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41344">subsection (2)</ref>, two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other.</p></content></subsection><subsection><num>(4)</num><content><p>Where any tax for which the settlor is liable as a result of this section is paid, the settlor is entitled to recover the amount of the tax from the individual concerned.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to provide the settlor with a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section><section eId="d25e41418"><num>735AF</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e41422"><num>(1)</num><intro><p>Subsection <ref href="#d25e41525">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit (“the original benefit”) is provided to an individual (“the original recipient”) out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the original recipient is non-UK resident, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p><ref href="#d25e41291">section 735AE</ref><ref href="#d25e41295">(1)</ref> (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e41465"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or there is an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e41483"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is received by the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before the original benefit is received by the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided, and</p></content></level></level><level class="para1" eId="d25e41501"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient.</p></content></level></level></subsection><subsection eId="d25e41525"><num>(2)</num><content><p>For the purposes of sections 732, <ref href="#d25e41272">735AD</ref><ref href="#d25e41276">(1)</ref> and <ref href="#d25e41291">735AE</ref><ref href="#d25e41295">(1)</ref>, so much of the onward gift as falls within <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41501">(f)</ref> is (so far as would not otherwise be the case) treated as a benefit provided to the subsequent recipient out of assets which are available for the purpose as a result of an associated operation in relation to the relevant transfer.</p></content></subsection><subsection eId="d25e41546"><num>(3)</num><intro><p>For the purposes of <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41501">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the conditions in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref> and <ref href="#d25e41501">(f)</ref> are met, it is to be presumed, unless the contrary is shown, that the condition in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41465">(d)</ref> is also met.</p></content></subsection><subsection><num>(5)</num><content><p>In <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41465">(d)</ref>, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section eId="d25e41615"><num>735AG</num><heading>Deduction allowed for previous settlements charge</heading><subsection eId="d25e41619"><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided as mentioned in section 732(1)(c) are received in a tax year, and</p></content></level><level class="para1" eId="d25e41631"><num>(b)</num><content><p>income is treated under section 643A of ITTOIA 2005 as arising to a person in that or a subsequent tax year by reference (direct or indirect) to the whole or part of any benefits so provided.</p></content></level></subsection><subsection><num>(2)</num><content><p>For any tax year after one in which such income is so treated, the amount of income treated as arising to the individual under section 732(2) in respect of benefits provided as mentioned in section 732(1)(c) as a result of the transfer or operations in question is calculated as follows.</p></content></subsection><subsection><num>(3)</num><content><p>The amount is calculated under section 733(1) as if the total untaxed benefits were reduced by the amount of that income.</p></content></subsection><subsection><num>(4)</num><content><p>The reference in <ref href="#d25e41619">subsection (1)</ref><ref href="#d25e41631">(b)</ref> to income treated as arising under section 643A of ITTOIA 2005 includes, in relation to any of the tax years 2018-19 to 2024-25, a reference to income treated as arising under section 643J or 643L of ITTOIA 2005 (settlements code: old onward gift provisions).</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-the-total-untaxed-benefits">the total untaxed benefits</term>” has the same meaning as in section 733(1) (see Step 2).</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-12-paragraph-45-1"><num>(1)</num><content><p>Section 735B (settlor charge: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical liability under section 733A where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This section applies in relation to income if—</p></intro><level class="para1"><num>(a)</num><content><p>the income was treated under section 732 as arising to an individual (“<term refersTo="#term-the-beneficiary">the beneficiary</term>”) for any of the tax years 2017-18 to 2024-25,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor was under section 733A(2) or (3) (as it had effect for that tax year) liable for tax on the income, and</p></content></level><level class="para1"><num>(c)</num><content><p>section 809B, 809D or 809E (remittance basis) applied to the settlor for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-12-paragraph-46-1"><num>(1)</num><content><p>Section 735C (old onward gifts provisions: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical operation of section 733C or 733E where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for the words before sub-paragraph (i) substitute <quotedText>“the income was treated as arising to an individual for any of the tax years 2018-19 to 2024-25”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-46-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-46-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in subsection (1) to section 733C or 733E (or to any provision of either section) is to that section (or provision) as it had effect for the tax year for which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-47" class="schProv1"><num>47</num><intro><p>In section 736 (exemptions: introduction)—</p></intro><level class="para1" eId="schedule-12-paragraph-47-a"><num>(a)</num><content><p><mod>in subsection (1), for “742A” substitute <quotedText>“742”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-47-b"><num>(b)</num><content><p>omit subsection (2A).</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-47-a"><num>(a)</num><content><p><mod>in subsection (1), for “742A” substitute <quotedText>“742”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-47-b"><num>(b)</num><content><p>omit subsection (2A).</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-48" class="schProv1"><num>48</num><content><p>Omit section 742A (post-5 April 2012 transactions: exemption for genuine transactions).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-49" class="schProv1"><num>49</num><content><p>In section 747 (amounts corresponding to accrued income profits and related interest), in subsection (1)(b) and subsection (4)(b), omit “or domiciled”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-50" class="schProv1"><num>50</num><content><p>In section 751 (tribunal’s jurisdiction on appeals), omit paragraph (da).</p></content></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="schedule-12-part-3"><num>Part 3</num><heading>Settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-51" class="schProv1"><num>51</num><content><p><ref eId="c00332" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-52" class="schProv1"><num>52</num><content><p>In section 1A (territorial scope), in subsection (2)(e), omit “87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-53" class="schProv1"><num>53</num><content><p>In section 1E (losses deductible only when within scope of tax etc), omit subsection (4).</p></content></paragraph><paragraph eId="schedule-12-paragraph-54" class="schProv1"><num>54</num><content><p>In section 62 (death: general provisions), in subsection (2A), omit paragraph (a).</p></content></paragraph><paragraph eId="schedule-12-paragraph-55" class="schProv1"><num>55</num><subparagraph eId="schedule-12-paragraph-55-1"><num>(1)</num><content><p>Section 86 (attribution of gains to settlors with interest in non-resident or dual resident settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-2"><num>(2)</num><content><p>In subsection (1)(c), omit “is domiciled in the United Kingdom at some time in the year and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-3"><num>(3)</num><content><p>Omit subsection (3A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-4"><num>(4)</num><content><p>In subsection (4), omit paragraph (b) and the “and” before it.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>See also <ref href="#d25e6482">paragraph 3</ref> of <ref href="#d25e6378">Schedule D1</ref> (foreign gain claims: foreign gains and losses of the trustees ignored for the purposes of subsection (1)(e)).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-56" class="schProv1"><num>56</num><content><p>In section 86A (attribution of gains to settlor where temporarily non-resident), in subsection (1)(b), omit “, 87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 87 (non-UK resident settlements: attribution of gains to beneficiaries), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>See also <ref href="#d25e6539">paragraph 4</ref> of <ref href="#d25e6378">Schedule D1</ref> (foreign gain claims: capital payments ignored for the purposes of this section and Schedule 4C).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-58" class="schProv1"><num>58</num><subparagraph eId="schedule-12-paragraph-58-1"><num>(1)</num><content><p>Section 87B (section 87: remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-58-2-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-58-2-a-i"><num>(i)</num><content><p><mod>for “are treated” substitute <quotedText>“were treated”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-58-2-a-ii"><num>(ii)</num><content><p><mod>for “a tax year” substitute <quotedText>“the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-58-3"><num>(3)</num><content><p><mod>In subsection (2), for “chargeable gains accruing” substitute <quotedText>“treated as having accrued”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-4"><num>(4)</num><content><p><mod>In subsection (4), for “are treated as accruing consists of” substitute <quotedText>“were treated as accruing consisted of”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>The references in this section to sections 87I(1)(c), 87K and 87L (which were repealed by <ref href="#schedule-12-part-3">Part 3</ref> of <ref href="#schedule-12">Schedule 12</ref> to the Finance Act 2025) are to those provisions as they had effect for the tax year in which the chargeable gains were treated as accruing to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-59" class="schProv1"><num>59</num><content><p>In section 87D (sections 87 and 87A: capital payments to non-residents disregarded), in subsection (1) omit paragraph (b) and the “and” before it.</p></content></paragraph><paragraph eId="schedule-12-paragraph-60" class="schProv1"><num>60</num><subparagraph eId="schedule-12-paragraph-60-1"><num>(1)</num><content><p>Section 87G (settlor liable if capital payment received by close family member) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-2"><num>(2)</num><content><p><mod>In subsection (1)(b), for “at any time in that year” substitute <quotedText>“for that tax year”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>But subsection (2) does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the original recipient is resident in the United Kingdom for the tax year in which they receive the capital payment, and</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is a qualifying new resident for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-12-paragraph-60-4-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-60-4-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which those gains were treated as arising,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 87H (meaning of “<term refersTo="#term-close-member-of-the-settlors-family" eId="term-close-member-of-the-settlors-family">close member of the settlor’s family</term>”), in subsection (1), for “87D, 87G and 87L” substitute <quotedText>“87D and 87G”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-62" class="schProv1"><num>62</num><content><p><mod>For sections 87I to 87M (old onward gifting provisions) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e42124"><num>87HA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e42128"><num>(1)</num><intro><p>Subsection <ref href="#d25e42221">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the original recipient”) receives a capital payment (“the original benefit”) from the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the original recipient is not resident in the United Kingdom, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p>section 87G(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e42155"><num>(d)</num><intro><p>at the time when the person receives the original benefit—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be resident in the United Kingdom when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e42173"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to a person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e42185"><num>(ii)</num><content><p>at any time before the original benefit is made to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being made,</p></content></level></level><level class="para1" eId="d25e42191"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the providing of the onward gift to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e42215"><num>(g)</num><content><p>the subsequent recipient is resident in the United Kingdom for the tax year in which they receive the onward gift.</p></content></level></subsection><subsection eId="d25e42221"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42191">(f)</ref> is treated for the purposes of sections 87, 87A , 87D(2) and 87G(2) as a capital payment received from the trustees by the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><content><p>Where <ref href="#d25e42221">subsection (2)</ref> applies, the subsequent recipient is treated as having received the capital payment as a beneficiary of the settlement (whether or not they are otherwise a beneficiary of it).</p></content></subsection><subsection eId="d25e42241"><num>(4)</num><intro><p>For the purposes of <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42191">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(5)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref><ref href="#d25e42185">(ii)</ref>, the onward gift is treated for the purposes of subsection <ref href="#d25e42221">(2)</ref> as made in the tax year in which the original benefit is made to the original recipient.</p></content></subsection><subsection><num>(6)</num><content><p>Where the conditions in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref> to <ref href="#d25e42215">(g)</ref> are met, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42155">(d)</ref> is also met.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-63" class="schProv1"><num>63</num><content><p>In section 91 (increase in tax payable under section 87 or 89(2)), in subsection (1)(a), omit “, 87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-64" class="schProv1"><num>64</num><intro><p>In section 97 (supplementary provisions)—</p></intro><level class="para1" eId="schedule-12-paragraph-64-a"><num>(a)</num><content><p><mod>in subsection (1)(a)(ii), for the words from “any of sections 643A” to the end of the sub-paragraph, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-64-b"><num>(b)</num><content><p><mod>in subsection (3), for the words from “section 643A” to “ITA 2007”, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-65" class="schProv1"><num>65</num><content><p>In section 279A (deferred unascertainable consideration: election for treatment of loss), in subsection (7), omit paragraph (b) (but not the “and” after it).</p></content></paragraph><paragraph eId="schedule-12-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 279C (effect of election under section 279A), in subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-66-a"><num>(a)</num><content><p><mod>after paragraph (a) insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-66-b"><num>(b)</num><content><p>omit paragraph (c) and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-67" class="schProv1"><num>67</num><content><p>In Schedule 1 (UK resident individuals not domiciled in UK), in paragraph 3(5), omit paragraph (b) and the “and” before it.</p></content></paragraph><paragraph eId="schedule-12-paragraph-68" class="schProv1"><num>68</num><subparagraph eId="schedule-12-paragraph-68-1"><num>(1)</num><content><p>Schedule 4C (transfers of value: attribution of gains to beneficiaries) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-68-2"><num>(2)</num><content><p><mod>In paragraph 8(6), after “87G(2),” insert <quotedText>“87HA(2),”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-69" class="schProv1"><num>69</num><subparagraph eId="schedule-12-paragraph-69-1"><num>(1)</num><content><p>Schedule 5 (attribution of gains to settlors with interest in non-resident or dual resident settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-2"><num>(2)</num><content><p><mod>In paragraph 1 (construction of section 86(1)(e): losses etc), after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><intro><p>In construing section 86(1)(e) as regards a particular year of assessment, if—</p></intro><level class="para1"><num>(a)</num><content><p>section 86 did not apply to the settlement in a year of assessment ending before 6 April 2025 (“the earlier year”), but</p></content></level><level class="para1"><num>(b)</num><content><p>that section would have applied to the settlement in the earlier year if the condition in section 86(1)(e) (settlor domiciled in the United Kingdom) had been met in the earlier year,</p></content></level><wrapUp><p>deductions shall be made in respect of losses accruing in the earlier year, but only so far as those losses have not been taken into account for the purposes of section 87 in determining the section 1(3) amount for the settlement for the earlier year.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-3"><num>(3)</num><content><p>Omit paragraphs 5A and 5B (protections for deemed domiciles etc).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-4"><num>(4)</num><content><p><mod>After paragraph 5 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Old section 87 rebasing elections to apply in relation to section 86</heading><paragraph class="schProv1"><num>5C</num><subparagraph eId="d25e42457"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of the settlement made (at any time) an election under paragraph 126(1) of Schedule 7 to the Finance Act 2008 (remittance basis: capital gains rebasing), and</p></content></level><level class="para1" eId="d25e42469"><num>(b)</num><content><p>an amount of chargeable gains would (apart from this paragraph) be treated as accruing to the settlor under section 86(4) in a tax year (“the relevant tax year”).</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The settlor is not charged to capital gains tax on so much of the chargeable gains as exceeds the relevant proportion of those gains.</p></content></subparagraph><subparagraph eId="d25e42481"><num>(3)</num><content><p>For that purpose “the relevant proportion” is—</p><tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" altimg="http://www.legislation.gov.uk/ukpga/2025/8/images/ukpga_20250008_en_001"><default:mfrac><default:mi>A</default:mi><default:mi>B</default:mi></default:mfrac></default:math></foreign><blockContainer class="where"><p>where—</p><tblock class="definition"><p>A is the amount that would be treated under section 86(4) as accruing to the settlor in the relevant tax year if immediately before 6 April 2008 every relevant asset had been sold by the trustees and immediately re-acquired by them at its market value at that time, and</p></tblock><tblock class="definition"><p>B is the amount mentioned in <ref href="#d25e42457">sub-paragraph (1)</ref><ref href="#d25e42469">(b)</ref>.</p></tblock></blockContainer></tblock></content></subparagraph><subparagraph><num>(4)</num><intro><p>In <ref href="#d25e42481">sub-paragraph (3)</ref>, “<term refersTo="#term-relevant-asset">relevant asset</term>” means an asset—</p></intro><level class="para1"><num>(a)</num><content><p>that was disposed of in the relevant tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>that was comprised in the settlement from the beginning of 6 April 2008 until its disposal.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-5"><num>(5)</num><intro><p>In paragraph 6 (right of recovery), in sub-paragraph (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-69-5-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-69-5-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which gains were treated as accruing under section 86(4),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-51" class="schProv1"><num>51</num><content><p><ref eId="c00332" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended in accordance with this Part of this Schedule.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-52" class="schProv1"><num>52</num><content><p>In section 1A (territorial scope), in subsection (2)(e), omit “87K, 87L”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-53" class="schProv1"><num>53</num><content><p>In section 1E (losses deductible only when within scope of tax etc), omit subsection (4).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-54" class="schProv1"><num>54</num><content><p>In section 62 (death: general provisions), in subsection (2A), omit paragraph (a).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-55" class="schProv1"><num>55</num><subparagraph eId="schedule-12-paragraph-55-1"><num>(1)</num><content><p>Section 86 (attribution of gains to settlors with interest in non-resident or dual resident settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-2"><num>(2)</num><content><p>In subsection (1)(c), omit “is domiciled in the United Kingdom at some time in the year and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-3"><num>(3)</num><content><p>Omit subsection (3A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-4"><num>(4)</num><content><p>In subsection (4), omit paragraph (b) and the “and” before it.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>See also <ref href="#d25e6482">paragraph 3</ref> of <ref href="#d25e6378">Schedule D1</ref> (foreign gain claims: foreign gains and losses of the trustees ignored for the purposes of subsection (1)(e)).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-56" class="schProv1"><num>56</num><content><p>In section 86A (attribution of gains to settlor where temporarily non-resident), in subsection (1)(b), omit “, 87K, 87L”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 87 (non-UK resident settlements: attribution of gains to beneficiaries), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>See also <ref href="#d25e6539">paragraph 4</ref> of <ref href="#d25e6378">Schedule D1</ref> (foreign gain claims: capital payments ignored for the purposes of this section and Schedule 4C).</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-58" class="schProv1"><num>58</num><subparagraph eId="schedule-12-paragraph-58-1"><num>(1)</num><content><p>Section 87B (section 87: remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-58-2-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-58-2-a-i"><num>(i)</num><content><p><mod>for “are treated” substitute <quotedText>“were treated”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-58-2-a-ii"><num>(ii)</num><content><p><mod>for “a tax year” substitute <quotedText>“the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-58-3"><num>(3)</num><content><p><mod>In subsection (2), for “chargeable gains accruing” substitute <quotedText>“treated as having accrued”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-4"><num>(4)</num><content><p><mod>In subsection (4), for “are treated as accruing consists of” substitute <quotedText>“were treated as accruing consisted of”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>The references in this section to sections 87I(1)(c), 87K and 87L (which were repealed by <ref href="#schedule-12-part-3">Part 3</ref> of <ref href="#schedule-12">Schedule 12</ref> to the Finance Act 2025) are to those provisions as they had effect for the tax year in which the chargeable gains were treated as accruing to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-59" class="schProv1"><num>59</num><content><p>In section 87D (sections 87 and 87A: capital payments to non-residents disregarded), in subsection (1) omit paragraph (b) and the “and” before it.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-60" class="schProv1"><num>60</num><subparagraph eId="schedule-12-paragraph-60-1"><num>(1)</num><content><p>Section 87G (settlor liable if capital payment received by close family member) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-2"><num>(2)</num><content><p><mod>In subsection (1)(b), for “at any time in that year” substitute <quotedText>“for that tax year”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>But subsection (2) does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the original recipient is resident in the United Kingdom for the tax year in which they receive the capital payment, and</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is a qualifying new resident for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-12-paragraph-60-4-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-60-4-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which those gains were treated as arising,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 87H (meaning of “<term refersTo="#term-close-member-of-the-settlors-family" eId="term-close-member-of-the-settlors-family">close member of the settlor’s family</term>”), in subsection (1), for “87D, 87G and 87L” substitute <quotedText>“87D and 87G”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-62" class="schProv1"><num>62</num><content><p><mod>For sections 87I to 87M (old onward gifting provisions) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e42124"><num>87HA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e42128"><num>(1)</num><intro><p>Subsection <ref href="#d25e42221">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the original recipient”) receives a capital payment (“the original benefit”) from the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the original recipient is not resident in the United Kingdom, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p>section 87G(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e42155"><num>(d)</num><intro><p>at the time when the person receives the original benefit—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be resident in the United Kingdom when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e42173"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to a person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e42185"><num>(ii)</num><content><p>at any time before the original benefit is made to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being made,</p></content></level></level><level class="para1" eId="d25e42191"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the providing of the onward gift to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e42215"><num>(g)</num><content><p>the subsequent recipient is resident in the United Kingdom for the tax year in which they receive the onward gift.</p></content></level></subsection><subsection eId="d25e42221"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42191">(f)</ref> is treated for the purposes of sections 87, 87A , 87D(2) and 87G(2) as a capital payment received from the trustees by the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><content><p>Where <ref href="#d25e42221">subsection (2)</ref> applies, the subsequent recipient is treated as having received the capital payment as a beneficiary of the settlement (whether or not they are otherwise a beneficiary of it).</p></content></subsection><subsection eId="d25e42241"><num>(4)</num><intro><p>For the purposes of <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42191">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(5)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref><ref href="#d25e42185">(ii)</ref>, the onward gift is treated for the purposes of subsection <ref href="#d25e42221">(2)</ref> as made in the tax year in which the original benefit is made to the original recipient.</p></content></subsection><subsection><num>(6)</num><content><p>Where the conditions in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref> to <ref href="#d25e42215">(g)</ref> are met, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42155">(d)</ref> is also met.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-63" class="schProv1"><num>63</num><content><p>In section 91 (increase in tax payable under section 87 or 89(2)), in subsection (1)(a), omit “, 87K, 87L”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-64" class="schProv1"><num>64</num><intro><p>In section 97 (supplementary provisions)—</p></intro><level class="para1" eId="schedule-12-paragraph-64-a"><num>(a)</num><content><p><mod>in subsection (1)(a)(ii), for the words from “any of sections 643A” to the end of the sub-paragraph, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-64-b"><num>(b)</num><content><p><mod>in subsection (3), for the words from “section 643A” to “ITA 2007”, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-64-a"><num>(a)</num><content><p><mod>in subsection (1)(a)(ii), for the words from “any of sections 643A” to the end of the sub-paragraph, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-64-b"><num>(b)</num><content><p><mod>in subsection (3), for the words from “section 643A” to “ITA 2007”, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-65" class="schProv1"><num>65</num><content><p>In section 279A (deferred unascertainable consideration: election for treatment of loss), in subsection (7), omit paragraph (b) (but not the “and” after it).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 279C (effect of election under section 279A), in subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-66-a"><num>(a)</num><content><p><mod>after paragraph (a) insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-66-b"><num>(b)</num><content><p>omit paragraph (c) and the “and” before it.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-66-a"><num>(a)</num><content><p><mod>after paragraph (a) insert <quotedText>“and”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-12-paragraph-66-b"><num>(b)</num><content><p>omit paragraph (c) and the “and” before it.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-67" class="schProv1"><num>67</num><content><p>In Schedule 1 (UK resident individuals not domiciled in UK), in paragraph 3(5), omit paragraph (b) and the “and” before it.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-68" class="schProv1"><num>68</num><subparagraph eId="schedule-12-paragraph-68-1"><num>(1)</num><content><p>Schedule 4C (transfers of value: attribution of gains to beneficiaries) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-68-2"><num>(2)</num><content><p><mod>In paragraph 8(6), after “87G(2),” insert <quotedText>“87HA(2),”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="schedule-12-paragraph-69" class="schProv1"><num>69</num><subparagraph eId="schedule-12-paragraph-69-1"><num>(1)</num><content><p>Schedule 5 (attribution of gains to settlors with interest in non-resident or dual resident settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-2"><num>(2)</num><content><p><mod>In paragraph 1 (construction of section 86(1)(e): losses etc), after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><intro><p>In construing section 86(1)(e) as regards a particular year of assessment, if—</p></intro><level class="para1"><num>(a)</num><content><p>section 86 did not apply to the settlement in a year of assessment ending before 6 April 2025 (“the earlier year”), but</p></content></level><level class="para1"><num>(b)</num><content><p>that section would have applied to the settlement in the earlier year if the condition in section 86(1)(e) (settlor domiciled in the United Kingdom) had been met in the earlier year,</p></content></level><wrapUp><p>deductions shall be made in respect of losses accruing in the earlier year, but only so far as those losses have not been taken into account for the purposes of section 87 in determining the section 1(3) amount for the settlement for the earlier year.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-3"><num>(3)</num><content><p>Omit paragraphs 5A and 5B (protections for deemed domiciles etc).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-4"><num>(4)</num><content><p><mod>After paragraph 5 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Old section 87 rebasing elections to apply in relation to section 86</heading><paragraph class="schProv1"><num>5C</num><subparagraph eId="d25e42457"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of the settlement made (at any time) an election under paragraph 126(1) of Schedule 7 to the Finance Act 2008 (remittance basis: capital gains rebasing), and</p></content></level><level class="para1" eId="d25e42469"><num>(b)</num><content><p>an amount of chargeable gains would (apart from this paragraph) be treated as accruing to the settlor under section 86(4) in a tax year (“the relevant tax year”).</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The settlor is not charged to capital gains tax on so much of the chargeable gains as exceeds the relevant proportion of those gains.</p></content></subparagraph><subparagraph eId="d25e42481"><num>(3)</num><content><p>For that purpose “the relevant proportion” is—</p><tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" altimg="http://www.legislation.gov.uk/ukpga/2025/8/images/ukpga_20250008_en_001"><default:mfrac><default:mi>A</default:mi><default:mi>B</default:mi></default:mfrac></default:math></foreign><blockContainer class="where"><p>where—</p><tblock class="definition"><p>A is the amount that would be treated under section 86(4) as accruing to the settlor in the relevant tax year if immediately before 6 April 2008 every relevant asset had been sold by the trustees and immediately re-acquired by them at its market value at that time, and</p></tblock><tblock class="definition"><p>B is the amount mentioned in <ref href="#d25e42457">sub-paragraph (1)</ref><ref href="#d25e42469">(b)</ref>.</p></tblock></blockContainer></tblock></content></subparagraph><subparagraph><num>(4)</num><intro><p>In <ref href="#d25e42481">sub-paragraph (3)</ref>, “<term refersTo="#term-relevant-asset">relevant asset</term>” means an asset—</p></intro><level class="para1"><num>(a)</num><content><p>that was disposed of in the relevant tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>that was comprised in the settlement from the beginning of 6 April 2008 until its disposal.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-5"><num>(5)</num><intro><p>In paragraph 6 (right of recovery), in sub-paragraph (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-69-5-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-69-5-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which gains were treated as accruing under section 86(4),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-12-part-4"><num>Part 4</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e42570"><heading>Commencement</heading><paragraph eId="schedule-12-paragraph-70" class="schProv1"><num>70</num><subparagraph eId="schedule-12-paragraph-70-1"><num>(1)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-1">1</ref> to <ref href="#schedule-12-paragraph-53">53</ref>, <ref href="#schedule-12-paragraph-55">55</ref> to <ref href="#schedule-12-paragraph-64">64</ref> and <ref href="#schedule-12-paragraph-67">67</ref> to <ref href="#schedule-12-paragraph-69">69</ref> have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-2"><num>(2)</num><content><p>The amendment made by paragraph <ref href="#schedule-12-paragraph-54">54</ref> to section 62 of TCGA 1992 (death: general provisions) has effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-3"><num>(3)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-65">65</ref> and <ref href="#schedule-12-paragraph-66">66</ref> to sections 279A and 279C of TCGA 1992 (deferred unascertainable consideration: election for treatment of loss) have effect in relation to disposals made on or after 6 April 2025 of rights to which section 279A of that Act applies.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42623"><heading><ins class="first" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc"><noteRef uk:name="commentary" href="#key-d8e412a16d7c81b275bfa9b3086758bc" class="commentary"/>Settlements: transitional protection where available protected income is increased by this Schedule</ins></heading><paragraph eId="schedule-12-paragraph-70A" class="schProv1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">70A</ins></num><subparagraph eId="schedule-12-paragraph-70A-1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(1)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">This paragraph applies for the purposes of section 643A of ITTOIA 2005 if an individual’s untaxed benefits total in relation to a settlement for the tax year 2024-25 exceeded the available protected income up to the end of that tax year.</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-2"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(2)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In determining under section 643B of that Act the individual’s untaxed benefits total for the tax year 2025-26 or a later tax year, any benefit provided to the individual in the tax year 2024-25 or an earlier tax year is to be disregarded at Step 1 in subsection (1).</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-3"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(3)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In this paragraph “untaxed benefits total” and “</ins><term refersTo="#term-available-protected-income"><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">available protected income</ins></term><ins class="last" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">”, in relation to an individual, a settlement and a tax year, are to be construed in accordance with sections 643B and 643C of ITTOIA 2005 (as they have or had effect for the tax year in question).</ins></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42661"><heading>Onward gifts: settlements (income)</heading><paragraph eId="schedule-12-paragraph-71" class="schProv1"><num>71</num><subparagraph eId="schedule-12-paragraph-71-1"><num>(1)</num><content><p>Section 643EA of ITTOIA 2005 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-17">paragraph 17</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 643EA of ITTOIA 2005; and in a case within section 643EA(3) “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-72" class="schProv1"><num>72</num><intro><p>Despite the repeal of section 643M of ITTOIA 2005 by <ref href="#schedule-12-paragraph-21">paragraph 21</ref> of this Schedule, that section continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-72-a"><num>(a)</num><content><p>it provided before its repeal for a benefit of a particular amount to be treated for the purposes of section 643B of that Act as having been provided to a particular person at a particular time, and</p></content></level><level class="para1" eId="schedule-12-paragraph-72-b"><num>(b)</num><content><p>the receipt of the benefit by the person is relevant to the application of section 643B of that Act in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42740"><heading>Onward gifts: transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-73" class="schProv1"><num>73</num><subparagraph eId="schedule-12-paragraph-73-1"><num>(1)</num><content><p><ref href="#d25e41418">Section 735AF</ref> of ITA 2007 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-44">paragraph 44</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in <ref href="#d25e41418">section 735AF</ref> of ITA 2007; and in a case within <ref href="#d25e41418">section 735AF</ref><ref href="#d25e41546">(3)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42808"><heading>Onward gifts: settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-74" class="schProv1"><num>74</num><subparagraph eId="schedule-12-paragraph-74-1"><num>(1)</num><content><p>Section 87HA of TCGA 1992 (benefits routed via non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-62">paragraph 62</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which they receive the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 87HA of TCGA 1992; and in a case within section <ref href="#d25e42124">87HA</ref><ref href="#d25e42241">(4)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-75" class="schProv1"><num>75</num><intro><p>Despite the repeal of sections 87K and 87L of TCGA 1992 (old onward gifting rules) by paragraph <ref href="#schedule-12-paragraph-62">62</ref> of this Schedule, each of those sections continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-75-a"><num>(a)</num><content><p>before its repeal, it provided for section 87 and 87A of that Act to have effect as if a capital payment of a particular amount had been received at a particular time by a particular person, and</p></content></level><level class="para1" eId="schedule-12-paragraph-75-b"><num>(b)</num><content><p>the receipt of the capital payment by that person is relevant to the application of sections 87 and 87A in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e42570"><heading>Commencement</heading><paragraph eId="schedule-12-paragraph-70" class="schProv1"><num>70</num><subparagraph eId="schedule-12-paragraph-70-1"><num>(1)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-1">1</ref> to <ref href="#schedule-12-paragraph-53">53</ref>, <ref href="#schedule-12-paragraph-55">55</ref> to <ref href="#schedule-12-paragraph-64">64</ref> and <ref href="#schedule-12-paragraph-67">67</ref> to <ref href="#schedule-12-paragraph-69">69</ref> have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-2"><num>(2)</num><content><p>The amendment made by paragraph <ref href="#schedule-12-paragraph-54">54</ref> to section 62 of TCGA 1992 (death: general provisions) has effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-3"><num>(3)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-65">65</ref> and <ref href="#schedule-12-paragraph-66">66</ref> to sections 279A and 279C of TCGA 1992 (deferred unascertainable consideration: election for treatment of loss) have effect in relation to disposals made on or after 6 April 2025 of rights to which section 279A of that Act applies.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" class="schGroup7" eId="d25e42623"><heading><ins class="first" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc"><noteRef uk:name="commentary" href="#key-d8e412a16d7c81b275bfa9b3086758bc" class="commentary"/>Settlements: transitional protection where available protected income is increased by this Schedule</ins></heading><paragraph eId="schedule-12-paragraph-70A" class="schProv1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">70A</ins></num><subparagraph eId="schedule-12-paragraph-70A-1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(1)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">This paragraph applies for the purposes of section 643A of ITTOIA 2005 if an individual’s untaxed benefits total in relation to a settlement for the tax year 2024-25 exceeded the available protected income up to the end of that tax year.</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-2"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(2)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In determining under section 643B of that Act the individual’s untaxed benefits total for the tax year 2025-26 or a later tax year, any benefit provided to the individual in the tax year 2024-25 or an earlier tax year is to be disregarded at Step 1 in subsection (1).</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-3"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(3)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In this paragraph “untaxed benefits total” and “</ins><term refersTo="#term-available-protected-income"><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">available protected income</ins></term><ins class="last" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">”, in relation to an individual, a settlement and a tax year, are to be construed in accordance with sections 643B and 643C of ITTOIA 2005 (as they have or had effect for the tax year in question).</ins></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-70A" class="schProv1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">70A</ins></num><subparagraph eId="schedule-12-paragraph-70A-1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(1)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">This paragraph applies for the purposes of section 643A of ITTOIA 2005 if an individual’s untaxed benefits total in relation to a settlement for the tax year 2024-25 exceeded the available protected income up to the end of that tax year.</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-2"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(2)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In determining under section 643B of that Act the individual’s untaxed benefits total for the tax year 2025-26 or a later tax year, any benefit provided to the individual in the tax year 2024-25 or an earlier tax year is to be disregarded at Step 1 in subsection (1).</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-3"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(3)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In this paragraph “untaxed benefits total” and “</ins><term refersTo="#term-available-protected-income"><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">available protected income</ins></term><ins class="last" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">”, in relation to an individual, a settlement and a tax year, are to be construed in accordance with sections 643B and 643C of ITTOIA 2005 (as they have or had effect for the tax year in question).</ins></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e42661"><heading>Onward gifts: settlements (income)</heading><paragraph eId="schedule-12-paragraph-71" class="schProv1"><num>71</num><subparagraph eId="schedule-12-paragraph-71-1"><num>(1)</num><content><p>Section 643EA of ITTOIA 2005 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-17">paragraph 17</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 643EA of ITTOIA 2005; and in a case within section 643EA(3) “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-72" class="schProv1"><num>72</num><intro><p>Despite the repeal of section 643M of ITTOIA 2005 by <ref href="#schedule-12-paragraph-21">paragraph 21</ref> of this Schedule, that section continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-72-a"><num>(a)</num><content><p>it provided before its repeal for a benefit of a particular amount to be treated for the purposes of section 643B of that Act as having been provided to a particular person at a particular time, and</p></content></level><level class="para1" eId="schedule-12-paragraph-72-b"><num>(b)</num><content><p>the receipt of the benefit by the person is relevant to the application of section 643B of that Act in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e42740"><heading>Onward gifts: transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-73" class="schProv1"><num>73</num><subparagraph eId="schedule-12-paragraph-73-1"><num>(1)</num><content><p><ref href="#d25e41418">Section 735AF</ref> of ITA 2007 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-44">paragraph 44</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in <ref href="#d25e41418">section 735AF</ref> of ITA 2007; and in a case within <ref href="#d25e41418">section 735AF</ref><ref href="#d25e41546">(3)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e42808"><heading>Onward gifts: settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-74" class="schProv1"><num>74</num><subparagraph eId="schedule-12-paragraph-74-1"><num>(1)</num><content><p>Section 87HA of TCGA 1992 (benefits routed via non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-62">paragraph 62</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which they receive the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 87HA of TCGA 1992; and in a case within section <ref href="#d25e42124">87HA</ref><ref href="#d25e42241">(4)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-75" class="schProv1"><num>75</num><intro><p>Despite the repeal of sections 87K and 87L of TCGA 1992 (old onward gifting rules) by paragraph <ref href="#schedule-12-paragraph-62">62</ref> of this Schedule, each of those sections continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-75-a"><num>(a)</num><content><p>before its repeal, it provided for section 87 and 87A of that Act to have effect as if a capital payment of a particular amount had been received at a particular time by a particular person, and</p></content></level><level class="para1" eId="schedule-12-paragraph-75-b"><num>(b)</num><content><p>the receipt of the capital payment by that person is relevant to the application of sections 87 and 87A in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-13"><num>Schedule 13<authorialNote class="referenceNote"><p>Section 46</p></authorialNote></num><heading>Inheritance tax</heading><part eId="schedule-13-part-1"><num>Part 1</num><heading>Amendments to <ref eId="c00333" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> and related legislation</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e42909"><heading><ref eId="c00334" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref></heading><paragraph eId="schedule-13-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00335" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">section 5</a> (meaning of estate), for <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">subsection (1B)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>An interest in possession falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>the person became beneficially entitled to it on or after 9 December 2009 by virtue of a disposition that was prevented from being a transfer of value by section 10 (no gratuitous benefit), and</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>has been a long-term UK resident at any time on or after 6 April 2025 while beneficially entitled to it, or</p></content></level><level class="para2"><num>(ii)</num><content><p>became beneficially entitled to it at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-3" class="schProv1"><num>3</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">section 6</a> (excluded property), omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">section 8D</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">(9)</a>, omit the definitions of “tax year” and “the tax year 2017-18”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-5" class="schProv1"><num>5</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">(3)</a>, omit the definition of “tax year”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">section 18</a> (transfers between spouses or civil partners), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">subsection (2)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident,”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-7" class="schProv1"><num>7</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">section 28A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-13-paragraph-8-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">Section 53</a> (exceptions from charge under section 52) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>Tax shall not be chargeable under section 52 above if—</p></intro><level class="para1"><num>(a)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(c)</num><content><p>the person whose interest comes to an end became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the person’s interest in possession in it comes to an end, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-13-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">Section 54</a> (exceptions from charge on death) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(2B)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(e)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsection (2B)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is entitled to an interest in possession in settled property dies,</p></content></level><level class="para1"><num>(b)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(c)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(d)</num><content><p>the person became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(e)</num><intro><p>immediately before the person’s death, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level></level><wrapUp><p>the value of the settled property shall be left out of account in determining for the purposes of this Act the value of the person’s estate immediately before their death.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>Where a person became beneficially entitled to an interest in possession in settled property on or after 22 March 2006, subsection (2C) applies in relation to the interest only if it is—</p></intro><level class="para1"><num>(a)</num><content><p>an immediate post-death interest,</p></content></level><level class="para1"><num>(b)</num><content><p>a disabled person’s interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>a transitional serial interest,</p></content></level><wrapUp><p>or falls within section 5(1B) (certain interests acquired with no gratuitous benefit).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-13-paragraph-10-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">Section 64</a> (charge at ten-year anniversary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1B)</a>, for the words from the beginning to “ten-year anniversary falls” substitute <quotedText>“Where the settlor of property comprised in a settlement meets the condition in subsection <ref href="#d25e43250">(1BZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-3"><num>(3)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43250"><num>(1BZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident immediately before the ten-year anniversary,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before their death, or</p></content></level><level class="para1"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1BA)</a>, for “subsection (1B)” substitute <quotedText>“subsection <ref href="#d25e43250">(1BZA)</ref>(c)”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-13-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">Section 65</a> (exit charges etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7A)</a>, for the words from “becomes excluded property” to the end, substitute <quotedText>“is invested in a holding in an authorised unit trust or a share in an open-ended investment company and thereby becomes excluded property by virtue of section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-4"><num>(4)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7B)</a>.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7C)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (8)</a>, for the words from the beginning to “subsection (8A))”, substitute <quotedText>“If the condition in <ref href="#d25e43378">subsection (8ZA)</ref> is met in relation to property comprised in a settlement”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-7"><num>(7)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43378"><num>(8ZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1" eId="d25e43396"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-8"><num>(8)</num><content><p><mod>In subsection (8A), for “subsection (8)” substitute <quotedText>“<ref href="#d25e43378">subsection (8ZA)</ref><ref href="#d25e43396">(c)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-13-paragraph-12-1"><num>(1)</num><content><p>Section 74A (arrangements involving acquisition of interest in settled property etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-12-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-12-2-a"><num>(a)</num><content><p>in paragraph (b)(i), omit “domiciled in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-12-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><intro><p>the individual—</p></intro><level class="para2"><num>(i)</num><content><p>is a long-term UK resident at any time on or after 6 April 2025 during the course of the arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>acquired the interest, or became able to acquire it, at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>Condition A is that the relevant settled property is excluded property at any time during the course of the arrangements.</p><p>Ignore for this purpose—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7537">(8)</ref> (as it has effect on and after 6 April 2025);</p></content></level><level class="para1"><num>(b)</num><content><p>section 48(3D) (as it had effect before 6 April 2025).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-13" class="schProv1"><num>13</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">section 75A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">subsection (4)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 80 (initial interest of settlor or spouse), in subsection (1), after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-15" class="schProv1"><num>15</num><intro><p>In section 81 (property moving between settlements), in subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-15-a"><num>(a)</num><content><p><mod>after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-15-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“(but held on the trusts of the second)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-16" class="schProv1"><num>16</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/81B">section 81B</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>81B</num><heading>Excluded property: property to which section 80 applies</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>property is treated under section 80(1) as becoming comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the property would, apart from this section, be excluded property by virtue of meeting the condition in any of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> of section <ref href="#d25e7426">48ZA</ref> (excluded property: long-term residence and domicile tests).</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter, except sections 78 and 79, the property is excluded property only if the condition in any of those subsections (whether or not the same one) is met by reference to the actual settlor and the actual settlement.</p></content></subsection><subsection><num>(3)</num><content><p>Section 65(8) (no exit charge where property invested in Treasury securities thereby becomes excluded property) applies in relation to the property only if the condition in section 65<ref href="#d25e43378">(8ZA)</ref> is met by reference to the actual settlor.</p></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-the-actual-settlor">the actual settlor</term>” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1); and “<term refersTo="#term-the-actual-settlement">the actual settlement</term>” means that settlement.</p></content></subsection><subsection><num>(5)</num><content><p>This section does not apply in relation to property that is a holding in an authorised unit trust or a share in an open-ended investment company if the occasion first referred to in section 80(1) occurred before 22 July 2020.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-17" class="schProv1"><num>17</num><content><p>Omit sections 82 and 82A (excluded property: property to which section 81 applies).</p></content></paragraph><paragraph eId="schedule-13-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">section 94</a> (close companies: charge on participators), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">(b)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">section 136</a> (transfers within three years before death: transactions of close companies), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-20" class="schProv1"><num>20</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">section 155</a> (visiting forces etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">subsections (2)</a> and (5B), omit “or domicile”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-13-paragraph-21-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">Section 157</a> (non-residents’ bank accounts) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-13-paragraph-21-2-a"><num>(a)</num><content><p>omit “is not domiciled and not resident in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-21-2-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“is neither resident in the United Kingdom nor a long-term UK resident”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-21-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (3)</a>, for the words from “if the settlor” to the end, substitute <quotedText startQuote="“">if—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the trustees are resident in the United Kingdom immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is alive and is a long-term UK resident immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(c)</num><content><p>the settlor died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-22" class="schProv1"><num>22</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">section 218</a> (non-resident trustees), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">(a)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-23" class="schProv1"><num>23</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> (persons treated as domiciled in United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-13-paragraph-24-1"><num>(1)</num><content><p>Section 267ZA (election to be treated as domiciled in the United Kingdom) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-2"><num>(2)</num><content><p><mod>In subsections (3) and (4), for “on or after 6 April 2013 and” substitute <quotedText>“before 6 April 2025 but”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-3"><num>(3)</num><content><p>Omit subsection (5).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-4"><num>(4)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-13-paragraph-24-4-a"><num>(a)</num><content><p><mod>for “is or was domiciled” substitute <quotedText>“was domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-24-4-b"><num>(b)</num><content><p><mod>after “section 267” insert <quotedText>“(deemed domicile)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-25" class="schProv1"><num>25</num><content><p><mod>In section 267ZB (section 267ZA: further provision about election) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>), in subsection (4)(a), for “6 April 2013 or a later date” substitute <quotedText>“5 April 2025 or an earlier date”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-26" class="schProv1"><num>26</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZA">sections 267ZA</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZB">267ZB</a> (election to be treated as domiciled in the United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-27" class="schProv1"><num>27</num><content><p><mod>Before <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267A">section 267A</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e43858"><num>267ZC</num><heading>Election to be treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>A person (“<term refersTo="#term-p">P</term>”) who would not otherwise be a long-term UK resident is treated as one for the purposes of this Act at any time when an election under this section has effect.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under this section may be made—</p></intro><level class="para1"><num>(a)</num><content><p>if condition A or B is met, by P;</p></content></level><level class="para1"><num>(b)</num><content><p>if condition B is met, by P’s personal representatives.</p></content></level></subsection><subsection><num>(3)</num><content><p>Condition A is that, at any time within the period of 7 years ending with the date on which the election is made, P had a spouse or civil partner who was a long-term UK resident.</p></content></subsection><subsection eId="d25e43895"><num>(4)</num><intro><p>Condition B is that a person (“<term refersTo="#term-the-deceased">the deceased</term>”) dies and, at any time within the period of 7 years ending with the date of their death, the deceased was—</p></intro><level class="para1"><num>(a)</num><content><p>a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>the spouse or civil partner of P.</p></content></level></subsection></section><section><num>267ZD</num><heading>Further provision about elections under <ref href="#d25e43858">section 267ZC</ref></heading><subsection eId="d25e43925"><num>(1)</num><intro><p>An election under <ref href="#d25e43858">section 267ZC</ref>—</p></intro><level class="para1" eId="d25e43934"><num>(a)</num><content><p>must be made by notice in writing to HMRC, and</p></content></level><level class="para1"><num>(b)</num><content><p>has effect from such date as is, in accordance with <ref href="#d25e43949">subsection (2)</ref>, specified in the notice.</p></content></level></subsection><subsection eId="d25e43949"><num>(2)</num><intro><p>The date specified in a notice under <ref href="#d25e43925">subsection (1)</ref><ref href="#d25e43934">(a)</ref> (“<term refersTo="#term-the-specified-date">the specified date</term>”) must—</p></intro><level class="para1"><num>(a)</num><content><p>be after 5 April 2025,</p></content></level><level class="para1"><num>(b)</num><intro><p>be within the period of 7 years ending with—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a lifetime election, the date on which the election is made;</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a death election, the date of the deceased's death, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>meet the condition in <ref href="#d25e43996">subsection (3)</ref>.</p></content></level></subsection><subsection eId="d25e43996"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a lifetime election—</p></intro><level class="para2"><num>(i)</num><content><p>the person making the election was, on the specified date, married to or in a civil partnership with the spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the spouse or civil partner was, on the specified date, a long-term UK resident;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>in the case of a death election—</p></intro><level class="para2"><num>(i)</num><content><p>the person who is, by virtue of the election, to be treated as a long-term UK resident was, on the specified date, married to or in a civil partnership with the deceased, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the deceased was, on the specified date, a long-term UK resident.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>A death election may only be made within—</p></intro><level class="para1"><num>(a)</num><content><p>the period of 2 years beginning with the date of the deceased’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>such longer period as an officer of Revenue and Customs may in the particular case allow.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e44086">(6)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an election is made under <ref href="#d25e43858">section 267ZC</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>a disposition is made, or another event occurs, during the period beginning with the date on which the election first has effect and ending with the date on which the election is made, and</p></content></level><level class="para1"><num>(c)</num><content><p>the effect of the election is that the disposition or event gives rise to a transfer of value.</p></content></level></subsection><subsection eId="d25e44086"><num>(6)</num><intro><p>This Act applies with the following modifications in relation to the transfer of value—</p></intro><level class="para1"><num>(a)</num><content><p>subsections (1) and (6)(c) of section 216 (delivery of accounts) have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>sections 226 (payment: general rules) and 233 (interest on unpaid tax) have effect as if the transfer were made at the time when the election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>An election under <ref href="#d25e43858">section 267ZC</ref> cannot be revoked.</p></content></subsection><subsection><num>(8)</num><content><p>If a person who made a lifetime election is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.</p></content></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-death-election">death election</term>” means an election made under <ref href="#d25e43858">section 267ZC</ref> in circumstances where Condition B in <ref href="#d25e43895">subsection (4)</ref> of that section is met;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-lifetime-election">lifetime election</term>” means any other election made under <ref href="#d25e43858">section 267ZC</ref>.</p></content></hcontainer></subsection></section><section eId="d25e44152"><num>267ZE</num><heading>Subject of domicile election treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>This section applies where an election under section 267ZA has effect in relation to a person immediately before 6 April 2025 (whether the election was made before or after that date).</p></content></subsection><subsection eId="d25e44162"><num>(2)</num><intro><p>The person is treated for the purposes of this Act (so far as would not otherwise be the case)—</p></intro><level class="para1"><num>(a)</num><content><p>as being a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>as having been one at all times on and after 6 April 2025.</p></content></level></subsection><subsection eId="d25e44180"><num>(3)</num><content><p>But if the person is not resident in the United Kingdom for a relevant lapse period beginning at any time after the election is made, <ref href="#d25e44162">subsection (2)</ref> ceases to apply to them at the end of that period.</p></content></subsection><subsection><num>(4)</num><intro><p>In <ref href="#d25e44180">subsection (3)</ref> “<term refersTo="#term-relevant-lapse-period">relevant lapse period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the election was made before 30 October 2024, a period of 4 successive tax years;</p></content></level><level class="para1"><num>(b)</num><content><p>if the election was made on or after that date, a period of 10 successive tax years.</p></content></level></subsection></section><section><num>267ZF</num><heading>Double taxation conventions operating by reference to deemed domicile</heading><subsection><num>(1)</num><content><p>This section applies to a case in which the application of any arrangements having effect under section 158 (double taxation conventions) depends (to any extent) on whether a person is treated as domiciled in the United Kingdom for the purposes of inheritance tax.</p></content></subsection><subsection><num>(2)</num><content><p>The person is treated as domiciled in the United Kingdom for the purposes of inheritance tax if they are a long-term UK resident.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 276ZC to 267ZE (persons treated as long-term resident by virtue of election) are to be disregarded in applying this section in relation to any arrangements that are specified in an Order in Council made under section 158 of IHTA 1984 before 17 July 2013 (other than by way of amendment by an Order made on or after that date).</p></content></subsection><subsection><num>(4)</num><content><p>Nothing in this section affects the interpretation of any such arrangements as are mentioned in section 158(6) (certain pre-1975 arrangements).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-13-paragraph-28-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">Section 272</a> (general interpretation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-2"><num>(2)</num><content><p>The existing text becomes subsection (1).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-28-3-a"><num>(a)</num><content><p><mod>in the definition of “excluded property”, for “6 and 48” substitute <quotedText>“6, 48 and 48ZA”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-3-b"><num>(b)</num><content><p>omit the definition of “formerly domiciled resident”.</p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-4"><num>(4)</num><intro><p>Also in subsection (1), in the definition of “foreign-owned”—</p></intro><level class="para1" eId="schedule-13-paragraph-28-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">paragraph (a)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-4-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>if the property is comprised in a settlement, in the case of which the settlor—</p></intro><level class="para2"><num>(i)</num><content><p>is alive and is at that time not a long-term UK resident,</p></content></level><level class="para2"><num>(ii)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para2"><num>(iii)</num><content><p>died before 6 April 2025 and was domiciled outside the United Kingdom when the property became comprised in the settlement,</p></content></level><wrapUp><p>and <ref href="#d25e7426">section 48ZA</ref><ref href="#d25e7549">(9)</ref> (accumulation of income) applies for the purposes of this paragraph as it applies for the purposes of section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7462">(4)</ref>.</p></wrapUp></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-5"><num>(5)</num><content><p><mod>Also in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the meaning given by sections <ref href="#d25e7165">6A</ref> to <ref href="#d25e7358">6C</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-tax-year">tax year</term>” means a year beginning with 6 April and ending with the following 5 April;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-tax-year-2025-26">the tax year 2025-26</term>” means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-6"><num>(6)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>A reference in this Act to a settlor’s being alive or dying is to be read, in relation to a settlor who is a body corporate, as a reference (respectively) to the body’s being in existence or ceasing to exist.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-13-paragraph-29-1"><num>(1)</num><content><p>Schedule A1 (non-excluded overseas property) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-2"><num>(2)</num><content><p><mod>In paragraph 1, for “48(3)(a)” substitute <quotedText>“48ZA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-3"><num>(3)</num><content><p><mod>In paragraph 5(2)(a), for “or 48(3)(a), (3A) or (4)” substitute <quotedText>“, section 48(4) or section 48ZA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4">Schedule 4</a> (maintenance funds for historic buildings etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">paragraph 10</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">(8)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44447"><heading><ref eId="c00336" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref></heading><paragraph eId="schedule-13-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-13-paragraph-31-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1986/41/section/102">Section 102</a> of <ref eId="c00337" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref> (gifts with reservation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-2"><num>(2)</num><content><p><mod>In subsection (1), for “(5) and (6)” substitute <quotedText>“(5), (6) and (7A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-3"><num>(3)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e44482"><num>(7A)</num><intro><p>This section does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal of property by way of gift took place before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>the property became settled property by virtue of the disposal and remained settled property at all times after the disposal and before the relevant time,</p></content></level><level class="para1" eId="d25e44500"><num>(c)</num><content><p>immediately before 30 October 2024, the property was excluded property for the purposes of the 1984 Act by virtue of section 48(3) or (3A) (as it had effect at that time), and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the relevant time, the property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 to the 1984 Act applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company (within the meaning, in either case, of the 1984 Act).</p></content></level></level></subsection><subsection><num>(7B)</num><intro><p>In subsection <ref href="#d25e44482">(7A)</ref>, “<term refersTo="#term-the-relevant-time">the relevant time</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the property ceases to meet the condition in subsection (2) at any time before the donor’s death, that time;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, the time of the donor’s death.</p></content></level></subsection><subsection><num>(7C)</num><content><p>In <ref href="#d25e44482">subsection (7A)</ref><ref href="#d25e44500">(c)</ref>, “<term refersTo="#term-for-the-purposes-of-the-1984-act">for the purposes of the 1984 Act</term>” includes for the purposes only of Chapter 3 of Part 3 of that Act (ten-year anniversary charges etc) because of the operation of section 81 of that Act (property moving between settlements).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44562"><heading><ref eId="c00338" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-13-paragraph-32" class="schProv1"><num>32</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15">Schedule 15</a> to <ref eId="c00339" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pre-owned assets charge) is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-33" class="schProv1"><num>33</num><content><p><mod>In paragraph 11 (exemptions from charge), in sub-paragraph (5), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>would fall to be so treated but for section 102<ref href="#d25e44482">(7A)</ref> of the 1986 Act (cases where property was excluded property under the old inheritance tax regime),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">paragraph 12</a>, for “resident or domiciled outside the United Kingdom” substitute <quotedText>“non-UK resident or not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-13-paragraph-35-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">Paragraph 12</a> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (2)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-3"><num>(3)</num><content><p>Omit sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-4"><num>(4)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><content><p>In this paragraph, “<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the same meaning as in IHTA 1984.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44656"><heading>Constitutional Reform and Governance Act 2010</heading><paragraph eId="schedule-13-paragraph-36" class="schProv1"><num>36</num><content><p><mod>In section 41 of the Constitutional Reform and Governance Act 2010 (tax status of MPs and members of the House of Lords), for subsections (2) and (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>The person is to be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as resident in the United Kingdom for the whole of that tax year for the purposes of income tax, capital gains tax and inheritance tax, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a long-term UK resident at all times in that tax year for the purposes of inheritance tax.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44684"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00340" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>)</heading><paragraph eId="schedule-13-paragraph-37" class="schProv1"><num>37</num><content><p>The <ref eId="c00341" href="https://www.legislation.gov.uk/uksi/2004/2543">Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004</ref> are amended in accordance with paragraphs <ref href="#schedule-13-paragraph-38">38</ref> to <ref href="#schedule-13-paragraph-43">43</ref>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-38" class="schProv1"><num>38</num><intro><p>In regulation 2 (interpretation)—</p></intro><level class="para1" eId="schedule-13-paragraph-38-a"><num>(a)</num><content><p>the existing text becomes paragraph (1);</p></content></level><level class="para1" eId="schedule-13-paragraph-38-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2)</num><content><p>A reference in these Regulations to a person’s being domiciled in the United Kingdom includes a reference to the person’s being treated as so domiciled for the purposes of the 1984 Act.</p></content></paragraph></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-13-paragraph-39-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">Regulation 4</a> (excepted estates) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraphs (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a> and <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(3)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a>, for “, domiciled in the United Kingdom” substitute <quotedText>“and was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-3"><num>(3)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraph (5)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>that person—</p></intro><level class="para2"><num>(i)</num><content><p>was not a long-term UK resident at any time on or after 6 April 2025, and</p></content></level><level class="para2"><num>(ii)</num><content><p>was not domiciled in the United Kingdom at any time before that date;</p></content></level></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">regulation 5</a> (spouse, civil partner and charity transfers), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">paragraph (2)</a>, for the words from “was not domiciled” to the end substitute <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>was, at any time in the period beginning with 6 April 2025 and ending with the time of the transfer, not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>was, at any time before 6 April 2025, not domiciled in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-41" class="schProv1"><num>41</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">regulation 5A</a> (IHT threshold), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">paragraph (4)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">(a)</a>, for “died domiciled in the United Kingdom” substitute <quotedText>“was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-42" class="schProv1"><num>42</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6">regulation 6</a> (production of information), in the heading, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-13-paragraph-43-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">Regulation 6A</a> (production of information) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-2"><num>(2)</num><content><p><mod>In the heading, for “deceased domiciled outside the United Kingdom” substitute <quotedText>“cases within regulation 4(5)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">(g)</a>, for “domicile” substitute <quotedText>“place of tax residence”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44882"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00342" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>)</heading><paragraph eId="schedule-13-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-13-paragraph-44-1"><num>(1)</num><content><p>In the <ref eId="c00343" href="https://www.legislation.gov.uk/uksi/2008/606">Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008</ref>, <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">regulation 4</a> (excepted settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a><a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">(a)</a>, for “is domiciled in the United Kingdom” substitute <quotedText>“meets the condition in paragraph (3A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(3A)</num><intro><p>The condition in this paragraph is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to times on or after 6 April 2025, that the settlor is a long-term UK resident;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to times before that date, that the settlor is domiciled in the United Kingdom (or treated as such for the purposes of the 1984 Act).</p></content></level></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-13-part-2"><num>Part 2</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e44951"><heading>Commencement</heading><paragraph eId="schedule-13-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-13-paragraph-45-1"><num>(1)</num><content><p><ref href="#schedule-13-part-1">Part 1</ref> of <ref href="#schedule-13">this Schedule</ref>, other than <ref href="#schedule-13-paragraph-26">paragraph 26</ref>, comes into force on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-2"><num>(2)</num><content><p><ref href="#schedule-13-paragraph-26">Paragraph 26</ref> (repeal of sections 267ZA and 267ZB) comes into force on 6 April 2032.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-12">paragraph 12</ref> to section 74A of IHTA 1984 (arrangements involving acquisition of interest in settled property etc) have effect where the relevant time (as defined in section 74C(5) of that Act) is on or after 6 April 2025 (even if the arrangements were entered into before that date).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-4"><num>(4)</num><content><p>The amendment made by <ref href="#schedule-13-paragraph-19">paragraph 19</ref> to section 136 of IHTA 1984 (transactions of close companies) has effect in relation to relevant transactions (within the meaning of that section) on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-5"><num>(5)</num><content><p>The amendments made by <span><ref href="#schedule-13-paragraph-37">paragraphs 37</ref> to <ref href="#schedule-13-paragraph-43">43</ref></span> to the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00344" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>) have effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-6"><num>(6)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-44">paragraph 44</ref> to the Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00345" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>) have effect in relation to chargeable events (within the meaning of regulation 2 of those Regulations) occurring on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45026"><heading>Certain pre-commencement emigrants treated as not being long-term UK residents</heading><paragraph eId="schedule-13-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-13-paragraph-46-1"><num>(1)</num><intro><p>An individual who would otherwise be a long-term UK resident at any time in a given tax year (“the relevant tax year”) is treated for the purposes of <ref eId="c00346" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> as not being a long-term UK resident at that time if the individual—</p></intro><level class="para1" eId="schedule-13-paragraph-46-1-a"><num>(a)</num><content><p>was not domiciled in the United Kingdom on 30 October 2024,</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-b"><num>(b)</num><content><p>has been resident in the United Kingdom for no tax year in the period beginning with the tax year 2025-26 and ending with the relevant tax year, and</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-c"><num>(c)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-13-paragraph-46-1-c-i"><num>(i)</num><content><p>was resident in the United Kingdom for none of the 3 tax years immediately preceding the relevant tax year, or</p></content></level><level class="para2" eId="schedule-13-paragraph-46-1-c-ii"><num>(ii)</num><content><p>was resident in the United Kingdom for fewer than 15 of the 20 tax years immediately preceding the relevant tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-13-paragraph-46-2"><num>(2)</num><content><p>For the purposes of <ref href="#schedule-13-paragraph-46-1">sub-paragraph (1)</ref><ref href="#schedule-13-paragraph-46-1-a">(a)</ref>, in determining where an individual was domiciled on 30 October 2024, ignore section 267 (deemed domicile) and sections 267ZA and 267ZB (domicile elections) of IHTA 1984.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45083"><heading>Property moving between settlements</heading><paragraph eId="schedule-13-paragraph-47" class="schProv1"><num>47</num><content><p>The amendment of section 81(1) of IHTA 1984 by <ref href="#schedule-13-paragraph-15">paragraph 15</ref><ref href="#schedule-13-paragraph-15-b">(b)</ref> of this Schedule (trusts on which property moving between settlements is held) is to be disregarded in construing section 81(1) in a case where the property in question ceased to be comprised in the first settlement before 6 April 2025.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45097"><heading>Settlor’s death etc: application to bodies corporate</heading><paragraph eId="schedule-13-paragraph-48" class="schProv1"><num>48</num><content><p>The insertion of section 272(2) of IHTA 1984 by <ref href="#schedule-13-paragraph-28">paragraph 28</ref><ref href="#schedule-13-paragraph-28-6">(6)</ref> of this Schedule (meaning of references to dying or being alive in the case of corporate settlors) is to be disregarded in construing section 201(1)(d) of IHTA 1984 in relation to property that became comprised in the settlement before 6 April 2025.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45111"><heading>Deemed domicile rules still to apply in relation to times before commencement</heading><paragraph eId="schedule-13-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-13-paragraph-49-1"><num>(1)</num><content><p>The repeal of <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> of <ref eId="c00347" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> (persons treated as domiciled in United Kingdom) by <ref href="#schedule-13-paragraph-23">paragraph 23</ref> is to be disregarded in determining for the purposes of that Act any question as to where a person was domiciled at any time before 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-49-2"><num>(2)</num><content><p>In construing section 267 of IHTA 1984, so far as saved by sub-paragraph (1), the repeal of the definition of “formerly domiciled resident” by paragraph <ref href="#schedule-13-paragraph-28">28</ref><ref href="#schedule-13-paragraph-28-3">(3)</ref><ref href="#schedule-13-paragraph-28-3-b">(b)</ref> is also to be disregarded.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-13-part-1"><num>Part 1</num><heading>Amendments to <ref eId="c00333" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> and related legislation</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e42909"><heading><ref eId="c00334" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref></heading><paragraph eId="schedule-13-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00335" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">section 5</a> (meaning of estate), for <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">subsection (1B)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>An interest in possession falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>the person became beneficially entitled to it on or after 9 December 2009 by virtue of a disposition that was prevented from being a transfer of value by section 10 (no gratuitous benefit), and</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>has been a long-term UK resident at any time on or after 6 April 2025 while beneficially entitled to it, or</p></content></level><level class="para2"><num>(ii)</num><content><p>became beneficially entitled to it at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-3" class="schProv1"><num>3</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">section 6</a> (excluded property), omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">section 8D</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">(9)</a>, omit the definitions of “tax year” and “the tax year 2017-18”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-5" class="schProv1"><num>5</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">(3)</a>, omit the definition of “tax year”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">section 18</a> (transfers between spouses or civil partners), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">subsection (2)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident,”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-7" class="schProv1"><num>7</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">section 28A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-13-paragraph-8-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">Section 53</a> (exceptions from charge under section 52) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>Tax shall not be chargeable under section 52 above if—</p></intro><level class="para1"><num>(a)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(c)</num><content><p>the person whose interest comes to an end became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the person’s interest in possession in it comes to an end, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-13-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">Section 54</a> (exceptions from charge on death) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(2B)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(e)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsection (2B)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is entitled to an interest in possession in settled property dies,</p></content></level><level class="para1"><num>(b)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(c)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(d)</num><content><p>the person became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(e)</num><intro><p>immediately before the person’s death, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level></level><wrapUp><p>the value of the settled property shall be left out of account in determining for the purposes of this Act the value of the person’s estate immediately before their death.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>Where a person became beneficially entitled to an interest in possession in settled property on or after 22 March 2006, subsection (2C) applies in relation to the interest only if it is—</p></intro><level class="para1"><num>(a)</num><content><p>an immediate post-death interest,</p></content></level><level class="para1"><num>(b)</num><content><p>a disabled person’s interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>a transitional serial interest,</p></content></level><wrapUp><p>or falls within section 5(1B) (certain interests acquired with no gratuitous benefit).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-13-paragraph-10-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">Section 64</a> (charge at ten-year anniversary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1B)</a>, for the words from the beginning to “ten-year anniversary falls” substitute <quotedText>“Where the settlor of property comprised in a settlement meets the condition in subsection <ref href="#d25e43250">(1BZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-3"><num>(3)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43250"><num>(1BZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident immediately before the ten-year anniversary,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before their death, or</p></content></level><level class="para1"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1BA)</a>, for “subsection (1B)” substitute <quotedText>“subsection <ref href="#d25e43250">(1BZA)</ref>(c)”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-13-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">Section 65</a> (exit charges etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7A)</a>, for the words from “becomes excluded property” to the end, substitute <quotedText>“is invested in a holding in an authorised unit trust or a share in an open-ended investment company and thereby becomes excluded property by virtue of section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-4"><num>(4)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7B)</a>.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7C)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (8)</a>, for the words from the beginning to “subsection (8A))”, substitute <quotedText>“If the condition in <ref href="#d25e43378">subsection (8ZA)</ref> is met in relation to property comprised in a settlement”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-7"><num>(7)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43378"><num>(8ZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1" eId="d25e43396"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-8"><num>(8)</num><content><p><mod>In subsection (8A), for “subsection (8)” substitute <quotedText>“<ref href="#d25e43378">subsection (8ZA)</ref><ref href="#d25e43396">(c)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-13-paragraph-12-1"><num>(1)</num><content><p>Section 74A (arrangements involving acquisition of interest in settled property etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-12-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-12-2-a"><num>(a)</num><content><p>in paragraph (b)(i), omit “domiciled in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-12-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><intro><p>the individual—</p></intro><level class="para2"><num>(i)</num><content><p>is a long-term UK resident at any time on or after 6 April 2025 during the course of the arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>acquired the interest, or became able to acquire it, at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>Condition A is that the relevant settled property is excluded property at any time during the course of the arrangements.</p><p>Ignore for this purpose—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7537">(8)</ref> (as it has effect on and after 6 April 2025);</p></content></level><level class="para1"><num>(b)</num><content><p>section 48(3D) (as it had effect before 6 April 2025).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-13" class="schProv1"><num>13</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">section 75A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">subsection (4)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 80 (initial interest of settlor or spouse), in subsection (1), after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-15" class="schProv1"><num>15</num><intro><p>In section 81 (property moving between settlements), in subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-15-a"><num>(a)</num><content><p><mod>after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-15-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“(but held on the trusts of the second)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-16" class="schProv1"><num>16</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/81B">section 81B</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>81B</num><heading>Excluded property: property to which section 80 applies</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>property is treated under section 80(1) as becoming comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the property would, apart from this section, be excluded property by virtue of meeting the condition in any of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> of section <ref href="#d25e7426">48ZA</ref> (excluded property: long-term residence and domicile tests).</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter, except sections 78 and 79, the property is excluded property only if the condition in any of those subsections (whether or not the same one) is met by reference to the actual settlor and the actual settlement.</p></content></subsection><subsection><num>(3)</num><content><p>Section 65(8) (no exit charge where property invested in Treasury securities thereby becomes excluded property) applies in relation to the property only if the condition in section 65<ref href="#d25e43378">(8ZA)</ref> is met by reference to the actual settlor.</p></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-the-actual-settlor">the actual settlor</term>” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1); and “<term refersTo="#term-the-actual-settlement">the actual settlement</term>” means that settlement.</p></content></subsection><subsection><num>(5)</num><content><p>This section does not apply in relation to property that is a holding in an authorised unit trust or a share in an open-ended investment company if the occasion first referred to in section 80(1) occurred before 22 July 2020.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-17" class="schProv1"><num>17</num><content><p>Omit sections 82 and 82A (excluded property: property to which section 81 applies).</p></content></paragraph><paragraph eId="schedule-13-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">section 94</a> (close companies: charge on participators), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">(b)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">section 136</a> (transfers within three years before death: transactions of close companies), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-20" class="schProv1"><num>20</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">section 155</a> (visiting forces etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">subsections (2)</a> and (5B), omit “or domicile”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-13-paragraph-21-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">Section 157</a> (non-residents’ bank accounts) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-13-paragraph-21-2-a"><num>(a)</num><content><p>omit “is not domiciled and not resident in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-21-2-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“is neither resident in the United Kingdom nor a long-term UK resident”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-21-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (3)</a>, for the words from “if the settlor” to the end, substitute <quotedText startQuote="“">if—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the trustees are resident in the United Kingdom immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is alive and is a long-term UK resident immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(c)</num><content><p>the settlor died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-22" class="schProv1"><num>22</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">section 218</a> (non-resident trustees), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">(a)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-23" class="schProv1"><num>23</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> (persons treated as domiciled in United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-13-paragraph-24-1"><num>(1)</num><content><p>Section 267ZA (election to be treated as domiciled in the United Kingdom) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-2"><num>(2)</num><content><p><mod>In subsections (3) and (4), for “on or after 6 April 2013 and” substitute <quotedText>“before 6 April 2025 but”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-3"><num>(3)</num><content><p>Omit subsection (5).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-4"><num>(4)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-13-paragraph-24-4-a"><num>(a)</num><content><p><mod>for “is or was domiciled” substitute <quotedText>“was domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-24-4-b"><num>(b)</num><content><p><mod>after “section 267” insert <quotedText>“(deemed domicile)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-25" class="schProv1"><num>25</num><content><p><mod>In section 267ZB (section 267ZA: further provision about election) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>), in subsection (4)(a), for “6 April 2013 or a later date” substitute <quotedText>“5 April 2025 or an earlier date”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-26" class="schProv1"><num>26</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZA">sections 267ZA</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZB">267ZB</a> (election to be treated as domiciled in the United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-27" class="schProv1"><num>27</num><content><p><mod>Before <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267A">section 267A</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e43858"><num>267ZC</num><heading>Election to be treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>A person (“<term refersTo="#term-p">P</term>”) who would not otherwise be a long-term UK resident is treated as one for the purposes of this Act at any time when an election under this section has effect.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under this section may be made—</p></intro><level class="para1"><num>(a)</num><content><p>if condition A or B is met, by P;</p></content></level><level class="para1"><num>(b)</num><content><p>if condition B is met, by P’s personal representatives.</p></content></level></subsection><subsection><num>(3)</num><content><p>Condition A is that, at any time within the period of 7 years ending with the date on which the election is made, P had a spouse or civil partner who was a long-term UK resident.</p></content></subsection><subsection eId="d25e43895"><num>(4)</num><intro><p>Condition B is that a person (“<term refersTo="#term-the-deceased">the deceased</term>”) dies and, at any time within the period of 7 years ending with the date of their death, the deceased was—</p></intro><level class="para1"><num>(a)</num><content><p>a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>the spouse or civil partner of P.</p></content></level></subsection></section><section><num>267ZD</num><heading>Further provision about elections under <ref href="#d25e43858">section 267ZC</ref></heading><subsection eId="d25e43925"><num>(1)</num><intro><p>An election under <ref href="#d25e43858">section 267ZC</ref>—</p></intro><level class="para1" eId="d25e43934"><num>(a)</num><content><p>must be made by notice in writing to HMRC, and</p></content></level><level class="para1"><num>(b)</num><content><p>has effect from such date as is, in accordance with <ref href="#d25e43949">subsection (2)</ref>, specified in the notice.</p></content></level></subsection><subsection eId="d25e43949"><num>(2)</num><intro><p>The date specified in a notice under <ref href="#d25e43925">subsection (1)</ref><ref href="#d25e43934">(a)</ref> (“<term refersTo="#term-the-specified-date">the specified date</term>”) must—</p></intro><level class="para1"><num>(a)</num><content><p>be after 5 April 2025,</p></content></level><level class="para1"><num>(b)</num><intro><p>be within the period of 7 years ending with—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a lifetime election, the date on which the election is made;</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a death election, the date of the deceased's death, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>meet the condition in <ref href="#d25e43996">subsection (3)</ref>.</p></content></level></subsection><subsection eId="d25e43996"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a lifetime election—</p></intro><level class="para2"><num>(i)</num><content><p>the person making the election was, on the specified date, married to or in a civil partnership with the spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the spouse or civil partner was, on the specified date, a long-term UK resident;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>in the case of a death election—</p></intro><level class="para2"><num>(i)</num><content><p>the person who is, by virtue of the election, to be treated as a long-term UK resident was, on the specified date, married to or in a civil partnership with the deceased, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the deceased was, on the specified date, a long-term UK resident.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>A death election may only be made within—</p></intro><level class="para1"><num>(a)</num><content><p>the period of 2 years beginning with the date of the deceased’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>such longer period as an officer of Revenue and Customs may in the particular case allow.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e44086">(6)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an election is made under <ref href="#d25e43858">section 267ZC</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>a disposition is made, or another event occurs, during the period beginning with the date on which the election first has effect and ending with the date on which the election is made, and</p></content></level><level class="para1"><num>(c)</num><content><p>the effect of the election is that the disposition or event gives rise to a transfer of value.</p></content></level></subsection><subsection eId="d25e44086"><num>(6)</num><intro><p>This Act applies with the following modifications in relation to the transfer of value—</p></intro><level class="para1"><num>(a)</num><content><p>subsections (1) and (6)(c) of section 216 (delivery of accounts) have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>sections 226 (payment: general rules) and 233 (interest on unpaid tax) have effect as if the transfer were made at the time when the election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>An election under <ref href="#d25e43858">section 267ZC</ref> cannot be revoked.</p></content></subsection><subsection><num>(8)</num><content><p>If a person who made a lifetime election is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.</p></content></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-death-election">death election</term>” means an election made under <ref href="#d25e43858">section 267ZC</ref> in circumstances where Condition B in <ref href="#d25e43895">subsection (4)</ref> of that section is met;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-lifetime-election">lifetime election</term>” means any other election made under <ref href="#d25e43858">section 267ZC</ref>.</p></content></hcontainer></subsection></section><section eId="d25e44152"><num>267ZE</num><heading>Subject of domicile election treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>This section applies where an election under section 267ZA has effect in relation to a person immediately before 6 April 2025 (whether the election was made before or after that date).</p></content></subsection><subsection eId="d25e44162"><num>(2)</num><intro><p>The person is treated for the purposes of this Act (so far as would not otherwise be the case)—</p></intro><level class="para1"><num>(a)</num><content><p>as being a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>as having been one at all times on and after 6 April 2025.</p></content></level></subsection><subsection eId="d25e44180"><num>(3)</num><content><p>But if the person is not resident in the United Kingdom for a relevant lapse period beginning at any time after the election is made, <ref href="#d25e44162">subsection (2)</ref> ceases to apply to them at the end of that period.</p></content></subsection><subsection><num>(4)</num><intro><p>In <ref href="#d25e44180">subsection (3)</ref> “<term refersTo="#term-relevant-lapse-period">relevant lapse period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the election was made before 30 October 2024, a period of 4 successive tax years;</p></content></level><level class="para1"><num>(b)</num><content><p>if the election was made on or after that date, a period of 10 successive tax years.</p></content></level></subsection></section><section><num>267ZF</num><heading>Double taxation conventions operating by reference to deemed domicile</heading><subsection><num>(1)</num><content><p>This section applies to a case in which the application of any arrangements having effect under section 158 (double taxation conventions) depends (to any extent) on whether a person is treated as domiciled in the United Kingdom for the purposes of inheritance tax.</p></content></subsection><subsection><num>(2)</num><content><p>The person is treated as domiciled in the United Kingdom for the purposes of inheritance tax if they are a long-term UK resident.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 276ZC to 267ZE (persons treated as long-term resident by virtue of election) are to be disregarded in applying this section in relation to any arrangements that are specified in an Order in Council made under section 158 of IHTA 1984 before 17 July 2013 (other than by way of amendment by an Order made on or after that date).</p></content></subsection><subsection><num>(4)</num><content><p>Nothing in this section affects the interpretation of any such arrangements as are mentioned in section 158(6) (certain pre-1975 arrangements).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-13-paragraph-28-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">Section 272</a> (general interpretation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-2"><num>(2)</num><content><p>The existing text becomes subsection (1).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-28-3-a"><num>(a)</num><content><p><mod>in the definition of “excluded property”, for “6 and 48” substitute <quotedText>“6, 48 and 48ZA”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-3-b"><num>(b)</num><content><p>omit the definition of “formerly domiciled resident”.</p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-4"><num>(4)</num><intro><p>Also in subsection (1), in the definition of “foreign-owned”—</p></intro><level class="para1" eId="schedule-13-paragraph-28-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">paragraph (a)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-4-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>if the property is comprised in a settlement, in the case of which the settlor—</p></intro><level class="para2"><num>(i)</num><content><p>is alive and is at that time not a long-term UK resident,</p></content></level><level class="para2"><num>(ii)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para2"><num>(iii)</num><content><p>died before 6 April 2025 and was domiciled outside the United Kingdom when the property became comprised in the settlement,</p></content></level><wrapUp><p>and <ref href="#d25e7426">section 48ZA</ref><ref href="#d25e7549">(9)</ref> (accumulation of income) applies for the purposes of this paragraph as it applies for the purposes of section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7462">(4)</ref>.</p></wrapUp></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-5"><num>(5)</num><content><p><mod>Also in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the meaning given by sections <ref href="#d25e7165">6A</ref> to <ref href="#d25e7358">6C</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-tax-year">tax year</term>” means a year beginning with 6 April and ending with the following 5 April;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-tax-year-2025-26">the tax year 2025-26</term>” means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-6"><num>(6)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>A reference in this Act to a settlor’s being alive or dying is to be read, in relation to a settlor who is a body corporate, as a reference (respectively) to the body’s being in existence or ceasing to exist.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-13-paragraph-29-1"><num>(1)</num><content><p>Schedule A1 (non-excluded overseas property) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-2"><num>(2)</num><content><p><mod>In paragraph 1, for “48(3)(a)” substitute <quotedText>“48ZA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-3"><num>(3)</num><content><p><mod>In paragraph 5(2)(a), for “or 48(3)(a), (3A) or (4)” substitute <quotedText>“, section 48(4) or section 48ZA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4">Schedule 4</a> (maintenance funds for historic buildings etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">paragraph 10</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">(8)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44447"><heading><ref eId="c00336" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref></heading><paragraph eId="schedule-13-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-13-paragraph-31-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1986/41/section/102">Section 102</a> of <ref eId="c00337" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref> (gifts with reservation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-2"><num>(2)</num><content><p><mod>In subsection (1), for “(5) and (6)” substitute <quotedText>“(5), (6) and (7A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-3"><num>(3)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e44482"><num>(7A)</num><intro><p>This section does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal of property by way of gift took place before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>the property became settled property by virtue of the disposal and remained settled property at all times after the disposal and before the relevant time,</p></content></level><level class="para1" eId="d25e44500"><num>(c)</num><content><p>immediately before 30 October 2024, the property was excluded property for the purposes of the 1984 Act by virtue of section 48(3) or (3A) (as it had effect at that time), and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the relevant time, the property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 to the 1984 Act applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company (within the meaning, in either case, of the 1984 Act).</p></content></level></level></subsection><subsection><num>(7B)</num><intro><p>In subsection <ref href="#d25e44482">(7A)</ref>, “<term refersTo="#term-the-relevant-time">the relevant time</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the property ceases to meet the condition in subsection (2) at any time before the donor’s death, that time;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, the time of the donor’s death.</p></content></level></subsection><subsection><num>(7C)</num><content><p>In <ref href="#d25e44482">subsection (7A)</ref><ref href="#d25e44500">(c)</ref>, “<term refersTo="#term-for-the-purposes-of-the-1984-act">for the purposes of the 1984 Act</term>” includes for the purposes only of Chapter 3 of Part 3 of that Act (ten-year anniversary charges etc) because of the operation of section 81 of that Act (property moving between settlements).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44562"><heading><ref eId="c00338" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-13-paragraph-32" class="schProv1"><num>32</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15">Schedule 15</a> to <ref eId="c00339" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pre-owned assets charge) is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-33" class="schProv1"><num>33</num><content><p><mod>In paragraph 11 (exemptions from charge), in sub-paragraph (5), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>would fall to be so treated but for section 102<ref href="#d25e44482">(7A)</ref> of the 1986 Act (cases where property was excluded property under the old inheritance tax regime),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">paragraph 12</a>, for “resident or domiciled outside the United Kingdom” substitute <quotedText>“non-UK resident or not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-13-paragraph-35-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">Paragraph 12</a> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (2)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-3"><num>(3)</num><content><p>Omit sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-4"><num>(4)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><content><p>In this paragraph, “<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the same meaning as in IHTA 1984.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44656"><heading>Constitutional Reform and Governance Act 2010</heading><paragraph eId="schedule-13-paragraph-36" class="schProv1"><num>36</num><content><p><mod>In section 41 of the Constitutional Reform and Governance Act 2010 (tax status of MPs and members of the House of Lords), for subsections (2) and (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>The person is to be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as resident in the United Kingdom for the whole of that tax year for the purposes of income tax, capital gains tax and inheritance tax, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a long-term UK resident at all times in that tax year for the purposes of inheritance tax.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44684"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00340" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>)</heading><paragraph eId="schedule-13-paragraph-37" class="schProv1"><num>37</num><content><p>The <ref eId="c00341" href="https://www.legislation.gov.uk/uksi/2004/2543">Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004</ref> are amended in accordance with paragraphs <ref href="#schedule-13-paragraph-38">38</ref> to <ref href="#schedule-13-paragraph-43">43</ref>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-38" class="schProv1"><num>38</num><intro><p>In regulation 2 (interpretation)—</p></intro><level class="para1" eId="schedule-13-paragraph-38-a"><num>(a)</num><content><p>the existing text becomes paragraph (1);</p></content></level><level class="para1" eId="schedule-13-paragraph-38-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2)</num><content><p>A reference in these Regulations to a person’s being domiciled in the United Kingdom includes a reference to the person’s being treated as so domiciled for the purposes of the 1984 Act.</p></content></paragraph></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-13-paragraph-39-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">Regulation 4</a> (excepted estates) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraphs (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a> and <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(3)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a>, for “, domiciled in the United Kingdom” substitute <quotedText>“and was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-3"><num>(3)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraph (5)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>that person—</p></intro><level class="para2"><num>(i)</num><content><p>was not a long-term UK resident at any time on or after 6 April 2025, and</p></content></level><level class="para2"><num>(ii)</num><content><p>was not domiciled in the United Kingdom at any time before that date;</p></content></level></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">regulation 5</a> (spouse, civil partner and charity transfers), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">paragraph (2)</a>, for the words from “was not domiciled” to the end substitute <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>was, at any time in the period beginning with 6 April 2025 and ending with the time of the transfer, not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>was, at any time before 6 April 2025, not domiciled in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-41" class="schProv1"><num>41</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">regulation 5A</a> (IHT threshold), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">paragraph (4)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">(a)</a>, for “died domiciled in the United Kingdom” substitute <quotedText>“was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-42" class="schProv1"><num>42</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6">regulation 6</a> (production of information), in the heading, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-13-paragraph-43-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">Regulation 6A</a> (production of information) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-2"><num>(2)</num><content><p><mod>In the heading, for “deceased domiciled outside the United Kingdom” substitute <quotedText>“cases within regulation 4(5)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">(g)</a>, for “domicile” substitute <quotedText>“place of tax residence”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44882"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00342" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>)</heading><paragraph eId="schedule-13-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-13-paragraph-44-1"><num>(1)</num><content><p>In the <ref eId="c00343" href="https://www.legislation.gov.uk/uksi/2008/606">Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008</ref>, <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">regulation 4</a> (excepted settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a><a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">(a)</a>, for “is domiciled in the United Kingdom” substitute <quotedText>“meets the condition in paragraph (3A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(3A)</num><intro><p>The condition in this paragraph is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to times on or after 6 April 2025, that the settlor is a long-term UK resident;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to times before that date, that the settlor is domiciled in the United Kingdom (or treated as such for the purposes of the 1984 Act).</p></content></level></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e42909"><heading><ref eId="c00334" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref></heading><paragraph eId="schedule-13-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00335" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">section 5</a> (meaning of estate), for <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">subsection (1B)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>An interest in possession falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>the person became beneficially entitled to it on or after 9 December 2009 by virtue of a disposition that was prevented from being a transfer of value by section 10 (no gratuitous benefit), and</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>has been a long-term UK resident at any time on or after 6 April 2025 while beneficially entitled to it, or</p></content></level><level class="para2"><num>(ii)</num><content><p>became beneficially entitled to it at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-3" class="schProv1"><num>3</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">section 6</a> (excluded property), omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">section 8D</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">(9)</a>, omit the definitions of “tax year” and “the tax year 2017-18”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-5" class="schProv1"><num>5</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">(3)</a>, omit the definition of “tax year”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">section 18</a> (transfers between spouses or civil partners), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">subsection (2)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident,”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-7" class="schProv1"><num>7</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">section 28A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-13-paragraph-8-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">Section 53</a> (exceptions from charge under section 52) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>Tax shall not be chargeable under section 52 above if—</p></intro><level class="para1"><num>(a)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(c)</num><content><p>the person whose interest comes to an end became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the person’s interest in possession in it comes to an end, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-13-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">Section 54</a> (exceptions from charge on death) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(2B)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(e)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsection (2B)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is entitled to an interest in possession in settled property dies,</p></content></level><level class="para1"><num>(b)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(c)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(d)</num><content><p>the person became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(e)</num><intro><p>immediately before the person’s death, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level></level><wrapUp><p>the value of the settled property shall be left out of account in determining for the purposes of this Act the value of the person’s estate immediately before their death.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>Where a person became beneficially entitled to an interest in possession in settled property on or after 22 March 2006, subsection (2C) applies in relation to the interest only if it is—</p></intro><level class="para1"><num>(a)</num><content><p>an immediate post-death interest,</p></content></level><level class="para1"><num>(b)</num><content><p>a disabled person’s interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>a transitional serial interest,</p></content></level><wrapUp><p>or falls within section 5(1B) (certain interests acquired with no gratuitous benefit).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-13-paragraph-10-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">Section 64</a> (charge at ten-year anniversary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1B)</a>, for the words from the beginning to “ten-year anniversary falls” substitute <quotedText>“Where the settlor of property comprised in a settlement meets the condition in subsection <ref href="#d25e43250">(1BZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-3"><num>(3)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43250"><num>(1BZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident immediately before the ten-year anniversary,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before their death, or</p></content></level><level class="para1"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1BA)</a>, for “subsection (1B)” substitute <quotedText>“subsection <ref href="#d25e43250">(1BZA)</ref>(c)”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-13-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">Section 65</a> (exit charges etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7A)</a>, for the words from “becomes excluded property” to the end, substitute <quotedText>“is invested in a holding in an authorised unit trust or a share in an open-ended investment company and thereby becomes excluded property by virtue of section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-4"><num>(4)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7B)</a>.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7C)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (8)</a>, for the words from the beginning to “subsection (8A))”, substitute <quotedText>“If the condition in <ref href="#d25e43378">subsection (8ZA)</ref> is met in relation to property comprised in a settlement”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-7"><num>(7)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43378"><num>(8ZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1" eId="d25e43396"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-8"><num>(8)</num><content><p><mod>In subsection (8A), for “subsection (8)” substitute <quotedText>“<ref href="#d25e43378">subsection (8ZA)</ref><ref href="#d25e43396">(c)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-13-paragraph-12-1"><num>(1)</num><content><p>Section 74A (arrangements involving acquisition of interest in settled property etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-12-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-12-2-a"><num>(a)</num><content><p>in paragraph (b)(i), omit “domiciled in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-12-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><intro><p>the individual—</p></intro><level class="para2"><num>(i)</num><content><p>is a long-term UK resident at any time on or after 6 April 2025 during the course of the arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>acquired the interest, or became able to acquire it, at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>Condition A is that the relevant settled property is excluded property at any time during the course of the arrangements.</p><p>Ignore for this purpose—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7537">(8)</ref> (as it has effect on and after 6 April 2025);</p></content></level><level class="para1"><num>(b)</num><content><p>section 48(3D) (as it had effect before 6 April 2025).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-13" class="schProv1"><num>13</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">section 75A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">subsection (4)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 80 (initial interest of settlor or spouse), in subsection (1), after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-15" class="schProv1"><num>15</num><intro><p>In section 81 (property moving between settlements), in subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-15-a"><num>(a)</num><content><p><mod>after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-15-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“(but held on the trusts of the second)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-16" class="schProv1"><num>16</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/81B">section 81B</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>81B</num><heading>Excluded property: property to which section 80 applies</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>property is treated under section 80(1) as becoming comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the property would, apart from this section, be excluded property by virtue of meeting the condition in any of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> of section <ref href="#d25e7426">48ZA</ref> (excluded property: long-term residence and domicile tests).</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter, except sections 78 and 79, the property is excluded property only if the condition in any of those subsections (whether or not the same one) is met by reference to the actual settlor and the actual settlement.</p></content></subsection><subsection><num>(3)</num><content><p>Section 65(8) (no exit charge where property invested in Treasury securities thereby becomes excluded property) applies in relation to the property only if the condition in section 65<ref href="#d25e43378">(8ZA)</ref> is met by reference to the actual settlor.</p></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-the-actual-settlor">the actual settlor</term>” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1); and “<term refersTo="#term-the-actual-settlement">the actual settlement</term>” means that settlement.</p></content></subsection><subsection><num>(5)</num><content><p>This section does not apply in relation to property that is a holding in an authorised unit trust or a share in an open-ended investment company if the occasion first referred to in section 80(1) occurred before 22 July 2020.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-17" class="schProv1"><num>17</num><content><p>Omit sections 82 and 82A (excluded property: property to which section 81 applies).</p></content></paragraph><paragraph eId="schedule-13-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">section 94</a> (close companies: charge on participators), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">(b)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">section 136</a> (transfers within three years before death: transactions of close companies), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-20" class="schProv1"><num>20</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">section 155</a> (visiting forces etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">subsections (2)</a> and (5B), omit “or domicile”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-13-paragraph-21-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">Section 157</a> (non-residents’ bank accounts) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-13-paragraph-21-2-a"><num>(a)</num><content><p>omit “is not domiciled and not resident in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-21-2-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“is neither resident in the United Kingdom nor a long-term UK resident”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-21-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (3)</a>, for the words from “if the settlor” to the end, substitute <quotedText startQuote="“">if—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the trustees are resident in the United Kingdom immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is alive and is a long-term UK resident immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(c)</num><content><p>the settlor died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-22" class="schProv1"><num>22</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">section 218</a> (non-resident trustees), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">(a)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-23" class="schProv1"><num>23</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> (persons treated as domiciled in United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-13-paragraph-24-1"><num>(1)</num><content><p>Section 267ZA (election to be treated as domiciled in the United Kingdom) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-2"><num>(2)</num><content><p><mod>In subsections (3) and (4), for “on or after 6 April 2013 and” substitute <quotedText>“before 6 April 2025 but”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-3"><num>(3)</num><content><p>Omit subsection (5).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-4"><num>(4)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-13-paragraph-24-4-a"><num>(a)</num><content><p><mod>for “is or was domiciled” substitute <quotedText>“was domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-24-4-b"><num>(b)</num><content><p><mod>after “section 267” insert <quotedText>“(deemed domicile)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-25" class="schProv1"><num>25</num><content><p><mod>In section 267ZB (section 267ZA: further provision about election) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>), in subsection (4)(a), for “6 April 2013 or a later date” substitute <quotedText>“5 April 2025 or an earlier date”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-26" class="schProv1"><num>26</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZA">sections 267ZA</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZB">267ZB</a> (election to be treated as domiciled in the United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-27" class="schProv1"><num>27</num><content><p><mod>Before <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267A">section 267A</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e43858"><num>267ZC</num><heading>Election to be treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>A person (“<term refersTo="#term-p">P</term>”) who would not otherwise be a long-term UK resident is treated as one for the purposes of this Act at any time when an election under this section has effect.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under this section may be made—</p></intro><level class="para1"><num>(a)</num><content><p>if condition A or B is met, by P;</p></content></level><level class="para1"><num>(b)</num><content><p>if condition B is met, by P’s personal representatives.</p></content></level></subsection><subsection><num>(3)</num><content><p>Condition A is that, at any time within the period of 7 years ending with the date on which the election is made, P had a spouse or civil partner who was a long-term UK resident.</p></content></subsection><subsection eId="d25e43895"><num>(4)</num><intro><p>Condition B is that a person (“<term refersTo="#term-the-deceased">the deceased</term>”) dies and, at any time within the period of 7 years ending with the date of their death, the deceased was—</p></intro><level class="para1"><num>(a)</num><content><p>a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>the spouse or civil partner of P.</p></content></level></subsection></section><section><num>267ZD</num><heading>Further provision about elections under <ref href="#d25e43858">section 267ZC</ref></heading><subsection eId="d25e43925"><num>(1)</num><intro><p>An election under <ref href="#d25e43858">section 267ZC</ref>—</p></intro><level class="para1" eId="d25e43934"><num>(a)</num><content><p>must be made by notice in writing to HMRC, and</p></content></level><level class="para1"><num>(b)</num><content><p>has effect from such date as is, in accordance with <ref href="#d25e43949">subsection (2)</ref>, specified in the notice.</p></content></level></subsection><subsection eId="d25e43949"><num>(2)</num><intro><p>The date specified in a notice under <ref href="#d25e43925">subsection (1)</ref><ref href="#d25e43934">(a)</ref> (“<term refersTo="#term-the-specified-date">the specified date</term>”) must—</p></intro><level class="para1"><num>(a)</num><content><p>be after 5 April 2025,</p></content></level><level class="para1"><num>(b)</num><intro><p>be within the period of 7 years ending with—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a lifetime election, the date on which the election is made;</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a death election, the date of the deceased's death, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>meet the condition in <ref href="#d25e43996">subsection (3)</ref>.</p></content></level></subsection><subsection eId="d25e43996"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a lifetime election—</p></intro><level class="para2"><num>(i)</num><content><p>the person making the election was, on the specified date, married to or in a civil partnership with the spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the spouse or civil partner was, on the specified date, a long-term UK resident;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>in the case of a death election—</p></intro><level class="para2"><num>(i)</num><content><p>the person who is, by virtue of the election, to be treated as a long-term UK resident was, on the specified date, married to or in a civil partnership with the deceased, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the deceased was, on the specified date, a long-term UK resident.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>A death election may only be made within—</p></intro><level class="para1"><num>(a)</num><content><p>the period of 2 years beginning with the date of the deceased’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>such longer period as an officer of Revenue and Customs may in the particular case allow.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e44086">(6)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an election is made under <ref href="#d25e43858">section 267ZC</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>a disposition is made, or another event occurs, during the period beginning with the date on which the election first has effect and ending with the date on which the election is made, and</p></content></level><level class="para1"><num>(c)</num><content><p>the effect of the election is that the disposition or event gives rise to a transfer of value.</p></content></level></subsection><subsection eId="d25e44086"><num>(6)</num><intro><p>This Act applies with the following modifications in relation to the transfer of value—</p></intro><level class="para1"><num>(a)</num><content><p>subsections (1) and (6)(c) of section 216 (delivery of accounts) have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>sections 226 (payment: general rules) and 233 (interest on unpaid tax) have effect as if the transfer were made at the time when the election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>An election under <ref href="#d25e43858">section 267ZC</ref> cannot be revoked.</p></content></subsection><subsection><num>(8)</num><content><p>If a person who made a lifetime election is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.</p></content></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-death-election">death election</term>” means an election made under <ref href="#d25e43858">section 267ZC</ref> in circumstances where Condition B in <ref href="#d25e43895">subsection (4)</ref> of that section is met;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-lifetime-election">lifetime election</term>” means any other election made under <ref href="#d25e43858">section 267ZC</ref>.</p></content></hcontainer></subsection></section><section eId="d25e44152"><num>267ZE</num><heading>Subject of domicile election treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>This section applies where an election under section 267ZA has effect in relation to a person immediately before 6 April 2025 (whether the election was made before or after that date).</p></content></subsection><subsection eId="d25e44162"><num>(2)</num><intro><p>The person is treated for the purposes of this Act (so far as would not otherwise be the case)—</p></intro><level class="para1"><num>(a)</num><content><p>as being a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>as having been one at all times on and after 6 April 2025.</p></content></level></subsection><subsection eId="d25e44180"><num>(3)</num><content><p>But if the person is not resident in the United Kingdom for a relevant lapse period beginning at any time after the election is made, <ref href="#d25e44162">subsection (2)</ref> ceases to apply to them at the end of that period.</p></content></subsection><subsection><num>(4)</num><intro><p>In <ref href="#d25e44180">subsection (3)</ref> “<term refersTo="#term-relevant-lapse-period">relevant lapse period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the election was made before 30 October 2024, a period of 4 successive tax years;</p></content></level><level class="para1"><num>(b)</num><content><p>if the election was made on or after that date, a period of 10 successive tax years.</p></content></level></subsection></section><section><num>267ZF</num><heading>Double taxation conventions operating by reference to deemed domicile</heading><subsection><num>(1)</num><content><p>This section applies to a case in which the application of any arrangements having effect under section 158 (double taxation conventions) depends (to any extent) on whether a person is treated as domiciled in the United Kingdom for the purposes of inheritance tax.</p></content></subsection><subsection><num>(2)</num><content><p>The person is treated as domiciled in the United Kingdom for the purposes of inheritance tax if they are a long-term UK resident.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 276ZC to 267ZE (persons treated as long-term resident by virtue of election) are to be disregarded in applying this section in relation to any arrangements that are specified in an Order in Council made under section 158 of IHTA 1984 before 17 July 2013 (other than by way of amendment by an Order made on or after that date).</p></content></subsection><subsection><num>(4)</num><content><p>Nothing in this section affects the interpretation of any such arrangements as are mentioned in section 158(6) (certain pre-1975 arrangements).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-13-paragraph-28-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">Section 272</a> (general interpretation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-2"><num>(2)</num><content><p>The existing text becomes subsection (1).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-28-3-a"><num>(a)</num><content><p><mod>in the definition of “excluded property”, for “6 and 48” substitute <quotedText>“6, 48 and 48ZA”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-3-b"><num>(b)</num><content><p>omit the definition of “formerly domiciled resident”.</p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-4"><num>(4)</num><intro><p>Also in subsection (1), in the definition of “foreign-owned”—</p></intro><level class="para1" eId="schedule-13-paragraph-28-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">paragraph (a)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-4-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>if the property is comprised in a settlement, in the case of which the settlor—</p></intro><level class="para2"><num>(i)</num><content><p>is alive and is at that time not a long-term UK resident,</p></content></level><level class="para2"><num>(ii)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para2"><num>(iii)</num><content><p>died before 6 April 2025 and was domiciled outside the United Kingdom when the property became comprised in the settlement,</p></content></level><wrapUp><p>and <ref href="#d25e7426">section 48ZA</ref><ref href="#d25e7549">(9)</ref> (accumulation of income) applies for the purposes of this paragraph as it applies for the purposes of section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7462">(4)</ref>.</p></wrapUp></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-5"><num>(5)</num><content><p><mod>Also in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the meaning given by sections <ref href="#d25e7165">6A</ref> to <ref href="#d25e7358">6C</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-tax-year">tax year</term>” means a year beginning with 6 April and ending with the following 5 April;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-tax-year-2025-26">the tax year 2025-26</term>” means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-6"><num>(6)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>A reference in this Act to a settlor’s being alive or dying is to be read, in relation to a settlor who is a body corporate, as a reference (respectively) to the body’s being in existence or ceasing to exist.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-13-paragraph-29-1"><num>(1)</num><content><p>Schedule A1 (non-excluded overseas property) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-2"><num>(2)</num><content><p><mod>In paragraph 1, for “48(3)(a)” substitute <quotedText>“48ZA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-3"><num>(3)</num><content><p><mod>In paragraph 5(2)(a), for “or 48(3)(a), (3A) or (4)” substitute <quotedText>“, section 48(4) or section 48ZA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4">Schedule 4</a> (maintenance funds for historic buildings etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">paragraph 10</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">(8)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e44447"><heading><ref eId="c00336" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref></heading><paragraph eId="schedule-13-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-13-paragraph-31-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1986/41/section/102">Section 102</a> of <ref eId="c00337" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref> (gifts with reservation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-2"><num>(2)</num><content><p><mod>In subsection (1), for “(5) and (6)” substitute <quotedText>“(5), (6) and (7A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-3"><num>(3)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e44482"><num>(7A)</num><intro><p>This section does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal of property by way of gift took place before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>the property became settled property by virtue of the disposal and remained settled property at all times after the disposal and before the relevant time,</p></content></level><level class="para1" eId="d25e44500"><num>(c)</num><content><p>immediately before 30 October 2024, the property was excluded property for the purposes of the 1984 Act by virtue of section 48(3) or (3A) (as it had effect at that time), and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the relevant time, the property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 to the 1984 Act applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company (within the meaning, in either case, of the 1984 Act).</p></content></level></level></subsection><subsection><num>(7B)</num><intro><p>In subsection <ref href="#d25e44482">(7A)</ref>, “<term refersTo="#term-the-relevant-time">the relevant time</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the property ceases to meet the condition in subsection (2) at any time before the donor’s death, that time;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, the time of the donor’s death.</p></content></level></subsection><subsection><num>(7C)</num><content><p>In <ref href="#d25e44482">subsection (7A)</ref><ref href="#d25e44500">(c)</ref>, “<term refersTo="#term-for-the-purposes-of-the-1984-act">for the purposes of the 1984 Act</term>” includes for the purposes only of Chapter 3 of Part 3 of that Act (ten-year anniversary charges etc) because of the operation of section 81 of that Act (property moving between settlements).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e44562"><heading><ref eId="c00338" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-13-paragraph-32" class="schProv1"><num>32</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15">Schedule 15</a> to <ref eId="c00339" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pre-owned assets charge) is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-33" class="schProv1"><num>33</num><content><p><mod>In paragraph 11 (exemptions from charge), in sub-paragraph (5), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>would fall to be so treated but for section 102<ref href="#d25e44482">(7A)</ref> of the 1986 Act (cases where property was excluded property under the old inheritance tax regime),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">paragraph 12</a>, for “resident or domiciled outside the United Kingdom” substitute <quotedText>“non-UK resident or not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-13-paragraph-35-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">Paragraph 12</a> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (2)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-3"><num>(3)</num><content><p>Omit sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-4"><num>(4)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><content><p>In this paragraph, “<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the same meaning as in IHTA 1984.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e44656"><heading>Constitutional Reform and Governance Act 2010</heading><paragraph eId="schedule-13-paragraph-36" class="schProv1"><num>36</num><content><p><mod>In section 41 of the Constitutional Reform and Governance Act 2010 (tax status of MPs and members of the House of Lords), for subsections (2) and (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>The person is to be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as resident in the United Kingdom for the whole of that tax year for the purposes of income tax, capital gains tax and inheritance tax, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a long-term UK resident at all times in that tax year for the purposes of inheritance tax.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e44684"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00340" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>)</heading><paragraph eId="schedule-13-paragraph-37" class="schProv1"><num>37</num><content><p>The <ref eId="c00341" href="https://www.legislation.gov.uk/uksi/2004/2543">Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004</ref> are amended in accordance with paragraphs <ref href="#schedule-13-paragraph-38">38</ref> to <ref href="#schedule-13-paragraph-43">43</ref>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-38" class="schProv1"><num>38</num><intro><p>In regulation 2 (interpretation)—</p></intro><level class="para1" eId="schedule-13-paragraph-38-a"><num>(a)</num><content><p>the existing text becomes paragraph (1);</p></content></level><level class="para1" eId="schedule-13-paragraph-38-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2)</num><content><p>A reference in these Regulations to a person’s being domiciled in the United Kingdom includes a reference to the person’s being treated as so domiciled for the purposes of the 1984 Act.</p></content></paragraph></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-13-paragraph-39-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">Regulation 4</a> (excepted estates) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraphs (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a> and <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(3)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a>, for “, domiciled in the United Kingdom” substitute <quotedText>“and was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-3"><num>(3)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraph (5)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>that person—</p></intro><level class="para2"><num>(i)</num><content><p>was not a long-term UK resident at any time on or after 6 April 2025, and</p></content></level><level class="para2"><num>(ii)</num><content><p>was not domiciled in the United Kingdom at any time before that date;</p></content></level></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">regulation 5</a> (spouse, civil partner and charity transfers), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">paragraph (2)</a>, for the words from “was not domiciled” to the end substitute <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>was, at any time in the period beginning with 6 April 2025 and ending with the time of the transfer, not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>was, at any time before 6 April 2025, not domiciled in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-41" class="schProv1"><num>41</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">regulation 5A</a> (IHT threshold), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">paragraph (4)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">(a)</a>, for “died domiciled in the United Kingdom” substitute <quotedText>“was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-42" class="schProv1"><num>42</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6">regulation 6</a> (production of information), in the heading, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-13-paragraph-43-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">Regulation 6A</a> (production of information) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-2"><num>(2)</num><content><p><mod>In the heading, for “deceased domiciled outside the United Kingdom” substitute <quotedText>“cases within regulation 4(5)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">(g)</a>, for “domicile” substitute <quotedText>“place of tax residence”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7" eId="d25e44882"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00342" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>)</heading><paragraph eId="schedule-13-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-13-paragraph-44-1"><num>(1)</num><content><p>In the <ref eId="c00343" href="https://www.legislation.gov.uk/uksi/2008/606">Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008</ref>, <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">regulation 4</a> (excepted settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a><a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">(a)</a>, for “is domiciled in the United Kingdom” substitute <quotedText>“meets the condition in paragraph (3A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(3A)</num><intro><p>The condition in this paragraph is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to times on or after 6 April 2025, that the settlor is a long-term UK resident;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to times before that date, that the settlor is domiciled in the United Kingdom (or treated as such for the purposes of the 1984 Act).</p></content></level></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-part-2"><num>Part 2</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e44951"><heading>Commencement</heading><paragraph eId="schedule-13-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-13-paragraph-45-1"><num>(1)</num><content><p><ref href="#schedule-13-part-1">Part 1</ref> of <ref href="#schedule-13">this Schedule</ref>, other than <ref href="#schedule-13-paragraph-26">paragraph 26</ref>, comes into force on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-2"><num>(2)</num><content><p><ref href="#schedule-13-paragraph-26">Paragraph 26</ref> (repeal of sections 267ZA and 267ZB) comes into force on 6 April 2032.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-12">paragraph 12</ref> to section 74A of IHTA 1984 (arrangements involving acquisition of interest in settled property etc) have effect where the relevant time (as defined in section 74C(5) of that Act) is on or after 6 April 2025 (even if the arrangements were entered into before that date).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-4"><num>(4)</num><content><p>The amendment made by <ref href="#schedule-13-paragraph-19">paragraph 19</ref> to section 136 of IHTA 1984 (transactions of close companies) has effect in relation to relevant transactions (within the meaning of that section) on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-5"><num>(5)</num><content><p>The amendments made by <span><ref href="#schedule-13-paragraph-37">paragraphs 37</ref> to <ref href="#schedule-13-paragraph-43">43</ref></span> to the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00344" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>) have effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-6"><num>(6)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-44">paragraph 44</ref> to the Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00345" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>) have effect in relation to chargeable events (within the meaning of regulation 2 of those Regulations) occurring on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45026"><heading>Certain pre-commencement emigrants treated as not being long-term UK residents</heading><paragraph eId="schedule-13-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-13-paragraph-46-1"><num>(1)</num><intro><p>An individual who would otherwise be a long-term UK resident at any time in a given tax year (“the relevant tax year”) is treated for the purposes of <ref eId="c00346" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> as not being a long-term UK resident at that time if the individual—</p></intro><level class="para1" eId="schedule-13-paragraph-46-1-a"><num>(a)</num><content><p>was not domiciled in the United Kingdom on 30 October 2024,</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-b"><num>(b)</num><content><p>has been resident in the United Kingdom for no tax year in the period beginning with the tax year 2025-26 and ending with the relevant tax year, and</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-c"><num>(c)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-13-paragraph-46-1-c-i"><num>(i)</num><content><p>was resident in the United Kingdom for none of the 3 tax years immediately preceding the relevant tax year, or</p></content></level><level class="para2" eId="schedule-13-paragraph-46-1-c-ii"><num>(ii)</num><content><p>was resident in the United Kingdom for fewer than 15 of the 20 tax years immediately preceding the relevant tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-13-paragraph-46-2"><num>(2)</num><content><p>For the purposes of <ref href="#schedule-13-paragraph-46-1">sub-paragraph (1)</ref><ref href="#schedule-13-paragraph-46-1-a">(a)</ref>, in determining where an individual was domiciled on 30 October 2024, ignore section 267 (deemed domicile) and sections 267ZA and 267ZB (domicile elections) of IHTA 1984.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45083"><heading>Property moving between settlements</heading><paragraph eId="schedule-13-paragraph-47" class="schProv1"><num>47</num><content><p>The amendment of section 81(1) of IHTA 1984 by <ref href="#schedule-13-paragraph-15">paragraph 15</ref><ref href="#schedule-13-paragraph-15-b">(b)</ref> of this Schedule (trusts on which property moving between settlements is held) is to be disregarded in construing section 81(1) in a case where the property in question ceased to be comprised in the first settlement before 6 April 2025.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45097"><heading>Settlor’s death etc: application to bodies corporate</heading><paragraph eId="schedule-13-paragraph-48" class="schProv1"><num>48</num><content><p>The insertion of section 272(2) of IHTA 1984 by <ref href="#schedule-13-paragraph-28">paragraph 28</ref><ref href="#schedule-13-paragraph-28-6">(6)</ref> of this Schedule (meaning of references to dying or being alive in the case of corporate settlors) is to be disregarded in construing section 201(1)(d) of IHTA 1984 in relation to property that became comprised in the settlement before 6 April 2025.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45111"><heading>Deemed domicile rules still to apply in relation to times before commencement</heading><paragraph eId="schedule-13-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-13-paragraph-49-1"><num>(1)</num><content><p>The repeal of <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> of <ref eId="c00347" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> (persons treated as domiciled in United Kingdom) by <ref href="#schedule-13-paragraph-23">paragraph 23</ref> is to be disregarded in determining for the purposes of that Act any question as to where a person was domiciled at any time before 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-49-2"><num>(2)</num><content><p>In construing section 267 of IHTA 1984, so far as saved by sub-paragraph (1), the repeal of the definition of “formerly domiciled resident” by paragraph <ref href="#schedule-13-paragraph-28">28</ref><ref href="#schedule-13-paragraph-28-3">(3)</ref><ref href="#schedule-13-paragraph-28-3-b">(b)</ref> is also to be disregarded.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e44951"><heading>Commencement</heading><paragraph eId="schedule-13-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-13-paragraph-45-1"><num>(1)</num><content><p><ref href="#schedule-13-part-1">Part 1</ref> of <ref href="#schedule-13">this Schedule</ref>, other than <ref href="#schedule-13-paragraph-26">paragraph 26</ref>, comes into force on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-2"><num>(2)</num><content><p><ref href="#schedule-13-paragraph-26">Paragraph 26</ref> (repeal of sections 267ZA and 267ZB) comes into force on 6 April 2032.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-12">paragraph 12</ref> to section 74A of IHTA 1984 (arrangements involving acquisition of interest in settled property etc) have effect where the relevant time (as defined in section 74C(5) of that Act) is on or after 6 April 2025 (even if the arrangements were entered into before that date).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-4"><num>(4)</num><content><p>The amendment made by <ref href="#schedule-13-paragraph-19">paragraph 19</ref> to section 136 of IHTA 1984 (transactions of close companies) has effect in relation to relevant transactions (within the meaning of that section) on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-5"><num>(5)</num><content><p>The amendments made by <span><ref href="#schedule-13-paragraph-37">paragraphs 37</ref> to <ref href="#schedule-13-paragraph-43">43</ref></span> to the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00344" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>) have effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-6"><num>(6)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-44">paragraph 44</ref> to the Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00345" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>) have effect in relation to chargeable events (within the meaning of regulation 2 of those Regulations) occurring on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e45026"><heading>Certain pre-commencement emigrants treated as not being long-term UK residents</heading><paragraph eId="schedule-13-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-13-paragraph-46-1"><num>(1)</num><intro><p>An individual who would otherwise be a long-term UK resident at any time in a given tax year (“the relevant tax year”) is treated for the purposes of <ref eId="c00346" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> as not being a long-term UK resident at that time if the individual—</p></intro><level class="para1" eId="schedule-13-paragraph-46-1-a"><num>(a)</num><content><p>was not domiciled in the United Kingdom on 30 October 2024,</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-b"><num>(b)</num><content><p>has been resident in the United Kingdom for no tax year in the period beginning with the tax year 2025-26 and ending with the relevant tax year, and</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-c"><num>(c)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-13-paragraph-46-1-c-i"><num>(i)</num><content><p>was resident in the United Kingdom for none of the 3 tax years immediately preceding the relevant tax year, or</p></content></level><level class="para2" eId="schedule-13-paragraph-46-1-c-ii"><num>(ii)</num><content><p>was resident in the United Kingdom for fewer than 15 of the 20 tax years immediately preceding the relevant tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-13-paragraph-46-2"><num>(2)</num><content><p>For the purposes of <ref href="#schedule-13-paragraph-46-1">sub-paragraph (1)</ref><ref href="#schedule-13-paragraph-46-1-a">(a)</ref>, in determining where an individual was domiciled on 30 October 2024, ignore section 267 (deemed domicile) and sections 267ZA and 267ZB (domicile elections) of IHTA 1984.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e45083"><heading>Property moving between settlements</heading><paragraph eId="schedule-13-paragraph-47" class="schProv1"><num>47</num><content><p>The amendment of section 81(1) of IHTA 1984 by <ref href="#schedule-13-paragraph-15">paragraph 15</ref><ref href="#schedule-13-paragraph-15-b">(b)</ref> of this Schedule (trusts on which property moving between settlements is held) is to be disregarded in construing section 81(1) in a case where the property in question ceased to be comprised in the first settlement before 6 April 2025.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e45097"><heading>Settlor’s death etc: application to bodies corporate</heading><paragraph eId="schedule-13-paragraph-48" class="schProv1"><num>48</num><content><p>The insertion of section 272(2) of IHTA 1984 by <ref href="#schedule-13-paragraph-28">paragraph 28</ref><ref href="#schedule-13-paragraph-28-6">(6)</ref> of this Schedule (meaning of references to dying or being alive in the case of corporate settlors) is to be disregarded in construing section 201(1)(d) of IHTA 1984 in relation to property that became comprised in the settlement before 6 April 2025.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7" eId="d25e45111"><heading>Deemed domicile rules still to apply in relation to times before commencement</heading><paragraph eId="schedule-13-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-13-paragraph-49-1"><num>(1)</num><content><p>The repeal of <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> of <ref eId="c00347" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> (persons treated as domiciled in United Kingdom) by <ref href="#schedule-13-paragraph-23">paragraph 23</ref> is to be disregarded in determining for the purposes of that Act any question as to where a person was domiciled at any time before 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-49-2"><num>(2)</num><content><p>In construing section 267 of IHTA 1984, so far as saved by sub-paragraph (1), the repeal of the definition of “formerly domiciled resident” by paragraph <ref href="#schedule-13-paragraph-28">28</ref><ref href="#schedule-13-paragraph-28-3">(3)</ref><ref href="#schedule-13-paragraph-28-3-b">(b)</ref> is also to be disregarded.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" xmlns:default1="http://www.w3.org/1998/Math/MathML" name="schedules" eId="schedules"><heading>Schedules</heading><hcontainer name="schedule" eId="schedule-1"><num>Schedule 1<authorialNote class="referenceNote"><p>Section 7</p></authorialNote></num><heading>Consequential provision in connection with section <ref href="#section-7">7</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e15399"><heading>Amendments of <ref eId="c00066" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">section 1I</a> (income taxed at higher rates or gains exceeding unused basic rate band)—</p></intro><level class="para1" eId="schedule-1-paragraph-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-a-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (2)</a>, in the closing words—</p></intro><level class="para2" eId="schedule-1-paragraph-2-b-i"><num>(i)</num><content><p>omit “at the rate of 24% (so far as comprising residential property gains),”, and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-b-ii"><num>(ii)</num><content><p><mod>for “20%” substitute <quotedText>“24%”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-c"><num>(c)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">subsection (5)</a>—</p></intro><level class="para2" eId="schedule-1-paragraph-2-c-i"><num>(i)</num><content><p>omit paragraph (za), and</p></content></level><level class="para2" eId="schedule-1-paragraph-2-c-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1I">paragraph (b)</a>, for “20%” substitute <quotedText>“24%”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-1-paragraph-2-d"><num>(d)</num><content><p><mod>for <span>subsections (7) to (9)</span> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>The individual may allocate so much of the unused part of the individual’s basic rate band as then remains to any carried interest gains or any other gains.</p></content></subsection><subsection><num>(8)</num><content><p>The effect of the allocation is that the gains to which the allocation is made are charged at the rate of 18%.</p></content></subsection><subsection><num>(9)</num><intro><p>Any gains to which no allocation is made are charged—</p></intro><level class="para1"><num>(a)</num><content><p>at the rate of 28% (if they are carried interest gains), or</p></content></level><level class="para1"><num>(b)</num><content><p>at the rate of 24% (if they are other kinds of gains).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 222A (determination of main residence: non-resident CGT disposals), in subsection (1)(b)(i), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 223 (amount of relief), in subsection (7)(b), for “a residential property gain (as defined by Schedule 1B)” substitute <quotedText>“a gain”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1B">Schedule 1B</a> (residential property gains).</p></content></paragraph><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><content><p>Schedule 4AA (re-basing for non-residents in respect of UK land etc held on 5 April 2019) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content><p>Omit paragraphs 5, 10, 11 and 15.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><content><p><mod>In paragraph 22(3), for “Schedule 1B” substitute <quotedText>“paragraphs <ref href="#d25e15956">16E</ref> to <ref href="#d25e16279">16H</ref> of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e15597"><heading>Amendments of other Acts</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><content><p><mod>In paragraph 8(3) of Schedule A1 to IHTA 1984 (non-excluded overseas property), for “Schedule 1B to the 1992 Act” substitute <quotedText>“paragraphs 16B to 16H of Schedule 2 to the Finance Act 2019”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1">Schedule 1</a> to <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/2019/1">FA 2019</ref>, omit <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/1/paragraph/15">paragraph 15</a>.</p></content></paragraph><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2">Schedule 2</a> to <ref eId="c00069" href="https://www.legislation.gov.uk/ukpga/2019/1">that Act</ref> (returns and payments on account: disposals of UK land etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/16">paragraph 16</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation of “residential property gains”</heading><paragraph class="schProv1"><num>16A</num><subparagraph><num>(1)</num><content><p>In this Part of this Schedule “<term refersTo="#term-residential-property-gain">residential property gain</term>” means so much of a chargeable gain accruing to a person on a disposal of residential property as, in accordance with paragraph 16B, is attributable to that property.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>The question whether or not a person disposes of residential property is determined in accordance with paragraphs 16C to 16G.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16B</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A the proportion of a chargeable gain attributable to residential property is equal to—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant fraction of the gain, and</p></content></level><level class="para1"><num>(b)</num><content><p>if there has been mixed use of the land to which the disposal relates on one or more days in the applicable period, the relevant fraction of the gain as adjusted, on a just and reasonable basis, to take account of the mixed use on the day or days.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>The relevant fraction is A/B where—</p></intro><hcontainer name="definition"><content><p>A is the number of days in the applicable period on which the land to which the disposal relates consists of or includes a dwelling, and</p></content></hcontainer><hcontainer name="definition"><content><p>B is the total number of days in the applicable period.</p></content></hcontainer></subparagraph><subparagraph><num>(3)</num><intro><p>There is mixed use of land on any day on which the land consists of—</p></intro><level class="para1"><num>(a)</num><content><p>one or more dwellings, and</p></content></level><level class="para1"><num>(b)</num><content><p>other land.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the disposal is of an interest in land subsisting under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling, that land is taken to consist of or include a dwelling throughout the applicable period.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>In this paragraph “<term refersTo="#term-the-applicable-period">the applicable period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the person making the disposal acquired the interest in land being disposed of or, if later, the day from which the interest in land became chargeable, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the day on which the disposal occurs.</p></content></level></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of this paragraph an interest in land became “chargeable”—</p></intro><level class="para1"><num>(a)</num><intro><p>in any case where the disposal is of an interest in land in the United Kingdom—</p></intro><level class="para2"><num>(i)</num><content><p>by a person in a tax year in which the person is not UK resident, or</p></content></level><level class="para2"><num>(ii)</num><content><p>by a person in the overseas part of a tax year which is, as respects the person, a split year,</p></content></level><wrapUp><p>from 6 April 2015, and</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in any other case, from 31 March 1982.</p></content></level></subparagraph><subparagraph><num>(7)</num><content><p>If the interest in land disposed of by the person results from interests in land acquired by the person at different times, the person is regarded for the purposes of this paragraph as having acquired the interest disposed of at the time of the first acquisition.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16C</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraph 16A a person “disposes of residential property” if the person disposes of an interest in land in a case where—</p></intro><level class="para1"><num>(a)</num><content><p>the land consisted of or included a dwelling at any time falling on or after the date on which the applicable period begins,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest in land subsisted for the benefit of land that consisted of or included a dwelling at any time falling on or after that date, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest in land subsists under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>No account is to be taken for the purposes of this paragraph of any time falling on (or after) the day on which the disposal is made.</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16D</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H an “<term refersTo="#term-interest-in-land">interest in land</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>an estate, interest, right or power in or over land, or</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over land,</p></content></level><wrapUp><p>other than an excluded interest.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>The following interests are “excluded interests”—</p></intro><level class="para1"><num>(a)</num><content><p>any interest or right held for securing the payment of money or the performance of any other obligation,</p></content></level><level class="para1"><num>(b)</num><content><p>a licence to use or occupy land,</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to land in England and Wales or Northern Ireland, a tenancy at will or an advowson, franchise or manor, and</p></content></level><level class="para1"><num>(d)</num><content><p>such other descriptions of interest or right in relation to land as may be specified in regulations made by the Treasury.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>An interest or right is not within sub-paragraph (2)(a) if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a rentcharge, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to land in Scotland, a feu duty or a payment mentioned in <a href="https://www.legislation.gov.uk/asp/2000/5/section/56">section 56</a><a href="https://www.legislation.gov.uk/asp/2000/5/section/56">(1)</a> of the <ref eId="c00070" href="https://www.legislation.gov.uk/asp/2000/5">Abolition of Feudal Tenure etc. (Scotland) Act 2000</ref>.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>The grant of an option by a person binding the person to dispose of an interest in land is (so far as it would not otherwise be the case) regarded as a disposal of an interest in land by the person for the purposes of this Schedule.</p></content></subparagraph><subparagraph><num>(5)</num><content><p>This does not affect the operation of section 144 in relation to the grant of the option (or otherwise).</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In applying the domestic concepts of law mentioned in this paragraph to land outside the United Kingdom, this paragraph is to be read so as to produce the result most closely corresponding with that produced in relation to land in the United Kingdom.</p></content></subparagraph><subparagraph><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-franchise">franchise</term>” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls, and</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-land">land</term>” includes—</p></intro><level class="para1"><num>(a)</num><content><p>buildings and structures, and</p></content></level><level class="para1"><num>(b)</num><content><p>land under the sea or otherwise covered by water.</p></content></level></hcontainer></subparagraph></paragraph><paragraph eId="d25e15956" class="schProv1"><num>16E</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16H a building is a dwelling at any time when—</p></intro><level class="para1"><num>(a)</num><content><p>it is used, or suitable for use, as a dwelling, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is in the process of being constructed or adapted for use as a dwelling,</p></content></level><wrapUp><p>and, in each case, it is not an institutional building.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><content><p>Land that at any time is, or is intended to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure) is taken to be part of the dwelling at that time.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>A building is an institutional building if—</p></intro><level class="para1"><num>(a)</num><content><p>it is used as residential accommodation for school pupils,</p></content></level><level class="para1"><num>(b)</num><content><p>it is used as residential accommodation for members of the armed forces,</p></content></level><level class="para1"><num>(c)</num><content><p>it is used as a home or other institution providing residential accommodation for children,</p></content></level><level class="para1"><num>(d)</num><content><p>it is used as a home or other institution providing residential accommodation with personal care for persons in need of personal care because of old age, disability, past or present dependence on alcohol or drugs or past or present mental disorder,</p></content></level><level class="para1"><num>(e)</num><content><p>it is used as a hospital or hospice,</p></content></level><level class="para1"><num>(f)</num><content><p>it is used as a prison or similar establishment,</p></content></level><level class="para1"><num>(g)</num><content><p>it is used as a hotel or inn or similar establishment,</p></content></level><level class="para1"><num>(h)</num><content><p>it is otherwise used, or suitable for use, as an institution that is the sole or main residence of its residents,</p></content></level><level class="para1"><num>(i)</num><intro><p>it falls within—</p></intro><level class="para2"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">Schedule 14</a> to the <ref eId="c00071" href="https://www.legislation.gov.uk/ukpga/2004/34">Housing Act 2004</ref> (buildings in England or Wales occupied by students and managed or controlled by educational establishment etc), or</p></content></level><level class="para2"><num>(ii)</num><content><p>any provision having effect in Scotland or Northern Ireland that is designated by regulations made by the Treasury as provision corresponding to <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14/paragraph/4">paragraph 4</a> of <a href="https://www.legislation.gov.uk/ukpga/2004/34/schedule/14">that Schedule</a>, or</p></content></level></level><level class="para1"><num>(j)</num><content><p>it qualifies in accordance with the next sub-paragraph as student accommodation.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A building qualifies as student accommodation in accordance with this sub-paragraph at any time if the time falls in a tax year in which—</p></intro><level class="para1"><num>(a)</num><content><p>the accommodation provided by the building includes at least 15 bedrooms,</p></content></level><level class="para1"><num>(b)</num><content><p>the accommodation is purpose-built, or is converted, for occupation by students, and</p></content></level><level class="para1"><num>(c)</num><content><p>the accommodation is occupied by students on at least 165 days.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Accommodation is to be regarded as occupied by persons as students if they occupy it wholly or mainly for undertaking a course of education (otherwise than as school pupils).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16F</num><subparagraph><num>(1)</num><content><p>A building is treated for the purposes of paragraph 16E as continuing to be suitable for use as a dwelling at any time when it has become temporarily unsuitable for use as a dwelling.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>There is an exception to this rule if—</p></intro><level class="para1"><num>(a)</num><content><p>the temporary unsuitability resulted from accidental damage to the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>the damage resulted in the building becoming unsuitable for use as a dwelling for a period of at least 90 consecutive days (“the 90 day period”).</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>This exception does not apply if the damage occurred in the course of work that—</p></intro><level class="para1"><num>(a)</num><content><p>was being done for the purpose of altering the building, and</p></content></level><level class="para1"><num>(b)</num><content><p>itself involved, or could be expected to involve, making the building unsuitable for use as a dwelling for at least 30 consecutive days.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>If the exception applies, work done in the 90 day period to restore the building to suitability for use as a dwelling is not to count for the purposes of paragraph 16E as constructing or adapting the building for use as a dwelling.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>references to accidental damage include damage otherwise caused by events beyond the control of the person disposing of the interest in land,</p></content></level><level class="para1"><num>(b)</num><content><p>references to alteration of a building include its partial demolition, and</p></content></level><level class="para1"><num>(c)</num><content><p>the 90 day period does not include the day of the disposal (or later days).</p></content></level></subparagraph><subparagraph><num>(6)</num><content><p>For the purposes of this paragraph a building’s unsuitability for use as a dwelling is not regarded as temporary if paragraph 16G applies (disposal of a building that has undergone works).</p></content></subparagraph></paragraph><paragraph class="schProv1"><num>16G</num><subparagraph><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person disposes of an interest in land on which a building has been suitable for use as a dwelling, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a result of qualifying works, the building has, at or before the time of completion of the disposal, ceased to exist or become unsuitable for use as a dwelling,</p></content></level><wrapUp><p>the building is to be regarded for the purposes of paragraph 16E as unsuitable for use as a dwelling throughout the works period.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of this paragraph works are “qualifying” works if—</p></intro><level class="para1"><num>(a)</num><content><p>any planning permission or development consent required for the works, or for any change of use with which they are associated, has been granted (whether before or after completion), and</p></content></level><level class="para1"><num>(b)</num><content><p>the works have been carried out in accordance with the permission or consent.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-works-period">the works period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>the period when the works were in progress, and</p></content></level><level class="para1"><num>(b)</num><content><p>such period (if any) ending immediately before the start of the works throughout which the building was, for reasons connected with the works, not used as dwelling.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>If at any time when qualifying works are in progress—</p></intro><level class="para1"><num>(a)</num><content><p>the building was undergoing any other work, or put to any other use, in relation to which planning permission or development consent was required but has not (at any time) been granted, or</p></content></level><level class="para1"><num>(b)</num><content><p>anything else was being done in contravention of a condition or requirement attached to a planning permission or development consent relating to the building,</p></content></level><wrapUp><p>the works period does not include that time.</p></wrapUp></subparagraph><subparagraph><num>(5)</num><content><p>If sub-paragraph (1) would have applied but for the fact that, at the completion of the disposal, the works are not qualifying works, the works are regarded as not affecting the building's suitability for use as a dwelling at any time before the disposal.</p></content></subparagraph></paragraph><paragraph eId="d25e16279" class="schProv1"><num>16H</num><subparagraph><num>(1)</num><intro><p>For the purposes of paragraphs 16B to 16G a building is regarded as ceasing to exist from the time when either—</p></intro><level class="para1"><num>(a)</num><content><p>it has been demolished completely to ground level, or</p></content></level><level class="para1"><num>(b)</num><content><p>it has been demolished to ground level except for a single facade (or a double facade if it is on a corner site) the retention of which is a condition or requirement of planning permission or development consent.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of paragraphs 16B to 16G the completion of the disposal of an interest in land is regarded as occurring—</p></intro><level class="para1"><num>(a)</num><content><p>at the time of the disposal, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the disposal is under a contract which is completed by a conveyance, transfer or other instrument, at the time when the instrument takes effect.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>For the purposes of paragraphs 16B to 16G—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building">building</term>” includes a part of a building,</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-development-consent">development consent</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in the United Kingdom, development consent under the <ref eId="c00072" href="https://www.legislation.gov.uk/ukpga/2008/29">Planning Act 2008</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land outside the United Kingdom, consent corresponding to development consent under <ref eId="c00073" href="https://www.legislation.gov.uk/ukpga/2008/29">that Act</ref>, and</p></content></level></hcontainer><hcontainer name="definition"><intro><p><term refersTo="#term-planning-permission">planning permission</term>“—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of land in England or Wales, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">section 336</a><a href="https://www.legislation.gov.uk/ukpga/1990/8/section/336">(1)</a> of the <ref eId="c00074" href="https://www.legislation.gov.uk/ukpga/1990/8">Town and Country Planning Act 1990</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of land in Scotland, has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">section 227</a><a href="https://www.legislation.gov.uk/ukpga/1997/8/section/227">(1)</a> of the <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1997/8">Town and Country Planning (Scotland) Act 1997</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of land in Northern Ireland, has the meaning given by <a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">Article 2</a><a href="https://www.legislation.gov.uk/nisi/1991/1220/article/2">(2)</a> of the <ref eId="c00076" href="https://www.legislation.gov.uk/nisi/1991/1220">Planning (Northern Ireland) Order 1991</ref>, and</p></content></level><level class="para1"><num>(d)</num><content><p>in the case of land outside the United Kingdom, means permission corresponding to any planning permission in relation to land anywhere in the United Kingdom.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><content><p><mod>For the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a> substitute <quotedText>“<i>Other interpretation</i>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">paragraph 17</a><a href="https://www.legislation.gov.uk/ukpga/2019/1/schedule/2/paragraph/17">(1)</a>, omit the definition of “<term refersTo="#term-residential-property-gains" eId="term-residential-property-gains">residential property gains</term>” (but not the “and” at the end of that definition).</p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 6 of F(No.2)A 2024, omit—</p></intro><level class="para1" eId="schedule-1-paragraph-10-a"><num>(a)</num><content><p>subsection (1)(a), (c) and (e), and</p></content></level><level class="para1" eId="schedule-1-paragraph-10-b"><num>(b)</num><content><p>subsection (2)(a)(i), (b)(i), (c)(i) and (d)(i).</p></content></level></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-2"><num>Schedule 2<authorialNote class="referenceNote"><p>Section 11</p></authorialNote></num><heading>Sections <ref href="#section-7">7</ref> to <ref href="#section-10">10</ref> : transitional provision</heading><part eId="schedule-2-part-1"><num>Part 1</num><heading>Transitional provision in consequence of section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e16476"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p><ref href="#schedule-2-part-1">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purpose of determining how the provisions of <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> mentioned below are to apply for the tax year 2024-25 for the purposes of the amendments made by section <ref href="#section-7">7</ref> and Schedule <ref href="#schedule-1">1</ref>.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16499"><heading>Allocation of amounts to times before or after 30 October 2024</heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p>Gains or losses treated as accruing to an individual under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1M">section 1M</a> of <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (temporary non-residents) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p>Foreign chargeable gains under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809J">section 809J</a> of <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (section 809I: order of remittances) in the tax year 2024-25 are to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (UK resident individuals not domiciled in UK) as remitted before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p>Chargeable gains treated as accruing to a settlor under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">section 86</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/86">(a)</a> of <ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (attribution of gains to settlors with interest in non-resident or dual resident settlements) in the tax year 2024-25 are to be treated as accruing before 30 October 2024.</p></content></paragraph><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><intro><p><ref href="#schedule-2-paragraph-5">This paragraph</ref> makes provision in relation to—</p></intro><level class="para1" eId="schedule-2-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> of <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (non-UK resident settlements: attribution of gains to beneficiaries) in the tax year 2024-25,</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-b"><num>(b)</num><content><p>chargeable gains treated as accruing to a beneficiary of a settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (migrant settlements etc) in that tax year, and</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-c"><num>(c)</num><content><p>chargeable gains treated as accruing to a beneficiary of a relevant settlement under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">paragraph 8</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/8">(1)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C">Schedule 4C</a> to <ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (attribution of Schedule 4C gains to beneficiaries) in that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received before 30 October 2024 are to be treated as accruing before that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p>Such of the chargeable gains within <ref href="#schedule-2-paragraph-5-1">sub-paragraph (1)</ref><ref href="#schedule-2-paragraph-5-1-a">(a)</ref>, <ref href="#schedule-2-paragraph-5-1-b">(b)</ref> or <ref href="#schedule-2-paragraph-5-1-c">(c)</ref> as result from the matching of capital payments received on or after that date are to be treated as accruing on or after that date.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p>The reference in sub-paragraph (1)(b) to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">section 89</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">(2)</a> of <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is to be read as including a reference to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/89">that section</a> as applied by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">section 90</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(6)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/90">(a)</a> of <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (transfers between settlements).</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-2-part-2"><num>Part 2</num><heading>Anti-forestalling provisions: sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e16686"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies for the purposes of sections <ref href="#section-7">7</ref><ref href="#section-7-3">(3)</ref> and <ref href="#section-10">10</ref><ref href="#section-10-2">(2)</ref> in the cases of certain acts done before 30 October 2024.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16710"><heading>Assets transferred under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p>If an asset is transferred on or after 30 October 2024 under an unconditional contract made before that date, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><intro><p>A contract is an excluded contract if—</p></intro><level class="para1" eId="schedule-2-paragraph-7-2-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-2-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><content><p>A contract is not to be regarded as an excluded contract unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-4"><num>(4)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-7-4-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-7-4-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-5"><num>(5)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-6"><num>(6)</num><intro><p>If the person making the transfer makes—</p></intro><level class="para1" eId="schedule-2-paragraph-7-6-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-7-6-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-7-3">sub-paragraph (3)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-7-7"><num>(7)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-8"><num>(8)</num><content><p>In <ref href="#schedule-2-paragraph-7">this paragraph</ref> any reference to the transfer of an asset includes its conveyance.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16878"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-2-paragraph-8-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-8-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-8-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-8-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-8-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-8-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e16997"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer></part><part eId="schedule-2-part-3"><num>Part 3</num><heading>Anti-forestalling provisions: sections <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref> and <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref></heading><hcontainer name="crossheading" class="schGroup7" eId="d25e17034"><heading>Introductory</heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> applies—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p>in the case of business asset disposal relief, for the purposes of section <ref href="#section-8">8</ref><ref href="#section-8-3">(3)</ref> and <ref href="#section-8-6">(6)</ref>, and</p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p>in the case of investors’ relief, for the purposes of section <ref href="#section-9">9</ref><ref href="#section-9-4">(4)</ref> and <ref href="#section-9-8">(8)</ref>.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17076"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made before 30 October 2024, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17093"><heading>Assets transferred on or after 6 April 2025 under unconditional contract made on or after 30 October 2024 but before 6 April 2025</heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p>If an asset is transferred on or after 6 April 2025 under an unconditional contract made on or after 30 October 2024 but before 6 April 2025, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17110"><heading>Assets transferred on or after 6 April 2026 under unconditional contract made in tax year 2025-26</heading><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p>If an asset is transferred on or after 6 April 2026 under an unconditional contract made at any time in the tax year 2025-26, the disposal is, despite <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, to be treated as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17127"><heading>Paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref>: supplementary provision</heading><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>A contract is an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> if—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>obtaining an advantage by reason of the application of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">section 28</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/28">(1)</a> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> was no purpose of entering into the contract, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>A contract is not to be regarded as an excluded contract for the purposes of paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><intro><p>But no claim is required if the total amount of—</p></intro><level class="para1" eId="schedule-2-paragraph-14-3-a"><num>(a)</num><content><p>the chargeable gain accruing on the disposal, and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-3-b"><num>(b)</num><content><p>the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraph <ref href="#schedule-2-paragraph-7">7</ref>),</p></content></level><wrapUp><p>does not exceed £100,000.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-4"><num>(4)</num><content><p>For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">section 169N</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169N">(2)</a> of <ref eId="c00106" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-5"><num>(5)</num><intro><p>If the person making the transfer referred to in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> makes—</p></intro><level class="para1" eId="schedule-2-paragraph-14-5-a"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00107" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a qualifying business disposal (business asset disposal relief), or</p></content></level><level class="para1" eId="schedule-2-paragraph-14-5-b"><num>(b)</num><content><p>a claim under section 169VM of <ref eId="c00108" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (investors’ relief) in relation to a disposal,</p></content></level><wrapUp><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">(3)</a> of <ref eId="c00109" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, or (as the case may be) section 169VM(1) and (2) of <ref eId="c00110" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, apply to a claim under <ref href="#schedule-2-paragraph-14-2">sub-paragraph (2)</ref> in relation to the disposal as they apply to a claim under the section concerned.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-6"><num>(6)</num><content><p>Any reference in paragraphs <ref href="#schedule-2-paragraph-11">11</ref> to <ref href="#schedule-2-paragraph-13">13</ref> (or this paragraph) to the transfer of an asset includes its conveyance.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-qualifying-business-disposal" eId="term-qualifying-business-disposal">qualifying business disposal</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5/chapter/3">Chapter 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/part/5">Part 5</a> of <ref eId="c00111" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17302"><heading>Business asset disposal relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-2-paragraph-15-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00112" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-15-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-2"><num>(2)</num><intro><p>If, as at 30 October 2024—</p></intro><level class="para1" eId="schedule-2-paragraph-15-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-15-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-15-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00113" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-15-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-15-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00114" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00115" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-15-5"><num>(5)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00116" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-17">17</ref>).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17453"><heading>Business asset disposal relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-2-paragraph-16-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/11">This paragraph</a> applies for the purposes of an election under 169Q of <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-16-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-2"><num>(2)</num><intro><p>If, when the election is made—</p></intro><level class="para1" eId="schedule-2-paragraph-16-2-a"><num>(a)</num><content><p>the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-2-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-16-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, anything mentioned in sub-paragraph <ref href="#schedule-2-paragraph-16-2">(2)</ref><ref href="#schedule-2-paragraph-16-2-a">(a)</ref> or <ref href="#schedule-2-paragraph-16-2-b">(b)</ref> ceases to be as mentioned there, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-16-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-16-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-16-5"><num>(5)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-reorganisation" eId="term-reorganisation">reorganisation</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">that section</a>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-16-6"><num>(6)</num><content><p>References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (but see instead paragraph <ref href="#schedule-2-paragraph-18">18</ref>).</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-16-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17627"><heading>Business asset disposal relief: exchanges of securities etc before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-2-paragraph-17-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00122" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00123" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-17-1-a"><num>(a)</num><content><p>the exchange takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-2"><num>(2)</num><content><p>If condition A or B is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-17-3"><num>(3)</num><intro><p>Condition A is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-17-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-17-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-17-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="schedule-2-paragraph-17-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-4-b"><num>(b)</num><intro><p>as at 30 October 2024—</p></intro><level class="para2" eId="schedule-2-paragraph-17-4-b-i"><num>(i)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-4-b-ii"><num>(ii)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-5"><num>(5)</num><intro><p>For this purpose “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-17-5-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-17-5-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-6"><num>(6)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-17-6-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-17-6-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-17-6-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-17-6-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-17-7"><num>(7)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e17871"><heading>Business asset disposal relief: exchanges of securities etc on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-2-paragraph-18-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/12">This paragraph</a> applies for the purposes of an election under section 169Q of <ref eId="c00132" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to an exchange of shares or securities within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">(1)</a> of <ref eId="c00133" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where—</p></intro><level class="para1" eId="schedule-2-paragraph-18-1-a"><num>(a)</num><content><p>the exchange takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-2"><num>(2)</num><content><p>If the following condition is met, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-18-3"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1" eId="schedule-2-paragraph-18-3-a"><num>(a)</num><content><p>the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or</p></content></level><level class="para1" eId="schedule-2-paragraph-18-3-b"><num>(b)</num><content><p>the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange,</p></content></level><wrapUp><p>and, for the purposes of <ref href="#schedule-2-paragraph-18-3-a">paragraph (a)</ref>, connected persons are to be treated as the same person.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-4"><num>(4)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-4-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-4-b"><num>(b)</num><content><p>the relief conditions are met when the election is made,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-5"><num>(5)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-2-paragraph-18-5-a"><num>(a)</num><content><p>the shareholders who, immediately before and after the exchange, hold shares or securities in company A and company B respectively hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-5-b"><num>(b)</num><content><p>at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, the relief conditions cease to be met,</p></content></level><wrapUp><p>the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the exchange.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-18-6"><num>(6)</num><intro><p>For the purposes of this paragraph “the relief conditions” are met if—</p></intro><level class="para1" eId="schedule-2-paragraph-18-6-a"><num>(a)</num><content><p>company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-6-b"><num>(b)</num><content><p>the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-7"><num>(7)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-the-relevant-individual" eId="term-the-relevant-individual">the relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-18-7-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00134" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-18-7-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-8"><num>(8)</num><intro><p>If, before the exchange, the Commissioners for His Majesty's Revenue and Customs have issued a notification in respect of it under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">section 138</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/138">(1)</a> of <ref eId="c00135" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (advance clearance procedure)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-8-a"><num>(a)</num><intro><p><span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">sections 127</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/131">131</a></span> of <ref eId="c00136" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> apply with the necessary adaptations as if—</p></intro><level class="para2" eId="schedule-2-paragraph-18-8-a-i"><num>(i)</num><content><p>company A and company B were the same company, and</p></content></level><level class="para2" eId="schedule-2-paragraph-18-8-a-ii"><num>(ii)</num><content><p>the exchange were a reorganisation, and</p></content></level></level><level class="para1" eId="schedule-2-paragraph-18-8-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169Q">section 169Q</a> of <ref eId="c00137" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> applies as if the exchange were treated as a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00138" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-18-9"><num>(9)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company-a" eId="term-company-a">company A</term>” and “<term refersTo="#term-company-b" eId="term-company-b">company B</term>” have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> of <ref eId="c00139" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>,</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-holding-company" eId="term-holding-company">holding company</term>” has the same meaning as in section 165 of TCGA 1992 (see section 165A),</p></content></hcontainer><hcontainer name="definition"><content><p>“the <term refersTo="#term-original-shares" eId="term-original-shares">original shares</term>” has the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00140" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “trading group” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA/paragraph/1">paragraph 1</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ZA">Schedule 7ZA</a> to <ref eId="c00141" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-2-paragraph-18-10"><num>(10)</num><content><p>This paragraph does not apply if both the exchange and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18153"><heading>Investors’ relief: reorganisations of share capital before 30 October 2024</heading><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-2-paragraph-19-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00142" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-19-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 6 April 2023 but before 30 October 2024, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-2"><num>(2)</num><content><p>If, as at 30 October 2024, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-3"><num>(3)</num><intro><p>For this purpose “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-19-3-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00143" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-19-3-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-19-4"><num>(4)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00144" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00145" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00146" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-5"><num>(5)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00147" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-19-6"><num>(6)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18278"><heading>Investors’ relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026</heading><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-2-paragraph-20-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/13">This paragraph</a> applies for the purposes of an election under section 169VT of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> in relation to a reorganisation of a company where—</p></intro><level class="para1" eId="schedule-2-paragraph-20-1-a"><num>(a)</num><content><p>the reorganisation takes place on or after 30 October 2024 but before 6 April 2026, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-1-b"><num>(b)</num><content><p>the election is made on or after 30 October 2024.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-2"><num>(2)</num><content><p>If, when the election is made, a relevant individual holds qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place at the time of the election and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-3"><num>(3)</num><content><p>If, at any time (“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">the relevant time</term>”) before the making of the election, a relevant individual ceases to hold qualifying shares or potentially qualifying shares, the disposal of the original shares is to be treated as taking place immediately before the relevant time and not at the time of the reorganisation.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-4"><num>(4)</num><intro><p>For the purposes of this paragraph “<term refersTo="#term-a-relevant-individual" eId="term-a-relevant-individual">a relevant individual</term>” means—</p></intro><level class="para1" eId="schedule-2-paragraph-20-4-a"><num>(a)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">section 169VM</a> of <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is made jointly by the trustees of a settlement and an eligible beneficiary, an eligible beneficiary, and</p></content></level><level class="para1" eId="schedule-2-paragraph-20-4-b"><num>(b)</num><content><p>where a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VM">that section</a> is made by an individual, the individual.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-20-5"><num>(5)</num><content><p>References in <ref href="#schedule-2-paragraph-8">this paragraph</ref> to a reorganisation are to a reorganisation within the meaning of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/126">section 126</a> of <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> or an exchange of shares or securities which is treated as such a reorganisation by virtue of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/135">section 135</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/136">136</a> of <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, applying for the purposes of <ref href="#schedule-2-paragraph-8">this paragraph</ref> the provision made by <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VN">sections 169VN</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VS">169VS</a></span> of <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-6"><num>(6)</num><content><p>In <ref href="#schedule-2-paragraph-8">this paragraph</ref> “qualifying shares” and “potentially qualifying shares” have the meaning given by <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169VB">section 169VB</a> of <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-20-7"><num>(7)</num><content><p>This paragraph does not apply if both the reorganisation and the election occur in the same tax year.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18412"><heading>Interpretation</heading><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><content><p><ref href="#schedule-2-part-2">This Part</ref> of <ref href="#schedule-1">this Schedule</ref> is to be read as if it were contained in <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-3"><num>Schedule 3<authorialNote class="referenceNote"><p>Section 18</p></authorialNote></num><heading>Payments into decommissioning funds</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e18438"><heading>Payments into decommissioning fund treated as general decommissioning expenditure</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><intro><p>A qualifying payment into a decommissioning fund is treated for tax purposes as—</p></intro><level class="para1" eId="schedule-3-paragraph-1-1-a"><num>(a)</num><content><p>expenditure incurred in decommissioning a qualifying asset falling within <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(i)</a> of the <ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref> (allowance of expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-b"><num>(b)</num><content><p>general decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (allowances for decommissioning expenditure),</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-c"><num>(c)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/330C">section 330C</a> of <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (decommissioning expenditure taken into account in calculating ring fence profits), and</p></content></level><level class="para1" eId="schedule-3-paragraph-1-1-d"><num>(d)</num><content><p>decommissioning expenditure falling within <a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">section 9</a><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/9">(3)</a> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> (meaning of decommissioning costs).</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><intro><p>A payment into a decommissioning fund is qualifying if—</p></intro><level class="para1" eId="schedule-3-paragraph-1-2-a"><num>(a)</num><intro><p>the relevant transferred plant or machinery to which the payment relates is—</p></intro><level class="para2" eId="schedule-3-paragraph-1-2-a-i"><num>(i)</num><content><p>an eligible CCS installation which qualifies for change of use relief under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations), or</p></content></level><level class="para2" eId="schedule-3-paragraph-1-2-a-ii"><num>(ii)</num><content><p>an eligible carbon storage network pipeline which qualifies for change of use relief under section 30B of that Act (change of use relief for carbon storage network pipelines), and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-1-2-b"><num>(b)</num><content><p>the payment has been certified in an approval notice given under section 30A(5)(b) or 30B(3)(b) of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p>For the purposes of <ref href="#schedule-3-paragraph-1-2">sub-paragraph (2)</ref>, a payment to a licensed company under an agreement to pay a required amount for the purposes of payment into the decommissioning fund is to be regarded as a payment into that fund.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-4"><num>(4)</num><content><p>But the onward payment into the fund by that licensed company is not a qualifying payment.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-5"><num>(5)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund" eId="term-decommissioning-fund">decommissioning fund</term>” is to be interpreted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">section 92</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(7)</a><a href="https://www.legislation.gov.uk/ukpga/2023/52/section/92">(a)</a> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (financing costs of decommissioning etc);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-licensed-company" eId="term-licensed-company">licensed company</term>” means a person who holds a licence under <a href="https://www.legislation.gov.uk/ukpga/2023/52/section/7">section 7</a> of the <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/2023/52">Energy Act 2023</ref> (licences for carbon dioxide transport and storage);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-transferred-plant-or-machinery" eId="term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3-paragraph-2">paragraph 2</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-required-amount" eId="term-required-amount">required amount</term>” means an amount determined by the Secretary of State in accordance with regulations made under <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(5A)</a><a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">(b)</a> or 30B(3A)(b) (as the case may be) of the <ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (amount required to be paid into a decommissioning fund);</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-ring-fence-trade" eId="term-ring-fence-trade">ring fence trade</term>” means activities which—</p></intro><level class="para1"><num>(a)</num><content><p>fall within the definition of “oil-related activities” in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(2)</a> of <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/274">section 274</a> of <ref eId="c00164" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>constitute a separate trade (whether as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">section 16</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/16">(1)</a> of <ref eId="c00165" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> or <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/279">section 279</a> of <ref eId="c00166" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> or otherwise);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-tax-purposes" eId="term-tax-purposes">tax purposes</term>” means for the purposes of—</p></intro><level class="para1"><num>(a)</num><content><p>corporation tax (including for the purposes of the supplementary charge in respect of ring fence trades and the energy (oil and gas) profits levy);</p></content></level><level class="para1"><num>(b)</num><content><p>income tax;</p></content></level><level class="para1"><num>(c)</num><content><p>petroleum revenue tax.</p></content></level></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18684"><heading>Meaning of “relevant transferred plant or machinery”</heading><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><intro><p>Plant or machinery is “relevant transferred plant or machinery” if it meets—</p></intro><level class="para1" eId="schedule-3-paragraph-2-1-a"><num>(a)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-2">sub-paragraphs (2)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>, or</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-b"><num>(b)</num><content><p>the conditions in <ref href="#schedule-3-paragraph-2-3">sub-paragraphs (3)</ref>, <ref href="#schedule-3-paragraph-2-5">(5)</ref> and <ref href="#schedule-3-paragraph-2-6">(6)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-2-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-2-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-2-b-i"><num>(i)</num><content><p>is, or forms part of, an offshore installation or a submarine pipeline, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-2-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation or pipeline.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><intro><p>The condition in this sub-paragraph is met if the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-3-a"><num>(a)</num><content><p>has been brought into use wholly or partly for the purposes of a ring fence trade, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-3-b"><num>(b)</num><intro><p>is plant or machinery which—</p></intro><level class="para2" eId="schedule-3-paragraph-2-3-b-i"><num>(i)</num><content><p>is, or forms part of, a relevant onshore installation, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-3-b-ii"><num>(ii)</num><content><p>when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-4"><num>(4)</num><intro><p>In <ref href="#schedule-3-paragraph-2-3">sub-paragraph (3)</ref> “<term refersTo="#term-relevant-onshore-installation" eId="term-relevant-onshore-installation">relevant onshore installation</term>” means any building or structure which—</p></intro><level class="para1" eId="schedule-3-paragraph-2-4-a"><num>(a)</num><content><p>falls within any of <span><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">sub-paragraphs (ii)</a> to <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(iv)</a></span> of <a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">section 3</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(4)</a><a href="https://www.legislation.gov.uk/ukpga/1975/22/section/3">(c)</a> of the <ref eId="c00167" href="https://www.legislation.gov.uk/ukpga/1975/22">Oil Taxation Act 1975</ref>,</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-b"><num>(b)</num><content><p>is not an offshore installation, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-4-c"><num>(c)</num><intro><p>is or has been used for purposes connected with the winning of oil from an oil field any part of which lies within—</p></intro><level class="para2" eId="schedule-3-paragraph-2-4-c-i"><num>(i)</num><content><p>the boundaries of the territorial sea of the United Kingdom, or</p></content></level><level class="para2" eId="schedule-3-paragraph-2-4-c-ii"><num>(ii)</num><content><p>an area designated under <a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">section 1</a><a href="https://www.legislation.gov.uk/ukpga/1964/29/section/1">(7)</a> of the <ref eId="c00168" href="https://www.legislation.gov.uk/ukpga/1964/29">Continental Shelf Act 1964</ref>.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-5"><num>(5)</num><content><p>The condition in this sub-paragraph is met if ownership of the plant or machinery has been transferred to a licensed company under an agreement to pay a required amount.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-6"><num>(6)</num><intro><p>The condition in this sub-paragraph is met if the agreement to pay a relevant required amount provides that the plant or machinery—</p></intro><level class="para1" eId="schedule-3-paragraph-2-6-a"><num>(a)</num><content><p>will be reused by the licensed company, and</p></content></level><level class="para1" eId="schedule-3-paragraph-2-6-b"><num>(b)</num><content><p>will not be replaced by the transferor of the plant or machinery.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-7"><num>(7)</num><content><p>Terms used in <ref href="#schedule-3-paragraph-2">this paragraph</ref> and in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">section 163</a> of <ref eId="c00169" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> have the same meanings as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/163">that section</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e18896"><heading>Application of <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">sections 164</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">165</a> of <ref eId="c00170" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/164">Section 164</a> of <ref eId="c00171" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (election for special allowance) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-1-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Condition A is that R has made a qualifying payment into a decommissioning fund in the relevant chargeable period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-1-b"><num>(b)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-3-paragraph-3-1-b-i"><num>(i)</num><content><p><mod>in paragraph (ab), after “decommissioning” there were inserted <quotedText>“fund”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-3-1-b-ii"><num>(ii)</num><content><p>paragraphs (ac) and (b) were omitted, and</p></content></level></level><level class="para1" eId="schedule-3-paragraph-3-1-c"><num>(c)</num><content><p>subsections (5A) to (7) were omitted.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/165">Section 165</a> of <ref eId="c00172" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (general decommissioning expenditure after ceasing ring fence trade) has effect in relation to general decommissioning expenditure that is a qualifying payment into a decommissioning fund as if—</p></intro><level class="para1" eId="schedule-3-paragraph-3-2-a"><num>(a)</num><content><p><mod>for subsection (1A) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The decommissioning condition is met in relation to a notional accounting period (the “relevant period”) if the former trader has made a qualifying payment into a decommissioning fund in the relevant period.</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-b"><num>(b)</num><content><p><mod>in subsection (2), for paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>ends with the day on which the trigger event described in <a href="https://www.legislation.gov.uk/ukpga/2008/32/section/30A">section 30A</a> of the <ref eId="c00173" href="https://www.legislation.gov.uk/ukpga/2008/32">Energy Act 2008</ref> (change of use relief for certain installations) occurs in relation to the relevant transferred plant or machinery.</p></content></level></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-c"><num>(c)</num><content><p>subsections (2A) to (2C) were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-d"><num>(d)</num><content><p>in subsection (4), in the definition of “relevant decommissioning cost”, “paragraph (a), (b) or (c) of” were omitted,</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-e"><num>(e)</num><content><p>subsections (4A) to (4D) and (6) were omitted, and</p></content></level><level class="para1" eId="schedule-3-paragraph-3-2-f"><num>(f)</num><content><p><mod>in subsection (7), at the appropriate places there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-decommissioning-fund">decommissioning fund</term>” and “<term refersTo="#term-qualifying-payment">qualifying payment</term>” are to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>““<term refersTo="#term-relevant-transferred-plant-or-machinery">relevant transferred plant or machinery</term>” is to be construed in accordance with <ref href="#schedule-3">Schedule 3</ref> to FA 2025;</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19062"><heading>Prevention of subsequent allowance where expenditure paid out of qualifying payment</heading><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p>No allowance under <ref eId="c00174" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is to be made to a person in respect of expenditure paid out of a qualifying payment made into a decommissioning fund where a claim for an allowance in relation to that payment under <ref eId="c00175" href="https://www.legislation.gov.uk/ukpga/2001/2">that Act</ref> has been made (whoever made the claim).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19077"><heading>Application of the <ref eId="c00176" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref></heading><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><p><mod><a href="https://www.legislation.gov.uk/ukpga/2022/40/section/1">Section 1</a> of the <ref eId="c00177" href="https://www.legislation.gov.uk/ukpga/2022/40">Energy (Oil and Gas) Profits Levy Act 2022</ref> has effect in relation to a company that has transferred relevant transferred plant or machinery to a licensed company as if in subsection (5) (assumptions in determining levy profits or loss), after paragraph (c) there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content><p>any amount received from a licensed company (within the meaning of <ref href="#schedule-3">Schedule 3</ref> to FA 2025) for relevant transferred plant or machinery (within the meaning of that Schedule) that would otherwise be brought into account when calculating the amount of the profits or loss of any ring fence trade of the company for the period is left out of account,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19105"><heading>Commencement</heading><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content><p><ref href="#schedule-3">This Schedule</ref> has effect in relation to qualifying payments into a decommissioning fund made on or after the day on which this Act is passed.</p></content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-4"><num>Schedule 4<authorialNote class="referenceNote"><p>Section 19</p></authorialNote></num><heading>Pillar two</heading><part eId="schedule-4-part-1"><num>Part 1</num><heading>Introduction</heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>F(No.2)A 2023 is amended in accordance with—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>Part 2 of this Schedule (which contains amendments designed to implement the UTPR within the meaning of the Pillar Two rules), and</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>Part 3 of this Schedule (which contains other amendments in relation to multinational top-up tax and amendments in relation to domestic top-up tax).</p></content></level></paragraph></part><part eId="schedule-4-part-2"><num>Part 2</num><heading>Undertaxed profits rule</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e19153"><heading>Multinational top-up tax to include undertaxed profits rule</heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>Section 121 (introduction to multinational top-up tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “IIR” to the end substitute <quotedText>“IIR and UTPR (within the meaning of the Pillar Two rules).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>In subsection (5), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19180"><heading>Expansion of chargeable persons</heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>Section 122 (chargeable persons) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>In subsection (1), omit “responsible” in both places.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-3"><num>(3)</num><content><p>In subsection (2), omit “responsible” in each place.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-4"><num>(4)</num><content><p>In subsection (3)(a), omit “responsible”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-5"><num>(5)</num><content><p>In subsection (7), omit “responsible”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19217"><heading>Charge to multinational top-up tax to include UTPR</heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p><mod>For section 123 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>123</num><heading>Charge to multinational top-up tax</heading><subsection eId="d25e19238"><num>(1)</num><intro><p>A person chargeable to tax as, or in respect of, a member of a multinational group (“the relevant member”) is charged multinational top-up tax for an accounting period if one or more members of the group have top-up amounts or additional top-up amounts for that period and—</p></intro><level class="para1" eId="d25e19244"><num>(a)</num><content><p>the relevant member is a responsible member for one or more of those members (see section 128), or</p></content></level><level class="para1" eId="d25e19250"><num>(b)</num><content><p>one or more of those members have untaxed amounts that are allocated to the relevant member (see <ref href="#d25e19372">Chapter 9A</ref>).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The amount charged is the sum of the following—</p></intro><level class="para1"><num>(a)</num><intro><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19244">(a)</ref> applies—</p></intro><level class="para2"><num>(i)</num><content><p>top-up amounts attributed to the relevant member in accordance with Chapter 7, and</p></content></level><level class="para2"><num>(ii)</num><content><p>additional top-up amounts attributed to the relevant member in accordance with that Chapter, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>where <ref href="#d25e19238">subsection (1)</ref><ref href="#d25e19250">(b)</ref> applies, the untaxed amounts allocated to the relevant member in accordance with <ref href="#d25e19372">Chapter 9A</ref>.</p></content></level></subsection><subsection eId="d25e19302"><num>(3)</num><content><p>The amount charged (which in accordance with section 254 will be expressed in the CFS currency) is to be converted to sterling using the average exchange rate for the accounting period (if the CFS currency is not sterling).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>In section 124 (how to calculate top-up amounts etc)—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p><mod>in the heading, for “and attribute them” substitute <quotedText>“etc”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p><ref href="#d25e19372">Chapter 9A</ref> makes provision for—</p></intro><level class="para1"><num>(a)</num><content><p>determining whether members of the group have untaxed amounts, and</p></content></level><level class="para1"><num>(b)</num><content><p>allocating those untaxed amounts to members of the group located in the United Kingdom, other than members that are investment entities or joint venture group members.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p><mod>In section 254 (use of currency), in subsection (4), for “step 4 in” substitute <quotedText>“<ref href="#d25e19302">subsection (3)</ref> of”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e19362"><heading>New chapter to deal with UTPR</heading><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After Chapter 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e19372"><num>Chapter 9A</num><heading>Untaxed amounts</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>229A</num><heading>Meaning of potentially undertaxed</heading><subsection eId="d25e19387"><num>(1)</num><intro><p>The top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed” if—</p></intro><level class="para1"><num>(a)</num><content><p>M is the ultimate parent or is located in the same territory as the ultimate parent, or</p></content></level><level class="para1"><num>(b)</num><content><p>the ultimate parent is not a responsible member.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is not a responsible member,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the ownership interests of the ultimate parent in M are direct ownership interests, and</p></content></level><level class="para1"><num>(c)</num><content><p>every indirect ownership interest the ultimate parent has in M is derived from an ownership interest the ultimate parent has in a responsible member.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Subsection <ref href="#d25e19387">(1)</ref> also does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent is located in a territory in which a DIIR is in force and is a responsible member, and</p></content></level><level class="para1"><num>(b)</num><content><p>M is located in the same territory as the ultimate parent.</p></content></level></subsection><subsection><num>(4)</num><content><p>This section and section <ref href="#d25e19471">229B</ref> do not apply to members of a joint venture group (but see <ref href="#d25e20224">section 229I</ref> for alternative provision).</p></content></subsection></section><section eId="d25e19471"><num>229B</num><heading>Untaxed amounts</heading><subsection><num>(1)</num><content><p>A member of a multinational group has an untaxed amount if conditions A and B are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the top-up amount and additional top-up amounts of the member are potentially undertaxed.</p></content></subsection><subsection><num>(3)</num><content><p>Condition B is that the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts is less than the sum of the member’s top-up amount and additional top-up amounts.</p></content></subsection><subsection><num>(4)</num><intro><p>The untaxed amount is the amount given by subtracting—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed under Chapter 7 to responsible members in respect of the member’s top-up amount and additional top-up amounts, from</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the member’s top-up amount and additional top-up amounts.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Allocation of untaxed amounts</heading><section eId="d25e19517"><num>229C</num><heading>Allocation of untaxed amount to members</heading><subsection eId="d25e19521"><num>(1)</num><intro><p>An untaxed amount of a member of a multinational group is to be allocated to qualifying members of the group located in the United Kingdom by—</p></intro><level class="para1"><num>(a)</num><content><p>first, determining the amount (“the UK proportion”) of the untaxed amount to be allocated to the group in the United Kingdom in accordance with <ref href="#d25e19586">section 229D</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>then, allocating an amount of the UK proportion to each qualifying member located in the United Kingdom in accordance with <ref href="#d25e19776">section 229E</ref>.</p></content></level></subsection><subsection><num>(2)</num><content><p>But no allocation is to be made under <ref href="#d25e19521">subsection (1)</ref> if in section <ref href="#d25e19586">229D</ref><ref href="#d25e19590">(1)</ref> the results of both Step <ref href="#d25e19608">2</ref> and Step <ref href="#d25e19822">5</ref> are nil.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of this Chapter, a member of a multinational group is qualifying unless it is—</p></intro><level class="para1"><num>(a)</num><content><p>an investment entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>a member of a joint venture group.</p></content></level></subsection></section><section eId="d25e19586"><num>229D</num><heading>Amount allocated to the United Kingdom</heading><subsection eId="d25e19590"><num>(1)</num><content><p>Take the following steps to determine the UK proportion of an untaxed amount of a member of a multinational group—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of qualifying members of the group located in the United Kingdom for the accounting period to which the untaxed amount relates (“<term refersTo="#term-the-relevant-period">the relevant period</term>”).</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees in the relevant period of qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in the United Kingdom for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets of the qualifying members of the group located in territories (including the United Kingdom) in which a qualifying undertaxed profits tax applies to the untaxed amount.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The UK proportion of the untaxed amount is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19616">Step 3</ref>;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the untaxed amount multiplied by the result of <ref href="#d25e19640">Step 6</ref>;</p></item><item><num>(c)</num><p>in any other case, the untaxed amount multiplied by the result of <ref href="#d25e19648">Step 7</ref>.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of <ref href="#d25e19780">subsection (1)</ref>—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of <ref href="#d25e19608">Step 2</ref> is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of <ref href="#d25e19632">Step 5</ref> is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>A qualifying undertaxed profits tax applies in a territory in relation to an untaxed amount if—</p></intro><level class="para1"><num>(a)</num><content><p>a qualifying undertaxed profits tax is in force in that territory for the relevant period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of that tax result in a proportion of the untaxed amount (however described for the purposes of that tax) that is greater than nil being allocated to the territory.</p></content></level></subsection><subsection><num>(4)</num><content><p>See sections <ref href="#d25e19975">229G</ref> and <ref href="#d25e20104">229H</ref> for how to determine the number of employees and the value of tangible fixed assets of a qualifying member of a multinational group.</p></content></subsection></section><section eId="d25e19776"><num>229E</num><heading>Allocation to qualifying members</heading><subsection eId="d25e19780"><num>(1)</num><content><p>Take the following steps to determine how much of an untaxed amount is to be allocated to each qualifying member located in the United Kingdom—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of employees of the member in the accounting period (“<term refersTo="#term-the-relevant-period">the relevant period</term>”) to which the untaxed amount relates.</p></item><item><p><i>Step 2</i></p><p>Determine the total number of employees for the relevant period of qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 3</i></p><p>Divide the result of Step 1 by the result of Step 2.</p></item><item><p><i>Step 4</i></p><p>Determine the value of tangible fixed assets of the member for the relevant period.</p></item><item><p><i>Step 5</i></p><p>Determine the value of tangible fixed assets for the relevant period of the qualifying members of the group located in the United Kingdom.</p></item><item><p><i>Step 6</i></p><p>Divide the result of Step 4 by the result of Step 5.</p></item><item><p><i>Step 7</i></p><p>Add together the results of Step 3 and Step 6 and divide that sum by 2.</p></item><item><p><i>Step 8</i></p><p>The untaxed amount to be allocated to the member is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the nil asset value condition is met, the UK proportion multiplied by the result of Step 3;</p></item><item><num>(b)</num><p>if the nil employee condition is met, the UK proportion multiplied by the result of Step 6;</p></item><item><num>(c)</num><p>in any other case, the UK proportion multiplied by the result of Step 7.</p></item></blockList></item></blockList></content></subsection><subsection><num>(2)</num><intro><p>For the purposes of subsection (1)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “nil asset value condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 5 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 2 is not nil;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “nil employee condition” is met if—</p></intro><level class="para2"><num>(i)</num><content><p>the result of Step 2 is nil, but</p></content></level><level class="para2"><num>(ii)</num><content><p>the result of Step 5 is not nil.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>This section is subject to <ref href="#d25e19921">section 229F</ref>.</p></content></subsection></section><section eId="d25e19921"><num>229F</num><heading>Election to make one member of a group liable for untaxed amounts</heading><subsection><num>(1)</num><intro><p>The filing member of the group may elect for an accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p><ref href="#d25e19776">section 229E</ref> does not apply, and</p></content></level><level class="para1"><num>(b)</num><content><p>instead, a member of the group specified in the election is to be allocated the whole of the UK proportion of each untaxed amount that would be otherwise be allocated between the qualifying members of the group located in the United Kingdom.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A member of the group may only be specified in the election if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is located in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member has consented to the election.</p></content></level></subsection><subsection><num>(3)</num><content><p>Paragraph 2 of Schedule 15 (annual elections) applies to an election under this section, and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>How to determine number of employees and tangible fixed assets values</heading><section eId="d25e19975"><num>229G</num><heading>Number of employees</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter, the number of employees of a qualifying member of a multinational group in an accounting period is the full-time equivalent employee number for that member for that period.</p></content></subsection><subsection><num>(2)</num><content><p>To determine the full-time equivalent employee number for a member of a multinational group for an accounting period take the following steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the number of full-time employees of that member that were full-time employees for the whole of that period.</p></item><item><p><i>Step 2</i></p><p>Determine, for each employee of that member for that period who is not a full-time employee for the whole of that period (whether they were part-time employees or were not employed for the whole of the period), such fraction as is just and reasonable.</p></item><item><p><i>Step 3</i></p><p>Add together the number determined under Step 1 and the fractions determined under Step 2.</p><p>If the member was a member of the group throughout the whole of the period, the result of this Step is the full-time equivalent employee number.</p></item><item><p><i>Step 4</i></p><p>Where the member was not a member of the group for the whole period, make such adjustments to the result of Step 3 as is just and reasonable to arrive at a full-time equivalent employee number that reflects the number of employees of the member in the period for which it was a member of the group.</p><p>For the purpose of this Step, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></item></blockList></content></subsection><subsection eId="d25e20030"><num>(3)</num><intro><p>For the purposes of this section “<term refersTo="#term-employee">employee</term>”, in relation to a member of a multinational group, means a person whose employment costs are met by that member (whether or not the person’s activities are carried on in the territory of the member) as recorded in appropriate financial statements of the member and who—</p></intro><level class="para1"><num>(a)</num><content><p>is regarded as an employee under the law of the territory in which the member is located, or</p></content></level><level class="para1"><num>(b)</num><content><p>participates in the ordinary operating activities of the member of the group (including on a part-time basis).</p></content></level></subsection><subsection><num>(4)</num><content><p>For the purposes of <ref href="#d25e20030">subsection (3)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection eId="d25e20060"><num>(5)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), where a member of a multinational group is a flow-through entity, employees of the entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as employees of members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(6)</num><content><p><ref href="#d25e20060">Subsection (5)</ref> does not apply to employees of a flow-through entity that are regarded for the purposes of this section as employees of a permanent establishment of the entity.</p></content></subsection><subsection><num>(7)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the reference in <ref href="#d25e20030">subsection (3)</ref> to employment costs recorded in financial statements is to the employment costs that would have been so recorded had such statements been prepared (and those costs are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection></section><section eId="d25e20104"><num>229H</num><heading>Value of tangible fixed assets</heading><subsection eId="d25e20108"><num>(1)</num><intro><p>To determine the value of tangible fixed assets of a qualifying member of a multinational group for an accounting period—</p></intro><level class="para1" eId="d25e20114"><num>(a)</num><intro><p>add together—</p></intro><level class="para2"><num>(i)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the start of the period, as those values are recorded in the member’s financial statements, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of the values of each tangible fixed asset held by the member at the end of the period, as those values are recorded in the member’s financial statements, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>divide the result of <ref href="#d25e20114">paragraph (a)</ref> by 2.</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e20108">subsection (1)</ref> financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).</p></content></subsection><subsection><num>(3)</num><content><p>In each case the value of a tangible fixed asset is to include accumulated depreciation, depletion or impairment.</p></content></subsection><subsection eId="d25e20156"><num>(4)</num><content><p>If the member is not a member of the group at the start of the period, or at the end of the period, the sum of the values of its tangible fixed assets at that time is to be treated as nil.</p></content></subsection><subsection><num>(5)</num><content><p>For the purpose of <ref href="#d25e20156">subsection (4)</ref>, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).</p></content></subsection><subsection><num>(6)</num><content><p>Where a permanent establishment does not prepare separate financial accounts, the values to be used are those that would have been recorded in those accounts had they been prepared (and those values are to be excluded from the financial statements of the main entity for the purposes of applying this section).</p></content></subsection><subsection eId="d25e20177"><num>(7)</num><intro><p>For the purposes of section <ref href="#d25e19586">229D</ref> (but not for the purposes of section <ref href="#d25e19776">229E</ref>), tangible fixed assets held by a member of the group that is a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>are to be treated as held by members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or</p></content></level><level class="para1"><num>(b)</num><content><p>where there are no such members in that territory, are to be ignored for the purposes of this Chapter.</p></content></level></subsection><subsection><num>(8)</num><content><p><ref href="#d25e20177">Subsection (7)</ref> does not apply to assets of a flow-through entity that are held by a permanent establishment of the entity.</p></content></subsection><subsection><num>(9)</num><content><p>For the purposes of this Chapter “<term refersTo="#term-tangible-fixed-assets">tangible fixed assets</term>” means all tangible assets wherever located, other than cash or cash equivalents or financial assets.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Joint ventures</heading><section eId="d25e20224"><num>229I</num><heading>Joint ventures</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>the ultimate parent of a multinational group is not subject to Pillar Two IIR tax for an accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>the group includes a joint venture group, and</p></content></level><level class="para1"><num>(c)</num><content><p>the members of the joint venture group are undertaxed in relation to the multinational group for that period.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The members of a joint venture group are undertaxed in relation to a multinational group if—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of amounts attributed to responsible members of the multinational group under Chapter 7 in respect of members of the joint venture group’s top-up amount and additional top-up amounts, is less than</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of such amounts in respect of the joint venture group that would be attributed under that Chapter to the ultimate parent of the multinational group if it were subject to Pillar Two IIR tax.</p></content></level></subsection><subsection><num>(3)</num><content><p>The amount given by subtracting the amounts mentioned in paragraph (a) of subsection (2) from the amounts mentioned in paragraph (b) of that subsection is an untaxed amount of the joint venture group in relation to the multinational group.</p></content></subsection><subsection><num>(4)</num><content><p>Sections <ref href="#d25e19517">229C</ref> to <ref href="#d25e19921">229F</ref> (allocation of untaxed amounts) apply for the purposes of allocating an untaxed amount of a joint venture group in relation to a multinational group to qualifying members of that multinational group as they apply to the allocation of an untaxed amount of a member of the multinational group to those members.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>References to responsible members</heading><section><num>229J</num><heading>References to responsible members</heading><subsection><num>(1)</num><intro><p>For the purpose of determining untaxed amounts of a member of a multinational group who is located in a territory in which a DIIR is in force, references in this Chapter to a responsible member are to be interpreted as if section 128 (responsible members) had effect with the following modifications—</p></intro><level class="para1"><num>(a)</num><content><p>in subsection (2) omit “that are not located in the territory the ultimate parent is located in”;</p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (3)(c), at the beginning insert <quotedText>“the intermediate parent,”</quotedText>;</mod></p></content></level><level class="para1"><num>(c)</num><content><p>in subsection (4) omit “that are not located in the territory it is located in”;</p></content></level><level class="para1"><num>(d)</num><content><p><mod>in subsection (5)(b), at the beginning insert <quotedText>“it or”</quotedText>;</mod></p></content></level><level class="para1"><num>(e)</num><content><p>in subsection (6) omit “that are not located in the same territory it is located in”;</p></content></level><wrapUp><p>but this is subject to subsection <ref href="#d25e20345">(2)</ref>.</p></wrapUp></subsection><subsection eId="d25e20345"><num>(2)</num><intro><p>For the purpose of determining whether the top-up amount and additional top-up amounts of a member (“<term refersTo="#term-m">M</term>”) of a multinational group for an accounting period are “potentially undertaxed”, a member of the group which—</p></intro><level class="para1"><num>(a)</num><content><p>is located in the same territory as M, and</p></content></level><level class="para1"><num>(b)</num><content><p>would apart from this subsection be a responsible member,</p></content></level><wrapUp><p>is to be regarded for all purposes of this Chapter as not being a responsible member unless a DIIR is in force for the accounting period in that territory.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In this section “<term refersTo="#term-diir">DIIR</term>” means a tax which—</p></intro><level class="para1"><num>(a)</num><content><p>implements, in a Pillar Two territory, rules relating to top-up tax under the IIR (within the meaning of the Pillar Two rules), and</p></content></level><level class="para1"><num>(b)</num><content><p>is designed so that tax charged under it is not limited to tax in respect of members who are located outside that territory.</p></content></level></subsection></section></hcontainer></chapter></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20389"><heading>Transition into regime</heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>Schedule 16 (transitional provision) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><content><p><mod>In Chapter 1 of Part 2, in the Chapter heading, for “Transitional” substitute <quotedText>“General transitional”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p><mod>In Chapter 2 of Part 2, in the Chapter heading, after “Application” insert <quotedText>“of Chapter 1”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><content><p><mod>After Part 2 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2A</num><heading>UTPR transitional safe harbour election</heading><hcontainer name="crossheading" class="schGroup7"><heading>Election</heading><paragraph class="schProv1"><num>12A</num><subparagraph><num>(1)</num><intro><p>The filing member of a multinational group may elect for an accounting period that in the territory of the ultimate parent—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group located in the territory has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group whose joint venture parent is located in the territory has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>An election may only be made for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the minimum corporate tax rate for the territory of the ultimate parent is equal to, or in excess of, 20%, and</p></content></level><level class="para1"><num>(b)</num><intro><p>the accounting period—</p></intro><level class="para2"><num>(i)</num><content><p>commenced on or before 31 December 2025 and ends before 31 December 2026, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not longer than 12 months.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>The “minimum corporate tax rate” for a territory means—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a territory in which corporate income tax may be imposed by subdivisions of that territory as well as by a national authority, the sum of—</p></intro><level class="para2"><num>(i)</num><content><p>the nominal national rate that generally applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the lowest nominal rate that generally applies that is imposed by a subdivision of that territory (and where one or more subdivisions do not impose corporate income tax, that rate will be zero), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>otherwise, the nominal rate that generally applies.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p><mod>In Schedule 16A at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 2</num><heading>Untaxed amounts: international expansion of groups</heading><hcontainer name="crossheading" class="schGroup7"><heading>No untaxed amounts for groups in initial phase of international expansion</heading><paragraph class="schProv1"><num>7</num><subparagraph><num>(1)</num><intro><p>This paragraph applies to a multinational group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>it meets the international expansion condition for that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the accounting period is the first accounting period in which the group came within the scope of Chapter 9A, or any of the following 4 accounting periods.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If this paragraph applies to a multinational group for an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>no member of the group has an untaxed amount relating to that period, and</p></content></level><level class="para1"><num>(b)</num><content><p>no joint venture group has an untaxed amount in relation to the multinational group relating to that period.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>A multinational group meets the international expansion condition for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the group does not have members located in more than 6 territories, and</p></content></level><level class="para1"><num>(b)</num><content><p>the sum of the values of tangible fixed assets of qualifying members of the group, other than members located in the reference territory, for that period does not exceed 50 million euros.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>the value of tangible fixed assets of a qualifying member of a multinational group is to be determined in accordance with <ref href="#d25e20104">section 229H</ref>, and</p></content></level><level class="para1"><num>(b)</num><content><p>the “reference territory” is the territory for which the sum of the values of tangible fixed assets of qualifying members of the group located in that territory is greatest.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>The first accounting period in which a multinational group comes within the scope of Chapter 9A is the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period for which it meets Condition A in section 129(2) (annual revenue exceeds 750 million euros), and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period beginning on or after the day on which <ref href="#d25e19517">section 229C</ref> (allocation of untaxed amount to members) comes into force for any purpose.</p></content></level></subparagraph></paragraph></hcontainer></part></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20632"><heading>Consequential amendments: IIR and qualifying undertaxed profits tax</heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><intro><p>In section 128 (responsible members)—</p></intro><level class="para1" eId="schedule-4-paragraph-7-1-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(i), after “equivalent to” insert <quotedText>“the IIR provisions of”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-7-1-b"><num>(b)</num><content><p><mod>after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>In this section the “<term refersTo="#term-iir-provisions-of-multinational-top-up-tax">IIR provisions of multinational top-up tax</term>” means the provisions of this Part relating to the charging of top-up amounts and additional top-up amounts (but not untaxed amounts).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><content><p><mod>In section 257 (meaning of qualifying undertaxed profits tax), in subsection (1), after “it is” insert <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>multinational top-up tax (see, in particular, <ref href="#d25e19372">Chapter 9A</ref>), or</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20695"><heading>Other consequential amendments etc</heading><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 241 (Pillar Two territories), in subsection (2), for “equivalent to this Part—” substitute <quotedText>“which implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules)—”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p><mod>In Schedule 17 (index of defined expressions), in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“<term refersTo="#term-qualifying-member-(in-chapter-9a-of-part-3)">qualifying member (in Chapter 9A of Part 3)</term>”.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><content><p><mod>In Schedule 15 (elections), in paragraph 2(1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ha)</num><content><p><ref href="#d25e19921">section 229F</ref>;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><content><p><mod>In section 272 (domestic top-up tax for members of groups), in subsection (4), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(c)</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p><mod>In section 273 (domestic top-up tax for single entities), in subsection (4), after paragraph (z) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>z1</num><content><p>Chapter 9A (qualifying undertaxed profits tax).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20770"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><content><p>The amendments made by this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024.</p></content></paragraph></hcontainer></part><part eId="schedule-4-part-3"><num>Part 3</num><heading>Others</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e20784"><heading>Permanent establishments as excluded entities</heading><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 127 (excluded entities), in each of subsections (5), (6) and (7), in paragraph (a), for “it” substitute <quotedText>“the entity or, in the case of a permanent establishment, the main entity”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20796"><heading>Use of substituted values</heading><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p><mod>After section 137 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>137A</num><heading>Use of substituted values</heading><subsection><num>(1)</num><intro><p>Where any provision of this Part requires the substitution of a value recorded in the underlying profits accounts of a member of a multinational group for an accounting period, the substituted value—</p></intro><level class="para1"><num>(a)</num><content><p>is to be used for all purposes of this Part instead of the value recorded in the accounts (for example, where the carrying value of an asset has been substituted and the value of that asset is relevant to the member’s deferred tax expense, that substituted value is to be used in connection with determining that expense), and</p></content></level><level class="para1"><num>(b)</num><content><p>is to be updated (for example, in making adjustments for depreciation for subsequent accounting periods),</p></content></level><wrapUp><p>in each case, in accordance with the accounting standard used in determining the underlying profits of the member.</p></wrapUp></subsection><subsection eId="d25e20837"><num>(2)</num><content><p>But where the value in question is the value of an asset, no adjustments for impairment are to be made to it.</p></content></subsection><subsection eId="d25e20843"><num>(3)</num><content><p>Where the impaired value of an asset recorded in the underlying profits accounts for any accounting period is less than the substituted value of the asset for that period, use the value from the underlying profits accounts instead for that period and all subsequent periods (and <ref href="#d25e20837">subsection (2)</ref> does not apply in relation to that value).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><intro><p>In section 197 (eligible tangible asset amount), in <ref href="#d25e20843">subsection (3)</ref>—</p></intro><level class="para1" eId="schedule-4-paragraph-12-2-a"><num>(a)</num><content><p><mod>after “means” insert <quotedText>“values”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-12-2-b"><num>(b)</num><content><p><mod>after “parent” insert <quotedText>“(and not values as substituted as a result of any other provision of this Part)”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e20879"><heading>Flow-through entities</heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-4-paragraph-13-1"><num>(1)</num><content><p>Section 168 (underlying profits of transparent and reverse hybrid entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-2"><num>(2)</num><content><p>In the heading omit “and reverse hybrid”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20905"><num>(2A)</num><intro><p>Subject to <ref href="#d25e20941">subsection (2C)</ref>, a member of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M if that member—</p></intro><level class="para1"><num>(a)</num><content><p>is a non-FTE entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>holds an ownership interest in M which is not held through a non-FTE entity.</p></content></level></subsection><subsection><num>(2B)</num><content><p>In subsection <ref href="#d25e20905">(2A)</ref> “<term refersTo="#term-non-fte-entity">non-FTE entity</term>” means an entity that is not a flow-through entity.</p></content></subsection><subsection eId="d25e20941"><num>(2C)</num><content><p>If no member of the group is a reference entity in relation to M by virtue of subsection <ref href="#d25e20905">(2A)</ref>, the ultimate parent of the group is a “<term refersTo="#term-reference-entity">reference entity</term>” in relation to M.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-4"><num>(4)</num><content><p><mod>In subsection (3) for the words from “each” to the end substitute “any member of the group (“<term refersTo="#term-r" eId="term-r">R</term>”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>which is a reference entity in relation to M, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to which condition A or B is met.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-13-5-a"><num>(a)</num><content><p><mod>in each place, for “O” substitute <quotedText>“R”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-b"><num>(b)</num><content><p><mod>for “proportional” substitute <quotedText>“percentage”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-13-5-c"><num>(c)</num><content><p>omit “(subject to subsection (7))”.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-13-6"><num>(6)</num><content><p><mod>For subsections (5) and (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>Condition A is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is direct,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest, and</p></content></level><level class="para1"><num>(c)</num><content><p>M is regarded as tax transparent in the territory in which R is located.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Condition B is met if—</p></intro><level class="para1"><num>(a)</num><content><p>R’s ownership interest in M is indirect,</p></content></level><level class="para1"><num>(b)</num><content><p>R’s ownership interest in M is a flow-through ownership interest,</p></content></level><level class="para1"><num>(c)</num><content><p>M and each entity through which the ownership interest is held are regarded as tax transparent in the territory in which R is located, and</p></content></level><level class="para1"><num>(d)</num><content><p>no entity through which R holds the ownership interest is a reference entity in relation to M.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-7"><num>(7)</num><content><p>Omit subsection (7).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-8"><num>(8)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21079"><num>(9)</num><intro><p>Where every ownership interest in M held by a member of the group is a flow-through ownership interest, and an individual or entity (“the investor”) that is not a member of the group has an ownership interest in M which is held—</p></intro><level class="para1"><num>(a)</num><content><p>directly, or</p></content></level><level class="para1"><num>(b)</num><content><p>through a direct ownership interest in an entity in which a member of the group which is a reference entity in relation to M has an ownership interest,</p></content></level><wrapUp><p>a proportion of M’s underlying profits, equal to the percentage ownership interest the investor has in M, is to be excluded from the adjusted profits of M.</p></wrapUp></subsection><subsection><num>(9A)</num><content><p>Where M is the main entity in relation to a permanent establishment falling within paragraph (a), (b) or (c) of section 232(2), any reduction of M’s underlying profits by virtue of subsection <ref href="#d25e21079">(9)</ref> is to be applied before any attribution of M’s underlying profits to a permanent establishment in accordance with section 159.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-9"><num>(9)</num><content><p>In subsection (10) omit “or an individual”.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-10"><num>(10)</num><content><p><mod>After subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10A)</num><intro><p>For the purposes of subsections (5), (6) and (9), an ownership interest in M held by a member of the group is a flow-through ownership interest if (and so far as)—</p></intro><level class="para1"><num>(a)</num><content><p>M is regarded, otherwise than by virtue of section 169(2), as tax transparent in the territory in which M was created,</p></content></level><level class="para1"><num>(b)</num><content><p>the interest is held directly and M is treated by virtue of section 169(2) as being regarded as tax transparent to the extent of the interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>the interest is derived from a direct ownership interest in M to which paragraph (b) applies.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-11"><num>(11)</num><content><p>Omit subsections (11) and (12).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 169 (certain non tax resident entities to be treated as flow-through entities), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-14-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “created” insert <quotedText>“in”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-14-b"><num>(b)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-14-b-i"><num>(i)</num><content><p><mod>after “is” insert <quotedText>“regarded as”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-14-b-ii"><num>(ii)</num><content><p><mod>for “its owners” substitute <quotedText>“holders of direct ownership interests in the member”</quotedText>.</mod></p></content></level></level></paragraph><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (2A) omit “and reverse hybrid”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-4-paragraph-16-1"><num>(1)</num><content><p>Section 178 (reallocation of tax expense) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “hybrid, transparent and reverse hybrid” substitute <quotedText>“hybrid and transparent”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-3"><num>(3)</num><content><p><mod>After subsection (1B) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1C)</num><intro><p>Subsection (1D) has effect where—</p></intro><level class="para1"><num>(a)</num><content><p>a member of a multinational group (“<term refersTo="#term-m">M</term>”) is a flow-through entity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>any of the following are not regarded as tax transparent in the territory in which a member of the group (“<term refersTo="#term-r">R</term>”), which is a reference entity in relation to M (within the meaning of section 168<ref href="#d25e20905">(2A)</ref>), is located—</p></intro><level class="para2"><num>(i)</num><content><p>M;</p></content></level><level class="para2"><num>(ii)</num><content><p>any member of the group through which R’s ownership interest in M is held.</p></content></level></level></subsection><subsection><num>(1D)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>R, or any member of the group (“<term refersTo="#term-x">X</term>”) which has an ownership interest in R, has an amount of qualifying current tax expense,</p></content></level><level class="para1"><num>(b)</num><content><p>that amount is in respect of profits not included in R’s, or as the case may be X’s, underlying profits, and</p></content></level><level class="para1"><num>(c)</num><content><p>had those profits had been included in R’s, or as the case may be X’s, underlying profits a corresponding amount of profits would have been allocated to M under section 167 (ignoring for this purpose subsection (1)(a) of that section) or 168,</p></content></level><wrapUp><p>that qualifying current tax expense is to be allocated to M (and is to be regarded as qualifying current tax expense of M for the purposes of section 175(2)(a)).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), after “(1A))” insert <quotedText>“or to M (under subsection (1D))”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 240 (location of flow-through entities and permanent establishments), in subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-17-a"><num>(a)</num><content><p><mod>before “would” insert <quotedText>“is the ultimate parent of a multinational group, or”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-17-b"><num>(b)</num><content><p><mod>for “it is located in that territory” substitute <quotedText>“the entity is treated as located in the territory in which it is created”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21323"><heading>Tax equity partnerships</heading><paragraph eId="schedule-4-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In section 174 (amount of covered tax balance), in subsection (1), in Step 4, for “covered tax balance expense” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In sections 175 and 176, in the headings, for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-4-paragraph-20-1"><num>(1)</num><content><p>Section 176D (tax credits etc allocated under tax equity partnerships) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-2"><num>(2)</num><content><p><mod>In subsection (1), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>“<term refersTo="#term-flow-through-tax-benefits">Flow-through tax benefits</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>tax credits, other than qualifying refundable tax credits and marketable transferable tax credits, and</p></content></level><level class="para1"><num>(b)</num><content><p>the value of amounts of tax deductible losses,</p></content></level><wrapUp><p>that are made available to be used by an investor in a tax equity partnership arrangement under that arrangement (whether or not those credits or losses are used by the investor).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-4"><num>(4)</num><intro><p>In subsection (3)(b)—</p></intro><level class="para1" eId="schedule-4-paragraph-20-4-a"><num>(a)</num><content><p><mod>for “176D” substitute <quotedText>“176E”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-20-4-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“and the arrangement”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-20-5"><num>(5)</num><content><p><mod>In subsection (7), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-6"><num>(6)</num><content><p><mod>For subsection (11) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e21433"><num>(11)</num><intro><p>An election under subsection (3)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the first accounting period for which it is to have effect, which must be the first relevant period,</p></content></level><level class="para1"><num>(b)</num><content><p>must be made no later than the date by which the information return or overseas return notification in respect of the first relevant period is due,</p></content></level><level class="para1"><num>(c)</num><content><p>must be included in an information return submitted to HMRC or a qualifying authority in respect of the first relevant period,</p></content></level><level class="para1"><num>(d)</num><content><p>has effect for the first relevant period and each subsequent accounting period, and</p></content></level><level class="para1"><num>(e)</num><content><p>cannot be revoked.</p></content></level></subsection><subsection><num>(12)</num><intro><p>In subsection <ref href="#d25e21433">(11)</ref>, “<term refersTo="#term-the-first-relevant-period">the first relevant period</term>” means the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the first accounting period in which the member is an investor in the tax equity partnership arrangement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first accounting period for which the Pillar Two rules apply to the member.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-7"><num>(7)</num><content><p>Where a person became an investor in a tax equity partnership arrangement in an accounting period that began before 31 December 2024, section 176D(11) of F(No.2)A 2023 (as inserted by <ref href="#schedule-4-paragraph-20-6">sub-paragraph (6)</ref>) has effect in relation to the arrangement as if “the first relevant period” were the first accounting period beginning on or after that date.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-20-8"><num>(8)</num><content><p>In sub-paragraph <ref href="#schedule-4-paragraph-20-7">(7)</ref>, “<term refersTo="#term-investor-in-a-tax-equity-partnership-arrangement" eId="term-investor-in-a-tax-equity-partnership-arrangement">investor in a tax equity partnership arrangement</term>” has the same meaning as in section 176D of F(No.2)A 2023.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-4-paragraph-21-1"><num>(1)</num><content><p>Section 176E (flow-through tax benefits: proportional amortisation method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-2"><num>(2)</num><intro><p>In subsection (1), in Step 2—</p></intro><level class="para1" eId="schedule-4-paragraph-21-2-a"><num>(a)</num><content><p><mod>for “flow-through through tax benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-21-2-b"><num>(b)</num><content><p><mod>after “expected” insert <quotedText>“(as at the end of the accounting period)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-21-3"><num>(3)</num><content><p><mod>Also in subsection (1), in Step 7, for “flow-through benefits” substitute <quotedText>“flow-through tax benefits”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-4"><num>(4)</num><content><p><mod>In subsection (2), for “covered tax balance” substitute <quotedText>“qualifying current tax expense”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-21-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3)</num><content><p>Subsections <ref href="#d25e21585">(4)</ref> to <ref href="#d25e21624">(6)</ref> apply in relation to an investor, an arrangement and an accounting period if flow-through tax benefits were provided to the investor under the arrangement in at least one earlier accounting period.</p></content></subsection><subsection eId="d25e21585"><num>(4)</num><content><p>Where the result of Step 3 in subsection (1) would (but for this subsection) be greater than N, this section has effect as if the result of Step 3 were N.</p></content></subsection><subsection eId="d25e21591"><num>(5)</num><intro><p>To find N—</p></intro><level class="para1" eId="d25e21597"><num>(a)</num><content><p>identify the amount that was the result of Step 3 in subsection (1) in each earlier accounting period in which flow-through tax benefits were provided to the investor under the arrangement,</p></content></level><level class="para1" eId="d25e21603"><num>(b)</num><content><p>add together all the amounts identified under <ref href="#d25e21597">paragraph (a)</ref>, and</p></content></level><level class="para1"><num>(c)</num><content><p>subtract the result of <ref href="#d25e21603">paragraph (b)</ref> from the result of Step 1 in subsection (1).</p></content></level><wrapUp><p>The result is N, unless the result is below nil, in which case N is nil.</p></wrapUp></subsection><subsection eId="d25e21624"><num>(6)</num><content><p>A reference in <ref href="#d25e21591">subsection (5)</ref><ref href="#d25e21597">(a)</ref> to the result of Step 3 in subsection (1) in an earlier accounting period, where <ref href="#d25e21585">subsection (4)</ref> had effect in relation to the earlier period, is to the result of that Step as modified under <ref href="#d25e21585">subsection (4)</ref>.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-4-paragraph-22-1"><num>(1)</num><content><p>Section 176F (flow-through tax benefits: subtraction method) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-2"><num>(2)</num><content><p><mod>In Step 2, in paragraph (a), for the words from “other than” to the end substitute <quotedText startQuote="“">other than tax credits—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>that were made available in the accounting period, and</p></item><item><num>(ii)</num><p>that are not qualifying refundable tax credits or marketable transferable tax credits;</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-22-3"><num>(3)</num><content><p><mod>In Step 3, for “under arrangement” substitute <quotedText>“under the arrangement”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-23" class="schProv1"><num>23</num><content><p><mod>After section 176F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>176G</num><heading>Clawback of earlier qualifying flow-through tax benefits</heading><subsection><num>(1)</num><intro><p>This section applies to an investor in a tax equity partnership arrangement if—</p></intro><level class="para1"><num>(a)</num><content><p>qualifying flow-through tax benefits are excluded under section 176D(1) from the investor’s covered tax balance for an accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the investor has an excess return from the arrangement in a later accounting period (“the later period”).</p></content></level></subsection><subsection eId="d25e21712"><num>(2)</num><content><p>For the purpose of determining the investor’s covered tax balance for the later period, the investor’s qualifying current tax expense for that period is to be adjusted (after the steps in section 174(1) have been taken) by subtracting the clawback amount.</p></content></subsection><subsection><num>(3)</num><content><p>“The clawback amount” is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the total amount of the qualifying flow-through tax benefits provided to the investor under the arrangement in accounting periods before the later period.</p></item><item><p><i>Step 2</i></p><p>Subtract from the result of Step 1 the total of any amounts subtracted under <ref href="#d25e21712">subsection (2)</ref> from the investor’s qualifying current tax expense for accounting periods before the later period.</p></item><item><p><i>Step 3</i></p><p>Compare the result of Step 2 with the amount of the investor’s excess return from the arrangement in the later period.</p><p>Whichever is less is the clawback amount.</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, an investor has an “excess return” from an arrangement in an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>where section 176E applies, if the result of Step 6 in section 176E(1) exceeds the amount of the flow-through tax benefits provided under the arrangement in the accounting period, in which case the amount of the excess return is the amount of the excess;</p></content></level><level class="para1"><num>(b)</num><content><p>where section 176F applies and the investor did not have an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than nil, in which case the amount of the excess return is the amount by which it is less than nil;</p></content></level><level class="para1"><num>(c)</num><content><p>where section 176F applies and the investor had an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than it was in the last accounting period in which the investor had an excess return from the arrangement, in which case the amount of the excess return is the amount of the difference.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-24" class="schProv1"><num>24</num><content><p>In Schedule 15 (elections), in paragraph 2(1) (annual elections), omit paragraph (za).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21785"><heading>Blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-4-paragraph-25-1"><num>(1)</num><content><p>Section 180 (blended CFC regimes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-25-2"><num>(2)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-25-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “the effective tax rate of” substitute <quotedText>“a single effective tax rate of all”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is a member of the multinational group,</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different subsets of (one or more) members of the multinational group located in the territory where the CFC entity is located (“local blending subsets”), and</p></content></level><level class="para2"><num>(iii)</num><content><p>the CFC entity is a member of a local blending subset,</p></content></level><wrapUp><p>the effective tax rate of the local blending subset of which the CFC entity is a member, calculated on the assumptions set out in paragraph (a)(i) and (ii) (“the relevant assumptions”);</p></wrapUp></level><level class="para1"><num>(ab)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the CFC entity is not a member of the multinational group, or is a member of the multinational group but not a member of any local blending subset, and</p></content></level><level class="para2"><num>(ii)</num><content><p>different effective tax rates are calculated for the period for different local blending subsets,</p></content></level><wrapUp><p>the effective tax rate, calculated on the relevant assumptions, of the local blending subset whose members have collectively the highest attributable income of C in relation to the CFC entity (as mentioned in subsection (5)(a));</p></wrapUp></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-25-2-c"><num>(c)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-25-2-c-i"><num>(i)</num><content><p><mod>for “where it is not located in such a territory,” substitute <quotedText>“where no applicable effective tax rate can be determined under paragraphs (a) to (ab)”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-25-2-c-ii"><num>(ii)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>But this is subject to section 180A.</p></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-25-3"><num>(3)</num><content><p><mod>After section 180 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>180A</num><heading>Section 180: further provision</heading><subsection><num>(1)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 3 of Schedule 16 for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of the multinational group (as defined in paragraph 8 of Schedule 16)).</p></content></subsection><subsection><num>(2)</num><content><p>Where the filing member of the multinational group mentioned in section 180(8)(a) has made a transitional safe harbour election under paragraph 10 of Schedule 16 (application in the case of joint venture group) for the relevant period in respect of the territory mentioned in section 180(8)(a), for the purposes of that section the effective tax rate of the members of the group in respect of which the election applies is to be taken to be the simplified effective tax rate of the standard members of that multinational group (as defined in paragraph 8 of Schedule 16).</p></content></subsection><subsection><num>(3)</num><content><p>Subsection (4) has effect where the filing member of a particular multinational group mentioned in section 180(8)(a) has made one or more separate elections under any of paragraphs 1, 4, 5 and 6 of Schedule 16A for the relevant period in respect of the territory mentioned in section 180(8)(a).</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of section 180, the effective tax rate of any member or set of members to which a particular election mentioned in subsection (4) relates is to be the rate (expressed as a percentage) given by dividing—</p></intro><level class="para1"><num>(a)</num><content><p>the aggregate tax expense of that member or set of members used to determine the effective tax rate for the purposes of the qualifying domestic top-up tax applying in the territory for the accounting period, together with any amounts of qualifying domestic top-up tax paid of that member or set of members, by</p></content></level><level class="para1"><num>(b)</num><content><p>the income of that member or set of members determined for the purposes of the qualifying domestic top-up tax.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “relevant period” is to be interpreted in accordance with section 180(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21949"><heading>No allocation of deferred tax assets and liabilities under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-26" class="schProv1"><num>26</num><content><p><mod>In section 180 (blended CFC regimes), in subsection (3), in the words before paragraph (a), for “tax charged to C under” substitute <quotedText>“C’s current tax expense so far as relating to”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e21961"><heading>Cross-border allocation of current tax under cross-crediting regimes</heading><paragraph eId="schedule-4-paragraph-27" class="schProv1"><num>27</num><content><p><mod>After section 181 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e21974"><num>181A</num><heading>Cross-border allocation of current tax under cross-crediting regime</heading><subsection><num>(1)</num><content><p>Qualifying current tax expense is to be allocated between standard members of a multinational group in a territory in which a cross-crediting regime applies and standard members of the group in another territory in accordance with the cross-crediting regime methodology.</p></content></subsection><subsection><num>(2)</num><content><p>A cross-crediting regime applies in a territory if, under the law of that territory, taxes paid with respect to one source of income arising in another territory give rise to foreign tax credits which can be used against another source of income arising in a further territory.</p></content></subsection><subsection eId="d25e21990"><num>(3)</num><intro><p>The “<term refersTo="#term-cross-crediting-regime-methodology">cross-crediting regime methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the cross-crediting regime methodology, or</p></content></level><level class="para1" eId="d25e22005"><num>(b)</num><content><p>where no cross-crediting regime methodology is identified in any such regulations, the methodology described in the cross-crediting guidance.</p></content></level></subsection><subsection><num>(4)</num><content><p>The “<term refersTo="#term-cross-crediting-guidance">cross-crediting guidance</term>” means Chapter 3.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(5)</num><content><p>Where <ref href="#d25e21990">subsection (3)</ref><ref href="#d25e22005">(b)</ref> applies, the cross-crediting guidance has effect as cross-crediting regime methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(6)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the cross-crediting regime methodology.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22037"><heading>Cross-border allocation of deferred tax</heading><paragraph eId="schedule-4-paragraph-28" class="schProv1"><num>28</num><content><p><mod>After section <ref href="#d25e21974">181A</ref> (as inserted by <ref href="#schedule-4-paragraph-27">paragraph 27</ref>) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Cross-border allocation of deferred tax expense</heading><section><num>181B</num><heading>Cross-border allocation of deferred tax assets and liabilities</heading><subsection><num>(1)</num><content><p>Deferred tax assets and liabilities are to be allocated between standard members of a multinational group in one territory and standard members of the group in another territory in accordance with the deferred taxes methodology.</p></content></subsection><subsection eId="d25e22069"><num>(2)</num><intro><p>The “<term refersTo="#term-deferred-taxes-methodology">deferred taxes methodology</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the deferred taxes methodology, or</p></content></level><level class="para1" eId="d25e22084"><num>(b)</num><content><p>where no deferred taxes methodology is identified in any such regulations, the methodology described in the cross-border deferred taxes guidance.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-cross-border-deferred-taxes-guidance">cross-border deferred taxes guidance</term>” means Chapter 4.2 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(4)</num><content><p>Where <ref href="#d25e22069">subsection (2)</ref><ref href="#d25e22084">(b)</ref> applies, the cross-border deferred taxes guidance has effect as deferred taxes methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(5)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the deferred taxes methodology.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22116"><heading>Extension of qualifying foreign tax credits</heading><paragraph eId="schedule-4-paragraph-29" class="schProv1"><num>29</num><intro><p>In section 183 (qualifying foreign tax credits (substitute loss carry forward assets))—</p></intro><level class="para1" eId="schedule-4-paragraph-29-a"><num>(a)</num><intro><p>in subsection (5)—</p></intro><level class="para2" eId="schedule-4-paragraph-29-a-i"><num>(i)</num><content><p>the words from “income”, in the second place it occurs, to the end become paragraph (a), and</p></content></level><level class="para2" eId="schedule-4-paragraph-29-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>other qualifying income.</p></content></level></quotedStructure></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-29-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>For the purposes of subsection (5) “other qualifying income means”—</p></intro><level class="para1"><num>(a)</num><content><p>income identified as such for the purposes of this section in regulations made under section 262(1)(a), or</p></content></level><level class="para1"><num>(b)</num><content><p>where no income is identified as other qualifying income in any such regulations, such income as is necessary to give effect to the substitute loss carry-forward guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-substitute-loss-carry-forward-guidance">substitute loss carry-forward guidance</term>” means Chapter 4.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22187"><heading>Deferred tax recapture</heading><paragraph eId="schedule-4-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 184 (recaptured deferred tax liabilities) after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>This section is to be applied in accordance with, and is subject to, the DTL recapture methodology.</p></content></subsection><subsection eId="d25e22203"><num>(6)</num><intro><p>The DTL recapture methodology means provisions about the treatment of deferred tax liabilities—</p></intro><level class="para1"><num>(a)</num><content><p>set out in regulations made under section 262(1)(a) and identified in those regulations as the DTL recapture methodology, or</p></content></level><level class="para1" eId="d25e22215"><num>(b)</num><content><p>where no such provisions are identified in any such regulations, set out in the DTL recapture guidance.</p></content></level></subsection><subsection><num>(7)</num><content><p>The “<term refersTo="#term-dtl-recapture-guidance">DTL recapture guidance</term>” means the guidance in Chapter 1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.</p></content></subsection><subsection><num>(8)</num><content><p>Where subsection <ref href="#d25e22203">(6)</ref><ref href="#d25e22215">(b)</ref> applies, the DTL recapture guidance has effect as DTL recapture methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies).</p></content></subsection><subsection><num>(9)</num><content><p>This Chapter is to have effect with such modifications as are necessary to give effect to the DTL recapture methodology.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22247"><heading>Existing deferred tax assets and liabilities arising under blended CFC regimes</heading><paragraph eId="schedule-4-paragraph-31" class="schProv1"><num>31</num><content><p><mod>In section 185 (inclusion of existing deferred tax assets and liabilities on entry into regime), after subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Subsection <ref href="#d25e22266">(9)</ref> applies to a deferred tax asset or deferred tax liability of a member of a qualifying multinational group that arises under a blended CFC regime.</p></content></subsection><subsection eId="d25e22266"><num>(9)</num><content><p>A deferred tax asset or deferred tax liability to which this subsection applies is to be ignored in determining the member’s deferred tax expense.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22272"><heading>Substance based income exclusion: permanent establishments and flow-through entities</heading><paragraph eId="schedule-4-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 195 (substance based income exclusion), for subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>Section 198 supplements the rules in sections 196 and 197 in relation to a member that is a permanent establishment.</p></content></subsection><subsection><num>(9)</num><content><p>Section 198ZA supplements the rules in sections 196 and 197 in relation to a member that is a flow-through entity.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-33" class="schProv1"><num>33</num><content><p><mod>For section 198 (eligible payroll costs and eligible tangible asset amount: permanent establishments and flow-through entities) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>198</num><heading>Eligible payroll costs and eligible tangible asset amount: permanent establishments</heading><subsection><num>(1)</num><content><p>Sections 196 and 197 apply in relation to permanent establishments with the following modifications.</p></content></subsection><subsection><num>(2)</num><content><p>In determining under section 196 the eligible payroll costs of a permanent establishment within section 232(2)(a) to (c), the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the establishment.</p></content></subsection><subsection><num>(3)</num><content><p>In determining under section 197 the eligible tangible asset amount of a permanent establishment within section 232(2)(a) to (c), the only assets to be taken into account are assets used in the business of the establishment.</p></content></subsection><subsection><num>(4)</num><content><p>Both the eligible payroll costs and the eligible tangible asset amount of a permanent establishment within section 232(2)(d) are nil.</p></content></subsection><subsection><num>(5)</num><intro><p>If but for this subsection—</p></intro><level class="para1"><num>(a)</num><content><p>an amount would be taken into account under section 196 in respect of both a permanent establishment and the main entity, or</p></content></level><level class="para1"><num>(b)</num><content><p>an asset would be taken into account under section 197 in respect of both a permanent establishment and the main entity,</p></content></level><wrapUp><p>the amount or asset is only to be taken into account in respect of the permanent establishment.</p></wrapUp></subsection></section><section eId="d25e22355"><num>198ZA</num><heading>Eligible payroll costs: flow-through entities</heading><subsection eId="d25e22359"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period if the member has costs that would be eligible payroll costs if the member were located in that territory and were not a flow-through entity and—</p></intro><level class="para1" eId="d25e22365"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Section 196 applies for the purposes of determining a flow-through payroll amount of a flow-through entity for a territory as it applies for the purposes of determining eligible payroll costs but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in that section to the territory of the member were to the territory to which the flow-through payroll amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22730">(7)</ref> of that section were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through payroll amount for a territory for an accounting period, the eligible payroll costs of each member of the group falling within subsection <ref href="#d25e22359">(1)</ref><ref href="#d25e22365">(a)</ref> for that period (which may be nil) are to be increased by the amount given by multiplying the flow-through payroll amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through payroll amount for that period,</p></content></level><wrapUp><p>the eligible payroll costs of that entity for that period (which may be nil) are to be increased by the amount given by multiplying that flow-through payroll amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section eId="d25e22516"><num>198ZB</num><heading>Eligible tangible asset amount: flow-through entities</heading><subsection eId="d25e22520"><num>(1)</num><intro><p>A member of a multinational group that is a flow-through entity that is not the ultimate parent has a flow-through tangible asset amount for a territory for an accounting period if the member holds one or more assets in that territory and—</p></intro><level class="para1" eId="d25e22526"><num>(a)</num><intro><p>there is at least one other member of the group—</p></intro><level class="para2"><num>(i)</num><content><p>that is not a flow-through entity,</p></content></level><level class="para2"><num>(ii)</num><content><p>that is located in that territory, and</p></content></level><level class="para2"><num>(iii)</num><content><p>to whom a proportion of the underlying profits of the flow-through entity for the accounting period are allocated under section 168 (underlying profits of transparent entities) or, where the underlying profits of the entity are nil or less, would be so allocated if the flow-through entity had underlying profits of 100 euros, or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the entity—</p></intro><level class="para2"><num>(i)</num><content><p>is a flow-through entity to some extent for that period as a result of section 169 (certain non tax resident entities to be treated as flow-through entities),</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para2"><num>(iii)</num><content><p>was created in that territory.</p></content></level></level></subsection><subsection><num>(2)</num><intro><p>Sections 197 and 197A apply for the purposes of determining a flow-through tangible asset amount of a flow-through entity for a territory as they apply for the purposes of determining an eligible tangible asset amount but as if—</p></intro><level class="para1"><num>(a)</num><content><p>any reference in those sections to the territory of the member were to the territory to which the flow-through tangible asset amount relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>subsection <ref href="#d25e22746">(10)</ref> of section 197 were omitted.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where a member of a multinational group that is a flow-through entity has a flow-through tangible asset amount for a territory for an accounting period, the eligible tangible asset amount of each member of the group falling within subsection <ref href="#d25e22520">(1)</ref><ref href="#d25e22526">(a)</ref> for that period (which may be nil) is to be increased by the amount given by multiplying the flow-through tangible asset amount by the relevant proportion in relation to that member for that period.</p></content></subsection><subsection><num>(4)</num><intro><p>The relevant proportion in relation to a member for an accounting period is the proportion of the underlying profits of the flow-through entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the flow-through entity has underlying profits that exceed nil for that period, that is allocated to that member under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the flow-through entity for that period are nil or less, that would be allocated to that member if the flow-through entity had underlying profits of 100 euros.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where a flow-through entity—</p></intro><level class="para1"><num>(a)</num><content><p>is a flow-through entity to some extent for an accounting period as a result of section 169,</p></content></level><level class="para1"><num>(b)</num><content><p>is not a flow-through entity to some extent for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>was created in a territory for which it has a flow-through tangible asset amount for that period,</p></content></level><wrapUp><p>the eligible tangible asset amount of that entity for that period (which may be nil) is to be increased by the amount given by multiplying that flow-through tangible asset amount by the relevant proportion in relation to that entity for that period.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>The relevant proportion in relation to that entity for an accounting period is the proportion of the underlying profits of the entity for that period—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the entity has underlying profits that exceed nil for that period, that are not allocated to any other entity under section 168, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the underlying profits of the entity for that period are nil or less, that would not be allocated to any other entity under that section if the entity had profits of 100 euros.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of applying this section in relation to a multinational group whose ultimate parent is a flow-through entity, the ultimate parent is to be treated as not being a flow-through entity.</p></content></subsection></section><section><num>198ZC</num><heading>Eligible payroll costs and eligible tangible asset amount: flow-through ultimate parent</heading><subsection eId="d25e22681"><num>(1)</num><content><p>In determining for an accounting period the eligible payroll costs or eligible tangible asset amount of a flow-through entity that is the ultimate parent of a multinational group, the amount given by section 196 or 197 is to be reduced by the section 170 proportion.</p></content></subsection><subsection eId="d25e22687"><num>(2)</num><intro><p>In subsection <ref href="#d25e22681">(1)</ref>, “<term refersTo="#term-the-section-170-proportion">the section 170 proportion</term>” means the proportion of the adjusted profits of the flow-through entity for the accounting period that—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where subsection (1) of 170 (adjustments for ultimate parent that is a flow-through entity) applies, is excluded under that subsection, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where that subsection does not apply as a result of the entity having not made a profit for that period, would be excluded under that subsection if the entity had adjusted profits of 100 euros.</p></content></level></subsection><subsection><num>(3)</num><content><p>In subsection <ref href="#d25e22687">(2)</ref>, “<term refersTo="#term-the-adjusted-profits">the adjusted profits</term>” means the adjusted profits before the application of section 170.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 196 (eligible payroll costs), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22730"><num>(7)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having nil eligible payroll costs (subject to the application of section <ref href="#d25e22355">198ZA</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-35" class="schProv1"><num>35</num><content><p><mod>In section 197 (eligible tangible asset amount), after subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e22746"><num>(10)</num><content><p>A member of a multinational group that is a flow-through entity that is a responsible member of the group but which is not the ultimate parent is to be regarded as having an eligible tangible asset amount of nil (subject to the application of section <ref href="#d25e22516">198ZB</ref>).</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22755"><heading>Eligible payroll costs</heading><paragraph eId="schedule-4-paragraph-36" class="schProv1"><num>36</num><intro><p>In section 196 (eligible payroll costs)—</p></intro><level class="para1" eId="schedule-4-paragraph-36-a"><num>(a)</num><content><p>in subsection (1) omit paragraph (b);</p></content></level><level class="para1" eId="schedule-4-paragraph-36-b"><num>(b)</num><content><p><mod>in subsection (b) of subsection (3), for the words from “acting” to “group” substitute <quotedText>“participating in the ordinary operating activities of the member”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e22779"><heading>Additional top-up amounts</heading><paragraph eId="schedule-4-paragraph-37" class="schProv1"><num>37</num><content><p><mod>In section 203 (additional top-up amounts where covered taxes less than expected), in subsections (4)(b), (5)(b), (6)(b) and (7)(b), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-4-paragraph-38-1"><num>(1)</num><content><p>Section 206 (additional top-up amounts where recalculations required) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-38-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-2-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “members” insert <quotedText>“(“the current members”)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-3-a"><num>(a)</num><content><p><mod>in paragraph (a), for “those members would have for a prior period” substitute <quotedText>“the standard members of the group in the territory in a prior period would have for that period”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-3-b"><num>(b)</num><content><p><mod>in the words after paragraph (b), before “members” insert <quotedText>“current”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-4-a"><num>(a)</num><content><p><mod>in Step 1, for “those members would have had for the prior period” substitute <quotedText>“the standard members of the group in the territory for the prior period would have had for that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-b"><num>(b)</num><content><p><mod>in Step 3, after “nil” insert <quotedText>“(and if there are no such results, the result of this step is nil)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-4-c"><num>(c)</num><intro><p>in Step 4—</p></intro><level class="para2" eId="schedule-4-paragraph-38-4-c-i"><num>(i)</num><content><p><mod>before “members” insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-4-c-ii"><num>(ii)</num><content><p><mod>for “Step 2” substitute <quotedText>“Step 3”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-5"><num>(5)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-5-a"><num>(a)</num><content><p><mod>for “those members” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-5-b"><num>(b)</num><content><p><mod>for “in accordance with subsections (5) to (8)” substitute <quotedText>“as follows”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-6"><num>(6)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-6-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-6-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-6-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-6-b"><num>(b)</num><content><p><mod>in paragraph (b), for “members for the members’ territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-6-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-7"><num>(7)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-7-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-7-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-7-a-ii"><num>(ii)</num><content><p><mod>before “period” insert <quotedText>“current”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-7-b"><num>(b)</num><content><p><mod>in paragraph (b), for “standard members in the territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-38-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-8"><num>(8)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-8-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-ii"><num>(ii)</num><content><p><mod>before “period”, in the first place it occurs, insert <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-a-iii"><num>(iii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-8-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-8-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-8-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-9"><num>(9)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-38-9-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-a-i"><num>(i)</num><content><p><mod>for “standard” substitute <quotedText>“current”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-a-ii"><num>(ii)</num><content><p><mod>for “members for the members’ territory” substitute <quotedText>“the current members”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-b"><num>(b)</num><intro><p>in paragraph (b)—</p></intro><level class="para2" eId="schedule-4-paragraph-38-9-b-i"><num>(i)</num><content><p><mod>for “reduction by relevant QDT credit” substitute <quotedText>“any reduction”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-38-9-b-ii"><num>(ii)</num><content><p><mod>for “members for the member’s territory” substitute <quotedText>“current members”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-38-9-c"><num>(c)</num><content><p><mod>in the words after paragraph (b) for the words from “amount”, in the second place it occurs, to the end substitute <quotedText>“relevant amount.”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-38-10"><num>(10)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9)</num><intro><p>The relevant amount is the amount given by multiplying—</p></intro><level class="para1"><num>(a)</num><content><p>the sum of the amounts of qualifying domestic top-up tax accrued by the current members in the current period, by</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount given by dividing—</p></intro><level class="para2"><num>(i)</num><content><p>the collective additional amount under this section, by</p></content></level><level class="para2"><num>(ii)</num><content><p>the sum of that collective additional amount, any collective additional amount under section 203 and the total top-up amount for the current period.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23179"><heading>Joint ventures</heading><paragraph eId="schedule-4-paragraph-39" class="schProv1"><num>39</num><intro><p>In section 226 (joint venture group), in subsection (2)—</p></intro><level class="para1" eId="schedule-4-paragraph-39-a"><num>(a)</num><content><p><mod>in the words before paragraph (a), after “group” insert <quotedText>“for an accounting period of that entity”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-b"><num>(b)</num><content><p><mod>in paragraph (a), after “entity” insert <quotedText>“for all or any part of that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-c"><num>(c)</num><content><p><mod>in paragraph (b), after “entity” insert <quotedText>“at any time in that period”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-d"><num>(d)</num><content><p><mod>in paragraph (c), for “qualifying multinational group” substitute <quotedText>“multinational group that meets condition A in section 129(2) for that accounting period (revenue threshold exceeded in at least 2 of previous 4 accounting periods)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-39-e"><num>(e)</num><content><p><mod>in paragraph (f), for “of which the entity is a member” substitute <quotedText>“referred to in paragraph (a)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-4-paragraph-40-1"><num>(1)</num><content><p>Section 227 (application of Part to joint venture groups) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-2-a"><num>(a)</num><intro><p>in the words before paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-40-2-a-i"><num>(i)</num><content><p><mod>after “but” insert <quotedText>“in their application by virtue of this subsection”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-ii"><num>(ii)</num><content><p><mod>after “Part”, in the second place it occurs, insert <quotedText>“, this Chapter other than this section and section 226”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-40-2-a-iii"><num>(iii)</num><content><p><mod>for “apply” substitute <quotedText>“have effect”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-40-2-b"><num>(b)</num><content><p><mod>in paragraph (c), for “the multinational” substitute <quotedText>“each respective multinational”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-40-3"><num>(3)</num><content><p><mod>In subsection (2), for “Part,” substitute <quotedText>“Part (in its application by virtue of subsection (1)),”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-40-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-4-paragraph-40-4-a"><num>(a)</num><content><p><mod>after “But” insert <quotedText>“(in the application of this Part by virtue of subsection (1))”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-40-4-b"><num>(b)</num><content><p><mod>for “that” substitute <quotedText>“the joint venture”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-41" class="schProv1"><num>41</num><subparagraph eId="schedule-4-paragraph-41-1"><num>(1)</num><content><p>Section 266 (qualifying entities) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-2"><num>(2)</num><content><p><mod>In subsection (1), after “An entity” insert <quotedText>“which is not a member of a joint venture group”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-41-3"><num>(3)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23349"><num>(1A)</num><intro><p>A member of a joint venture group is a qualifying entity for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>the member is not a DTT excluded entity,</p></content></level><level class="para1"><num>(b)</num><content><p>the member meets condition A for that period, and</p></content></level><level class="para1"><num>(c)</num><content><p>the revenue condition is met in relation to the group for that period.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of subsection <ref href="#d25e23349">(1A)</ref> the “revenue condition” is met in relation to a joint venture group for an accounting period if—</p></intro><level class="para1"><num>(a)</num><content><p>a single entity which directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meets Condition A and Condition B for that period, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the members of a group (the “relevant group”) whose ultimate parent directly or indirectly holds at least 50% of the ownership interests in the joint venture parent meet Condition C for that period and—</p></intro><level class="para2"><num>(i)</num><content><p>all of those members are located in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the relevant group is a multinational group (see section 126 in Part 3), and at least one of the members is located in a Pillar Two territory.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23406"><heading>Domestic top-up tax</heading><paragraph eId="schedule-4-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-4-paragraph-42-1"><num>(1)</num><content><p>Section 270 (amount charged) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-2"><num>(2)</num><content><p><mod>Before subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content><p>Where a person is chargeable to domestic top-up tax for an accounting period as, or in respect of, a qualifying entity which is a member of a group, the amount (if any) the person must pay is determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine (in accordance with section 272)—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>whether the entity has a top-up amount for that period, and</p></item><item><num>(b)</num><p>the extent of any such amount.</p></item></blockList></item><item><p><i>Step 2</i></p><p>If the result of <ref href="#d25e23433">Step 1</ref> is not expressed in sterling, convert the result of that Step to sterling.</p></item></blockList></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-42-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-42-3-a"><num>(a)</num><content><p><mod>in the words before Step 1, for “as a qualifying entity or in respect of a qualifying entity” substitute <quotedText>“as or in respect of a qualifying entity which is not a member of a group”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-42-3-b"><num>(b)</num><content><p><mod>in Step 1, after “Determine” insert <quotedText>“(in accordance with section 273)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-4-paragraph-43-1"><num>(1)</num><content><p>Section 272 (determining top-up amounts of entity that is a member of a group) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-2"><num>(2)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p><mod>Part 3 has effect for those purposes as if the following sections were substituted for section 193—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>193</num><heading>Determination of top-up amounts of entity that is a member of a group</heading><subsection><num>(1)</num><intro><p>Subsection <ref href="#d25e23537">(2)</ref> sets out (for the purposes of Step 1 of section 270(A1)) how to determine in relation to an accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>whether an entity which is a standard member of a group has a top-up amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, what the amount is.</p></content></level></subsection><subsection eId="d25e23537"><num>(2)</num><content><p>Take the following Steps—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine for the period (in accordance with section 272) the sum of any top-up amounts and additional top-up amounts of standard members of the group (the “total top-up amount”).</p></item><item><p><i>Step 2</i></p><p>Determine for each such member—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the adjusted profits (if any);</p></item><item><num>(b)</num><p>the covered tax balance.</p></item></blockList></item><item><p><i>Step 3</i></p><p>For each standard member of the group in relation to which a positive amount of adjusted profits is determined under <ref href="#d25e23552">Step 2</ref>, determine the “effective tax rate” by dividing the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23565">(b)</ref> (covered tax balance) by the amount found under <ref href="#d25e23552">Step 2</ref><ref href="#d25e23561">(a)</ref> (adjusted profits).</p></item><item><p><i>Step 4</i></p><p>For any standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>determine that member’s “top-up tax percentage” by subtracting the member’s effective tax rate from 15%, and</p></item><item><num>(b)</num><p>proceed to <ref href="#d25e23613">Step 5</ref>.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Calculate for the member an amount (an “allocation key amount”) by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s top-up tax percentage (see <ref href="#d25e23590">Step 4</ref>(a)), by</p></item><item><num>(b)</num><p>the member’s adjusted profits.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Determine the sum (the “group allocation key amount”) of all the allocation key amounts calculated under <ref href="#d25e23613">Step 5</ref> for members of the group.</p></item><item><p><i>Step 7</i></p><p>Determine the “allocation key ratio” for each standard member of the group whose effective tax rate (see <ref href="#d25e23569">Step 3</ref>) is less than 15%, by dividing—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the member’s allocation key amount (see <ref href="#d25e23613">Step 5</ref>), by</p></item><item><num>(b)</num><p>the group allocation key amount (see <ref href="#d25e23633">Step 6</ref>).</p></item></blockList></item><item><p><i>Step 8</i></p><p>Determine each such member’s top-up amount by multiplying—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the sum of any top-up amounts and additional top-up amounts of standard members of the group for the period (see <ref href="#d25e23544">Step 1</ref>), by</p></item><item><num>(b)</num><p>the member’s allocation key ratio (see <ref href="#d25e23644">Step 7</ref>).</p></item></blockList></item><item><p><i>Step 9</i></p><p>If none of the standard members falls within <ref href="#d25e23569">Step 3</ref>, or none of them has an effective tax rate of less than 15%, each standard member has a top-up amount equal to—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the total top-up amount, divided by</p></item><item><num>(b)</num><p>the number of the standard members.</p></item></blockList></item></blockList></content></subsection></section><section><num>193A</num><heading>Section 193: supplementary</heading><subsection><num>(1)</num><content><p>Section 193 and subsection (2) of this section apply to joint venture groups and their members as they apply to groups and their members.</p></content></subsection><subsection><num>(2)</num><content><p>Section 193 has effect in relation to a qualifying entity that is a standard member of a group as if the total top-up amount referred to in that section included any top-up amounts or additional top-up amounts of qualifying investment entities determined under sections 220 to 224.</p></content></subsection><subsection><num>(3)</num><intro><p>See also subsections (9) to (11) of section 272, which—</p></intro><level class="para1"><num>(a)</num><content><p>define “<term refersTo="#term-qualifying-investment-entity">qualifying investment entity</term>” in relation to a qualifying entity, and</p></content></level><level class="para1"><num>(b)</num><content><p>make further provision about top-up amounts (for the purposes of domestic top-up tax).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-43-3"><num>(3)</num><content><p>In subsection (8) omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23759"><heading>Domestic top-up tax: excluded entities</heading><paragraph eId="schedule-4-paragraph-44" class="schProv1"><num>44</num><content><p><mod>In section 267 (DTT excluded entities), after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>A company is a DTT excluded entity if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a qualifying asset holding company for the purposes of Schedule 2 to FA 2022, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not a member of a multinational group.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23787"><heading>De minimis rule</heading><paragraph eId="schedule-4-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-4-paragraph-45-1"><num>(1)</num><intro><p>In section 199 (election to treat total top-up amount as nil)—</p></intro><level class="para1" eId="schedule-4-paragraph-45-1-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-45-1-a-i"><num>(i)</num><content><p><mod>for “total top-up amount” substitute <quotedText>“top-up amounts of the relevant members”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-45-1-a-ii"><num>(ii)</num><content><p><mod>for “is” substitute <quotedText>“are”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-45-1-b"><num>(b)</num><content><p><mod>in subsections (2)(a), (3), (4), (6)(a) and (6)(b), for “standard” substitute <quotedText>“relevant”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-c"><num>(c)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23840"><num>(2A)</num><intro><p>In this section, a member of a multinational group is a “relevant” member if it is—</p></intro><level class="para1"><num>(a)</num><content><p>a standard member of the group, or</p></content></level><level class="para1"><num>(b)</num><content><p>a minority owned member of the group.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-45-1-d"><num>(d)</num><content><p><mod>in the heading, for “total top-up amount” substitute <quotedText>“certain top-up amounts”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-45-2"><num>(2)</num><content><p><mod>In section 228 (minority owned members), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>But neither subsection (3) nor (4) applies to the reference to “standard member” in section 199<ref href="#d25e23840">(2A)</ref> (election to treat top-up amounts of relevant members as nil).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e23885"><heading>Transitional safe harbour</heading><paragraph eId="schedule-4-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-4-paragraph-46-1"><num>(1)</num><content><p>Part 2 of Schedule 16 (transitional safe harbour) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-2"><num>(2)</num><intro><p>In paragraph 3 (election)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-2-a"><num>(a)</num><content><p><mod>in sub-paragraph (1), after “election” insert <quotedText>“under this paragraph”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-b"><num>(b)</num><content><p><mod>in sub-paragraph (2)(c), for “the election” substitute <quotedText>“a transitional safe harbour election”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-c"><num>(c)</num><content><p><mod>in sub-paragraph (7), for “the information” substitute <quotedText>“all relevant information”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-d"><num>(d)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(7A)</num><content><p>For the purposes of sub-paragraph (7), “<term refersTo="#term-all-relevant-information">all relevant information</term>” means all of the information described in paragraphs (a) to (d) of paragraph 4(3).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-46-2-e"><num>(e)</num><content><p><mod>after sub-paragraph (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(10)</num><content><p>An election under this paragraph may not be made in respect of the nominal territory of a stateless member of a multinational group.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-3"><num>(3)</num><intro><p>In paragraph 4 (qualified financial statements), in sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-4-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for “statement” substitute <quotedText>“statements”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>after “parent” insert <quotedText>“provided the statements are prepared in accordance with acceptable accounting standards or an authorised accounting standard”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-46-3-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>financial statements of members of the group provided—</p></intro><level class="para2"><num>(i)</num><content><p>they are prepared in accordance with acceptable accounting standards or an authorised accounting standard, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the information contained in those statements is reliable and is maintained in a manner that is consistent with its use under the accounting standard used in preparing those statements.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-46-4"><num>(4)</num><content><p><mod>In paragraph 4, after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>But see also <ref href="#d25e24052">paragraph 4A</ref> in cases where those accounts or statements reflect purchase price accounting adjustments.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-5"><num>(5)</num><content><p><mod>In paragraph 4, in sub-paragraph (3), in paragraph (d), after “income” insert <quotedText>“exclusion”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-6"><num>(6)</num><content><p><mod>After paragraph 4 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Accounts or statements reflecting purchase price accounting adjustments</heading><paragraph eId="d25e24052" class="schProv1"><num>4A</num><subparagraph><num>(1)</num><intro><p>This paragraph applies in relation to accounts or financial statements (“the relevant statements”) in relation to a multinational group in a territory that—</p></intro><level class="para1"><num>(a)</num><content><p>fall within paragraph (a) or (b) of paragraph 4(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>reflect purchase price accounting adjustments.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a country-by-country report has been submitted in respect of the group in that territory in respect of a period commencing on or after 1 January 2023 and concluding before the commencement of the accounting period for which the transitional safe harbour election is being made,</p></content></level><level class="para1"><num>(b)</num><content><p>the financial accounts used for the preparation of that report did not reflect purchase price accounting adjustments, and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no requirement to reflect purchase price adjustments in the relevant statements under the law of the territory that applies in relation to the preparation of those statements,</p></content></level><wrapUp><p>the relevant statements are not qualified financial statements.</p></wrapUp></subparagraph><subparagraph><num>(3)</num><intro><p>Sub-paragraph <ref href="#d25e24121">(4)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the relevant statements are qualified financial statements, and</p></content></level><level class="para1"><num>(b)</num><content><p>an impairment of goodwill in relation to a transaction entered into on or after 1 December 2021 is reflected in a member’s profit (loss) before income tax.</p></content></level></subparagraph><subparagraph eId="d25e24121"><num>(4)</num><intro><p>Adjust the profit (loss) before income tax of the member so that it does not reflect that impairment for the purposes of determining—</p></intro><level class="para1"><num>(a)</num><content><p>in a case where the condition in sub-paragraph <ref href="#d25e24142">(5)</ref> is not met, whether the simplified effective tax rate test is met (see paragraph 8), and</p></content></level><level class="para1"><num>(b)</num><content><p>in any case, whether the routine profits test is met (see paragraph 9).</p></content></level></subparagraph><subparagraph eId="d25e24142"><num>(5)</num><intro><p>The condition in this sub-paragraph is that the relevant statements reflect—</p></intro><level class="para1"><num>(a)</num><content><p>a reversal of deferred tax liability in relation to the goodwill, or</p></content></level><level class="para1"><num>(b)</num><content><p>the recognition or increase of a deferred tax asset in relation to it.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-46-7"><num>(7)</num><intro><p>In paragraph 5 (qualifying income tax expense)—</p></intro><level class="para1" eId="schedule-4-paragraph-46-7-a"><num>(a)</num><content><p>the existing text becomes sub-paragraph (1), and</p></content></level><level class="para1" eId="schedule-4-paragraph-46-7-b"><num>(b)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><content><p>For the purposes of this Part of this Schedule, any amount of qualifying income tax expense that is in respect of profits of a permanent establishment and that is incurred in the territory of the permanent establishment is to be regarded as the expense of that permanent establishment (rather than of the main entity).</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24185"><heading>Transitional safe harbour: arbitrage arrangements</heading><paragraph eId="schedule-4-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-4-paragraph-47-1"><num>(1)</num><content><p><mod>In Schedule 16, after paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Deduction and non-inclusion arrangements and duplicate loss arrangements</heading><paragraph class="schProv1"><num>6A</num><subparagraph eId="d25e24206"><num>(1)</num><content><p>Where the aggregate profit (loss) before income tax of the standard members of a multinational group in a territory reflects disqualified expense, the aggregate profit (loss) before income tax is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24212"><num>(2)</num><intro><p>Disqualified expense means any expense or loss of a member of a multinational group reflected in the financial statements of the member arising as a result of qualifying arrangements that involve another member of the group—</p></intro><level class="para1" eId="d25e24218"><num>(a)</num><intro><p>to the extent that the expense or loss is a result of the member directly or indirectly being provided credit by the other member or the other member otherwise making an investment in the member under the arrangements and—</p></intro><level class="para2"><num>(i)</num><content><p>the credit or investment is not reflected as an increase in the revenue, or a gain, in the financial statements of the other member that corresponds to the expense or loss, or</p></content></level><level class="para2" eId="d25e24230"><num>(ii)</num><content><p>it is not reasonable to expect that the credit or investment will be reflected as an increase in the taxable income of the other member over the life of the arrangements that corresponds to the expense or loss, or</p></content></level></level><level class="para1" eId="d25e24236"><num>(b)</num><intro><p>to the extent that—</p></intro><level class="para2" eId="d25e24242"><num>(i)</num><content><p>the expense or loss is also included as an expense or loss in the financial statements of another member of the group, or</p></content></level><level class="para2" eId="d25e24248"><num>(ii)</num><content><p>the expense or loss is mirrored by an amount that can be deducted from the taxable income of another member of the group that is located in a different territory to the member.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>But—</p></intro><level class="para1"><num>(a)</num><content><p>an expense or a loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref> if it is solely referable to the provision of qualifying tier one capital,</p></content></level><level class="para1"><num>(b)</num><content><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> to the extent it is offset against revenue that is included in the financial statements of each member whose financial statements reflect the expense or loss, and</p></content></level><level class="para1"><num>(c)</num><intro><p>an expense or loss is not disqualified expense as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24248">(ii)</ref> to the extent that it is offset against revenue or income that is included in both—</p></intro><level class="para2"><num>(i)</num><content><p>the financial statements that reflect the expense or loss, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the taxable income from which the amount that mirrors the expense or loss can be deducted.</p></content></level></level></subparagraph><subparagraph><num>(4)</num><intro><p>An expense or loss included in the financial statements of a member of a multinational group is to be ignored to the extent that the expense or loss is included in the financial statements of another member of the group as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>the other member having a direct or indirect ownership interest in the member, and</p></content></level><level class="para1"><num>(b)</num><content><p>the member being regarded as tax transparent in the territory in which the other member is located.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>Where as a result of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24236">(b)</ref><ref href="#d25e24242">(i)</ref> more than one standard member in a territory has disqualified expense in respect of the same expense or loss, <ref href="#d25e24206">sub-paragraph (1)</ref> applies to all but one of those amounts of disqualified expense.</p></content></subparagraph><subparagraph eId="d25e24343"><num>(6)</num><intro><p>For the purposes of <ref href="#d25e24212">sub-paragraph (2)</ref><ref href="#d25e24218">(a)</ref><ref href="#d25e24230">(ii)</ref>, ignore any increase in the taxable income of the other member—</p></intro><level class="para1" eId="d25e24356"><num>(a)</num><content><p>that is offset by a devalued tax attribute, or</p></content></level><level class="para1"><num>(b)</num><intro><p>where—</p></intro><level class="para2"><num>(i)</num><content><p>the payment that gives rise to the expense or loss in question also results in a taxable deduction or loss of a further member of the group located in the same territory as the other member, and</p></content></level><level class="para2"><num>(ii)</num><content><p>that deduction or loss is not reflected in the aggregate profit (loss) before income tax for that territory for the purposes of determining whether an election under paragraph 3 that applies in relation to that further member can be made.</p></content></level></level></subparagraph><subparagraph><num>(7)</num><intro><p>For the purposes of <ref href="#d25e24343">sub-paragraph (6)</ref><ref href="#d25e24356">(a)</ref>, a “<term refersTo="#term-devalued-tax-attribute">devalued tax attribute</term>” means a tax attribute of a member of a multinational group—</p></intro><level class="para1"><num>(a)</num><content><p>whose value is reflected in financial statements of the member at less than the amount of the attribute multiplied by the tax rate that applies to the member, or</p></content></level><level class="para1"><num>(b)</num><content><p>whose value would be so reflected if the qualifying arrangements that result in disqualified expense or disqualified tax expense (see paragraph <ref href="#d25e24472">6B</ref>) were ignored.</p></content></level></subparagraph><subparagraph><num>(8)</num><intro><p>For the purposes of this paragraph and paragraph <ref href="#d25e24472">6B</ref>, arrangements are “qualifying” if—</p></intro><level class="para1"><num>(a)</num><content><p>they were entered into on or after 16 December 2022, or</p></content></level><level class="para1"><num>(b)</num><intro><p>they were entered into before that date, but—</p></intro><level class="para2"><num>(i)</num><content><p>the arrangements are amended on or after that date (including by way of a substitution of one or more of the parties),</p></content></level><level class="para2"><num>(ii)</num><content><p>the performance of rights or obligations under the arrangements is altered on or after that date (for example where payments under the arrangements are reduced or ceased), or</p></content></level><level class="para2"><num>(iii)</num><content><p>the accounting treatment of the arrangements is varied on or after that date.</p></content></level></level></subparagraph><subparagraph><num>(9)</num><intro><p>In this paragraph and in paragraph <ref href="#d25e24472">6B</ref> reference to the financial statements of a member of a multinational group is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an accounting period in which an election under paragraph 3 that applies in relation to the member was made, or for the purposes of determining whether such an election can be made, to the financial statements, or financial accounts, that form the basis of qualified financial statements in relation to the member for the purposes of this Part of this Schedule, or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, to the underlying profits accounts of that member (see section 136).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Duplicate tax recognition arrangements</heading><paragraph eId="d25e24472" class="schProv1"><num>6B</num><subparagraph><num>(1)</num><content><p>Where the aggregate qualifying income tax expense of the standard members of a multinational group in a territory reflects disqualified tax expense, the aggregate qualifying income tax expense is to be adjusted to exclude it.</p></content></subparagraph><subparagraph eId="d25e24482"><num>(2)</num><intro><p>Disqualified tax expense means any qualifying income tax expense of a member of a multinational group reflected in the financial statements of the member that, as a result of qualifying arrangements, is also reflected in—</p></intro><level class="para1" eId="d25e24488"><num>(a)</num><content><p>the covered tax balance of one or more other members of the group, or</p></content></level><level class="para1" eId="d25e24494"><num>(b)</num><content><p>the qualifying income tax expense of one or more other members of the group.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>But qualifying income tax expense is not to be regarded as disqualified tax expense—</p></intro><level class="para1"><num>(a)</num><content><p>if the income to which the tax expense relates is reflected in the financial statements of each member of the group falling within <ref href="#d25e24482">sub-paragraph (2)</ref><ref href="#d25e24488">(a)</ref> and <ref href="#d25e24494">(b)</ref> to at least the same extent to which the tax expense is reflected in the covered tax balance, or qualifying income tax expense, of each of those members;</p></content></level><level class="para1"><num>(b)</num><content><p>to the extent that the duplication of the tax expense would not arise if the adjustments that would have been made in determining the member’s covered tax balance (and that are not required to be made for the purpose of determining the member’s qualifying income tax expense) had been made.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-2"><num>(2)</num><intro><p>The amendment made by <ref href="#schedule-4-paragraph-47-1">sub-paragraph (1)</ref> has effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-47-2-a"><num>(a)</num><content><p>disqualified expense accruing on or after 14 March 2024, and</p></content></level><level class="para1" eId="schedule-4-paragraph-47-2-b"><num>(b)</num><content><p>disqualified tax expense attributable to profits accruing on or after 14 March 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-47-3"><num>(3)</num><content><p><mod>In paragraph 4 (qualified financial statements and basis of calculations), in sub-paragraph (4), in the words after paragraph (b) for “paragraph 6” substitute <quotedText>“paragraphs 6 to 6B”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-4"><num>(4)</num><content><p><mod>In section 155 (qualifying tier one capital), in subsection (3), for “section” substitute <quotedText>“Part”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-47-5"><num>(5)</num><content><p><mod>In Schedule 17, in the table, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">qualifying tier one capital</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">section 155(3)</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24581"><heading>Substance based income exclusion: removal of provision for election</heading><paragraph eId="schedule-4-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-4-paragraph-48-1"><num>(1)</num><content><p>In section 195 (substance based income exclusion) omit subsections (2) and (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-48-2"><num>(2)</num><content><p>Accordingly, in paragraph 2 (annual elections) of Schedule 15 (multinational top-up tax: elections), omit paragraph (e).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24600"><heading>Inclusion ratio</heading><paragraph eId="schedule-4-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-4-paragraph-49-1"><num>(1)</num><content><p>Section 201 (inclusion ratio) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-2"><num>(2)</num><content><p><mod>In subsection (1), in Step 2, at the end insert <quotedText>“, but excluding ownership interests in respect of which an amount has been excluded from the relevant member’s adjusted profits.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-49-3"><num>(3)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-50" class="schProv1"><num>50</num><subparagraph eId="schedule-4-paragraph-50-1"><num>(1)</num><content><p>Section 223 (adjustments) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-50-2"><num>(2)</num><intro><p>In subsection (7)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-2-a"><num>(a)</num><content><p><mod>in paragraph (a), after “group,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-b"><num>(b)</num><content><p><mod>in paragraph (b), before “profits” insert <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-2-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-3"><num>(3)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-4-paragraph-50-3-a"><num>(a)</num><content><p><mod>in paragraph (a), after “made,” insert <quotedText>“, other than ownership interests in respect of which an amount has been excluded from the adjusted profits of the entity,”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-50-3-b"><num>(b)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><p>(but if the amount mentioned in paragraph (b) is nil, the adjustment factor is to be taken to be nil).</p></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-50-4"><num>(4)</num><content><p><mod>In subsection (9), after “201(2)” insert <quotedText>“and (3)”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e24705"><heading>Specification of territories and taxes</heading><paragraph eId="schedule-4-paragraph-51" class="schProv1"><num>51</num><subparagraph eId="schedule-4-paragraph-51-1"><num>(1)</num><intro><p>In section 241 (Pillar Two territories)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-1-a"><num>(a)</num><content><p><mod>in subsection (1), before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a territory to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-c-i"><num>(i)</num><content><p><mod>after “Regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a territory in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a territory made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-1-e"><num>(e)</num><intro><p>in subsection (3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-1-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the territory was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-1-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a territory previously specified ceases to have effect” substitute <quotedText>“for the specification of a territory to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-1-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>A territory outside the United Kingdom is to be treated as a Pillar Two territory for the purposes of any accounting period that concluded before the first regulations under this section have been made, if it is a territory in which a tax applies for that accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>that is a Qualified IIR for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>that it is reasonable to conclude is likely to be a Qualified IIR for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-2"><num>(2)</num><intro><p>In section 256 (qualifying domestic top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-2-a"><num>(a)</num><content><p><mod>in subsection (1)(b), for “a” substitute <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>Regulations may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-c"><num>(c)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-c-i"><num>(i)</num><content><p><mod>after “regulations” insert <quotedText>“, or a notice,”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-c-ii"><num>(ii)</num><content><p><mod>for “Treasury consider” substitute <quotedText>“appropriate authority considers”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-d"><num>(d)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The “<term refersTo="#term-appropriate-authority">appropriate authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the specification of a tax in regulations, the Treasury, or</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the specification of a tax made by notice, the Commissioners for His Majesty’s Revenue and Customs.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-4-paragraph-51-2-e"><num>(e)</num><intro><p>in subsection (4)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-2-e-i"><num>(i)</num><content><p><mod>for “that”, in the first place it occurs, substitute <quotedText>“for”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-ii"><num>(ii)</num><content><p>omit “is”,</p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iii"><num>(iii)</num><content><p><mod>for “the regulations are made”, in the first place it occurs, substitute <quotedText>“the tax was specified”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-2-e-iv"><num>(iv)</num><content><p><mod>for “that the specification of a tax previously specified ceases to have effect” substitute <quotedText>“for the specification of a tax to cease to have effect in relation to accounting periods commencing”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-2-f"><num>(f)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>A tax (other than domestic top-up tax which is always a qualifying domestic top-up tax) is to be treated as a qualifying domestic top-up tax for the purposes of any accounting period that concluded before the first regulations under this section have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of the Pillar Two rules, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that it is likely to be a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of those rules.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-3"><num>(3)</num><intro><p>In Schedule 16A (qualifying domestic top-up tax safe harbour election)—</p></intro><level class="para1" eId="schedule-4-paragraph-51-3-a"><num>(a)</num><intro><p>in paragraph 1(3)—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-a-i"><num>(i)</num><content><p><mod>in the words before paragraph (a), for “may only be made” substitute <quotedText>“is only valid”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-ii"><num>(ii)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-a-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the accreditation applies to the accounting period, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-51-3-b"><num>(b)</num><intro><p>in paragraph 2—</p></intro><level class="para2" eId="schedule-4-paragraph-51-3-b-i"><num>(i)</num><content><p>the existing text becomes sub-paragraph (1),</p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-ii"><num>(ii)</num><content><p><mod>in that sub-paragraph, before “regulations” insert <quotedText>“, or in accordance with,”</quotedText>,</mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iii"><num>(iii)</num><content><p><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1A)</num><content><p>Regulations may provide for the accreditation of a tax by specification in a notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.</p></content></subparagraph><subparagraph><num>(1B)</num><content><p>Regulations, or a notice, must identify the accounting periods to which the accreditation applies.</p></content></subparagraph><subparagraph><num>(1C)</num><content><p>Regulations under this paragraph may provide for the accreditation of a tax to have effect from a time before the tax was specified (but may not provide for the accreditation of a tax to cease to have effect in relation to accounting periods commencing before the regulations are made).</p></content></subparagraph></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-51-3-b-iv"><num>(iv)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e25105"><num>(2)</num><intro><p>A qualifying domestic top-up tax is to be treated as accredited for the purposes of any accounting period that concluded before the first regulations under this paragraph have been made if—</p></intro><level class="para1"><num>(a)</num><content><p>the tax falls within Chapter 5.5 to 5.7 of the QDMTT safe harbour guidance, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to conclude that the tax is likely to fall within Chapter 5.5 to 5.7 of that guidance.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>For the purposes of sub-paragraph <ref href="#d25e25105">(2)</ref> the “<term refersTo="#term-qdmtt-safe-harbour-guidance">QDMTT safe harbour guidance</term>” means Chapter 5 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023, published by the OECD on 17 July 2023.</p></content></subparagraph></quotedStructure></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-51-4"><num>(4)</num><content><p>The amendments made by sub-paragraphs <ref href="#schedule-4-paragraph-51-1">(1)</ref><ref href="#schedule-4-paragraph-51-1-f">(f)</ref>, <ref href="#schedule-4-paragraph-51-2">(2)</ref><ref href="#schedule-4-paragraph-51-2-f">(f)</ref> and <ref href="#schedule-4-paragraph-51-3">(3)</ref><ref href="#schedule-4-paragraph-51-3-b">(b)</ref><ref href="#schedule-4-paragraph-51-3-b-i">(i)</ref> and <ref href="#schedule-4-paragraph-51-3-b-iv">(iv)</ref> are treated as having come into force on 7 November 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25162"><heading>Filing etc not required before 30 June 2026</heading><paragraph eId="schedule-4-paragraph-52" class="schProv1"><num>52</num><subparagraph eId="schedule-4-paragraph-52-1"><num>(1)</num><content><p>Schedule 14 (administration) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-2"><num>(2)</num><content><p><mod>In paragraph 10, after sub-paragraph (11) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(12)</num><content><p>Where (ignoring this sub-paragraph) the date by which an information return or overseas return notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-3"><num>(3)</num><content><p><mod>In paragraph 13, after sub-paragraph (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(11)</num><content><p>Where (ignoring this sub-paragraph) the date by which a self assessment return or below-threshold notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is instead 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-52-4"><num>(4)</num><content><p><mod>In paragraph 32, after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(3A)</num><content><p>Where (ignoring this sub-paragraph) the date on which an amount of multinational top-up tax must be paid falls before 30 June 2026, the date on which it must be paid is 30 June 2026 instead.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25214"><heading>Minor amendments</heading><paragraph eId="schedule-4-paragraph-53" class="schProv1"><num>53</num><content><p>In section 141 (general exclusion of dividends), in subsection (9) omit paragraph (b) and the “or” preceding it.</p></content></paragraph><paragraph eId="schedule-4-paragraph-54" class="schProv1"><num>54</num><intro><p>In section 148A (transferable tax credits), in subsection (5)(a)—</p></intro><level class="para1" eId="schedule-4-paragraph-54-a"><num>(a)</num><content><p><mod>in sub-paragraph (i), for “before the end of 15 months” substitute <quotedText>“in the period beginning with the day on which the credit was granted and ending 15 months after the end”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-54-b"><num>(b)</num><content><p><mod>in sub-paragraph (ii), for “before the end of 15 months of the accounting period in which they are granted” substitute <quotedText>“in that period”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-55" class="schProv1"><num>55</num><content><p><mod>In section 170 (adjustments for ultimate parent that is a flow-through entity), in subsection (9)(b), for the words from “the ultimate parent’s“ to the end substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>the entity is regarded as tax transparent in the territory in which the ultimate parent is located, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the ultimate parent’s interest in that entity is held directly or through one or more entities all of which are regarded as tax transparent in that territory.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-56" class="schProv1"><num>56</num><intro><p>In section 171 (ultimate parent subject to qualifying dividend regime)—</p></intro><level class="para1" eId="schedule-4-paragraph-56-a"><num>(a)</num><content><p>in subsection (2)(b), omit “adjusted”, and</p></content></level><level class="para1" eId="schedule-4-paragraph-56-b"><num>(b)</num><content><p><mod>in subsection (6), for “underlying”, in each place it occurs, substitute <quotedText>“adjusted”</quotedText></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 176B (value of non-marketable transferable tax credits: originator), in subsection (3), after “the”, in the fourth place it occurs, insert <quotedText>“end of the”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-58" class="schProv1"><num>58</num><intro><p>In section 176C (value of non-marketable transferable tax credits: purchaser)—</p></intro><level class="para1" eId="schedule-4-paragraph-58-a"><num>(a)</num><content><p><mod>in subsection (4)(b), for “underlying” substitute <quotedText>“adjusted”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-58-b"><num>(b)</num><content><p>in subsection (5)(a)(ii) omit “reflected”;</p></content></level><level class="para1" eId="schedule-4-paragraph-58-c"><num>(c)</num><content><p><mod>in subsection (6) for “underlying” substitute <quotedText>“adjusted”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-59" class="schProv1"><num>59</num><content><p><mod>In section 176D (tax credits etc allocated under tax equity partnerships), in subsection (10), for “the amount multiplied” substitute <quotedText>“that amount”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-60" class="schProv1"><num>60</num><intro><p>In section 211 (transfer of assets or liabilities to a member of a multinational group)—</p></intro><level class="para1" eId="schedule-4-paragraph-60-a"><num>(a)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-4-paragraph-60-a-i"><num>(i)</num><content><p>omit the “and” after paragraph (b), and</p></content></level><level class="para2" eId="schedule-4-paragraph-60-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>the transferor and the transferee are not members of the same type located in the same territory, and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-60-b"><num>(b)</num><content><p><mod>after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro><p>For the purposes of subsection (2) two members of a multinational group are of the same type if—</p></intro><level class="para1"><num>(a)</num><content><p>they are both standard members of the group,</p></content></level><level class="para1"><num>(b)</num><content><p>they are both investment entities, or</p></content></level><level class="para1"><num>(c)</num><content><p>they are both members of the same minority subgroup (see section 228).</p></content></level></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 212 (meaning of “<term refersTo="#term-qualifying-reorganisation" eId="term-qualifying-reorganisation">qualifying reorganisation</term>”), in subsection (4), after “is”, in the third place it occurs, insert <quotedText>“no greater than”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-62" class="schProv1"><num>62</num><content><p>In section 215 (undistributed income amount), in subsection (2)(c) omit “the made a loss”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-63" class="schProv1"><num>63</num><content><p><mod>In section 216 (election where assets and liabilities adjusted to fair value for tax purposes), in subsection (7)(a), before “immediately after” insert <quotedText>“or liability”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-64" class="schProv1"><num>64</num><content><p><mod>In section 217 (post filing adjustments of covered taxes), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>In the case of a prior accounting period for which there is no information return, overseas information return or self-assessment return, the reference to covered taxes being reflected in such a return is to the covered taxes as would have been reflected in such a return had there been one.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-65" class="schProv1"><num>65</num><content><p><mod>In section 217(8), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the aggregate covered tax balance of the standard members of the group in the territory of the member for the prior period is not reduced by 1 million euros or more, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 220 (top-up amount of investment entity)—</p></intro><level class="para1" eId="schedule-4-paragraph-66-a"><num>(a)</num><intro><p>in subsection (1)—</p></intro><level class="para2" eId="schedule-4-paragraph-66-a-i"><num>(i)</num><content><p><mod>in Step 8, after “entity” insert <quotedText>“, unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9), and</quotedText></mod></p></content></level><level class="para2" eId="schedule-4-paragraph-66-a-ii"><num>(ii)</num><content><p><mod>after that Step insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 9</i></p><p>Where this Step applies, the top-up amount for the entity is the sum of—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>the result of Step 8, and</p></item><item><num>(b)</num><p>the positive undistributed income amount for the entity for the period multiplied by 15%.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-4-paragraph-66-b"><num>(b)</num><content><p>omit subsection (2).</p></content></level></paragraph><paragraph eId="schedule-4-paragraph-67" class="schProv1"><num>67</num><content><p><mod>In section 222 (investment entity effective tax rate), in Step 9 for “Step 1” substitute <quotedText>“Step 2”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-68" class="schProv1"><num>68</num><content><p>In section 242 (ownership interests and controlling interests), in subsection (5)(a) omit “financial”.</p></content></paragraph><paragraph eId="schedule-4-paragraph-69" class="schProv1"><num>69</num><content><p><mod>In section 255 (Pillar Two rules), in subsection (6), for “3(1)” substitute <quotedText>“3 of Schedule 16”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-4-paragraph-70" class="schProv1"><num>70</num><intro><p>In Schedule 14 (administration of multinational top-up tax)—</p></intro><level class="para1" eId="schedule-4-paragraph-70-a"><num>(a)</num><content><p><mod>in paragraph 2(12), for “entity” substitute <quotedText>“member”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-70-b"><num>(b)</num><content><p><mod>in paragraph 7(6), for “or Revenue” substitute <quotedText>“of Revenue”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-4-paragraph-71" class="schProv1"><num>71</num><content><p>In Schedule 16A (multinational top-up tax: safe harbours), in paragraph 4(1)(b) omit “members of the group that are”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25563"><heading>Commencement</heading><paragraph eId="schedule-4-paragraph-72" class="schProv1"><num>72</num><subparagraph eId="schedule-4-paragraph-72-1"><num>(1)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2023—</p></intro><level class="para1" eId="schedule-4-paragraph-72-1-a"><num>(a)</num><content><p><ref href="#schedule-4-paragraph-11">paragraph 11</ref> (permanent establishments as excluded entities);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-b"><num>(b)</num><content><p><ref href="#schedule-4-paragraph-39">paragraph 39</ref><ref href="#schedule-4-paragraph-39-d">(d)</ref> (joint venture conditions);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-c"><num>(c)</num><content><p><ref href="#schedule-4-paragraph-48">paragraph 48</ref> (removal of requirement for SBIE election);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-d"><num>(d)</num><content><p><ref href="#schedule-4-paragraph-51">paragraph 51</ref> (specification of territories and taxes);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-e"><num>(e)</num><content><p><ref href="#schedule-4-paragraph-52">paragraph 52</ref> (filing etc not required before 30 June 2026);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-1-f"><num>(f)</num><content><p><ref href="#schedule-4-paragraph-66">paragraph 66</ref> (top-up amount of investment entity).</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-2"><num>(2)</num><content><p><ref href="#schedule-4-paragraph-47">Paragraph 47</ref> has effect in relation to relation to accounting periods commencing on or after 31 December 2023, subject to sub-paragraph <ref href="#schedule-4-paragraph-47-2">(2)</ref> of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-3"><num>(3)</num><intro><p>The following provisions of this Part of this Schedule have effect in relation to accounting periods commencing on or after 31 December 2024—</p></intro><level class="para1" eId="schedule-4-paragraph-72-3-a"><num>(a)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-18">18</ref> to <ref href="#schedule-4-paragraph-24">24</ref> (tax equity partnerships);</p></content></level><level class="para1" eId="schedule-4-paragraph-72-3-b"><num>(b)</num><content><p>paragraphs <ref href="#schedule-4-paragraph-39-a">(a)</ref> to <ref href="#schedule-4-paragraph-39-c">(c)</ref> of <ref href="#schedule-4-paragraph-39">paragraph 39</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-4"><num>(4)</num><intro><p>The other provisions of this Part of this Schedule have effect in relation to—</p></intro><level class="para1" eId="schedule-4-paragraph-72-4-a"><num>(a)</num><content><p>where a retrospection election has been made in relation to a multinational group, a group, or a qualifying entity that is not a member of a group, accounting periods of that multinational group, group or entity commencing on or after 31 December 2023, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-4-b"><num>(b)</num><content><p>otherwise, accounting periods commencing on or after 31 December 2024.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-5"><num>(5)</num><intro><p>A retrospection election—</p></intro><level class="para1" eId="schedule-4-paragraph-72-5-a"><num>(a)</num><intro><p>is to be made—</p></intro><level class="para2" eId="schedule-4-paragraph-72-5-a-i"><num>(i)</num><content><p>in the case of a multinational group or group, by the filing member, or</p></content></level><level class="para2" eId="schedule-4-paragraph-72-5-a-ii"><num>(ii)</num><content><p>in the case of a qualifying entity that is not a member of a group, by that entity,</p></content></level></level><level class="para1" eId="schedule-4-paragraph-72-5-b"><num>(b)</num><content><p>must be made on or before the day on which the self-assessment return or below-threshold notification for the first accounting period of the multinational group, group or entity commencing on or after 31 December 2023 is made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-5-c"><num>(c)</num><content><p>may not be revoked.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-6"><num>(6)</num><intro><p>But <ref href="#schedule-4-paragraph-72-7">sub-paragraph (7)</ref> applies where any member, or former member, of a multinational group or group is, or would be on either or both of the relevant assumptions—</p></intro><level class="para1" eId="schedule-4-paragraph-72-6-a"><num>(a)</num><content><p>a person chargeable to domestic top-up tax that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the person’s membership of the multinational group or group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-6-b"><num>(b)</num><content><p>a qualifying entity that has top-up amounts or additional top-up amounts for any accounting period commencing before 31 December 2024 as a result of the entity’s membership of the multinational group or group in respect of which a person is chargeable to domestic top-up tax.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-7"><num>(7)</num><content><p>Where this sub-paragraph applies, a retrospection election may not be made without the written consent of each such person.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-8"><num>(8)</num><intro><p>For the purposes of sub-paragraph <ref href="#schedule-4-paragraph-72-6">(6)</ref>, the relevant assumptions are—</p></intro><level class="para1" eId="schedule-4-paragraph-72-8-a"><num>(a)</num><content><p>that the retrospection election had been made, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-8-b"><num>(b)</num><content><p>that no election under section 271 of F(No.2)A 2023 had been made.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-9"><num>(9)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-9-a"><num>(a)</num><content><p>the filing member of a multinational group is not a responsible member of that multinational group, or</p></content></level><level class="para1" eId="schedule-4-paragraph-72-9-b"><num>(b)</num><content><p>there is more than one responsible member of that multinational group,</p></content></level><wrapUp><p>a retrospection election may not be made without the written consent of each responsible member.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-72-10"><num>(10)</num><intro><p>Sub-paragraph <ref href="#schedule-4-paragraph-72-11">(11)</ref> applies where—</p></intro><level class="para1" eId="schedule-4-paragraph-72-10-a"><num>(a)</num><content><p>the filing member of a multinational group or group has made a retrospection election,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-b"><num>(b)</num><content><p>at the time the election was made it was reasonable for the filing member to consider that the consent of a person was not required,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-c"><num>(c)</num><content><p>that consent was not given,</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-d"><num>(d)</num><content><p>the filing member becomes aware that the consent of that person was, or may have been, required, and</p></content></level><level class="para1" eId="schedule-4-paragraph-72-10-e"><num>(e)</num><content><p>the written consent of that person is given within the period of 60 days beginning with the day on which the condition in paragraph <ref href="#schedule-4-paragraph-72-10-d">(d)</ref> is first met.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-72-11"><num>(11)</num><content><p>The consent of that person is to be treated as having been given before the election was made.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-72-12"><num>(12)</num><content><p>References in this paragraph to a “group”, other than in the expression “multinational group”, are to a group for the purposes of Part 4 of F(No.2)A 2023 (domestic top-up tax).</p></content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-5"><num>Schedule 5<authorialNote class="referenceNote"><p>Section 25</p></authorialNote></num><heading>Furnished holiday lettings</heading><part eId="schedule-5-part-1"><num>Part 1</num><heading>Amendments relating to income tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e25861"><heading><ref eId="c00178" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><intro><p>Section 189 of FA 2004 (tax reliefs and exemptions in connection with registered pension schemes: meaning of relevant UK earnings) is amended as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsection (2)</a> omit—</p></intro><level class="para2" eId="schedule-5-paragraph-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (ba)</a>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">paragraph (bb)</a> (but not the “and” after it);</p></content></level></level><level class="para1" eId="schedule-5-paragraph-1-b"><num>(b)</num><content><p>omit <span><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">subsections (5)</a> to <a href="https://www.legislation.gov.uk/ukpga/2004/12/section/189">(6B)</a></span>.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e25909"><heading><ref eId="c00179" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref></heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00180" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">section 270</a> (charge on profits of property businesses), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/270">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-2-2-a"><num>(a)</num><content><p>in the definition of “CAA allowances” omit “or 250A”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-2-b"><num>(b)</num><content><p><mod>in the definition of “CAA charges”, for “either of those sections” substitute <quotedText>“that section”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>In section 272B (meaning of “<term refersTo="#term-costs-of-a-dwelling-related-loan" eId="term-costs-of-a-dwelling-related-loan">costs of a dwelling-related loan</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (2)</a> for “subsections (3) and (4)” substitute <quotedText>“subsection (3)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/272B">subsection (4)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><intro><p>In section 307B (cash basis: capital expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (6)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(7)</a>, omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsection (8)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">paragraph (a)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-residential-property">residential property</term>” means land consisting of a dwelling-house or part of a dwelling-house in relation to which a UK property business or an overseas property business is carried on in the tax year, and</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">subsections (9)</a> and <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307B">(19)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">section 307E</a> (cash basis: capital receipts)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (20)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a> for “sections 248 to 250A” substitute <quotedText>“sections 248 and 250”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">subsection (22)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/307E">(a)</a>, for “section 15(1)(b) to (da)” substitute <quotedText>“section 15(1)(b) or (d)”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>In section 311A (replacement domestic items relief)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (6)</a>, for “subsections (7) and (8)” substitute <quotedText>“subsection (8)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/311A">subsection (7)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In section 313 (restrictions on relief), omit <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/313">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-8"><num>(8)</num><content><p>Omit Chapter 6 of Part 3 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-9"><num>(9)</num><intro><p>In section 334C (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-2-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">(b)</a>, for “a relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (3)</a>, for “each relevant property business activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-2-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/334C">subsection (6)</a>, omit the definition of “relevant property business activity”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-10"><num>(10)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/schedule/4">Schedule 4</a> (index of defined expressions), omit the entry for “commercial letting of furnished holiday accommodation (for purposes of Chapter 6 of Part 3)”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26171"><heading><ref eId="c00181" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00182" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>In section 117 (overview of Chapter 4 of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/117">(2A)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a> (UK furnished holiday lettings business treated as trade),</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a> (EEA furnished holiday lettings business treated as trade), and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-c"><num>(c)</num><content><p>the italic heading before those sections.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">section 388</a> (loan to buy plant or machinery for partnership use)—</p></intro><level class="para1" eId="schedule-5-paragraph-3-4-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">(a)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/388">subsection (4)</a>, for ““ordinary property business”” substitute <quotedText>““property business””</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">section 389</a> (eligibility requirements for interest on loans), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/389">subsection (4)</a> omit “ordinary”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>In section 399A (property partnerships: restriction of relief for investment loan interest) omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/399A">subsection (9)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>In section 836 (jointly held property), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/836">subsection (3)</a> omit exceptions D and DA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26289"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-4-a"><num>(a)</num><intro><p>in <ref eId="c00183" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-a-i"><num>(i)</num><content><p>paragraph 196 of Schedule 1, and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-a-ii"><num>(ii)</num><content><p>paragraphs 74 and 75 of Schedule 2;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/schedule/1">Schedule 1</a> to <ref eId="c00184" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-4-b-i"><num>(i)</num><content><p>paragraph 473(2)(a) and (b), and</p></content></level><level class="para2" eId="schedule-5-paragraph-4-b-ii"><num>(ii)</num><content><p>paragraphs 508, 509 and 510;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-4-c"><num>(c)</num><content><p>in <ref eId="c00185" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 1 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-d"><num>(d)</num><content><p>in <ref eId="c00186" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(5);</p></content></level><level class="para1" eId="schedule-5-paragraph-4-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 26 of Schedule 2.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-2"><num>Part 2</num><heading>Amendments relating to corporation tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e26372"><heading><ref eId="c00187" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00188" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>In section 202 (overview of Part 4) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/202">subsection (5)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><content><p>In section 250A (replacement domestic items relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/250A">subsection (7)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>In section 252 (restrictions on relief) omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/252">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>Omit Chapter 6 of Part 4 (which defines “<term refersTo="#term-the-commercial-letting-of-furnished-holiday-accommodation" eId="term-the-commercial-letting-of-furnished-holiday-accommodation">the commercial letting of furnished holiday accommodation</term>”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-6"><num>(6)</num><intro><p>In section 748 (assets held for purposes of property business)—</p></intro><level class="para1" eId="schedule-5-paragraph-5-6-a"><num>(a)</num><content><p><mod>for <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (1), “<term refersTo="#term-property-business">property business</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a UK property business, or</p></content></level><level class="para1"><num>(b)</num><content><p>an overseas property business.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-5-paragraph-5-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/748">subsection (5)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-7"><num>(7)</num><content><p>In Schedule 4 (index of defined expressions) omit the entry for “commercial letting of furnished holiday accommodation (in Chapter 6 of Part 4)”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26478"><heading><ref eId="c00189" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p><ref eId="c00190" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a> (UK furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a> (EEA furnished holiday lettings business treated as trade).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-4"><num>(4)</num><content><p>In section 188DD (limitations on relief under section 188CB: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188DD">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-5"><num>(5)</num><content><p>In section 188ED (limitations on relief under section 188CC: determination of claimant’s relevant maximum), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">(a)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/188ED">sub-paragraph (vii)</a>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-6"><num>(6)</num><content><p>In section 269ZF (restriction of certain deductions: determination of company’s qualifying trading profits), in <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">(e)</a> omit <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/269ZF">sub-paragraph (vii)</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e26554"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-7-a"><num>(a)</num><content><p>in <ref eId="c00191" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 172 and 173 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-b"><num>(b)</num><content><p>in <ref eId="c00192" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraphs 602 and 603 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-c"><num>(c)</num><content><p>in <ref eId="c00193" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 2 of Schedule 14;</p></content></level><level class="para1" eId="schedule-5-paragraph-7-d"><num>(d)</num><content><p>in <ref eId="c00194" href="https://www.legislation.gov.uk/ukpga/2016/24">FA 2016</ref>, section 73(7);</p></content></level><level class="para1" eId="schedule-5-paragraph-7-e"><num>(e)</num><content><p>in F(No.2)A 2017, paragraph 155 of Schedule 4.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-3"><num>Part 3</num><heading>Amendments relating to capital allowances</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e26610"><heading><ref eId="c00195" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref></heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><content><p><ref eId="c00196" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>Omit section 13B (use for other purposes of plant or machinery: property businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>In section 15 (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-ii"><num>(ii)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (c)</a>;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iii"><num>(iii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-a-iv"><num>(iv)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (da)</a>;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">subsection (3)</a>—</p></intro><level class="para2" eId="schedule-5-paragraph-8-3-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-5-paragraph-8-3-b-ii"><num>(ii)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/15">paragraph (b)</a> omit “ordinary”.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><content><p>Omit <span><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/16">sections 16</a> to <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/17B">17B</a></span> (which define ordinary UK, or overseas, property business and UK, or EEA, furnished holiday lettings business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><intro><p>In section 28 (qualifying expenditure: thermal insulation of buildings), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">subsections (1)</a> and <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/28">(2)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-5-a"><num>(a)</num><content><p><mod>for “an ordinary UK”, in each subsection, substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-5-b"><num>(b)</num><content><p><mod>for “an ordinary overseas”, in each subsection, substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><intro><p>In section 33 (qualifying expenditure: personal security), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">subsection (8)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-6-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-6-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/33">paragraph (da)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>In section 35 (exclusion of certain expenditure on plant or machinery for use in a dwelling-house), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><intro><p>In section 59 (unrelieved qualifying expenditure)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-8-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (4A)</a>, for “a relevant qualifying activity” substitute <quotedText>“the property business”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-8-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">subsection (7A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-9"><num>(9)</num><intro><p>In section 63 (cases in which disposal value of plant or machinery is nil), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-9-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (c)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (d)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-9-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/63">paragraph (da)</a> (but not the “or” after it).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-10"><num>(10)</num><intro><p>In section 248 (treatment of allowances or charges in relation to UK property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-10-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-10-b"><num>(b)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/248">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-11"><num>(11)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/249">section 249</a> (giving effect to allowances and charges: UK furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-12"><num>(12)</num><intro><p>In section 250 (treatment of allowances or charges in relation to overseas property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-12-a"><num>(a)</num><content><p>in the heading omit “Ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-12-b"><num>(b)</num><content><p>in the words before <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250">paragraph (a)</a> omit “Ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-13"><num>(13)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/250A">section 250A</a> (giving effect to allowances and charges: EEA furnished holiday lettings businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-14"><num>(14)</num><intro><p>In section 270CA (qualifying activities)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-14-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (b)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-14-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CA">paragraph (c)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-15"><num>(15)</num><content><p>Omit section 270CB (meaning of ordinary UK or overseas property business).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-16"><num>(16)</num><intro><p>In section 270CG (use for the purposes of a property business), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270CG">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-16-a"><num>(a)</num><content><p><mod>for “an ordinary UK” substitute <quotedText>“a UK”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-16-b"><num>(b)</num><content><p><mod>for “an ordinary overseas” substitute <quotedText>“an overseas”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-17"><num>(17)</num><intro><p>In section 270HB (allowances to be treated as expense of property businesses)—</p></intro><level class="para1" eId="schedule-5-paragraph-8-17-a"><num>(a)</num><content><p>in the heading omit “ordinary” in both places;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (a)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-17-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/270HB">paragraph (b)</a> omit “ordinary”.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-18"><num>(18)</num><intro><p>In section 536 (contributions not made by public bodies and not eligible for tax relief), in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">subsection (5)</a><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">(a)</a>—</p></intro><level class="para1" eId="schedule-5-paragraph-8-18-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (i)</a>, for “an ordinary” substitute <quotedText>“a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (ii)</a>;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-c"><num>(c)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iii)</a> omit “ordinary”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-18-d"><num>(d)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/536">sub-paragraph (iiia)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-19"><num>(19)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2001/2/schedule/1">Schedule 1</a> (defined expressions) omit the entries for—</p></intro><level class="para1" eId="schedule-5-paragraph-8-19-a"><num>(a)</num><content><p>“EEA furnished holiday lettings business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-b"><num>(b)</num><content><p>“ordinary overseas property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-c"><num>(c)</num><content><p>“ordinary UK property business”;</p></content></level><level class="para1" eId="schedule-5-paragraph-8-19-d"><num>(d)</num><content><p>“UK furnished holiday lettings business”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27155"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-9-a"><num>(a)</num><content><p>in <ref eId="c00197" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>, paragraph 13 of Schedule 2;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-b"><num>(b)</num><content><p>in <ref eId="c00198" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraphs 527 and 528 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-c"><num>(c)</num><content><p>in <ref eId="c00199" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraphs 477 and 478 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-d"><num>(d)</num><content><p>in <ref eId="c00200" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>, paragraph 347 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-e"><num>(e)</num><content><p>in <ref eId="c00201" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 3 of Schedule 14.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-4"><num>Part 4</num><heading>Amendments relating to chargeable gains</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e27214"><heading><ref eId="c00202" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref></heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p><ref eId="c00203" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>In section 3A (gains connected to avoidance or foreign activities etc) omit <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">subsections (3)</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3A">(5)</a></span>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">section 165A</a> (meaning of “<term refersTo="#term-trading-company" eId="term-trading-company">trading company</term>” and “<term refersTo="#term-trading-group" eId="term-trading-group">trading group</term>”), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165A">subsection (14)</a>, in the definition of “trade” omit “(subject to section 241(3))”.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><intro><p>Omit—</p></intro><level class="para1" eId="schedule-5-paragraph-10-4-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">section 241</a> (UK furnished holiday lettings), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-4-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">section 241A</a> (EEA furnished holiday lettings).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27283"><heading>Consequential repeals of amending provisions</heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><intro><p>The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—</p></intro><level class="para1" eId="schedule-5-paragraph-11-a"><num>(a)</num><content><p>in <ref eId="c00204" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref>, paragraph 62 of Schedule 20;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-b"><num>(b)</num><intro><p>in <ref eId="c00205" href="https://www.legislation.gov.uk/ukpga/1998/36">FA 1998</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-b-i"><num>(i)</num><content><p>paragraph 62 of Schedule 5, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-b-ii"><num>(ii)</num><content><p>paragraph 8 of Schedule 21;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-c"><num>(c)</num><content><p>in <ref eId="c00206" href="https://www.legislation.gov.uk/ukpga/2002/23">FA 2002</ref>, paragraph 3 of Schedule 8;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-d"><num>(d)</num><content><p>in <ref eId="c00207" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, paragraph 441 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-e"><num>(e)</num><content><p>in <ref eId="c00208" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, paragraph 325 of Schedule 1;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-f"><num>(f)</num><intro><p>in <ref eId="c00209" href="https://www.legislation.gov.uk/ukpga/2008/9">FA 2008</ref>—</p></intro><level class="para2" eId="schedule-5-paragraph-11-f-i"><num>(i)</num><content><p>paragraph 37 of Schedule 2, and</p></content></level><level class="para2" eId="schedule-5-paragraph-11-f-ii"><num>(ii)</num><content><p>paragraph 3 of Schedule 3;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-11-g"><num>(g)</num><content><p>in <ref eId="c00210" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>, paragraph 380 of Schedule 1 to CTA 2009;</p></content></level><level class="para1" eId="schedule-5-paragraph-11-h"><num>(h)</num><content><p>in <ref eId="c00211" href="https://www.legislation.gov.uk/ukpga/2011/11">FA 2011</ref>, Part 4 of Schedule 14.</p></content></level></paragraph></hcontainer></part><part eId="schedule-5-part-5"><num>Part 5</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e27393"><heading>Commencement: <span><ref href="#schedule-5-part-1">Parts 1</ref> to <ref href="#schedule-5-part-3">3</ref></span></heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-1">Part 1</ref> have effect for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>The amendments made by <ref href="#schedule-5-part-2">Part 2</ref> have effect for the purposes of corporation tax in relation to accounting periods beginning on or after 1 April 2025.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><intro><p>The amendments made by <ref href="#schedule-5-part-3">Part 3</ref> have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-12-3-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-12-3-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to periods of account beginning on or after 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27445"><heading>Commencement: <ref href="#schedule-5-part-4">Part 4</ref></heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><content><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to disposals made on or after the commencement date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> also have effect—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>for the purposes of <span><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">sections 152</a> to <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/157">157</a></span> of <ref eId="c00212" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief on replacement of business asset), in relation to acquisitions that take place on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>for the purposes of <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/253">section 253</a> of <ref eId="c00213" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for loans to traders), in relation to claims for a loss to be treated as accruing to a person on or after the commencement date.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p><ref href="#schedule-5-paragraph-13-1">Sub-paragraph (1)</ref> is subject to <ref href="#schedule-5-paragraph-19">paragraph 19</ref> (business asset disposal relief: disposals relating to pre-commencement businesses).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In <ref href="#schedule-5-paragraph-13">this paragraph</ref>, “<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27535"><heading>Anti-forestalling: disposals under unconditional contracts</heading><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-14-2">Sub-paragraph (2)</ref> applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-14-1-a"><num>(a)</num><content><p>an asset is disposed of under an unconditional contract made during the pre-commencement period,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-b"><num>(b)</num><content><p>the asset is conveyed or transferred on or after the commencement date, and</p></content></level><level class="para1" eId="schedule-5-paragraph-14-1-c"><num>(c)</num><content><p>a relevant claim is made in respect of the disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>The amendments made by <ref href="#schedule-5-part-4">Part 4</ref> have effect in relation to the disposal unless—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><content><p>no purpose of entering into the contract was to avoid the amendments made by <ref href="#schedule-5-part-4">Part 4</ref> having effect in relation to the disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-b-i"><num>(i)</num><content><p>the contract was entered into wholly for commercial reasons, or</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-b-ii"><num>(ii)</num><content><p>the parties to the contract are not connected persons, and</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-c"><num>(c)</num><content><p>the claim includes a statement that the conditions in <ref href="#schedule-5-paragraph-14-2-a">paragraphs (a)</ref> and <ref href="#schedule-5-paragraph-14-2-b">(b)</ref> are met.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-14">this paragraph</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of corporation tax, 1 April 2025;</p></content></level><level class="para1"><num>(b)</num><content><p>for the purposes of capital gains tax, 6 April 2025;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-connected-persons" eId="term-connected-persons">connected persons</term>” is to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/286">section 286</a> of <ref eId="c00214" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-pre-commencement-period" eId="term-the-pre-commencement-period">the pre-commencement period</term>” means the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with 6 March 2024, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day before the commencement date;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-claim" eId="term-relevant-claim">relevant claim</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/152">section 152</a> or <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153">153</a> of <ref eId="c00215" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (roll-over relief) or a declaration under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/153A">section 153A</a> of <ref eId="c00216" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> (provisional application of sections 152 and 153),</p></content></level><level class="para1"><num>(b)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/165">section 165</a> of <ref eId="c00217" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (relief for gifts of business assets), or</p></content></level><level class="para1"><num>(c)</num><content><p>a claim under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169M">section 169M</a> of <ref eId="c00218" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (business asset disposal relief).</p></content></level></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27718"><heading>Corporation tax: accounting periods straddling 1 April 2025</heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><content><p><ref href="#schedule-5-paragraph-15">This paragraph</ref> applies where a company has an accounting period beginning before, and ending on or after, 1 April 2025 (“the straddling period”).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>For the purposes of <ref href="#schedule-5">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>so much of the straddling period as falls before 1 April 2025, and so much of that period as falls on or after 1 April 2025, are treated as separate accounting periods, and</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><intro><p>where it is necessary to apportion an amount for the straddling period to the two separate accounting periods, it is to be apportioned—</p></intro><level class="para2" eId="schedule-5-paragraph-15-2-b-i"><num>(i)</num><content><p>in accordance with <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/1172">section 1172</a> of <ref eId="c00219" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (time basis), or</p></content></level><level class="para2" eId="schedule-5-paragraph-15-2-b-ii"><num>(ii)</num><content><p>if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27772"><heading>Carry-forward of losses: income tax</heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-16">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>a person is treated as carrying on in the tax year 2024-25 a single trade by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00220" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (UK furnished holiday lettings businesses) or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00221" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>the person has made a loss in that trade in the tax year 2024-25 or a previous tax year,</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-c"><num>(c)</num><content><p>relief for the loss has not been fully given under <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4/chapter/2">Chapter 2</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/4">Part 4</a> of <ref eId="c00222" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (trade losses) or any other provision of the Income Tax Acts, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-d"><num>(d)</num><content><p>the person carries on a corresponding property business in the tax year 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><content><p>So much of the loss as has not been relieved is to be treated for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/118">section 118</a> of <ref eId="c00223" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (carry forward against subsequent property business profits) as if it had been made in the corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>In <ref href="#schedule-5-paragraph-16">this paragraph</ref>, “<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">section 127</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127">(3)</a> of <ref eId="c00224" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/264">section 264</a> of <ref eId="c00225" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>in relation to a loss made in a trade a person is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">section 127ZA</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/127ZA">(3)</a> of <ref eId="c00226" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>, an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/265">section 265</a> of <ref eId="c00227" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>) carried on by that person.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e27900"><heading>Carry-forward of losses: corporation tax</heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-17">This paragraph</ref> applies if—</p></intro><level class="para1" eId="schedule-5-paragraph-17-1-a"><num>(a)</num><intro><p>a company is treated as carrying on in its last accounting period to begin before 1 April 2025 a single trade by virtue of—</p></intro><level class="para2" eId="schedule-5-paragraph-17-1-a-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00228" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (UK furnished holiday lettings businesses), or</p></content></level><level class="para2" eId="schedule-5-paragraph-17-1-a-ii"><num>(ii)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00229" href="https://www.legislation.gov.uk/ukpga/2010/4">that Act</ref> (EEA furnished holiday lettings businesses),</p></content></level></level><level class="para1" eId="schedule-5-paragraph-17-1-b"><num>(b)</num><content><p>the company has made a loss in that trade in that accounting period or a previous one,</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-c"><num>(c)</num><content><p>but for the provision of <ref href="#schedule-5">this Schedule</ref>, all or part of the loss would fall to be carried forward under <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/45">section 45</a> of <ref eId="c00230" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> to an accounting period beginning on or after 1 April 2025, and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-1-d"><num>(d)</num><content><p>the company carries on a corresponding property business in its accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><content><p>The loss or the part of the loss that would otherwise fall to be carried forward as mentioned in <ref href="#schedule-5-paragraph-17-1">sub-paragraph (1)</ref><ref href="#schedule-5-paragraph-17-1-c">(c)</ref> is to be treated for the purposes of the relevant relieving provision as if it had been made by the company in its corresponding property business.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">section 65</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/65">(3)</a> of <ref eId="c00231" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-3-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means a UK property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/205">section 205</a> of <ref eId="c00232" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-3-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">section 62</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/62">(5)</a> of <ref eId="c00233" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in UK property business).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><intro><p>For the purposes of <ref href="#schedule-5-paragraph-17">this paragraph</ref> as it applies in relation to a trade a company is treated as carrying on by virtue of <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">section 67A</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/67A">(3)</a> of <ref eId="c00234" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref>—</p></intro><level class="para1" eId="schedule-5-paragraph-17-4-a"><num>(a)</num><content><p>“<term refersTo="#term-corresponding-property-business" eId="term-corresponding-property-business">corresponding property business</term>” means an overseas property business (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2009/4/section/206">section 206</a> of <ref eId="c00235" href="https://www.legislation.gov.uk/ukpga/2009/4">CTA 2009</ref>), and</p></content></level><level class="para1" eId="schedule-5-paragraph-17-4-b"><num>(b)</num><content><p>“<term refersTo="#term-the-relevant-relieving-provision" eId="term-the-relevant-relieving-provision">the relevant relieving provision</term>” means <a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">section 66</a><a href="https://www.legislation.gov.uk/ukpga/2010/4/section/66">(3)</a> of <ref eId="c00236" href="https://www.legislation.gov.uk/ukpga/2010/4">CTA 2010</ref> (relief for losses made in overseas property business).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28086"><heading>Plant and machinery allowances</heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p><ref href="#schedule-5-paragraph-18">This paragraph</ref> applies for the purposes of <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00237" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (plant and machinery allowances) where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>immediately before the end of a person’s pre-commencement chargeable period, the person is carrying on an FHL qualifying activity, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>at the start of the person’s post-commencement chargeable period, the person is carrying on the corresponding property activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The amount of any allowance or charge arising in the person’s post-commencement chargeable period or any subsequent chargeable period is to be calculated as if anything done by or to the person in carrying on the FHL qualifying activity had been done by or to the person in carrying on the corresponding property activity.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>In particular—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><intro><p>where plant or machinery is in use for the purposes of the FHL qualifying activity immediately before the end of the person’s pre-commencement chargeable period—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-a-i"><num>(i)</num><content><p>the plant or machinery is to be treated as if it had been brought into use for the purposes of the corresponding property activity on the day on which it was brought into use for the purposes of the FHL qualifying activity, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-a-ii"><num>(ii)</num><content><p>its use for the purposes of the FHL qualifying activity is to be disregarded.</p></content></level></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><intro><p>where the person has unrelieved qualifying expenditure (within the meaning given by <a href="https://www.legislation.gov.uk/ukpga/2001/2/section/59">section 59</a> of <ref eId="c00238" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>) to carry forward from the person’s pre-commencement chargeable period in a pool for an FHL qualifying activity, the expenditure is to be—</p></intro><level class="para2" eId="schedule-5-paragraph-18-3-b-i"><num>(i)</num><content><p>carried forward to the person’s post-commencement chargeable period, and</p></content></level><level class="para2" eId="schedule-5-paragraph-18-3-b-ii"><num>(ii)</num><content><p>allocated to the appropriate pool for the corresponding property activity.</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>Accordingly, the person is not to be taken, by reason only of the effect of the amendments made by <ref href="#schedule-5">this Schedule</ref>, as having—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>brought plant or machinery into use, or ceased to use plant or machinery, for the purposes of a qualifying activity, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>permanently discontinued a qualifying activity.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2001/2/section/35">Section 35</a> of <ref eId="c00239" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref> (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure) does not apply to expenditure carried forward in accordance with <ref href="#schedule-5-paragraph-18-3">sub-paragraph (3)</ref><ref href="#schedule-5-paragraph-18-3-b">(b)</ref><ref href="#schedule-5-paragraph-18-3-b-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>In <ref href="#schedule-5-paragraph-18">this paragraph</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fhl-qualifying-activity" eId="term-fhl-qualifying-activity">FHL qualifying activity</term>” means a UK furnished holiday lettings business or an EEA furnished holiday lettings business;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-corresponding-property-activity" eId="term-the-corresponding-property-activity">the corresponding property activity</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK furnished holiday lettings business carried on by a person, a UK property business carried on by that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an EEA furnished holiday lettings business carried on by a person, an overseas property business carried on by that person;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-pre-commencement-chargeable-period" eId="term-pre-commencement-chargeable-period">pre-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, a company’s last accounting period to begin before 1 April 2025, and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2024-25;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-post-commencement-chargeable-period" eId="term-post-commencement-chargeable-period">post-commencement chargeable period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>for corporation tax purposes, the accounting period beginning on 1 April 2025 (see <ref href="#schedule-5-paragraph-15">paragraph 15</ref>), and</p></content></level><level class="para1"><num>(b)</num><content><p>for income tax purposes, the tax year 2025-26.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Expressions used in <ref href="#schedule-5-paragraph-18-6">sub-paragraph (6)</ref> have the same meaning as in <a href="https://www.legislation.gov.uk/ukpga/2001/2/part/2">Part 2</a> of <ref eId="c00240" href="https://www.legislation.gov.uk/ukpga/2001/2">CAA 2001</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28295"><heading>Business asset disposal relief: disposals relating to pre-commencement businesses</heading><paragraph eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><intro><p>The amendments made by <ref href="#schedule-5">this Schedule</ref> do not have effect in relation to a disposal made on or after 6 April 2025 if it is—</p></intro><level class="para1" eId="schedule-5-paragraph-19-a"><num>(a)</num><content><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(b)</a> of <ref eId="c00241" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (assets used for purposes of business) where the date on which the business ceases to be carried on is before 6 April 2025;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-b"><num>(b)</num><intro><p>a disposal of business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(c)</a> of <ref eId="c00242" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (shares in or securities of a company) where—</p></intro><level class="para2" eId="schedule-5-paragraph-19-b-i"><num>(i)</num><content><p>the disposal is a material disposal by virtue of condition B in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7)</a> of <ref eId="c00243" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> or condition D in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">section 169I</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169I">(7B)</a> of <ref eId="c00244" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref>, and</p></content></level><level class="para2" eId="schedule-5-paragraph-19-b-ii"><num>(ii)</num><content><p>the period of 2 years mentioned in condition B or condition D (as the case may be) ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-c"><num>(c)</num><intro><p>a disposal of trust business assets within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(1)</a> of <ref eId="c00245" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> where the settlement business assets are—</p></intro><level class="para2" eId="schedule-5-paragraph-19-c-i"><num>(i)</num><content><p>assets consisting of (or of interests in) shares in or securities of a company in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(4)</a> of <ref eId="c00246" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025, or</p></content></level><level class="para2" eId="schedule-5-paragraph-19-c-ii"><num>(ii)</num><content><p>assets (or interests in assets) used or previously used for the purposes of a business in relation to which the period of 2 years mentioned in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">section 169J</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169J">(5)</a> of <ref eId="c00247" href="https://www.legislation.gov.uk/ukpga/1992/12">that Act</ref> ends before 6 April 2025;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-19-d"><num>(d)</num><content><p>a disposal associated with a relevant material disposal within <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">section 169K</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/169K">(1)</a> of <ref eId="c00248" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, where the date of the material disposal of business assets with which the disposal is associated is before 6 April 2025.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28423"><heading>Post-commencement disposals by companies with substantial shareholding</heading><paragraph eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC/paragraph/3">Paragraph 3</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">Schedule 7AC</a> to <ref eId="c00249" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (exemptions for disposals by companies with substantial shareholding: main conditions previously met) has effect in relation to a disposal made on or after 1 April 2025 in accordance with <ref href="#schedule-5-paragraph-20-2">sub-paragraph (2)</ref>.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><content><p>In determining whether the condition in sub-paragraph (2)(d) of that paragraph of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/7AC">that Schedule</a> is met, <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241">sections 241</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/241A">241A</a> of <ref eId="c00250" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (commercial letting of furnished holiday accommodation to be treated as a trade) are to be disregarded.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-6"><num>Schedule 6<authorialNote class="referenceNote"><p>Section 31</p></authorialNote></num><heading>Employee-ownership trusts</heading><part eId="schedule-6-part-1"><num>Part 1</num><heading>Capital gains tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e28479"><heading>Introduction</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00251" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28490"><heading>Requirement for trustees of employee-ownership trusts to be UK resident</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a> (disposals to employee-ownership trusts), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28509"><num>(za)</num><content><p>that the trustees of the settlement are resident in the United Kingdom at the time of the disposal and continue to be UK resident for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a> (no section 236H relief if disqualifying event in next tax year), before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28532"><num>(za)</num><content><p>the trustees of the settlement cease to be resident in the United Kingdom,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><content><p>See also section 80 (trustees ceasing to be resident in U.K.), which provides for similar consequences in circumstances where the trustees of the settlement cease to be resident in the United Kingdom.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a> (relief for deemed disposals under section 71), for “236H(4)(a)” substitute <quotedText>“236H(4)<ref href="#d25e28509">(za)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-2">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28587"><heading>Trustee independence</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>that the settlement meets the trustee independence requirement (see section 236LA) at the time of the disposal and continues to meet that requirement for the remainder of the tax year in which that time falls,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236L">section 236L</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>236LA</num><heading>Trustee independence requirement</heading><subsection><num>(1)</num><intro><p>A settlement meets the trustee independence requirement if—</p></intro><level class="para1"><num>(a)</num><content><p>less than 50% of the trustees are persons who are excluded participators, and</p></content></level><level class="para1"><num>(b)</num><content><p>excluded participators do not have control of the settlement.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In this section “<term refersTo="#term-excluded-participator">excluded participator</term>” means—</p></intro><level class="para1" eId="d25e28661"><num>(a)</num><content><p>a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>a company not falling within <ref href="#d25e28661">paragraph (a)</ref>, if 50% or more of its directors are persons falling within that paragraph.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to—</p></intro><level class="para1"><num>(a)</num><content><p>dispose of, advance, lend, invest, pay or apply settlement property;</p></content></level><level class="para1"><num>(b)</num><content><p>vary or terminate the settlement;</p></content></level><level class="para1"><num>(c)</num><content><p>add or remove a person as a beneficiary or to or from a class of beneficiaries;</p></content></level><level class="para1"><num>(d)</num><content><p>appoint or remove trustees or give another individual control over the settlement;</p></content></level><level class="para1"><num>(e)</num><content><p>direct the exercise of a power mentioned in sub-paragraphs (a) to (d).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(2)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28727"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(2)</a> (events which trigger deemed disposal and reacquisition by trustees), after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">paragraph (b)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e28750"><num>(ba)</num><content><p>the settlement ceases to meet the trustee independence requirement,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-3-5"><num>(5)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-3">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28767"><heading>Temporary breach of trustee independence requirement or residence requirement arising from death of trustee</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28532">(za)</ref> occurs (trustees cease to be resident in the United Kingdom),</p></content></level><level class="para1"><num>(b)</num><content><p>the event only occurs as a result of the death of a trustee of the settlement, and</p></content></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with the death of the trustee, the trustees become resident in the United Kingdom,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection><subsection><num>(2B)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28727">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a disqualifying event falling within subsection (2)<ref href="#d25e28750">(ba)</ref> occurs (trustee independence requirement ceases to be met),</p></content></level><level class="para1"><num>(b)</num><intro><p>the event only occurs as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the death of a trustee of the settlement, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the death of a director of a company that is a trustee of the settlement, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,</p></content></level><wrapUp><p>the disqualifying event is to be ignored.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-4">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28920"><heading>Consideration requirement</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">(4)</a>, after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><intro><p>that the trustees have taken all reasonable steps to secure that—</p></intro><level class="para2"><num>(i)</num><content><p>the consideration for the disposal does not exceed the market value of the ordinary share capital at the time of the disposal, and</p></content></level><level class="para2"><num>(ii)</num><content><p>where some or all of the consideration for the disposal is deferred, that the rate of any interest payable in relation to the deferral does not exceed a reasonable commercial rate,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>, in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">(c)</a>, for “(d)” substitute <quotedText>“(c) and (d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-5-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-5">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e28988"><heading>Extended period for disqualifying events</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">section 236O</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-1-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-1-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236O">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">section 236P</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236P">(1)</a>, after “end of the” insert <quotedText>“fourth”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">section 236R</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-6-3-a"><num>(a)</num><content><p><mod>in the heading, for “tax year” substitute <quotedText>“four tax years”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-6-paragraph-6-3-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236R">(b)</a>, for “the tax year” substitute <quotedText>“any of the first four tax years”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-6-4"><num>(4)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-6">this paragraph</ref> have effect in relation to disposals made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e29082"><heading>Additional information to be provided in claims</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">section 236H</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-1-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-1-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (b)</a>,</p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-ii"><num>(ii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that paragraph</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29126"><num>(ba)</num><intro><p>the number of persons who at the time of the disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>C, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if C is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group,</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="schedule-6-paragraph-7-1-a-iii"><num>(iii)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">paragraph (c)</a> insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the consideration for the disposal (including amounts of consideration due after the disposal).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-1-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236H">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (7)<ref href="#d25e29126">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">section 236Q</a>—</p></intro><level class="para1" eId="schedule-6-paragraph-7-2-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">subsection (6)</a>—</p></intro><level class="para2" eId="schedule-6-paragraph-7-2-a-i"><num>(i)</num><content><p>omit the “and” after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">paragraph (b)</a>, and</p></content></level><level class="para2" eId="schedule-6-paragraph-7-2-a-ii"><num>(ii)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e29231"><num>(ba)</num><intro><p>the number of persons who at the time of the deemed disposal are employees of—</p></intro><level class="para2"><num>(i)</num><content><p>the company, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the company is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group, and</p></content></level></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level></level><level class="para1" eId="schedule-6-paragraph-7-2-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/236Q">that subsection</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro><p>But where the person making the claim is unable to include the number of employees in the claim as required by subsection (6)<ref href="#d25e29231">(ba)</ref> because they have been unable to ascertain that number, that requirement is to be taken to be met if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has taken all reasonable steps to ascertain that number, and—</p></content></level><level class="para1"><num>(b)</num><content><p>the claim contains a statement that the person has taken such steps.</p></content></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-6-paragraph-7">this paragraph</ref> have effect in relation to claims made under those sections on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-6-part-2"><num>Part 2</num><heading>Income tax</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e29296"><heading>Participation requirement not infringed by exclusion of directors</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-6-paragraph-8-1"><num>(1)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/312C">section 312C</a> of <ref eId="c00252" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref>, after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>The participation requirement is not infringed by reason of the exclusion of directors of the company from participating in an award.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-8-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-8">this paragraph</ref> has effect in relation to qualifying bonus payments made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e29331"><heading>Relief for distributions to trustees of employee-ownership trusts</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-6-paragraph-9-1"><num>(1)</num><content><p><mod>In <ref eId="c00253" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref>, after section 401 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Employee-ownership trusts</heading><section><num>401ZA</num><heading>Relief: distributions to trustees of employee-ownership trusts</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there has been a disposal of ordinary share capital of a company (“<term refersTo="#term-c">C</term>”) to the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the relief requirements are met in relation to the disposal,</p></content></level><level class="para1"><num>(c)</num><content><p>C has made a payment to the trustees that is a distribution to the trustees chargeable to income tax as a result of this Chapter or Chapter 4 (dividends from non-UK resident companies), and</p></content></level><level class="para1"><num>(d)</num><content><p>the payment was made for the purposes of meeting the trustees’ acquisition costs.</p></content></level></subsection><subsection><num>(2)</num><intro><p>On the making of a claim, so much of the trustees’ acquisition costs may be deducted from the distribution (whether chargeable under this Chapter or Chapter 4) as—</p></intro><level class="para1"><num>(a)</num><content><p>does not reduce the amount of the distribution below nil, and</p></content></level><level class="para1"><num>(b)</num><content><p>has not been deducted from any other distribution.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “<term refersTo="#term-relief-requirements">relief requirements</term>” means the requirements set out in section 236H(4) of TCGA 1992 (disposals to employee-ownership trusts), but those requirements have effect for the purposes of this section as if references to “P” were to the person making the disposal whether or not that person is a company.</p></content></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section, the trustees’ acquisition costs are sums expended by the trustees on—</p></intro><level class="para1"><num>(a)</num><content><p>the acquisition of ordinary share capital in C by the trustees that resulted from the disposal;</p></content></level><level class="para1"><num>(b)</num><content><p>the repayment of any sums borrowed to fund that acquisition;</p></content></level><level class="para1"><num>(c)</num><content><p>the payment of interest on any such sums or in respect of any deferral of consideration for the disposal to the extent the payment is not in respect of interest exceeding a reasonable commercial rate;</p></content></level><level class="para1"><num>(d)</num><content><p>any valuation of C carried out in connection with the acquisition;</p></content></level><level class="para1"><num>(e)</num><content><p>any liability to stamp duty or stamp duty reserve tax on the acquisition;</p></content></level><level class="para1"><num>(f)</num><content><p>such other reasonable expenses as are directly connected with the acquisition (but this does not include any expenses incurred in connection with the ownership of the ordinary share capital once acquired).</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-9-2"><num>(2)</num><content><p>The amendment made by <ref href="#schedule-6-paragraph-9">this paragraph</ref> has effect in relation to distributions made on or after 30 October 2024.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-7"><num>Schedule 7<authorialNote class="referenceNote"><p>Section 35</p></authorialNote></num><heading>Diminishing shared ownership refinancing arrangements</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e29478"><heading>Income tax</heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-7-paragraph-1-1"><num>(1)</num><content><p>Part 10A of ITA 2007 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-2"><num>(2)</num><content><p><mod>In section 564A (introduction), in subsection (3)(b) after “section 564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-3"><num>(3)</num><intro><p>In section 564D (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “564E” substitute <quotedText>“<ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-4"><num>(4)</num><content><p><mod>After section 564D insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e29597"><num>564DA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e29601"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e29607"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e29616"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29643"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e29616">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29852">(6)</ref>),</p></content></level><level class="para1" eId="d25e29655"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29667"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29673"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e29679"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 564D or subsection <ref href="#d25e29601">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e29688"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 564D(1)(a) or subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref> of this section as has not yet been acquired as mentioned in section 564D(1)(d) or subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29655">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 564D(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 564D(1A)),</p></content></level></level><level class="para1" eId="d25e29725"><num>(c)</num><content><p>the customer mentioned in section 564D(1) or <ref href="#d25e29601">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 564D(1)(c) or <ref href="#d25e29601">subsection (1)</ref><ref href="#d25e29643">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e29852">(6)</ref>),</p></content></level><level class="para1" eId="d25e29742"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e29754"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e29760"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e29601">(1)</ref><ref href="#d25e29607">(a)</ref> and <ref href="#d25e29616">(b)</ref> and <ref href="#d25e29679">(2)</ref><ref href="#d25e29688">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29667">(g)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29754">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e29816">(5)</ref> are met.</p></content></subsection><subsection eId="d25e29816"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e29852"><num>(6)</num><intro><p>Subsection <ref href="#d25e29601">(1)</ref><ref href="#d25e29673">(h)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29760">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 564H (provision not at arm’s length: exclusion of arrangements from sections 564C and 564D, this section and sections 564E to 564G).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-5"><num>(5)</num><intro><p>In section 564K (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-1-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-1-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-1-5-b-i"><num>(i)</num><content><p><mod>after “section 564D(1)(c)” insert <quotedText>“or <ref href="#d25e29597">564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29643">(d)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29725">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-1-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-1-6"><num>(6)</num><content><p><mod>In section 564V (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 564D” insert <quotedText>“or <ref href="#d25e29597">564DA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-1-7"><num>(7)</num><content><p><mod>After section 564W (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>564WA</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e29597">564DA</ref> applies.</p></content></subsection><subsection><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref>, any profit, gain or loss realised by the customer on the disposal of the asset is to be treated as not having been realised for income tax purposes.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30012"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29616">(b)</ref>,</p></content></level><level class="para1" eId="d25e30025"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29601">(1)</ref><ref href="#d25e29643">(d)</ref> and <ref href="#d25e29655">(e)</ref> or <ref href="#d25e29679">(2)</ref><ref href="#d25e29725">(c)</ref> and <ref href="#d25e29742">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30012">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30025">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of calculating, for income tax purposes, the amount of the profit, gain or loss realised by customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30795">(2)</ref> and <ref href="#d25e30808">(3)</ref>, “<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in <ref href="#d25e29597">section 564DA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e29597">section 564DA</ref><ref href="#d25e29679">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for income tax purposes.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e30092"><heading>Corporation tax</heading><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-7-paragraph-2-1"><num>(1)</num><content><p>Chapter 6 of Part 6 of CTA 2009 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-2"><num>(2)</num><content><p><mod>In section 501 (introduction), in subsection (3)(b) after “section 504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-3"><num>(3)</num><intro><p>In section 504 (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-3-g"><num>(g)</num><content><p><mod>in subsection (6), for “505” substitute <quotedText>“<ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-4"><num>(4)</num><content><p><mod>After section 504 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e30211"><num>504A</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e30215"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e30221"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e30230"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30257"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e30230">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in <ref href="#d25e30466">subsection (6)</ref>),</p></content></level><level class="para1" eId="d25e30269"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30281"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30287"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e30293"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 504 or subsection <ref href="#d25e30215">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e30302"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 504(1)(a) or subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref> of this section as has not yet been acquired as mentioned in section 504(1)(d) or subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30269">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 504(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 504(1A)),</p></content></level></level><level class="para1" eId="d25e30339"><num>(c)</num><content><p>the customer mentioned in section 504(1) or <ref href="#d25e30215">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 504(1)(c) or <ref href="#d25e30215">subsection (1)</ref><ref href="#d25e30257">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e30466">(6)</ref>),</p></content></level><level class="para1" eId="d25e30356"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e30368"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e30374"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e30215">(1)</ref><ref href="#d25e30221">(a)</ref> and <ref href="#d25e30230">(b)</ref> and <ref href="#d25e30293">(2)</ref><ref href="#d25e30302">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30281">(g)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30368">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e30430">(5)</ref> are met.</p></content></subsection><subsection eId="d25e30430"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e30466"><num>(6)</num><intro><p>Subsection <ref href="#d25e30215">(1)</ref><ref href="#d25e30287">(h)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30374">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>This section is subject to section 508 (provision not at arm’s length: exclusion of arrangements from sections 503 and 504, this section and sections 505 to 507).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-5"><num>(5)</num><intro><p>In section 510 (application of Part 5 of CTA 2009 to alternative finance arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-5-a"><num>(a)</num><intro><p>in subsection (2)(a)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-a-i"><num>(i)</num><content><p><mod>for “first owner” substitute <quotedText>“financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-ii"><num>(ii)</num><content><p><mod>for the “first owner’s” substitute <quotedText>“financier’s”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-a-iii"><num>(iii)</num><content><p><mod>for “eventual owner” substitute <quotedText>“customer”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-5-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-5-b-i"><num>(i)</num><content><p>omit the definitions of “the eventual owner” and “the first owner”;</p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>before the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30211">504A</ref> (see subsection <ref href="#d25e30215">(1)</ref> or <ref href="#d25e30293">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-5-b-iii"><num>(iii)</num><content><p><mod>after the definition of “the depositor” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-financier">the financier</term>” has the same meaning as in section 504 (see subsection (1) of that section) or <ref href="#d25e30211">504A</ref> (see subsection <ref href="#d25e30215">(1)</ref> or <ref href="#d25e30293">(2)</ref> of that section),</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-6"><num>(6)</num><intro><p>In section 512 (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-6-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-6-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-2-6-b-i"><num>(i)</num><content><p><mod>after “section 504(1)(c)” insert <quotedText>“or <ref href="#d25e30211">504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30257">(d)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30339">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-2-6-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-2-6-c"><num>(c)</num><content><p><mod>in subsection (4), after “504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-7"><num>(7)</num><content><p><mod>In section 514 (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 504” insert <quotedText>“or <ref href="#d25e30211">504A</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-8"><num>(8)</num><intro><p>In section 515 (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-2-8-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-2-8-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of the Corporation Tax Acts as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 504 or <ref href="#d25e30211">504A</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-2-9"><num>(9)</num><content><p><mod>After section 515 (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>515A</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e30211">section 504A</ref> applies.</p></content></subsection><subsection eId="d25e30795"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of the Corporation Tax Acts.</p></content></subsection><subsection eId="d25e30808"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e30814"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30230">(b)</ref>,</p></content></level><level class="para1" eId="d25e30827"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e30211">section 504A</ref><ref href="#d25e30215">(1)</ref><ref href="#d25e30257">(d)</ref> and <ref href="#d25e30269">(e)</ref> or <ref href="#d25e30293">(2)</ref><ref href="#d25e30339">(c)</ref> and <ref href="#d25e30356">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e30814">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e30827">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of the Corporation Tax Acts, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e30795">(2)</ref> and <ref href="#d25e30808">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e30211">section 504A</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e30211">section 504A</ref><ref href="#d25e30293">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of the Corporation Tax Acts.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e30891"><heading>Capital gains tax</heading><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-7-paragraph-3-1"><num>(1)</num><content><p>Chapter 4 of Part 4 of the TCGA 1992 (alternative finance arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-2"><num>(2)</num><content><p><mod>In section 151H (introduction), in subsection (3)(b) after “section 151K” insert <quotedText>“or 151KA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-3"><num>(3)</num><intro><p>In section 151K (diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-3-a"><num>(a)</num><content><p><mod>at the end of the heading insert <quotedText>“: initial acquisition”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-b"><num>(b)</num><content><p><mod>for the “<term refersTo="#term-the-first-owner" eId="term-the-first-owner">the first owner</term>” (in each place it appears) substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-c"><num>(c)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-d"><num>(d)</num><content><p><mod>for “<term refersTo="#term-the-first-owners" eId="term-the-first-owners">the first owner’s</term>” (in each place it appears) substitute <quotedText>“the financier’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-e"><num>(e)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owners" eId="term-the-eventual-owners">the eventual owner’s</term>” (in each place it appears) substitute <quotedText>“the customer’s”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-f"><num>(f)</num><content><p><mod>in subsection (1A)(d), for “those owners” substitute <quotedText>“the customer and the financier”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-3-g"><num>(g)</num><content><p><mod>in subsection (7), for “151L” substitute <quotedText>“151KA”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-4"><num>(4)</num><content><p><mod>After section 151K insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e31004"><num>151KA</num><heading>Diminishing shared ownership arrangements: refinancing</heading><subsection eId="d25e31008"><num>(1)</num><intro><p>This section applies to arrangements if under them—</p></intro><level class="para1" eId="d25e31014"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-customer">the customer</term>”) has a beneficial interest in an asset,</p></content></level><level class="para1" eId="d25e31023"><num>(b)</num><content><p>the customer disposes of some or all of their beneficial interest in the asset to another person (“<term refersTo="#term-the-financier">the financier</term>”),</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31050"><num>(d)</num><content><p>the customer is to make payments to the financier amounting in aggregate to the consideration paid for the financier acquiring a beneficial interest as mentioned in <ref href="#d25e31023">paragraph (b)</ref> (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31259">(6)</ref>),</p></content></level><level class="para1" eId="d25e31062"><num>(e)</num><content><p>the customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(f)</num><content><p>the customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31074"><num>(g)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31080"><num>(h)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection eId="d25e31086"><num>(2)</num><intro><p>This section also applies to arrangements which supersede arrangements to which section 151K or subsection <ref href="#d25e31008">(1)</ref> of this section applies if under them—</p></intro><level class="para1" eId="d25e31095"><num>(a)</num><content><p>a person (“<term refersTo="#term-the-financier">the financier</term>”) acquires so much of the beneficial interest in an asset mentioned in section 151K(1)(a) or subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref> of this section as has not yet been acquired as mentioned in section 151K(1)(d) or subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31062">(e)</ref> of this section,</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the financier is a financial institution or a regulated home purchase plan provider (within the meaning of section 151K(7)), or</p></content></level><level class="para2"><num>(ii)</num><content><p>the arrangements are regulated electronic system facilitated arrangements (within the meaning of section 151K(1A)),</p></content></level></level><level class="para1" eId="d25e31132"><num>(c)</num><content><p>the customer mentioned in section 151K(1) or <ref href="#d25e31008">subsection (1)</ref> of this section is to make payments to the financier amounting in aggregate to so much of the payments mentioned in section 151K(1)(c) or <ref href="#d25e31008">subsection (1)</ref><ref href="#d25e31050">(d)</ref> of this section as are yet to be paid (but subject to any adjustment required for such a reduction as is mentioned in subsection <ref href="#d25e31259">(6)</ref>),</p></content></level><level class="para1" eId="d25e31149"><num>(d)</num><content><p>that customer is to acquire the financier’s beneficial interest (whether or not in stages) as a result of those payments,</p></content></level><level class="para1"><num>(e)</num><content><p>that customer is to make other payments to the financier (whether under a lease forming part of the arrangements or otherwise),</p></content></level><level class="para1" eId="d25e31161"><num>(f)</num><content><p>the customer has the exclusive right to occupy or otherwise to use the asset, and</p></content></level><level class="para1" eId="d25e31167"><num>(g)</num><content><p>the customer is exclusively entitled to any income, profit or gain arising from or attributable to that asset (including, in particular, an increase in its value).</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsections <ref href="#d25e31008">(1)</ref><ref href="#d25e31014">(a)</ref> and <ref href="#d25e31023">(b)</ref> and <ref href="#d25e31086">(2)</ref><ref href="#d25e31095">(a)</ref> it does not matter if—</p></intro><level class="para1"><num>(a)</num><content><p>another person who is not the customer or the financier also has a beneficial interest in the asset, or</p></content></level><level class="para1"><num>(b)</num><content><p>the financier also has a legal interest in it.</p></content></level></subsection><subsection><num>(4)</num><content><p>Subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31074">(g)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31161">(f)</ref> does not prevent the customer from granting an interest or right in relation to the asset if the conditions in subsection <ref href="#d25e31223">(5)</ref> are met.</p></content></subsection><subsection eId="d25e31223"><num>(5)</num><intro><p>The conditions are that—</p></intro><level class="para1"><num>(a)</num><intro><p>the grant is not to—</p></intro><level class="para2"><num>(i)</num><content><p>the financier,</p></content></level><level class="para2"><num>(ii)</num><content><p>a person controlled by the financier, or</p></content></level><level class="para2"><num>(iii)</num><content><p>a person controlled by a person who also controls the financier, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the grant is not required by the financier or arrangements to which the financier is a party.</p></content></level></subsection><subsection eId="d25e31259"><num>(6)</num><intro><p>Subsection <ref href="#d25e31008">(1)</ref><ref href="#d25e31080">(h)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31167">(g)</ref> does not prevent the financier from—</p></intro><level class="para1"><num>(a)</num><content><p>having responsibility for any reduction in the asset’s value, or</p></content></level><level class="para1"><num>(b)</num><content><p>having a share in a loss arising out of any such reduction.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 1124 of CTA 2010 (meaning of “<term refersTo="#term-control">control</term>”) applies for the purposes of this section.</p></content></subsection><subsection><num>(8)</num><content><p>This section is subject to section 151O (provision not at arm’s length: exclusion of arrangements from sections 151J and 151K, this section and sections 151L to 151N).</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-5"><num>(5)</num><intro><p>In section 151R (alternative finance return resulting from diminishing shared ownership arrangements)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-5-a"><num>(a)</num><content><p><mod>for “<term refersTo="#term-the-eventual-owner" eId="term-the-eventual-owner">the eventual owner</term>” (in each place it appears) substitute <quotedText>“the customer”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-5-b"><num>(b)</num><intro><p>in subsection (2)—</p></intro><level class="para2" eId="schedule-7-paragraph-3-5-b-i"><num>(i)</num><content><p><mod>after “section 151K(1)(c)” insert <quotedText>“or <ref href="#d25e31004">151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31050">(d)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31132">(c)</ref>”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-ii"><num>(ii)</num><content><p><mod>for “the first owner” substitute <quotedText>“the financier”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-7-paragraph-3-5-b-iii"><num>(iii)</num><content><p>the “the first owner’s” substitute “the financier’s”;</p></content></level></level><level class="para1" eId="schedule-7-paragraph-3-5-c"><num>(c)</num><content><p><mod>in subsection (4), after “section 151K” insert <quotedText>“or <ref href="#d25e31004">151KA</ref>”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-6"><num>(6)</num><content><p><mod>In section 151X (exclusion of some alternative finance return from sale consideration), in subsection (2), after “section 151K” insert <quotedText>“or <ref href="#d25e31004">151KA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-3-7"><num>(7)</num><intro><p>In section 151Y (diminishing shared ownership arrangements not partnership)—</p></intro><level class="para1" eId="schedule-7-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “not partnerships” substitute <quotedText>“: further provision”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-b"><num>(b)</num><content><p>the existing text becomes subsection (1);</p></content></level><level class="para1" eId="schedule-7-paragraph-3-7-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection><num>(3)</num><intro><p>If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the dealings with the asset of any person appointed for that purpose,</p></content></level><wrapUp><p>are to be treated for the purposes of this Act so far as it applies for capital gains tax as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-asset">the asset</term>” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-customer">the customer</term>” and “the financier” have the same meaning as in section 151K or <ref href="#d25e31004">151KA</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-termination">termination</term>”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.</p></content></hcontainer></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-3-8"><num>(8)</num><content><p><mod>After section 151Y (diminishing shared ownership arrangements not partnerships) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>151Z</num><heading>Diminishing shared ownership arrangements: further provision in respect of refinancing</heading><subsection><num>(1)</num><content><p>This section applies in respect of diminishing shared ownership arrangements to which <ref href="#d25e31004">section 151KA</ref> applies.</p></content></subsection><subsection eId="d25e31494"><num>(2)</num><content><p>If, under the arrangements, the customer disposes of an asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref>, any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection><subsection eId="d25e31507"><num>(3)</num><intro><p>If, under the arrangements, the customer—</p></intro><level class="para1" eId="d25e31513"><num>(a)</num><content><p>disposes of an asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31023">(b)</ref>,</p></content></level><level class="para1" eId="d25e31526"><num>(b)</num><content><p>acquires the asset as mentioned in <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31008">(1)</ref><ref href="#d25e31050">(d)</ref> and <ref href="#d25e31062">(e)</ref> or <ref href="#d25e31086">(2)</ref><ref href="#d25e31132">(c)</ref> and <ref href="#d25e31149">(d)</ref>,</p></content></level><level class="para1"><num>(c)</num><content><p>and subsequently disposes of the asset,</p></content></level><wrapUp><p>the disposal of the asset mentioned in paragraph <ref href="#d25e31513">(a)</ref> and the acquisition of the asset mentioned in paragraph <ref href="#d25e31526">(b)</ref> (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of this Act so far as it applies for capital gains tax, the amount of the gain accruing to the customer on the subsequent disposal of the asset.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>In subsections <ref href="#d25e31494">(2)</ref> and <ref href="#d25e31507">(3)</ref>,”the customer” has the same meaning as in <ref href="#d25e31004">section 151KA</ref>.</p></content></subsection><subsection><num>(5)</num><content><p>If, under arrangements to which <ref href="#d25e31004">section 151KA</ref><ref href="#d25e31086">(2)</ref> applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of this Act so far as it applies for capital gains tax.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e31590"><heading>Application</heading><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><content><p>The amendments made by this Schedule have effect in relation to arrangements entered into on or after 30 October 2024.</p></content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-8"><num>Schedule 8<authorialNote class="referenceNote"><p>Section 38(2)</p></authorialNote></num><heading>Relief on foreign employment income: consequential and transitional provision</heading><part eId="schedule-8-part-1"><num>Part 1</num><heading>General consequential amendments</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><p>ITEPA 2003 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">section 28</a> (meaning of “<term refersTo="#term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax" eId="term-general-earnings-from-overseas-crown-employment-subject-to-uk-tax">general earnings from overseas Crown employment subject to UK tax</term>”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/28">(b)</a>, after “or of” insert <quotedText>“Wales, Scotland or”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-3"><num>(3)</num><content><p><mod>In section 225 (payments for restrictive undertakings), for subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><intro><p>This section only applies where—</p></intro><level class="para1"><num>(a)</num><content><p>if there are general earnings from the employment that are earned in, or otherwise in respect of, the tax year mentioned in subsection (3), <ref href="#d25e31674">subsection (7)</ref> applies to any of those general earnings, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is reasonable to assume that, if there were such general earnings, <ref href="#d25e31674">subsection (7)</ref> would apply to any of those general earnings.</p></content></level></subsection><subsection eId="d25e31674"><num>(7)</num><intro><p>This subsection applies to general earnings if either—</p></intro><level class="para1"><num>(a)</num><intro><p>section 15 applies to the general earnings and the general earnings are not—</p></intro><level class="para2"><num>(i)</num><content><p>qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), or</p></content></level><level class="para2"><num>(ii)</num><content><p>general earnings to which section 22 or section 26 would apply if the individual made a claim under section 809B of ITA 2007 (claim for the remittance basis) for the tax year mentioned in section 22(1) or 26(1) (being a tax year before tax year 2025-26), or</p></content></level></level><level class="para1"><num>(b)</num><content><p>section 27 applies to the general earnings.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-4"><num>(4)</num><content><p><mod>In section 290E (calculation of earnings rate for a tax year), in subsection (4), for “non-domiciled”, in each place it occurs, substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-5"><num>(5)</num><content><p><mod>In section 333 (scope of this chapter: expenses paid by the employee), in subsection (3)(b), for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-6"><num>(6)</num><content><p><mod>In section 341 (travel at start or finish of overseas employment), in subsection (4), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-7"><num>(7)</num><content><p><mod>In section 342 (travel between employments where duties performed abroad), in subsection (7), for the words from “domiciled” to the end substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-8"><num>(8)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">section 355</a> (deductions for corresponding payments by non-domiciled employees)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-8-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-8-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/355">subsection (2)</a>, for the words from “not domiciled” to the end substitute <quotedText>“a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”</quotedText></mod></p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-9"><num>(9)</num><content><p><mod>In section 360 (disallowance of certain accommodation expenses of MPs), in subsection (1), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-10"><num>(10)</num><content><p><mod>In section 370 (travel costs and expenses where duties performed abroad), in subsection (6), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>if the tax year is tax year 2024-2025 or an earlier tax year, would be taxable earnings under section 15 even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the tax year is tax year 2025-2026 or a later tax year and the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings).</p></content></level></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-11"><num>(11)</num><content><p><mod>In the italic heading before section 373 for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-12"><num>(12)</num><intro><p>In section 373 (employee’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-12-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-c"><num>(c)</num><intro><p>in subsection (4)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-12-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-12-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-12-d"><num>(d)</num><content><p><mod>in subsection (4)(b), for “that”, in both places it occurs, substitute <quotedText>“such a”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-12-e"><num>(e)</num><content><p>omit subsection (7).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-13"><num>(13)</num><intro><p>In section 374 (spouse’s, civil partner’s or child’s travel costs and expenses where duties performed in UK)—</p></intro><level class="para1" eId="schedule-8-paragraph-1-13-a"><num>(a)</num><content><p><mod>in the heading, for “Non-domiciled” substitute <quotedText>“Non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-b"><num>(b)</num><content><p><mod>in subsection (1) for “not domiciled in the United Kingdom” substitute <quotedText>“non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-13-c"><num>(c)</num><intro><p>in subsection (3)(a)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-c-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-c-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-d"><num>(d)</num><intro><p>in subsection (5)(c)—</p></intro><level class="para2" eId="schedule-8-paragraph-1-13-d-i"><num>(i)</num><content><p><mod>for “the country” substitute <quotedText>“a country”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-8-paragraph-1-13-d-ii"><num>(ii)</num><content><p><mod>after “normally lives” insert <quotedText>“at the time the journey is made”</quotedText></mod></p></content></level></level><level class="para1" eId="schedule-8-paragraph-1-13-e"><num>(e)</num><content><p>omit subsection (10).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-14"><num>(14)</num><intro><p>In section 376 (foreign accommodation and subsistence costs and expenses (overseas employments))—</p></intro><level class="para1" eId="schedule-8-paragraph-1-14-a"><num>(a)</num><content><p><mod>in subsection (1)(c), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-1-14-b"><num>(b)</num><content><p>omit subsection (6).</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-15"><num>(15)</num><content><p><mod>In section 395C (meaning of “<term refersTo="#term-foreign-service" eId="term-foreign-service">foreign service</term>” in section 395B), for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro><p>In subsection (2) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-16"><num>(16)</num><content><p><mod>In section 413 (exception in certain cases of foreign service), for subsection (3ZA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3ZA)</num><intro><p>In subsection (2A)(a) “<term refersTo="#term-relevant-earnings">relevant earnings</term>” means—</p></intro><level class="para1"><num>(a)</num><intro><p>for service in or after the tax year 2025-26, earnings—</p></intro><level class="para2"><num>(i)</num><content><p>to which section 15 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of <ref href="#d25e5826">section 41T</ref> (qualifying foreign general earnings), and</p></content></level></level><level class="para1"><num>(b)</num><content><p>for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><p>ITA 2007 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content><p><mod>In section 24 (reliefs deductible at Step 2), in subsection (1)(a), after the entry for section 266(7) of ICTA insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><ref href="#d25e5493">section 41P</ref> of ITEPA 2003 (deduction for amount that reflects qualifying foreign employment income),</p></item></blockList></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-3"><num>(3)</num><content><p><mod>In section 989 (the definitions), at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-election">foreign employment election</term>” means an election under <ref href="#d25e5233">section 41M</ref> of ITEPA 2003,</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><intro><p>In Part 8 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (<ref eId="c00254" href="http://www.legislation.gov.uk/id/uksi/2001/1004">S.I. 2001/1004</ref>), in paragraph 5 (travel costs and expenses where duties performed in the United Kingdom) —</p></intro><level class="para1" eId="schedule-8-paragraph-3-a"><num>(a)</num><content><p><mod>in the heading, for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-8-paragraph-3-b"><num>(b)</num><content><p><mod>in paragraph (a), for “non-domiciled” substitute <quotedText>“non-resident or qualifying new resident”</quotedText>.</mod></p></content></level></paragraph></part><part eId="schedule-8-part-2"><num>Part 2</num><heading>Consequential amendments relating to PAYE</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After <ref href="#d25e2345">section 690C</ref> of ITEPA 2003 (employees who were internationally mobile etc. before 2025-2026) (as inserted by <ref href="#section-21">section 21</ref> of this Act) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e32161"><num>690D</num><heading>Employer notification for qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies in relation to an employee if—</p></intro><level class="para1"><num>(a)</num><content><p>the employee is or is likely to be a qualifying new resident for a tax year (“the qualifying year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>the employee works or is likely to work outside the UK during the qualifying year.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The appropriate person may give a notice to an officer of Revenue and Customs at any time during the qualifying year—</p></intro><level class="para1"><num>(a)</num><content><p>that the employer is proposing to treat the foreign proportion of any qualifying payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and</p></content></level><level class="para1"><num>(b)</num><content><p>specifying that proportion.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and <ref href="#d25e32354">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>a “<term refersTo="#term-qualifying-payment">qualifying payment</term>” means a payment of, or on account of, an amount of employment income of the employee that is likely to be qualifying employment income;</p></content></level><level class="para1"><num>(b)</num><content><p>the “foreign proportion” of a qualifying payment is the proportion of the employment income that, on the basis of the best estimate that can reasonably be made, is likely to be qualifying foreign employment income.</p></content></level></subsection><subsection eId="d25e32225"><num>(4)</num><content><p>If a notice given under this section has effect, the proportion of any qualifying payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.</p></content></subsection><subsection><num>(5)</num><intro><p>A notice given under this section—</p></intro><level class="para1"><num>(a)</num><content><p>does not have effect if a direction has previously been given to the appropriate person under <ref href="#d25e32354">section 690E</ref> (direction by HMRC in relation to qualifying new residents) in relation to the employee and the qualifying year;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(6)</num><intro><p>A notice given under this section ceases to have effect if—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32354">section 690E</ref> is given to the appropriate person in relation to the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>a subsequent notice is given by the appropriate person under this section and is acknowledged by an officer of Revenue and Customs, or</p></content></level><level class="para1"><num>(c)</num><intro><p>a subsequent notice—</p></intro><level class="para2"><num>(i)</num><content><p>is given by the appropriate person under <ref href="#d25e1980">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident in the qualifying year, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is acknowledged by an officer of Revenue and Customs.</p></content></level></level></subsection><subsection><num>(7)</num><content><p>A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.</p></content></subsection><subsection><num>(8)</num><intro><p>Subsection <ref href="#d25e32225">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section and <ref href="#d25e32354">section 690E</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 687A or 695A (employment income under Part 7A) or section 696 (readily convertible assets), the employer is to be treated as making payment of that amount of employment income, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-qualifying-new-resident">qualifying new resident</term>”, “<term refersTo="#term-qualifying-employment-income">qualifying employment income</term>” and “<term refersTo="#term-qualifying-foreign-employment-income">qualifying foreign employment income</term>” have the same meaning as in Chapter 5C of Part 2 (relief for new residents on foreign employment income).</p></content></level></subsection></section><section eId="d25e32354"><num>690E</num><heading>Direction by HMRC in relation to qualifying new residents</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice given during the qualifying year under <ref href="#d25e32161">section 690D</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>it appears to an officer of Revenue and Customs that the proportion of any qualifying payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.</p></content></level></subsection><subsection eId="d25e32379"><num>(2)</num><intro><p>An officer of Revenue and Customs may give a direction—</p></intro><level class="para1"><num>(a)</num><content><p>for determining a proportion of any qualifying payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or</p></content></level><level class="para1"><num>(b)</num><content><p>that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A direction under <ref href="#d25e32379">subsection (2)</ref>—</p></intro><level class="para1"><num>(a)</num><content><p>must specify the employee and the qualifying year,</p></content></level><level class="para1"><num>(b)</num><content><p>must be given by notice to the appropriate person, and</p></content></level><level class="para1"><num>(c)</num><content><p>may be varied by notice to the appropriate person from a day specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).</p></content></level></subsection><subsection eId="d25e32424"><num>(4)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a direction under <ref href="#d25e32379">subsection (2)</ref> has effect, and</p></content></level><level class="para1"><num>(b)</num><content><p>any qualifying payment is made by the employer to the employee in any tax year,</p></content></level><wrapUp><p>the direction applies to the payment.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>A direction under <ref href="#d25e32379">subsection (2)</ref> has effect when it is given.</p></content></subsection><subsection><num>(6)</num><intro><p>A direction under <ref href="#d25e32379">subsection (2)</ref> ceases to have effect if a notice has subsequently been—</p></intro><level class="para1"><num>(a)</num><content><p>given by the appropriate person under <ref href="#d25e1980">section 690A</ref> (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident for the qualifying year, and</p></content></level><level class="para1"><num>(b)</num><content><p>acknowledged by an officer of Revenue and Customs.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Subsection <ref href="#d25e32424">(4)</ref> is without prejudice to—</p></intro><level class="para1"><num>(a)</num><content><p>any assessment in respect of the income of the employee in question, and</p></content></level><level class="para1"><num>(b)</num><content><p>any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></part><part eId="schedule-8-part-3"><num>Part 3</num><heading>Transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e32506"><heading>Individuals no longer meeting section 26A requirement not qualifying new residents</heading><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content><p>If an individual falling within <ref href="#schedule-8-paragraph-5-2">sub-paragraph (2)</ref> would otherwise be a qualifying new resident for tax year 2025-26 for the purposes of Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income), the individual is to be treated as not being a qualifying new resident for that year for the purposes of that Chapter.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-5-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2022-23, and</p></content></level><level class="para1" eId="schedule-8-paragraph-5-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that year or for tax year 2023-24 or 2024-25.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32540"><heading>Certain individuals meeting section 26A requirement treated as qualifying new residents</heading><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><intro><p>If an individual falling within <ref href="#schedule-8-paragraph-6-2">sub-paragraph (2)</ref>—</p></intro><level class="para1" eId="schedule-8-paragraph-6-1-a"><num>(a)</num><content><p>meets the section 26A requirement for tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-1-b"><num>(b)</num><content><p>is not a qualifying new resident for that year for the purposes of Chapter 5C of Part 2 of ITEPA 2003,</p></content></level><wrapUp><p>the individual is to be treated as a qualifying new resident for that tax year for the purposes of that Chapter.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><intro><p>An individual falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-6-2-a"><num>(a)</num><content><p>the individual met the section 26A requirement for tax year 2023-24 or tax year 2024-25, and</p></content></level><level class="para1" eId="schedule-8-paragraph-6-2-b"><num>(b)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the individual for that tax year.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32588"><heading>Limit on relief not to apply to certain foreign employment relief claims</heading><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Section <ref href="#d25e5700">41R</ref> of ITEPA 2003 (limit on relief) does not apply to a foreign employment relief claim made by an individual for a tax year if the claim falls within sub-paragraph <ref href="#schedule-8-paragraph-7-2">(2)</ref> or <ref href="#schedule-8-paragraph-7-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-2-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26 or 2026-27, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-2-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> applies to the individual for that tax year.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><intro><p>A foreign employment relief claim made by an individual for a tax year falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-8-paragraph-7-3-a"><num>(a)</num><content><p>the qualifying year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-b"><num>(b)</num><content><p><ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-1">(1)</ref> does not apply to the individual for that tax year,</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-c"><num>(c)</num><content><p>the individual falls within <ref href="#schedule-8-paragraph-6">paragraph 6</ref><ref href="#schedule-8-paragraph-6-2">(2)</ref>, and</p></content></level><level class="para1" eId="schedule-8-paragraph-7-3-d"><num>(d)</num><content><p>the individual meets the section 26A requirement for tax year 2025-26.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32671"><heading>Definitions</heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><intro><p>For the purposes of this Part of this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-foreign-employment-relief-claim" eId="term-foreign-employment-relief-claim">foreign employment relief claim</term>” and “qualifying year” have the same meanings as in Chapter 5C of Part 2 of ITEPA 2003 (relief for new residents on foreign employment income);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-section-26a-requirement" eId="term-the-section-26a-requirement">the section 26A requirement</term>” means the requirement of section 26A of ITEPA 2003 (requirement for 3-year period of non-residence).</p></content></hcontainer></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-9"><num>Schedule 9<authorialNote class="referenceNote"><p>Section 40</p></authorialNote></num><heading>Income tax and capital gains tax: remittance basis and domicile</heading><part eId="schedule-9-part-1"><num>Part 1</num><heading>Remittance basis</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e32709"><heading>No remittance basis for tax years after 2024-25</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-9-paragraph-1-1"><num>(1)</num><content><p>Chapter A1 of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00255" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-2"><num>(2)</num><intro><p>In section 809B (claim for remittance basis to apply), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-2-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-2-c"><num>(c)</num><content><p><mod>in each of paragraphs (a), (b) and (c), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-3"><num>(3)</num><intro><p>In section 809C (claim for remittance basis by long-term UK resident), in subsection (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-1-3-a"><num>(a)</num><content><p>in the words before paragraph (a) omit “the individual”;</p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-b"><num>(b)</num><content><p><mod>before that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-3-c"><num>(c)</num><content><p><mod>in each of paragraphs (a) and (b), at the beginning insert <quotedText>“the individual”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-1-4"><num>(4)</num><content><p><mod>In section 809D (application of remittance basis where income and gains under £2000) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-5"><num>(5)</num><content><p><mod>In section 809E (application of remittance basis without claim: other cases) in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>the tax year is the tax year 2024-25 or an earlier tax year,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-1-6"><num>(6)</num><intro><p>In consequence of the amendments made by <span><ref href="#schedule-9-paragraph-1-2">sub-paragraphs (2)</ref> to <ref href="#schedule-9-paragraph-1-5">(5)</ref></span>, in section 809A—</p></intro><level class="para1" eId="schedule-9-paragraph-1-6-a"><num>(a)</num><content><p><mod>for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-1-6-b"><num>(b)</num><content><p><mod>after “Kingdom” insert <quotedText>“in tax years before tax year 2025-26”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e32861"><heading>Amendments of <ref eId="c00256" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p><ref eId="c00257" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">section 1A</a> (territorial scope), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1A">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">section 1K</a> (annual exempt amount), omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/1K">subsection (3)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>, for “Non-UK domiciled individuals” substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">section 3D</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-2-5-a"><num>(a)</num><content><p><mod>for the heading, substitute <quotedText>“Individuals who were non-UK domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/3D">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-2-5-b-i"><num>(i)</num><content><p><mod>for “a tax year” substitute <quotedText>“tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-2-5-b-ii"><num>(ii)</num><content><p><mod>for “is”, in each place it occurs, substitute <quotedText>“was”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-2-6"><num>(6)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/16ZA">Section 16ZA</a> (losses: non-UK domiciled individuals) is omitted.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> (UK resident individuals not domiciled in UK)—</p></intro><level class="para1" eId="schedule-9-paragraph-2-7-a"><num>(a)</num><content><p><mod>in the heading, for “not domiciled in the UK” substitute <quotedText>“to whom the remittance basis applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(1)</a> for “applies” <ins class="first last" ukl:ChangeId="key-e186ed2d4fbf334b149d0a8898182cb6-1776849212143" ukl:CommentaryRef="key-e186ed2d4fbf334b149d0a8898182cb6"><noteRef uk:name="commentary" href="#key-e186ed2d4fbf334b149d0a8898182cb6" class="commentary"/>, in the second place it occurs,</ins> substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-2-7-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/2">paragraphs 2</a>, <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/3">3</a> and <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/4">4</a>.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33023"><heading>Amendments of <ref eId="c00258" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><ref eId="c00259" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> (employment income: charge to tax) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">section 6</a> (nature of charge to tax on employment income), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (a)</a>, omit “and domicile”;</p></content></level><level class="para1" eId="schedule-9-paragraph-3-2-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/6">paragraph (aa)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">section 20</a> (taxable earnings under this Chapter), for <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/20">subsection (1)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This Chapter contains provision for determining how much of the following are taxable earnings from an employment in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>general earnings that are for a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee (being a tax year before tax year 2025-26), and</p></content></level><level class="para1"><num>(b)</num><content><p>general earnings that are for a tax year for which the employee is non-UK resident.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a> (chargeable overseas earnings for year when remittance basis applies and employee outside section 26)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-4-a"><num>(a)</num><content><p><mod>in the heading and in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-4-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">(b)</a>, for “does not” substitute <quotedText>“did not”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">section 23</a> (calculation of “chargeable overseas earnings”), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-3-5-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (aa)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (b)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-5-d"><num>(d)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/23">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-6"><num>(6)</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/25">section 25</a>, for “meet” substitute <quotedText>“met”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-7"><num>(7)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">section 26</a> (foreign earnings for year when remittance basis applies and employee meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-7-a"><num>(a)</num><content><p><mod>in the heading, for “applies and employee meets” substitute <quotedText>“applied and employee met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-7-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">subsection (1)</a>, in the opening words—</p></intro><level class="para2" eId="schedule-9-paragraph-3-7-b-i"><num>(i)</num><content><p><mod>for “applies”, in the second place it appears, substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-7-b-ii"><num>(ii)</num><content><p><mod>for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-8"><num>(8)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">section 41F</a> (taxable specific income: internationally mobile employee etc), in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">(a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-9"><num>(9)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">section 41H</a> (section 41F: chargeable and unchargeable foreign securities income)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-9-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (4)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-a-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-a-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (d)</a> for “are” substitute <quotedText>“were”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-3-9-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">subsection (7)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-9-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (a)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (b)</a> for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-9-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41H">paragraph (c)</a> for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-10"><num>(10)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">section 271</a> (limited exemption of removal benefits and expenses: general)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-10-a"><num>(a)</num><content><p><mod>in subsections (2)(a) and (2)(b), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-10-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/271">(b)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-11"><num>(11)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">section 554Z9</a> (remittance basis: A does not meet section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-11-a"><num>(a)</num><content><p><mod>in the heading, for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-11-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">subsection (1)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-3-11-b-i"><num>(i)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (b)</a> for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-ii"><num>(ii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (c)</a> for “does not” substitute <quotedText>“did not”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iii"><num>(iii)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (d)</a> for “is” substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-3-11-b-iv"><num>(iv)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">paragraph (e)</a>, for “are” substitute <quotedText>“were”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-12"><num>(12)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">section 554Z10</a> (remittance basis: A meets section 26A requirement)—</p></intro><level class="para1" eId="schedule-9-paragraph-3-12-a"><num>(a)</num><content><p><mod>in the heading, for “meets” substitute <quotedText>“met”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(b)</a>, for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-3-12-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z10">(c)</a>, for “meets” substitute <quotedText>“met”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-3-13"><num>(13)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">section 576A</a> (temporary non-residents), in subsection <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/576A">(5)</a>, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-14"><num>(14)</num><content><p><mod>In section 698 (PAYE: special charges on employment-related securities), in subsection (8), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-15"><num>(15)</num><content><p><mod>In section 700 (PAYE: gains from securities options), in subsection (7), for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-16"><num>(16)</num><content><p><mod>In section 700A (employment-related securities etc: remittance basis), in the heading, for “remittance basis” substitute <quotedText>“internationally mobile employees”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33583"><heading>Amendment of <ref eId="c00260" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> connected with end of remittance basis</heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00261" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (relevant foreign income charge on remittance basis), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-4-a"><num>(a)</num><content><p>for “applies”, in the second place it appears, substitute” applied”;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-b"><num>(b)</num><content><p><mod>after “that year” insert <quotedText>“(being a tax year before tax year 2025-26)”</quotedText>.</mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e33619"><heading>When amounts will be remitted</heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p><ref eId="c00262" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">Section 809L</a> (meaning of “<term refersTo="#term-remitted-to-the-united-kingdom" eId="term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>”) is amended in accordance with sub-paragraphs to <ref href="#schedule-9-paragraph-5-3">(3)</ref> to <ref href="#schedule-9-paragraph-5-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>omit the “or” at the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (a)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-4-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33726"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (5)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-5-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “is enjoyed by a relevant person” substitute <quotedText startQuote="“">either—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content><p>the property is enjoyed by a relevant person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>as a result, a benefit is enjoyed by a relevant person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-5-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">paragraph (b)</a> (but before the “or” at the end) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e33776"><num>(ba)</num><content><p>is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-6"><num>(6)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-6-a"><num>(a)</num><content><p><mod>for “or (b)”, in each place it occurs, substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-6-b"><num>(b)</num><content><p><mod>after “property”, in the second place it occurs, insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-7"><num>(7)</num><content><p><mod>At the end of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert <quotedText>“and cases where the property is used to secure the debt.”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-8"><num>(8)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">subsection (9)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9A)</num><intro><p>For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes—</p></intro><level class="para1"><num>(a)</num><content><p>sending, or otherwise effecting a transfer of, the property to the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom.</p></content></level></subsection><subsection eId="d25e33847"><num>(9B)</num><content><p>Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992.</p></content></subsection><subsection><num>(9C)</num><content><p>But subsection <ref href="#d25e33847">(9B)</ref> does not apply where the intangible property is a debt other than a judgment debt.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-9"><num>(9)</num><intro><p>In section 809N (section 809L: gift recipients, qualifying property and enjoyment)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-9-a"><num>(a)</num><content><p><mod>in subsection (7)(c), after “(b)” insert <quotedText>“, <ref href="#d25e33726">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-9-b"><num>(b)</num><intro><p>in subsection (9)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-9-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-9-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-10"><num>(10)</num><intro><p>In section 809O (section 809L: dealings where there is a connected operation)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-10-a"><num>(a)</num><content><p><mod>in each of subsections (2), (3), (4) and (5) after “(b)” insert <quotedText>“, <ref href="#d25e33776">(ba)</ref>”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-10-b"><num>(b)</num><intro><p>in subsection (6)—</p></intro><level class="para2" eId="schedule-9-paragraph-5-10-b-i"><num>(i)</num><content><p><mod>in the opening words, after “property” insert <quotedText>“, a benefit”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-ii"><num>(ii)</num><content><p><mod>in paragraph (a), at the beginning insert <quotedText>“in the case of enjoyment of property or a service,”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iii"><num>(iii)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><intro><p>in the case of enjoyment of a benefit—</p></intro><level class="para2"><num>(i)</num><content><p>if the property being dealt with as mentioned in section 809L(5)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the enjoyment by all relevant persons is no more than negligible,</p></content></level></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para2" eId="schedule-9-paragraph-5-10-b-iv"><num>(iv)</num><content><p><mod>in paragraph (c), after “property” insert <quotedText>“, benefit”</quotedText>.</mod></p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-11"><num>(11)</num><intro><p>In section 809P (section 809L: amount remitted)—</p></intro><level class="para1" eId="schedule-9-paragraph-5-11-a"><num>(a)</num><content><p><mod>in subsections (6) and (8), for “or (b)” substitute <quotedText>“, (b) or (ba)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-5-11-b"><num>(b)</num><content><p><mod>in subsection (12), after “previously remitted”, in each place it occurs, insert <quotedText>“that has been charged to income tax or capital gains tax”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34042"><heading>Relief for amounts remitted again on becoming UK resident</heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-1-a"><num>(a)</num><intro><p>income or chargeable gains of an individual have been remitted to the United Kingdom during a period that exceeds 5 years—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-a-i"><num>(i)</num><content><p>that ends before 6 April 2024, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-a-ii"><num>(ii)</num><content><p>in which there was no period for which the individual was UK resident, and</p></content></level></level><level class="para1" eId="schedule-9-paragraph-6-1-b"><num>(b)</num><intro><p>after the end of that period, but before 6 April 2025—</p></intro><level class="para2" eId="schedule-9-paragraph-6-1-b-i"><num>(i)</num><content><p>the same, or part of the same, income or chargeable gains (“the repeated remitted amount”) were again remitted to the United Kingdom, and</p></content></level><level class="para2" eId="schedule-9-paragraph-6-1-b-ii"><num>(ii)</num><content><p>a relevant charge has arisen in relation to that remittance.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><intro><p>A “<term refersTo="#term-relevant-charge" eId="term-relevant-charge">relevant charge</term>” in relation to a remittance means—</p></intro><level class="para1" eId="schedule-9-paragraph-6-2-a"><num>(a)</num><content><p>income tax becoming chargeable on that remittance, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-2-b"><num>(b)</num><content><p>a gain accruing under paragraph 1(2) of Schedule 1 to TCGA 1992 on that remittance.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>Any relevant charge that has arisen on the first occasion on which the repeated remitted amount is remitted in circumstances falling within <ref href="#schedule-9-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-9-paragraph-6-1-b">(b)</ref> is to be treated as never having arisen.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>But a remittance that is not charged to income tax or capital gains tax as a result of sub-paragraph <ref href="#schedule-9-paragraph-6-3">(3)</ref> is to be treated as if it were charged to income tax or capital gains tax (as the case may be) for the purposes of section 809P(12) of ITA 2007.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><intro><p>This paragraph is to be treated as never having applied where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-5-a"><num>(a)</num><content><p>for either, or each, of the tax years 2024-25 and 2025-26, the individual is not UK resident, or</p></content></level><level class="para1" eId="schedule-9-paragraph-6-5-b"><num>(b)</num><content><p>either, or each, of those tax years is a split year as respects the individual.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><content><p>References in this paragraph to amounts being remitted to the United Kingdom are to be construed in accordance with Chapter A1 of Part 14 of ITA 2007 (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-9-part-2"><num>Part 2</num><heading>Removal of domicile (primary legislation)</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e34161"><heading>Removal of exemption for persons not domiciled in United Kingdom</heading><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/1A">Chapter 1A</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00263" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (exemption for persons not domiciled in United Kingdom) is repealed.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34182"><heading>Transferable tax allowance for married couples etc</heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 55C of ITA 2007 (election to reduce personal allowance), in subsection (3)(b), for “domiciled in the United Kingdom” substitute <quotedText>“not a qualifying new resident”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34194"><heading>Residence of personal representatives: domicile of deceased no longer relevant</heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-9-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">Section 834</a> of <ref eId="c00264" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of personal representatives) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident within the meaning of IHTA 1984”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/834">subsection (5)</a>.</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">section 62</a> of <ref eId="c00265" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (residence of personal representatives), in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/62">subsection (3)</a>, for the words from “having” to the end substitute <quotedText>“UK resident if the deceased was UK resident or a long-term UK resident within the meaning of IHTA 1984 at the date of death.”</quotedText></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34250"><heading>Residence of trustees: domicile of settlor no longer relevant</heading><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-9-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">Section 476</a> of <ref eId="c00266" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (residence of trustees: how to work out if settlor meets condition C) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsections (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a> and <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(b)</a>, omit “or domiciled in the United Kingdom”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34294"><num>(3ZA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on S’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted <quotedText>“or domiciled in the United Kingdom”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (3A)</a>, for “subsections (2)(b) and (3)(b)” substitute <quotedText>“<ref href="#d25e34294">subsection (3ZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">subsection (4)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/476">(c)</a>, for “subsection (2) or (3) or this subsection” substitute <quotedText>“this section”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">Section 69</a> of <ref eId="c00267" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (trustees of settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2B)</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">(c)</a>, omit “or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2C)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e34382"><num>(2CA)</num><intro><p>In relation to a settlement—</p></intro><level class="para1"><num>(a)</num><content><p>that arose before 6 April 2025 on the settlor’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>that the settlor made (or was treated for the purposes of this Act as making) before 6 April 2025,</p></content></level><wrapUp><p><mod>subsection (2B)(c) has effect as if after “resident” there were inserted <quotedText>“or domiciled”</quotedText>.</mod></p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/69">subsection (2F)</a>, for “(2B)(c)” substitute <quotedText>“<ref href="#d25e34382">(2CA)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-9-paragraph-13-1"><num>(1)</num><content><p>In the <ref eId="c00268" href="https://www.legislation.gov.uk/uksi/2017/692">Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017</ref> (<ref eId="c00269" href="http://www.legislation.gov.uk/id/uksi/2017/692">S.I. 2017/692</ref>), <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">regulation 42</a> (application of Part 5) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(d)</a><a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">(ii)</a>, omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2017/692/regulation/42">paragraph (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2A)</num><content><p><mod>In relation to a trust that was set up before 6 April 2025, paragraph (2)(d)(ii) has effect as if after “resident” there were inserted <quotedText>“and domiciled”</quotedText>.</mod></p></content></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34471"><heading>Application of Income Tax Acts in relation to deemed employment</heading><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><content><p>In sections 56, 61G and 61R of ITEPA 2003 (chargeability to tax in respect of deemed employment payment), omit subsections (4) and (5).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34480"><heading>Pension schemes</heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</a> of <ref eId="c00270" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pensions schemes etc.) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">Chapter 3</a> (payments by registered pension schemes), in <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/3">section 185G</a>, in subsection (3)(a) omit “and domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><intro><p>In the following provisions of <a href="https://www.legislation.gov.uk/ukpga/2004/12/part/4/chapter/5">Chapter 5</a> (registered pension schemes: tax charges) and Chapter 6 (schemes that are not registered pension schemes) omit “or domiciled”—</p></intro><level class="para1" eId="schedule-9-paragraph-15-3-a"><num>(a)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">section 205</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/205">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">section 206</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/206">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">section 207</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/207">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-d"><num>(d)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">section 208</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/208">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-e"><num>(e)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">section 209</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/209">(5)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-f"><num>(f)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">section 237A</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237A">(2)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-g"><num>(g)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">section 237B</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/237B">(8)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-h"><num>(h)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">section 239</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/239">(4)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-i"><num>(i)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">section 242</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/242">(3)</a>;</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-j"><num>(j)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">section 244J</a><a href="https://www.legislation.gov.uk/ukpga/2004/12/section/244J">(6)</a>.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p>In section 7 of F(No.2)A 2005 (social security pension lump sum), in subsection (3) omit “or domiciled”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34625"><heading>Domicile of overseas electors</heading><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In <ref eId="c00271" href="https://www.legislation.gov.uk/ukpga/1996/8">FA 1996</ref> omit section 200 (domicile for tax purposes of overseas electors).</p></content></paragraph><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>In <ref eId="c00272" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> omit section 835B (domicile for income tax purposes of overseas electors).</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34646"><heading>Situs of debt</heading><paragraph eId="schedule-9-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-9-paragraph-19-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">Section 275</a> of <ref eId="c00273" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (location of assets) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (1)</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">paragraph (l)</a>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-19-3"><num>(3)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/275">subsection (3A)</a>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34685"><heading>Trust reporting requirements</heading><paragraph eId="schedule-9-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-9-paragraph-20-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A">Schedule 5A</a> to <ref eId="c00274" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (settlements with foreign element: information) is amended in accordance with sub-paragraphs <ref href="#schedule-9-paragraph-20-2">(2)</ref> and <ref href="#schedule-9-paragraph-20-3">(3)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">paragraph 3</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> omit “is domiciled in the United Kingdom and”;</p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-b"><num>(b)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3)</a> insert <quotedText>“and is not a qualifying new resident within the meaning of Schedule D1”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-2-c"><num>(c)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/3">sub-paragraph (3A)</a>.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/5A/paragraph/4">paragraph 4</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-20-3-a"><num>(a)</num><content><p><mod>for sub-paragraph (2)(b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(b)</num><content><p>where that time was before 6 April 2025, did not fulfil the condition mentioned in sub-paragraph (3) below at that time or at any time before 6 April 2025,</p></content></level><level class="para1"><num>(ba)</num><content><p>where that time was on or after 6 April 2025, does not fulfil the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below at that time,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-b"><num>(b)</num><intro><p>in sub-paragraph (2)(c)—</p></intro><level class="para2" eId="schedule-9-paragraph-20-3-b-i"><num>(i)</num><content><p><mod>for “that condition” substitute <quotedText>“the condition mentioned in sub-paragraph <ref href="#d25e34824">(3A)</ref> below”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-9-paragraph-20-3-b-ii"><num>(ii)</num><content><p><mod>for “the commencement day” substitute <quotedText>“6 April 2025”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-9-paragraph-20-3-c"><num>(c)</num><content><p><mod>in the closing words of sub-paragraph (2), for “the relevant day” substitute <quotedText>“31 January after the end of the tax year in which the relevant day falls”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-20-3-d"><num>(d)</num><content><p><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e34824"><num>(3A)</num><content><p>The condition is that the person concerned is resident in the United Kingdom and is not a qualifying new resident within the meaning of Schedule D1.</p></content></subparagraph></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-20-4"><num>(4)</num><content><p>Sub-paragraph <ref href="#schedule-9-paragraph-20-5">(5)</ref> applies where a settlor fulfils the condition in paragraph 4<ref href="#d25e34824">(3A)</ref> of Schedule 5A to TCGA 1992 (settlements with foreign element: information) on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-20-5"><num>(5)</num><content><p>For the purposes of paragraph 4(2)(c) of that Schedule, the settlor is to be treated as first fulfilling that condition on 6 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34849"><heading>Trusts with vulnerable beneficiary</heading><paragraph eId="schedule-9-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-9-paragraph-21-1"><num>(1)</num><content><p><ref eId="c00275" href="https://www.legislation.gov.uk/ukpga/2005/7">FA 2005</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">section 28</a> (vulnerable person’s liability: VQTI), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">subsection (4)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-21-2-a"><num>(a)</num><content><p><mod>at the end of <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (a)</a> insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-21-2-b"><num>(b)</num><content><p>omit <a href="https://www.legislation.gov.uk/ukpga/2005/7/section/28">paragraph (c)</a> and the “and” before it.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-21-3"><num>(3)</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1">Schedule 1</a> (non-UK resident vulnerable person), in <a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(1)</a><a href="https://www.legislation.gov.uk/ukpga/2005/7/schedule/1/paragraph/7">(a)</a> omit “and domiciled”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34913"><heading>Disposals of deeply discounted securities</heading><paragraph eId="schedule-9-paragraph-22" class="schProv1"><num>22</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">section 459</a> of <ref eId="c00276" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (application of transfer of assets abroad legislation to disposals of deeply discounted securities), in <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/459">subsection (1)</a> omit “or domiciled”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e34931"><heading>The accrued income scheme</heading><paragraph eId="schedule-9-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-9-paragraph-23-1"><num>(1)</num><content><p><ref eId="c00277" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-23-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">section 667</a> (trustees’ accrued income profits treated as settlement income), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-2-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-2-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/667">paragraph (b)</a> omit “or domiciled in the United Kingdom”.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-23-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">section 680</a> (interest on securities involving accrued income losses: foreign trustees), in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">subsection (1)</a>—</p></intro><level class="para1" eId="schedule-9-paragraph-23-3-a"><num>(a)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (a)</a> omit “or domiciled outside the United Kingdom”;</p></content></level><level class="para1" eId="schedule-9-paragraph-23-3-b"><num>(b)</num><content><p>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/680">paragraph (d)</a> omit “, or domiciled in the United Kingdom,”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35006"><heading>FOTRA securities</heading><paragraph eId="schedule-9-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-9-paragraph-24-1"><num>(1)</num><content><p><mod>In section 22 of F(No.2)A 1931 (Treasury power to issue securities with a FOTRA condition), in subsection (1)(b) for “neither domiciled nor” substitute <quotedText>“not”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-2"><num>(2)</num><content><p>In section 154 of FA 1996 (FOTRA securities), omit subsection (1).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-24-3"><num>(3)</num><intro><p>Any security issued with a FOTRA domicile condition is treated in relation to times on or after 6 April 2025 as if—</p></intro><level class="para1" eId="schedule-9-paragraph-24-3-a"><num>(a)</num><content><p>it were a security issued with the post-1996 Act FOTRA conditions (and with no other FOTRA condition), and</p></content></level><level class="para1" eId="schedule-9-paragraph-24-3-b"><num>(b)</num><content><p>the post-1996 Act FOTRA conditions had been authorised in relation to the issue of that security by virtue of section 22 of F(No.2)A 1931.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-24-4"><num>(4)</num><intro><p>In <ref href="#schedule-9-paragraph-24-3">sub-paragraph (3)</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-condition" eId="term-a-fotra-condition">a FOTRA condition</term>” means a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-a-fotra-domicile-condition" eId="term-a-fotra-domicile-condition">a FOTRA domicile condition</term>”, in relation to a security, means a FOTRA condition requiring the security to be in the beneficial ownership of persons who are not domiciled in the United Kingdom for an exemption from taxation to apply;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-post-1996-act-fotra-conditions" eId="term-the-post-1996-act-fotra-conditions">the post-1996 Act FOTRA conditions</term>” means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued.</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35077"><heading>Reliefs in respect of income from investments etc. of certain pension schemes</heading><paragraph eId="schedule-9-paragraph-25" class="schProv1"><num>25</num><content><p>In section 614 of the Income and Corporation Taxes Act 1988 (exemptions and reliefs in respect of income from investments etc. of certain pension schemes), in subsections (4) and (5), omit “not domiciled and”.</p></content></paragraph></hcontainer></part><part eId="schedule-9-part-3"><num>Part 3</num><heading>Removal of domicile (secondary legislation)</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e35091"><heading>Education funding</heading><paragraph eId="schedule-9-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-9-paragraph-26-1"><num>(1)</num><content><p>In the Appendix to <a href="https://www.legislation.gov.uk/uksi/2001/2743/schedule/1">Schedule 1</a> to the <ref eId="c00278" href="https://www.legislation.gov.uk/uksi/2001/2743">Education (Grants) (Music, Ballet and Choir Schools) (England) Regulations 2001</ref> (<ref eId="c00279" href="https://www.legislation.gov.uk/uksi/2001/2743">S.I. 2001/2743</ref>) (aided pupil scheme: computation of income), in paragraph 2, in sub-paragraph (a) omit “, ordinarily resident or domiciled”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-2"><num>(2)</num><content><p>In <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/part/2">Part 2</a> of <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2">Schedule 2</a> to the <ref eId="c00280" href="https://www.legislation.gov.uk/uksi/2010/447">Education (Student Support) (European University Institute) Regulations 2010</ref> (<ref eId="c00281" href="http://www.legislation.gov.uk/id/uksi/2010/447">S.I. 2010/447</ref>) (calculation of contribution), in <a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">paragraph 4</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(5)</a><a href="https://www.legislation.gov.uk/uksi/2010/447/schedule/2/paragraph/4">(a)</a>, omit “or domiciled” in the first place it appears.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-3"><num>(3)</num><content><p>The <ref eId="c00282" href="https://www.legislation.gov.uk/uksi/2011/1986">Education (Student Support) Regulations 2011</ref> (<ref eId="c00283" href="http://www.legislation.gov.uk/id/uksi/2011/1986">S.I. 2011/1986</ref>) are amended in accordance with <ref href="#schedule-9-paragraph-26-4">sub-paragraphs (4)</ref> and <ref href="#schedule-9-paragraph-26-5">(5)</ref>.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-26-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4">Schedule 4</a> (financial assessment)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-4-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-4-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/4/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-4-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-4-b-ii"><num>(ii)</num><content><p>omit “so”.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-26-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6">Schedule 6</a> (assessment of eligible part-time student’s household income)—</p></intro><level class="para1" eId="schedule-9-paragraph-26-5-a"><num>(a)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">paragraph 5</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(6)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/5">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-a-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-a-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level><level class="para1" eId="schedule-9-paragraph-26-5-b"><num>(b)</num><intro><p>in <a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">paragraph 7</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(7)</a><a href="https://www.legislation.gov.uk/uksi/2011/1986/schedule/6/paragraph/7">(a)</a>—</p></intro><level class="para2" eId="schedule-9-paragraph-26-5-b-i"><num>(i)</num><content><p>omit “or domiciled” in the first place it appears;The</p></content></level><level class="para2" eId="schedule-9-paragraph-26-5-b-ii"><num>(ii)</num><content><p>omit “so”;</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35275"><heading>Making Tax Digital</heading><paragraph eId="schedule-9-paragraph-27" class="schProv1"><num>27</num><content><p>In the <ref eId="c00284" href="https://www.legislation.gov.uk/uksi/2021/1076">Income Tax (Digital Requirements) Regulations 2021</ref> (<ref eId="c00285" href="http://www.legislation.gov.uk/id/uksi/2021/1076">S.I. 2021/1076</ref>) omit regulation 26.</p></content></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-10"><num>Schedule 10<authorialNote class="referenceNote"><p>Section 41</p></authorialNote></num><heading>Temporary repatriation facility</heading><part eId="schedule-10-part-1"><num>Part 1</num><heading>Temporary repatriation facility charge</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e35304"><heading>Introduction and charge</heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-10-paragraph-1-1"><num>(1)</num><content><p><ref href="#schedule-10-part-1">This Part</ref> of <ref href="#schedule-10">this Schedule</ref> sets out a charge on amounts of qualifying overseas capital of individuals previously subject to the remittance basis.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-2"><num>(2)</num><content><p>The charge is to be known as the temporary repatriation facility charge, and is referred to in this Schedule as the “<term refersTo="#term-trf-charge" eId="term-trf-charge">TRF charge</term>”.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-3"><num>(3)</num><content><p><span><ref href="#schedule-10-paragraph-2">Paragraphs 2</ref> to <ref href="#schedule-10-paragraph-6">6</ref></span> set out when amounts are, or are to be treated, as qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-4"><num>(4)</num><content><p>Amounts of qualifying overseas capital of an individual are subject to the TRF charge only if the individual designates them in accordance with this Part of this Schedule.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-5"><num>(5)</num><content><p>An individual may only designate qualifying overseas capital if the individual was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-6"><num>(6)</num><content><p>An individual designates qualifying overseas capital by making an election (a “designation election”) in a return for the tax year 2025-26, 2026-27 or 2027-28 (see <ref href="#schedule-10-paragraph-8">paragraph 8</ref> for further provision about designation elections).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-7"><num>(7)</num><content><p>A designation election may only be made in a return if, for the tax year to which the return relates, the individual is UK resident for the purposes of income tax and capital gains tax (see <a href="https://www.legislation.gov.uk/ukpga/2013/29/schedule/45">Schedule 45</a> to <ref eId="c00286" href="https://www.legislation.gov.uk/ukpga/2013/29">FA 2013</ref>).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-8"><num>(8)</num><intro><p>The amount of the TRF charge on qualifying overseas capital designated by an individual is—</p></intro><level class="para1" eId="schedule-10-paragraph-1-8-a"><num>(a)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2025-26 or 2026-27, the amount equal to 12% of the amount of that capital, and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-8-b"><num>(b)</num><content><p>in the case of amounts of qualifying overseas capital designated in a return for the tax year 2027-28, the amount equal to 15% of the amount of that capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-1-9"><num>(9)</num><content><p>Part 2 of this Schedule sets out exemptions and reliefs from income tax and capital gains tax that apply where amounts of qualifying overseas capital are designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-10"><num>(10)</num><content><p><ref href="#schedule-10-part-3">Part 3</ref> of <ref href="#schedule-10">this Schedule</ref> amends or modifies rules about the remittance of amounts where an individual has designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-1-11"><num>(11)</num><intro><p>For the purposes of <ref href="#schedule-10-part-1">this Part</ref> of <ref href="#schedule-10">this Schedule</ref>—</p></intro><level class="para1" eId="schedule-10-paragraph-1-11-a"><num>(a)</num><intro><p>an individual is subject to the remittance basis for a tax year—</p></intro><level class="para2" eId="schedule-10-paragraph-1-11-a-i"><num>(i)</num><content><p>in relation to the tax years 2008-09 to 2024-25, if any of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">sections 809B</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">809D</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809E">809E</a> of <ref eId="c00287" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> apply to the individual for that year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-1-11-a-ii"><num>(ii)</num><content><p>in relation to any tax year before 2008-2009, if any income or gains of the individual for that year were subject to the remittance basis (including any income or gains that would have been regarded as arising in the tax year but were not as a result of the application of the remittance basis), and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-1-11-b"><num>(b)</num><content><p>“<term refersTo="#term-return" eId="term-return">return</term>” means a return under <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/8">section 8</a> of <ref eId="c00288" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (personal return for income tax and capital gains tax), and</p></content></level><level class="para1" eId="schedule-10-paragraph-1-11-c"><num>(c)</num><content><p>references to an election being included in a return include an election being so included as a result of an amendment of the return.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35474"><heading>Qualifying overseas capital: main cases</heading><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-10-paragraph-2-1"><num>(1)</num><content><p>An amount of capital is “qualifying overseas capital” of an individual if it falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>, <ref href="#schedule-10-paragraph-2-5">(5)</ref> or <ref href="#schedule-10-paragraph-2-8">(8)</ref>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-2"><num>(2)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-2-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-b"><num>(b)</num><content><p>the amount has not been remitted to the United Kingdom, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-2-c"><num>(c)</num><content><p>the amount, if remitted to the United Kingdom, would have the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-3"><num>(3)</num><intro><p>That effect is that—</p></intro><level class="para1" eId="schedule-10-paragraph-2-3-a"><num>(a)</num><content><p>the individual becomes chargeable to income tax by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/22">section 22</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/26">26</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/41F">41F</a>, <a href="https://www.legislation.gov.uk/ukpga/2003/1/section/554Z9">554Z9</a> or 554Z10 of <ref eId="c00289" href="https://www.legislation.gov.uk/ukpga/2003/1">ITEPA 2003</ref> or <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/832">section 832</a> of <ref eId="c00290" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (income charged on remittance basis), or</p></content></level><level class="para1" eId="schedule-10-paragraph-2-3-b"><num>(b)</num><content><p>a gain is treated as accruing to the individual by reference to the amount remitted in accordance with <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00291" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (gains charged on remittance basis).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-4"><num>(4)</num><content><p>In determining whether an amount of capital falls within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> for the purposes of making a designation election for a tax year, the condition in <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-10-paragraph-2-2-b">(b)</ref> is to be regarded as met if it was met at the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-5"><num>(5)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-5-a"><num>(a)</num><content><p>it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-b"><num>(b)</num><content><p>the amount is remitted to the United Kingdom in the tax year 2025-26, 2026-27 or 2027-28, and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-5-c"><num>(c)</num><content><p>that remittance has the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-6"><num>(6)</num><content><p>An amount that is qualifying overseas capital falling within <ref href="#schedule-10-paragraph-2-5">sub-paragraph (5)</ref> (and that has not previously been designated as result of the amount falling within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref>) may only be designated in a designation election for the tax year in which it was remitted.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-2-7"><num>(7)</num><intro><p>For the purposes of <ref href="#schedule-10-paragraph-2-2">sub-paragraphs (2)</ref><ref href="#schedule-10-paragraph-2-2-c">(c)</ref> and <ref href="#schedule-10-paragraph-2-5">(5)</ref><ref href="#schedule-10-paragraph-2-5-c">(c)</ref>, a remittance is to be treated as having the effect mentioned in <ref href="#schedule-10-paragraph-2-3">sub-paragraph (3)</ref><ref href="#schedule-10-paragraph-2-3-a">(a)</ref> or <ref href="#schedule-10-paragraph-2-3-b">(b)</ref> if it would have that effect ignoring—</p></intro><level class="para1" eId="schedule-10-paragraph-2-7-a"><num>(a)</num><content><p><ref href="#schedule-10-part-2">Part 2</ref> of this Schedule (exemptions etc for designated qualifying overseas capital),</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VA">section 809VA</a> of <ref eId="c00292" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (business investment relief), and</p></content></level><level class="para1" eId="schedule-10-paragraph-2-7-c"><num>(c)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a> of <ref eId="c00293" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (exempt property).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-8"><num>(8)</num><intro><p>An amount of capital falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-10-paragraph-2-8-a"><num>(a)</num><content><p>it does not fall within <ref href="#schedule-10-paragraph-2-2">sub-paragraph (2)</ref> or <ref href="#schedule-10-paragraph-2-5">(5)</ref>,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-b"><num>(b)</num><content><p>it was held by the individual immediately before 6 April 2025,</p></content></level><level class="para1" eId="schedule-10-paragraph-2-8-c"><num>(c)</num><intro><p>it was situated outside the United Kingdom—</p></intro><level class="para2" eId="schedule-10-paragraph-2-8-c-i"><num>(i)</num><content><p>immediately before it was most recently acquired by the individual before that date, and</p></content></level><level class="para2" eId="schedule-10-paragraph-2-8-c-ii"><num>(ii)</num><content><p>throughout the period beginning with the time referred to in <ref href="#schedule-10-paragraph-2-8-c-i">sub-paragraph (i)</ref> and ending with that date.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-2-9"><num>(9)</num><content><p>References in <ref href="#schedule-10-part-1">Parts 1</ref> and <ref href="#schedule-10-part-2">2</ref> of <ref href="#schedule-10">this Schedule</ref> to amounts being remitted to the United Kingdom are to be construed in accordance with <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00294" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (see, in particular, sections 809L to 809O of that Act).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35761"><heading>Capital payments made by settlement: section 87 and 89 TCGA 1992 cases</heading><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of section 87(2) or 89(2) of TCGA 1992 in relation to a capital payment from the trustees of a settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-1-b"><num>(b)</num><content><p>the settlement has a section 1(3) amount that is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-3-3-a"><num>(a)</num><content><p>the section 1(3) amount for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-3-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-3-3-b-ii"><num>(ii)</num><content><p>to which section 87(2) or 89(2) of that Act applies.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount for the tax year 2024-25 or an earlier tax year resulting from the application of section 87 or 89(2) of TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-3-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-6"><num>(6)</num><content><p>The section 1(3) amount is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-544c8e842f22544bd470af33cb08a98c-1776847074039" ukl:CommentaryRef="key-544c8e842f22544bd470af33cb08a98c"><noteRef uk:name="commentary" href="#key-544c8e842f22544bd470af33cb08a98c" class="commentary"/>paragraph 5</ins> (and no section 1(3) amounts or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-3-8-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in section 87 of TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-3-9"><num>(9)</num><intro><p>For the purposes of this paragraph, and <ins class="substitution first last" ukl:ChangeId="key-8c7dfbc4b972e5671ea104100e876f83-1776847074039" ukl:CommentaryRef="key-8c7dfbc4b972e5671ea104100e876f83"><noteRef uk:name="commentary" href="#key-8c7dfbc4b972e5671ea104100e876f83" class="commentary"/>paragraph 5</ins>, an individual is a qualifying individual in a tax year if the individual—</p></intro><level class="para1" eId="schedule-10-paragraph-3-9-a"><num>(a)</num><content><p>is UK resident for the purposes of income tax and capital gains tax for that tax year, and</p></content></level><level class="para1" eId="schedule-10-paragraph-3-9-b"><num>(b)</num><content><p>was subject to the remittance basis for at least one tax year (being a tax year before the tax year 2025-26).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35903"><heading>Capital payments made by settlement: offshore income gains cases</heading><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num><noteRef href="#key-b2c7030c15d614327ddf86dccff26e8c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>4</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e35913"><heading>Capital payments made by settlement: Schedule 4C cases</heading><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-10-paragraph-5-1"><num>(1)</num><intro><p>This paragraph applies for the tax year 2025-26, 2026-27 or 2027-28 in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to the individual in that tax year as a result of paragraph 8(1) of Schedule 4C to TCGA 1992 in relation to a capital payment from the trustees of a relevant settlement for which the individual is a beneficiary, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-1-b"><num>(b)</num><content><p>the section 1(3) amount in the Schedule 4C pool is greater than nil for one or more tax years before 2025-26.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-2"><num>(2)</num><content><p>So much of the payment as is matched with section 1(3) amounts in the Schedule 4C pool for tax years before 2025-26 is qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-3"><num>(3)</num><intro><p>For the purposes of matching those amounts, apply section 87A of TCGA 1992 as if—</p></intro><level class="para1" eId="schedule-10-paragraph-5-3-a"><num>(a)</num><content><p>the section 1(3) amount in the Schedule 4C pool for each tax year after the tax year 2024-25 were nil, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-3-b"><num>(b)</num><intro><p>the reference in Step 2 in subsection (2) of section 87A of that Act to the total amount of capital payments received by the beneficiaries were to the total amount of capital payments—</p></intro><level class="para2" eId="schedule-10-paragraph-5-3-b-i"><num>(i)</num><content><p>received by the individual and other beneficiaries that are qualifying individuals for the relevant tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-5-3-b-ii"><num>(ii)</num><content><p>to which paragraph 8(1) of Schedule 4C to that Act applies in relation to section 1(3) amounts in the Schedule 4C pool.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-4"><num>(4)</num><content><p>For the purposes of this paragraph, ignore any reduction of a section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or an earlier tax year resulting from the application of paragraph 8(1) of Schedule 4C to TCGA 1992 in the tax year 2025-26 or any subsequent tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-5-5-a"><num>(a)</num><content><p>an amount of a capital payment has been matched with a section 1(3) amount in the Schedule 4C pool under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-5-b"><num>(b)</num><content><p>that amount is designated as designated qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-5-6"><num>(6)</num><content><p>The section 1(3) amount in the Schedule 4C pool is to be taken to have been reduced (but not below nil) by so much of it as matches with the capital payment for the purposes of any subsequent application of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-7"><num>(7)</num><content><p>This paragraph is not to be taken as affecting the application of section 87A of TCGA 1992 for any purpose other than for the purposes of this paragraph and <ins class="substitution first last" ukl:ChangeId="key-53f680365af6ece2c1f0aed8e72e1394-1776847357884" ukl:CommentaryRef="key-53f680365af6ece2c1f0aed8e72e1394"><noteRef uk:name="commentary" href="#key-53f680365af6ece2c1f0aed8e72e1394" class="commentary"/>paragraph 3</ins> (and no section 1(3) amount in the Schedule 4C pool or capital payments are to be taken to have been reduced as a result of the application of this paragraph for any other purpose).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-5-8"><num>(8)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-5-8-a"><num>(a)</num><content><p>“section 1(3) amount in the Schedule 4C pool” and “relevant settlement” are to be construed in accordance with Schedule 4C to TCGA 1992, and</p></content></level><level class="para1" eId="schedule-10-paragraph-5-8-b"><num>(b)</num><content><p>section 97 of TCGA 1992 (supplementary provisions) applies as it applies for the purposes of sections 86A to 96 of that Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36031"><heading>Amounts of income treated as qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-10-paragraph-6-1"><num>(1)</num><intro><p><ref href="#schedule-10-paragraph-6">This paragraph</ref> applies—</p></intro><level class="para1" eId="schedule-10-paragraph-6-1-a"><num>(a)</num><content><p>where an individual is treated as having an amount of income as a result of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/643A">section 643A</a> of <ref eId="c00295" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (benefits paid out of protected foreign-source income or transitional trust income) for any of the tax years 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-b"><num>(b)</num><content><p>where an individual would have been treated as having an amount of income as a result of any other provision of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5/chapter/5">Chapter 5</a> of <a href="https://www.legislation.gov.uk/ukpga/2005/5/part/5">Part 5</a> of <ref eId="c00296" href="https://www.legislation.gov.uk/ukpga/2005/5">ITTOIA 2005</ref> (settlements: amounts treated as income of settlor or family) in the tax year 2024-25 or an earlier tax year but was not only as a result of the application of <a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">section 648</a><a href="https://www.legislation.gov.uk/ukpga/2005/5/section/648">(3)</a> of <ref eId="c00297" href="https://www.legislation.gov.uk/ukpga/2005/5">that Act</ref> (relevant foreign income treated as arising under settlement only if and when remitted), or</p></content></level><level class="para1" eId="schedule-10-paragraph-6-1-c"><num>(c)</num><intro><p>where—</p></intro><level class="para2" eId="schedule-10-paragraph-6-1-c-i"><num>(i)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/732">section 732</a> of <ref eId="c00298" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-ii"><num>(ii)</num><content><p>under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/735A">section 735A</a> of <ref eId="c00299" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (if it applied also for this purpose) that amount would be matched with relevant income that arose in the tax year 2024-25 or an earlier tax year, and</p></content></level><level class="para2" eId="schedule-10-paragraph-6-1-c-iii"><num>(iii)</num><content><p>that amount would have been treated as relevant foreign income of the individual if it had been treated as accruing in the tax year 2024-25 and the individual had been subject to the remittance basis for that tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-6-2"><num>(2)</num><content><p>An amount of income falling within <ref href="#schedule-10-paragraph-6-1-a">paragraph (a)</ref>, <ref href="#schedule-10-paragraph-6-1-b">(b)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> of <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref> is to be treated as an amount of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-3"><num>(3)</num><content><p>An amount of income treated as qualifying overseas capital falling within <ref href="#schedule-10-paragraph-6-1">sub-paragraph (1)</ref><ref href="#schedule-10-paragraph-6-1-a">(a)</ref> or <ref href="#schedule-10-paragraph-6-1-c">(c)</ref> may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-6-4"><num>(4)</num><content><p>For the purposes of <ref href="#schedule-10-paragraph-6">this paragraph</ref> “<term refersTo="#term-relevant-foreign-income" eId="term-relevant-foreign-income">relevant foreign income</term>” has the meaning it has in the Income Tax Acts.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36161"><heading>Deemed income under section 732 of ITA 2007 where pre-2025 gains available for matching</heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-10-paragraph-7-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-7-1-a"><num>(a)</num><content><p>an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-b"><num>(b)</num><content><p>the amount of income does not fall within paragraph 6(1)(c), and</p></content></level><level class="para1" eId="schedule-10-paragraph-7-1-c"><num>(c)</num><content><p>the benefit by reference to which that income is treated as arising would, if it were not chargeable to income tax, be an amount of qualifying overseas capital of the individual by virtue of paragraph 3 or 5 (capital payments).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-1A"><num><ins class="first" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd"><noteRef uk:name="commentary" href="#key-a714d4c53e920634821d9d78d9c849cd" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">For the purposes of applying those paragraphs for the purposes of sub-paragraph (1)(c)—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-7-1A-a"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><intro><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs have effect as if—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-7-1A-a-i"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(i)</ins></num><content><p><mod><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">for sub-paragraph (1)(a) (in each paragraph) there were substituted—</ins><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(a)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">an individual is treated as having an amount of income for any of the tax years 2025-26, 2026-27 or 2027-28 as a result of section 732 of ITA 2007 (individuals receiving a benefit as a result of relevant transactions),</ins></p></content></level></quotedStructure><inline name="appendText"><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">,</ins></inline></mod></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-ii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(ii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the reference in sub-paragraph (2) (in each paragraph) to “the payment” were to the benefit by reference to which the income is treated as arising,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iii"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iii)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">sub-paragraph (3)(b)(ii) (in each paragraph) were omitted, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-7-1A-a-iv"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(iv)</ins></num><content><p><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">the references in each paragraph, and in section 87A of TCGA 1992 as applied by those paragraphs, to “capital payments” were to benefits falling within sub-paragraph (1)(c) of this paragraph, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-7-1A-b"><num><ins ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a714d4c53e920634821d9d78d9c849cd-1776849313475" ukl:CommentaryRef="key-a714d4c53e920634821d9d78d9c849cd">those paragraphs are to be applied after they have been applied for the purposes of determining whether any amount of a capital payment is qualifying overseas capital.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-7-2"><num>(2)</num><content><p>The amount is to be treated as an amount <ins class="first last" ukl:ChangeId="key-5afe54cf97ef5cab8f21e8361e836a74-1776849382513" ukl:CommentaryRef="key-5afe54cf97ef5cab8f21e8361e836a74"><noteRef uk:name="commentary" href="#key-5afe54cf97ef5cab8f21e8361e836a74" class="commentary"/>of income</ins> of qualifying overseas capital of the individual.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-7-3"><num>(3)</num><content><p>The amount may only be designated in a return for the tax year in which the income was treated as arising to the individual.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36275"><heading>Designation of qualifying overseas capital</heading><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-10-paragraph-8-1"><num>(1)</num><content><p>A designation election for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2"><num>(2)</num><intro><p>The designation must—</p></intro><level class="para1" eId="schedule-10-paragraph-8-2-a"><num>(a)</num><content><p>set out the total amount designated, <noteRef href="#key-618a6a5886e1287ff91179a230f38778" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-aa"><num><ins class="first" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55"><noteRef uk:name="commentary" href="#key-2431037c5d02401011ed77937389fc55" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2431037c5d02401011ed77937389fc55-1776849756279" ukl:CommentaryRef="key-2431037c5d02401011ed77937389fc55">for each amount designated, whether or not it is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2-b"><num>(b)</num><content><p>identify which (if any) of the amounts designated <ins class="first last" ukl:ChangeId="key-988aec55dba20941dfe651e6fc0cdbee-1776849778990" ukl:CommentaryRef="key-988aec55dba20941dfe651e6fc0cdbee"><noteRef uk:name="commentary" href="#key-988aec55dba20941dfe651e6fc0cdbee" class="commentary"/>on that basis</ins> have been remitted in the tax year to which the return relates.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-2A"><num><ins class="first" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af"><noteRef uk:name="commentary" href="#key-65ee73b2b4a1eeb8133aba3eb5d541af" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">For the purposes of designating an amount of qualifying overseas capital of an individual that—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2A-a"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(a)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is qualifying overseas capital as a result of paragraph 2(2) or (5), or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2A-b"><num><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">(b)</ins></num><content><p><ins ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">is treated as qualifying overseas capital as a result of paragraph 6(1)(b),</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-65ee73b2b4a1eeb8133aba3eb5d541af-1776849593825" ukl:CommentaryRef="key-65ee73b2b4a1eeb8133aba3eb5d541af">the value of that amount is the value of the amount when it first arose to the individual.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2B"><num><ins class="first" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa"><noteRef uk:name="commentary" href="#key-dc0713a92959e81f684701908e0759aa" class="commentary"/>(2B)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">In this Part and in Part 2 “</ins><term refersTo="#term-remittance-provision"><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">remittance provision</ins></term><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">” means paragraph 2(2) or (5) or paragraph 6(1)(b).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-2C"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2C)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2C-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">an amount is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2C-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">the amount would (ignoring this sub-paragraph) also be regarded as designated under paragraph 3 or 5 (matched capital payments),</ins></p></content></level><wrapUp><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">it is not to be regarded as designated under that paragraph for the purposes of paragraph 10(7) (relief for offshore income gains) or paragraph 13 (relief for matched capital payments) as a result of that designation on that basis.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-2D"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(2D)</ins></num><intro><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">Accordingly two designations of the amount are required to secure the benefit of all of the reliefs that may be available under paragraphs 10(1), 10(7),12(1) and 13—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-2D-a"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">one designation of the amount on the basis it is qualifying overseas capital as a result of a remittance provision, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-2D-b"><num><ins ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc0713a92959e81f684701908e0759aa-1776849686611" ukl:CommentaryRef="key-dc0713a92959e81f684701908e0759aa">another not on that basis.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-3"><num>(3)</num><content><p>Where an amount of relevant foreign tax has been paid, or is payable, in respect of an amount of qualifying overseas capital, only so much of the amount as remains after deducting the amount of relevant foreign tax paid, or payable, may be designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-4"><num>(4)</num><intro><p>For the purposes of this paragraph, relevant foreign tax means a tax imposed by the law of a territory outside the United Kingdom that corresponds to—</p></intro><level class="para1" eId="schedule-10-paragraph-8-4-a"><num>(a)</num><content><p>income tax, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-4-b"><num>(b)</num><content><p>capital gains tax.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-4A"><num><ins class="first" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3"><noteRef uk:name="commentary" href="#key-d2b98820144550a15e507e0a9ff68cf3" class="commentary"/>(4A)</ins></num><intro><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">But where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-4A-a"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">an amount of relevant foreign tax has been paid, or will be paid, in respect of an amount of qualifying overseas capital (“the related qualifying overseas capital”), and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-4A-b"><num><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">it has been, or will be, paid out of funds other than the related qualifying overseas capital,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-d2b98820144550a15e507e0a9ff68cf3-1776849608117" ukl:CommentaryRef="key-d2b98820144550a15e507e0a9ff68cf3">sub-paragraph (3) does not apply to the related qualifying overseas capital to the extent that the tax has been, or will be, paid out of those funds.</ins></p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-5"><num>(5)</num><intro><p>An individual may designate an amount where it has not yet been determined—</p></intro><level class="para1" eId="schedule-10-paragraph-8-5-a"><num>(a)</num><content><p>whether the amount is qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-5-b"><num>(b)</num><content><p>whether, or to what extent, relevant foreign tax is, or was, payable in respect of the amount.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-5A"><num><ins class="first" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1"><noteRef uk:name="commentary" href="#key-7a0c94f10a7604893d15a37e40290eb1" class="commentary"/>(5A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7a0c94f10a7604893d15a37e40290eb1-1776849719339" ukl:CommentaryRef="key-7a0c94f10a7604893d15a37e40290eb1">Where the individual considers that an amount designated under sub-paragraph (5) could, if it were qualifying overseas capital, be designated on the basis that it is qualifying overseas capital as a result of a remittance provision, the individual may designate it on that basis.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6"><num>(6)</num><intro><p>An amount designated—</p></intro><level class="para1" eId="schedule-10-paragraph-8-6-a"><num>(a)</num><content><p>that is determined to not be qualifying overseas capital, or</p></content></level><level class="para1" eId="schedule-10-paragraph-8-6-b"><num>(b)</num><content><p>that should not have been designated as a result of sub-paragraph (3),</p></content></level><wrapUp><p>is to be nevertheless treated as designated qualifying overseas capital, other than for the purpose of Part 2 of this Schedule (exemptions etc).</p></wrapUp></subparagraph><subparagraph eId="schedule-10-paragraph-8-6A"><num><ins class="first" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52"><noteRef uk:name="commentary" href="#key-faf32870b83f36b1427015ddaafdef52" class="commentary"/>(6A)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Sub-paragraph (6B) applies where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-8-6A-a"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(a)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">an amount (“the TRF amount”) is treated as designated qualifying overseas capital of an individual as a result of sub-paragraph (6),</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-8-6A-b"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(b)</ins></num><intro><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">on or after 6 April 2025, an officer of Revenue and Customs, in relation to the tax year 2024-25 or an earlier tax year—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-8-6A-b-i"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(i)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">amends the individual’s self-assessment while an enquiry under section 9A of TMA 1970 (enquiry into return) into the individual’s return for that tax year is in progress,</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-ii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(ii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">issues a partial or final closure notice under section 28A of that Act (completion of enquiry) in relation to that return, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-8-6A-b-iii"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(iii)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">makes an assessment under section 29 of that Act, and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-8-6A-c"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(c)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">the effect of the officer taking that step is that income tax or capital gains tax is charged in respect of the TRF amount.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-8-6B"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6B)</ins></num><content><p><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">The amount of income tax or capital gains tax due and payable under section 59B of TMA 1970 in respect of the TRF amount is to be treated as reduced (but not below nil) by the amount of the TRF charge paid in respect of the TRF amount.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-6C"><num><ins ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">(6C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-faf32870b83f36b1427015ddaafdef52-1776849623599" ukl:CommentaryRef="key-faf32870b83f36b1427015ddaafdef52">Where sub-paragraph (6B) applies, the individual may not amend the return in which the designation election relating to the TRF amount was included to alter or revoke that election (if the return otherwise could have been amended) so as to cause the TRF amount not to be designated.</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-7"><num>(7)</num><content><p>Where an amount is designated, it is treated as designated qualifying overseas capital from the beginning of the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-8-8"><num>(8)</num><content><p>An individual who makes a designation election must keep a record of each amount designated.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36592"><heading>Payment of the TRF charge through the income tax system</heading><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-10-paragraph-9-1"><num>(1)</num><content><p>An amount of designated qualifying overseas capital is chargeable to the TRF charge for the tax year to which the return in which it is designated relates.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-2"><num>(2)</num><content><p>Amounts of TRF charge are to be charged as if they were amounts of income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-3"><num>(3)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/23">Section 23</a> of <ref eId="c00300" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (calculation of income tax liability) applies in relation to a person liable to the TRF charge as if paragraph 1(8) were included in the lists of provisions in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">section 30</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/30">(1)</a> of <ref eId="c00301" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> (amounts of tax added at Step 7).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-4"><num>(4)</num><content><p>For the purposes of the collection and management of the TRF charge, all other enactments applying generally to income tax apply to the TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-5"><num>(5)</num><intro><p>Those enactments include—</p></intro><level class="para1" eId="schedule-10-paragraph-9-5-a"><num>(a)</num><content><p>those relating to returns of information and the supply of accounts, statements and reports,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-b"><num>(b)</num><content><p>those relating to the assessing, collecting and receiving of income tax,</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-c"><num>(c)</num><content><p>those conferring or regulating a right of appeal, and</p></content></level><level class="para1" eId="schedule-10-paragraph-9-5-d"><num>(d)</num><content><p>those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-9-6"><num>(6)</num><content><p>But section 59A of TMA 1970 (payments on account of income tax) does not apply in relation to amounts of TRF charge.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-7"><num>(7)</num><content><p>For the purposes of section 12B of TMA 1970 (as applied as a result of sub-paragraph (4)), the records required to be kept as a result of paragraph 8(8) are to be regarded as records that must be kept for the purposes of enabling an individual to make and deliver a correct and complete return.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-9-8"><num><ins class="first" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76"><noteRef uk:name="commentary" href="#key-2c99a990a7f9f8700096951e66076d76" class="commentary"/>(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2c99a990a7f9f8700096951e66076d76-1776852715928" ukl:CommentaryRef="key-2c99a990a7f9f8700096951e66076d76">Paragraph 8(6) is not to be taken as preventing the amendment of a return so as to alter or revoke a designation of qualifying overseas capital made in that return, provided that amendment is made in accordance with section 9ZA of TMA 1970 (taxpayer permitted to amend return within 12 months of filing date).</ins></p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-10-part-2"><num>Part 2</num><heading>Exemptions etc for designated qualifying overseas capital</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e36691"><heading>Income tax exemptions and relief</heading><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><intro><p>No liability to income tax arises on </p></intro><level class="para1" eId="schedule-10-paragraph-10-1-a"><num><ins class="first last" ukl:ChangeId="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8-1776853132966" ukl:CommentaryRef="key-b1095a56ce7bbfabdc9e4e6e3a8b01f8"><noteRef uk:name="commentary" href="#key-b1095a56ce7bbfabdc9e4e6e3a8b01f8" class="commentary"/>(a)</ins></num><content><p>the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-d10d1a50438566ccae8772e4ce37d1e2-1776853290668" ukl:CommentaryRef="key-d10d1a50438566ccae8772e4ce37d1e2"><noteRef uk:name="commentary" href="#key-d10d1a50438566ccae8772e4ce37d1e2" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision</ins> <ins class="first" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f"><noteRef uk:name="commentary" href="#key-f4964405d862b2748a4c836b21acf08f" class="commentary"/>, or</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-10-1-b"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(b)</ins></num><intro><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">an amount of income treated as qualifying overseas capital under paragraph 6 that—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-10-1-b-i"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(i)</ins></num><content><p><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">falls within sub-paragraph (1)(b) of that paragraph, and</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-10-1-b-ii"><num><ins ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f4964405d862b2748a4c836b21acf08f-1776853208108" ukl:CommentaryRef="key-f4964405d862b2748a4c836b21acf08f">is designated on the basis that it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 6 <ins class="first last" ukl:ChangeId="key-630151fc78607bb429cf9a616baf808b-1776853263158" ukl:CommentaryRef="key-630151fc78607bb429cf9a616baf808b"><noteRef uk:name="commentary" href="#key-630151fc78607bb429cf9a616baf808b" class="commentary"/>, and that falls within sub-paragraph (1)(a) or (c) of that paragraph,</ins> if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p>But such an amount is to be treated for the purposes of section 97(1) of TCGA 1992 (capital payments not to include amounts chargeable to income tax) as if it were chargeable to income tax.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p>No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 7 if the amount is designated.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><intro><p>Accordingly the amount—</p></intro><level class="para1" eId="schedule-10-paragraph-10-5-a"><num>(a)</num><content><p>will be a capital payment for the purposes of sections 86A to 96 of, and Schedule 4C to, TCGA 1992 (see section 97(1) of that Act), and</p></content></level><level class="para1" eId="schedule-10-paragraph-10-5-b"><num>(b)</num><content><p>will, as a result of paragraph 3 or 5 (or both), be qualifying overseas capital.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p>Any such qualifying overseas capital is to be treated as having been designated by the individual (under that paragraph or those paragraphs), but no liability to the TRF charge is to arise as a result of that deemed designation.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-7"><num><noteRef href="#key-f37db8ccd0ef3d5d94e00404966056a9" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(7)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-8"><num><noteRef href="#key-1abc611bdef108e4a81cb2f8fbeee822" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(8)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-9"><num>(9)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36805"><heading>Income tax exemptions: application of transfer of assets abroad rules in future years</heading><paragraph eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content><p>This paragraph applies where an amount of income that is treated as arising to an individual under section 732 of ITA 2007 (“the deemed income”) is exempt from income tax by virtue of paragraph 10.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 6(1)(c), Chapter 2 of Part 13 of ITA 2007 has effect as though the deemed income had been charged to tax under section 731 of that Act.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><intro><p>Accordingly—</p></intro><level class="para1" eId="schedule-10-paragraph-11-3-a"><num>(a)</num><content><p>in the application of section 733(1) of ITA 2007 to the individual for subsequent tax years, the amount of the deemed income will be deducted at Step 2 and at paragraph (a) of Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-3-b"><num>(b)</num><content><p>in the application of section 733(1) of ITA 2007 to any other individual for subsequent tax years, the amount of the deemed income will be deducted at paragraph (b) of Step 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content><p>If the deemed income is qualifying overseas capital by virtue of paragraph 7, Chapter 2 of Part 13 of ITA 2007 has effect as though the benefit by reference to which the deemed income was treated as arising had never been provided.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><intro><p>Accordingly, in the application of section 733(1) of ITA 2007 to any individual for subsequent tax years—</p></intro><level class="para1" eId="schedule-10-paragraph-11-5-a"><num>(a)</num><content><p>that benefit will not be taken into account at Step 1,</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-b"><num>(b)</num><content><p>no deduction in respect of the deemed income will be made at Step 2 or Step 5, and</p></content></level><level class="para1" eId="schedule-10-paragraph-11-5-c"><num>(c)</num><content><p>the total untaxed benefits will not be reduced in respect of that benefit by virtue of section 734 (previous capital gains charge).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36872"><heading>Capital gains tax: main exemption</heading><paragraph eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-10-paragraph-12-1"><num>(1)</num><content><p>No gain is treated as accruing under <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">paragraph 1</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1/paragraph/1">(2)</a> of <a href="https://www.legislation.gov.uk/ukpga/1992/12/schedule/1">Schedule 1</a> to <ref eId="c00302" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> on the remittance of an amount of designated qualifying overseas capital <ins class="first last" ukl:ChangeId="key-8dff72aa92040e88a538c94dba73ba0a-1776854193920" ukl:CommentaryRef="key-8dff72aa92040e88a538c94dba73ba0a"><noteRef uk:name="commentary" href="#key-8dff72aa92040e88a538c94dba73ba0a" class="commentary"/>that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision (other than paragraph 6(1)(b))</ins>.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-12-2"><num>(2)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e36905"><heading>Capital gains tax: reliefs in respect of matched capital payments</heading><paragraph eId="schedule-10-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-10-paragraph-13-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-1-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">(2)</a> or 89(2) of <ref eId="c00303" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-1-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 3.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-2"><num>(2)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-3"><num>(3)</num><intro><p>Sub-paragraph (4) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-3-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00304" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>) of a capital payment with the section 1(3) amount for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-b"><num>(b)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00305" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (4)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-3-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 3(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">Section 91</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/91">(2)</a> of <ref eId="c00306" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (3)(a) as is matched with the amount of the section 1(3) amount as would also, in accordance with paragraph 3(2), be matched with the amount of a capital payment mentioned in sub-paragraph (3)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-5"><num>(5)</num><intro><p>Sub-paragraph (6) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-5-a"><num>(a)</num><content><p>chargeable gains are treated as accruing to an individual in a tax year under paragraph 8(1) of Schedule 4C to TCGA 1992 as a result of a capital payment made to an individual by the trustees of a settlement, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-5-b"><num>(b)</num><content><p>an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-6"><num>(6)</num><content><p>The gains are to be reduced by the amount of that designated qualifying overseas capital.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-7"><num>(7)</num><intro><p>Sub-paragraph (8) applies where—</p></intro><level class="para1" eId="schedule-10-paragraph-13-7-a"><num>(a)</num><content><p>an individual is charged to capital gains tax by virtue of the matching (under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87A">section 87A</a> of <ref eId="c00307" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> as it has effect for the purposes of paragraph 8(3) of Schedule 4C to that Act) of a capital payment with the section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or any earlier tax year,</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-b"><num>(b)</num><content><p>paragraph 13(2) of Schedule 4C to that Act (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (8)) apply in relation to the capital payment mentioned in paragraph (a),</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-c"><num>(c)</num><content><p>an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and</p></content></level><level class="para1" eId="schedule-10-paragraph-13-7-d"><num>(d)</num><content><p>the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 5(2), be matched with the section 1(3) amount mentioned in paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-8"><num>(8)</num><content><p>Paragraph 13(2) of Schedule 4C to TCGA 1992 does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (7)(a) as is matched with the amount of the section 1(3) amount in the Schedule 4C pool as would also, in accordance with paragraph 5(2), be matched with the amount of a capital payment mentioned in sub-paragraph (7)(c).</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-9"><num>(9)</num><intro><p>For the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-10-paragraph-13-9-a"><num>(a)</num><content><p>“<term refersTo="#term-section-13-amount" eId="term-section-13-amount">section 1(3) amount</term>” has the meaning it has in <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/87">section 87</a> of <ref eId="c00308" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>;</p></content></level><level class="para1" eId="schedule-10-paragraph-13-9-b"><num>(b)</num><content><p>“<term refersTo="#term-section-13-amount-in-the-schedule-4c-pool" eId="term-section-13-amount-in-the-schedule-4c-pool">section 1(3) amount in the Schedule 4C pool</term>” is to be construed in accordance with Schedule 4C to TCGA 1992.</p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13-10"><num>(10)</num><content><p>This paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37102"><heading><ins class="first" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471"><noteRef uk:name="commentary" href="#key-375a186091df53bad23bcaed69ae4471" class="commentary"/>Amounts derived from designated qualifying overseas capital</ins></heading><paragraph eId="schedule-10-paragraph-13A" class="schProv1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">13A</ins></num><subparagraph eId="schedule-10-paragraph-13A-1"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(1)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">This paragraph applies to an amount (“</ins><term refersTo="#term-amount-a"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount A</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) if—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-1-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">either—</ins></p></intro><level class="para2" eId="schedule-10-paragraph-13A-1-a-i"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(i)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount to the United Kingdom would have the effect mentioned in paragraph 2(3)(a) or (b) by reference to income or gains, or</ins></p></content></level><level class="para2" eId="schedule-10-paragraph-13A-1-a-ii"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(ii)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of the amount would result in income being treated as arising to a settlement in accordance with section 648(3) (and accordingly would result in an amount falling within paragraph 6(1)(b) arising), and</ins></p></content></level></level><level class="para1" eId="schedule-10-paragraph-13A-1-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">the remittance of an amount (“</ins><term refersTo="#term-amount-b"><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">amount B</ins></term><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">”) of designated qualifying overseas capital to the United Kingdom would have one of the effects mentioned in paragraph (a)(i) or (ii) by reference to that same income or those same gains (“the reference income or gains”) if it had not been designated.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-2"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(2)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(i), so much of amount A (so far as it relates to the reference income or gains) as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-2-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-2-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-13A-3"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(3)</ins></num><intro><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">Where amount A falls within sub-paragraph (1)(a)(ii), so much of the amount falling within paragraph 6(1)(b) as would result from the remittance of amount A as does not exceed amount B (so far as it relates to the reference income or gains) is to be treated—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13A-3-a"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(a)</ins></num><content><p><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated qualifying overseas capital, and</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13A-3-b"><num><ins ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-375a186091df53bad23bcaed69ae4471-1776847944989" ukl:CommentaryRef="key-375a186091df53bad23bcaed69ae4471">as designated on the basis it is qualifying overseas capital as a result of a remittance provision.</ins></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37209"><heading><ins class="first" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151"><noteRef uk:name="commentary" href="#key-bb44b435d1d2199ab6db0e477c766151" class="commentary"/>Effect of this Schedule on section 65(5) IHTA 1984 and section 260(2) of TCGA 1992</ins></heading><paragraph eId="schedule-10-paragraph-13B" class="schProv1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">13B</ins></num><subparagraph eId="schedule-10-paragraph-13B-1"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(1)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">The effects of Parts 1 and 2 of this Schedule are to be ignored for the purposes of section 65(5)(b) of IHTA 1984 (and accordingly will not prevent any amount being regarded as income of a person for the purposes of income tax for the purposes of that section).</ins></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-13B-2"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(2)</ins></num><intro><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">Where—</ins></p></intro><level class="para1" eId="schedule-10-paragraph-13B-2-a"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(a)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the trustees of a settlement make a capital payment to an individual,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-b"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(b)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">the making of that payment results in the individual having qualifying overseas capital,</ins></p></content></level><level class="para1" eId="schedule-10-paragraph-13B-2-c"><num><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">(c)</ins></num><content><p><ins ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">that qualifying overseas capital is designated,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-bb44b435d1d2199ab6db0e477c766151-1776848123731" ukl:CommentaryRef="key-bb44b435d1d2199ab6db0e477c766151">so much of the deemed disposal under section 71 of TCGA 1992 arising on the making of the payment as reflects the designated qualifying overseas capital is (despite sub-paragraph (1)) treated as a chargeable transfer within the meaning of IHTA 1984 for the purposes only of section 260(2)(a) of TCGA 1992 (gifts on which inheritance tax is chargeable etc).</ins></p></wrapUp></subparagraph></paragraph></hcontainer></part><part eId="schedule-10-part-3"><num>Part 3</num><heading>Effect of designation on when amounts remitted etc</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e37266"><heading>Temporary disapplication of nominated income ordering rules</heading><paragraph eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809I">Section 809I</a> of <ref eId="c00309" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (remittance basis charge: income and gains treated as remitted) does not apply for a tax year in relation to an individual if—</p></intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content><p>the tax year is tax year 2025-26, 2026-27 or 2027-28,</p></content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><intro><p>the individual—</p></intro><level class="para2" eId="schedule-10-paragraph-14-b-i"><num>(i)</num><content><p>makes a designation of qualifying overseas capital for that tax year, or</p></content></level><level class="para2" eId="schedule-10-paragraph-14-b-ii"><num>(ii)</num><content><p>has made such a designation for a previous tax year, and</p></content></level></level><level class="para1" eId="schedule-10-paragraph-14-c"><num>(c)</num><content><p>that section has not applied in relation to that individual for the tax year 2024-25 or an earlier tax year.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37310"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">section 809Q</a> of <ref eId="c00310" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-10-paragraph-15-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">Section 809Q</a> of <ref eId="c00311" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (3)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-2-a"><num>(a)</num><content><p><mod>before Step 1 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step A1</i></p><p>Find the amount (if any) of income or capital of the individual for the relevant tax year in the mixed fund immediately before the transfer that is TRF capital.</p><p>If the amount of the transfer is equal to, or less than, the amount of TRF capital, treat the transfer as containing only TRF capital.</p><p>Otherwise—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>treat so much of the transfer as does not exceed the amount of the TRF capital as being comprised of TRF capital, and</p></item><item><num>(b)</num><p>apply the following steps to the remainder of the transfer.</p></item></blockList></item></blockList></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-15-2-b"><num>(b)</num><content><p><mod>in Steps 2 to 4, and in the first sentence in Step 5, for “transfer”, in each place it occurs, substitute <quotedText>“remainder”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-15-3-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-15-3-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-15-4"><num>(4)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Q">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e37427"><num>(9)</num><intro><p>For the purposes of this Chapter “<term refersTo="#term-trf-capital">TRF capital</term>” means any amount that—</p></intro><level class="para1"><num>(a)</num><content><p>is qualifying overseas capital (within the meaning of Part 1 of Schedule 10 to FA 2025) as a result of paragraph 2 of that Schedule, and</p></content></level><level class="para1"><num>(b)</num><content><p>is designated qualifying overseas capital for the purposes of that Part of that Schedule (and see paragraph 8(7) which provides for qualifying overseas capital to be treated as designated qualifying overseas capital from the start of the tax year to which the return in which it is designated relates).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-15-5"><num>(5)</num><content><p><mod>In section 809Z10 of ITA 2007 (general interpretation), after the definition of “the remittance basis user” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-trf-capital">TRF capital</term>” has the meaning given by section 809Q(9).</p></content></hcontainer></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37463"><heading>Mixed funds: <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00312" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref></heading><paragraph eId="schedule-10-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-10-paragraph-16-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">Section 809R</a> of <ref eId="c00313" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-2"><num>(2)</num><content><p><mod>In subsection (1), for “This section applies” substitute <quotedText>“Subsections (2) to (8) apply”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>For the purposes of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (5)</a> for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-16-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (6)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-5-a"><num>(a)</num><content><p><mod>in the words before <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q as not applying in relation to it, if it” substitute <quotedText>“neither section 809Q nor section 809RZA(2) as applying in relation to it, if they”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-5-b"><num>(b)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (a)</a>, for “section 809Q does not apply” substitute <quotedText>“neither section 809Q nor section 809RZA(2) applies”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-6"><num>(6)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">subsection (7)</a>—</p></intro><level class="para1" eId="schedule-10-paragraph-16-6-a"><num>(a)</num><content><p>omit the “or” after paragraph (a), and</p></content></level><level class="para1" eId="schedule-10-paragraph-16-6-b"><num>(b)</num><content><p><mod> after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">paragraph (b)</a> insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>income or capital that is TRF capital and income or capital that is not TRF capital.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-16-7"><num>(7)</num><intro><p>In subsection (9)—</p></intro><level class="para1" eId="schedule-10-paragraph-16-7-a"><num>(a)</num><content><p><mod>for “step 1” substitute <quotedText>“steps A1 and 1”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-16-7-b"><num>(b)</num><content><p><mod>for “step 2” substitute <quotedText>“steps A1 and 2”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37625"><heading>Mixed funds: TRF capital account</heading><paragraph eId="schedule-10-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809R">section 809R</a> of <ref eId="c00314" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37644"><num>809RZA</num><heading>Transfers into TRF capital account</heading><subsection eId="d25e37648"><num>(1)</num><intro><p>Subsection (2) applies to a transfer made from a mixed fund if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made from a mixed fund that contains TRF capital,</p></content></level><level class="para1"><num>(b)</num><content><p>the transfer is to a TRF capital account, and</p></content></level><level class="para1" eId="d25e37666"><num>(c)</num><content><p>the amount of the transfer does not exceed the amount of TRF capital in the mixed fund at the time of the transfer.</p></content></level></subsection><subsection eId="d25e37672"><num>(2)</num><content><p>The transfer is to be treated as a transfer of TRF capital.</p></content></subsection><subsection><num>(3)</num><intro><p>Where subsection (2) would apply to a transfer but does not because of paragraph (c) of subsection (1)—</p></intro><level class="para1"><num>(a)</num><content><p>that transfer is to be treated as two separate transfers occurring one immediately after the other, and</p></content></level><level class="para1"><num>(b)</num><content><p>the first of those transfers is to be treated as being in the amount of TRF capital in the mixed fund (and accordingly subsection (2) will apply to that deemed transfer but not the second, which may result in the TRF capital account ceasing to be a TRF capital account).</p></content></level></subsection><subsection><num>(4)</num><content><p>Section 809RZB makes provision about the nomination of an account as a TRF capital account (and see sections 809RZC and 809RZD for the effect of making a transfer that contains amounts that are not TRF capital).</p></content></subsection></section><section eId="d25e37705"><num>809RZB</num><heading>TRF capital account</heading><subsection eId="d25e37709"><num>(1)</num><content><p>An individual may by notice to the Commissioners nominate an account to be a TRF capital account (and more than one nomination may have effect at any time).</p></content></subsection><subsection><num>(2)</num><content><p>The notice must specify the qualifying date for the account.</p></content></subsection><subsection><num>(3)</num><content><p>“The qualifying date” for the account is the first date on which there is paid into the account sums falling within subsection (4) which (in total) are more than £10 at a time when the credit balance of the account was £10 or less.</p></content></subsection><subsection eId="d25e37727"><num>(4)</num><content><p>A sum falls within this subsection if it is TRF capital.</p></content></subsection><subsection eId="d25e37733"><num>(5)</num><content><p>The individual may withdraw the nomination by giving a further notice to the Commissioners, specifying the date with effect from which the nomination is withdrawn.</p></content></subsection><subsection><num>(6)</num><content><p>A notice under subsection (1) or (5) must be in writing and include such information as the Commissioners may reasonably require.</p></content></subsection><subsection><num>(7)</num><intro><p>A notice under subsection (1) or (5) must be given no later than—</p></intro><level class="para1"><num>(a)</num><intro><p>31 January in the tax year following the tax year in which falls, as the case may be—</p></intro><level class="para2"><num>(i)</num><content><p>the qualifying date for the account, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn, or</p></content></level></level><level class="para1"><num>(b)</num><content><p>such later date as the Commissioners may allow.</p></content></level></subsection><subsection eId="d25e37775"><num>(8)</num><intro><p>If an individual nominates an account under this section, the account is a “TRF capital account” of the individual throughout the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the qualifying date, and</p></content></level><level class="para1" eId="d25e37787"><num>(b)</num><intro><p>ending with the date before the earliest of the following dates—</p></intro><level class="para2" eId="d25e37793"><num>(i)</num><content><p>the date on which the account is closed or ceases to be an ordinary bank account held by and for the benefit of the individual (alone or jointly with others);</p></content></level><level class="para2" eId="d25e37799"><num>(ii)</num><content><p>the date with effect from which the nomination is withdrawn under this section;</p></content></level><level class="para2" eId="d25e37805"><num>(iii)</num><content><p>6 April in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></level></level></subsection><subsection><num>(9)</num><intro><p>The account is not to be a TRF capital account at all if—</p></intro><level class="para1"><num>(a)</num><content><p>at any time on the qualifying date, the account is not an ordinary bank account held by and for the benefit of the individual (alone or jointly with others), or</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before the qualifying date, the account has a credit balance of more than £10.</p></content></level></subsection><subsection><num>(10)</num><content><p>Where the account has a credit balance immediately before the qualifying date (which must be £10 or less), that balance is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection><num>(11)</num><content><p>Where interest is payable on TRF capital held in the TRF capital account, any such interest paid into the account is to be treated as TRF capital for the purposes of this Chapter.</p></content></subsection><subsection eId="d25e37842"><num>(12)</num><content><p>The account is not to be a TRF capital account at all if the qualifying date falls in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied.</p></content></subsection><subsection><num>(13)</num><content><p>Subsection (8)(b)(iii) or (12) (as relevant) is to be ignored if the breach occurs on or after a date falling within subsection (8)(b)(i) or (ii).</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section an account is an “ordinary bank account” if it is a cash account in a bank (whether a current or savings account) where sums standing to the credit of the account from time to time represent a debt owed by the bank to the account-holder.</p></content></subsection><subsection><num>(15)</num><content><p>In this section, and in sections 809RZC and 809RZD, a reference to anything “paid into” an account includes anything credited to the account by whatever means.</p></content></subsection></section><section eId="d25e37869"><num>809RZC</num><heading>Breaches of the TRF deposit rule</heading><subsection><num>(1)</num><content><p>There is a breach of the TRF deposit rule if one or more prohibited sums are paid into a TRF capital account on the qualifying date or any day after the qualifying date.</p></content></subsection><subsection eId="d25e37879"><num>(2)</num><content><p>A breach of the TRF deposit rule is remedied if, within 30 days beginning with the day on which the prohibited sums are paid into the account, the required amount is transferred out of the account by way of a single one-off qualifying transfer.</p></content></subsection><subsection><num>(3)</num><content><p>A transfer is “qualifying” if it does not result in the remittance of any amount to the United Kingdom.</p></content></subsection><subsection><num>(4)</num><content><p>“The required amount” is an amount equal to the total of the prohibited sums paid into the TRF capital account on the day of the breach.</p></content></subsection><subsection><num>(5)</num><content><p>If there are 2 days in a tax year on which one or more breaches of the TRF deposit rule occur, subsection (2) does not apply to any breach on any subsequent day in the tax year (and accordingly any breach occurring on any day after the second day in the tax year on which there has been a breach cannot be remedied).</p></content></subsection><subsection><num>(6)</num><content><p>A “prohibited sum” is anything other than a sum that is TRF capital.</p></content></subsection></section><section eId="d25e37912"><num>809RZD</num><heading>Effect where 30-day deadline is met</heading><subsection><num>(1)</num><content><p>This section applies if the required amount in relation to a breach of the TRF deposit rule was transferred out of the account in accordance with section 809RZC(2).</p></content></subsection><subsection eId="d25e37922"><num>(2)</num><intro><p>Sections 809Q and 809R have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>the intervening transactions had never taken place, and</p></content></level><level class="para1"><num>(b)</num><content><p>each prohibited sum represented by the required amount had instead been transferred directly (at the time that sum was paid into the TRF capital account) into the account or other property into which the required amount was transferred by virtue of the single one-off qualifying transfer.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Each of the following is an “intervening transaction”—</p></intro><level class="para1"><num>(a)</num><content><p>each payment into the TRF capital account of a prohibited sum represented by the required amount, and</p></content></level><level class="para1"><num>(b)</num><content><p>the single one-off qualifying transfer out of the TRF capital account.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e37958"><heading>Temporary application of annualised basis to mixed funds containing TRF capital</heading><paragraph eId="schedule-10-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-10-paragraph-18-1"><num>(1)</num><content><p>This following modifications have effect for the tax years 2025-26, 2026-27 and 2027-28.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-18-2"><num>(2)</num><intro><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14/chapter/A1">Chapter A1</a> of <a href="https://www.legislation.gov.uk/ukpga/2007/3/part/14">Part 14</a> of <ref eId="c00315" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> has effect as if—</p></intro><level class="para1" eId="schedule-10-paragraph-18-2-a"><num>(a)</num><content><p><mod>after section 809R there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e37995"><num>809RZZA</num><heading>Annualised basis for mixed funds containing TRF capital</heading><subsection><num>(1)</num><content><p>This section applies where, at any time in a tax year, a mixed fund contains TRF capital.</p></content></subsection><subsection eId="d25e38005"><num>(2)</num><content><p>If this section applies, the composition of each transfer made from the fund in that tax year at any time is to be determined as follows—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Suppose that all transfers made from the mixed fund to a TRF capital account in relation to which section 809RZA(2) applies had been a single transfer made from the fund at the end of the tax year.</p><p>Whether that section applies in relation to transfers to a TRF capital account is determined as if all transfers from the mixed fund were made at the end of the tax year but transfers to a TRF capital account were made—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>before any other transfer from the mixed fund was made, and</p></item><item><num>(b)</num><p>sequentially in the order in which the transfers to a TRF capital account were actually made.</p></item></blockList></item><item><p><i>Step 2</i></p><p>Suppose that all the condition A transfers made from the mixed fund in the tax year had been a single transfer made at the end of the tax year immediately after the single transfer mentioned in Step 1.</p></item><item><p><i>Step 3</i></p><p>Suppose that all the other transfers made from the account in the tax year had been a single offshore transfer made at the end of the tax year immediately after the single transfer mentioned in Step 2.</p></item><item><p><i>Step 4</i></p><p>Applying those suppositions—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>find under section 809Q(3) the content of the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>find under section 809R(4) the content of the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 5</i></p><p>Each transfer made from the fund in the tax year, other than a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, is treated as containing the specified proportion of each kind of income or capital contained in the relevant deemed transfer.</p><p>“The specified proportion” is the amount of the transfer divided by the amount of the relevant deemed transfer.</p><p>“The relevant deemed transfer is—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>if the transfer is a condition A transfer, the single transfer mentioned in Step 2, and</p></item><item><num>(b)</num><p>otherwise, the single offshore transfer mentioned in Step 3.</p></item></blockList></item><item><p><i>Step 6</i></p><p>Each transfer made from the fund in the tax year to which section 809RZA(2) is regarded as applying in accordance with Step 1 is to be treated as a transfer to which that section applies (and no other transfer in the tax year is to be regarded as a transfer in relation to which that section applies).</p></item></blockList></content></subsection><subsection><num>(3)</num><content><p>Subsection (2) applies in determining the composition of a transfer for the purposes of sections 809Q and 809R but it does not otherwise affect the date on which a transfer is considered to occur for the purposes of this Chapter.</p></content></subsection><subsection><num>(4)</num><intro><p>A transfer from the fund is a “condition A transfer” if and to the extent that—</p></intro><level class="para1"><num>(a)</num><content><p>condition A in section 809L is met, and</p></content></level><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the property or consideration for the service is (wholly or in part), or derives (wholly or in part, and directly or indirectly) from, the transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the transfer, or anything deriving (wholly or in part, and directly or indirectly) from the transfer, is used as mentioned in section 809L(3)(c).</p></content></level></level></subsection><subsection><num>(5)</num><content><p>A transfer from the fund is an “other transfer” if and to the extent that it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></subsection><subsection><num>(6)</num><intro><p>Treat a transfer as an “other transfer” if and to the extent that, at the end of the tax year—</p></intro><level class="para1"><num>(a)</num><content><p>it is neither a condition A transfer nor a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>on the basis of the best estimate that can reasonably be made at that time, it will not become either a condition A transfer or a transfer to which section 809RZA(2) is regarded as applying in accordance with Step 1.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of Step 5 in subsection (2)—</p></intro><level class="para1"><num>(a)</num><content><p>TRF capital is to be treated as a kind of income or capital, and</p></content></level><level class="para1"><num>(b)</num><content><p>TRF capital is not to be regarded as any other kind of income or capital.</p></content></level></subsection></section></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-18-2-b"><num>(b)</num><content><p><mod>in section 809RZD (as inserted by paragraph 17), at the end there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><content><p>If it is supposed under Steps 1 to 3 of section 809RZZA(2) that single transfers had been made in the intervening period, re-apply those steps in relation to those transfers taking account of subsection (2) and re-apply sections 809Q and 809R accordingly.</p></content></subsection><subsection><num>(5)</num><intro><p>“The intervening period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning with the day on which the breach occurred, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending with the day on which the single one-off qualifying transfer was made in accordance with section 809RZC(2).</p></content></level></subsection><subsection><num>(6)</num><content><p>If more than one qualifying transfer of a sum equal to the required amount was transferred out of the TRF capital account within the 30-day grace period, the first of those transfers is assumed to be the single one-off qualifying transfer.</p></content></subsection><subsection><num>(7)</num><content><p>“The 30-day grace period” is the period of 30 days mentioned in section 809RZC(2).</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38219"><heading>Business investment relief</heading><paragraph eId="schedule-10-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-10-paragraph-19-1"><num>(1)</num><content><p><ref eId="c00316" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">section 809VC</a> (qualifying investments) in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VC">subsection (4)</a>, after “if” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the investment is made before 6 April 2028,</p></content></level><level class="para1"><num>(b)</num><content><p>none of the money or other property used to make the investment is TRF capital, and</p></content></level><level class="para1"><num>(c)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-3"><num>(3)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a> (income or gains treated as remitted following certain events)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-3-a"><num>(a)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (6)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38287"><num>(6A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>the income or gains mentioned in subsection (1)(a) include amounts designated as TRF capital (in a tax year after the tax year in which the investment is made), and</p></content></level><level class="para1"><num>(b)</num><content><p>the portion of the investment affected is less than the whole of the investment,</p></content></level><wrapUp><p>so much of the affected income or gains as does not exceed the amounts designated is to be treated as being comprised of the TRF capital.</p></wrapUp></subsection><subsection><num>(6B)</num><intro><p>Where section 809VO (investments made from mixed funds) applies, subsection (8) of that section applies for the purposes of determining the composition of the amount of the affected income or gains that is not treated as being comprised of TRF capital (referred to as the “<term refersTo="#term-relevant-affected-income-and-gains">relevant affected income and gains</term>” in that subsection) as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>subsection (6A) of this section not applying, or</p></content></level><level class="para1"><num>(b)</num><content><p>that subsection only applying to a part of the affected income or gains.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-3-b"><num>(b)</num><intro><p>in subsection (7)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>for “Sections” substitute <quotedText>“Section”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-3-b-ii"><num>(ii)</num><content><p><mod>for “and 809VO (investments made from mixed funds) make” substitute <quotedText>“makes”</quotedText>, and</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-3-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">subsection (9)</a>, after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">paragraph (a)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content><p>any part contained in amounts already treated as remitted under section 809VIA(4) following an earlier event,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-4"><num>(4)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">section 809VN</a> (order of disposals etc)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">(b)</a>, for the words from “order” to the end substitute <quotedText>“following order.”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-b"><num>(b)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (2)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>The order is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the qualifying investments as were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and then</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to whatever remains, the order in which the qualifying investments were made (that is to say, on a first in, first out basis).</p></content></level></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-4-c"><num>(c)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">subsection (4)</a>, for <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VN">paragraph (b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>assume that a disposal of all or part of that deemed single holding is—</p></intro><level class="para2" eId="d25e38447"><num>(i)</num><content><p>a disposal of so much of the deemed single holding as is from any qualifying investments that were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and</p></content></level><level class="para2"><num>(ii)</num><content><p>if any of the deemed single holding remains after the disposal referred to in sub-paragraph (i), a disposal of a holding from qualifying investments until the holdings from all the qualifying investments have been disposed of.</p></content></level></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-5"><num>(5)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">section 809VO</a> (investments made from mixed funds)—</p></intro><level class="para1" eId="schedule-10-paragraph-19-5-a"><num>(a)</num><content><p><mod>for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e38475"><num>(4)</num><content><p>The “fixed proportion” is, unless subsection (4B) applies, the proportion of that kind of income or capital contained in the invested property by virtue of subsection (2).</p></content></subsection><subsection><num>(4A)</num><content><p>Subsection (4B) applies, instead of subsection (3), for determining the composition of the holding in connection with the application of subsections (7) and (8) where the holding contains TRF capital (as a result of the designation of income or capital in the holding as TRF capital in the tax year after the tax year in which the relevant event occurred).</p></content></subsection><subsection eId="d25e38487"><num>(4B)</num><content><p>Where this subsection applies, take the following steps to determine the composition of the holding in connection with the application of those subsections—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Determine the amounts of each kind of income and capital that the holding was treated as containing by virtue of subsection (3).</p></item><item><p><i>Step 2</i></p><p>Reduce the amount of each kind of income and capital by the amount (if any) of that income or capital as is TRF capital.</p></item></blockList></content></subsection><subsection eId="d25e38510"><num>(4C)</num><content><p>Where subsection (4B) applies, the “fixed proportion” is the proportion of that kind of income or capital treated as contained in the invested property by virtue of that subsection (instead of subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-b"><num>(b)</num><content><p><mod>in subsection (7), after “proportion” insert <quotedText>“(determined under subsection (4) or (4C) as the case may be)”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-c"><num>(c)</num><intro><p>in subsection (8)(a)—</p></intro><level class="para2" eId="schedule-10-paragraph-19-5-c-i"><num>(i)</num><content><p><mod>before “affected” insert <quotedText>“relevant”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-10-paragraph-19-5-c-ii"><num>(ii)</num><content><p><mod>before “portion” insert <quotedText>“relevant proportion of the”</quotedText>,</mod></p></content></level></level><level class="para1" eId="schedule-10-paragraph-19-5-d"><num>(d)</num><content><p><mod>in subsection (8)(b), after “(3)” insert <quotedText>“or (4B) (as the case may be)”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-19-5-e"><num>(e)</num><content><p><mod>after <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VO">subsection (8)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8A)</num><intro><p>For the purposes of subsection (8)(a)—</p></intro><level class="para1"><num>(a)</num><intro><p>the “<term refersTo="#term-relevant-affected-income-or-gains">relevant affected income or gains</term>” means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, so much of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, all of the affected income or gains, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>the “relevant proportion” of the portion of the investment means—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VG">section 809VG</a>(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, the proportion of the portion of the investment that is equal to the proportion of the affected income or gains as is not treated as being comprised of TRF capital, or</p></content></level><level class="para2"><num>(ii)</num><content><p>otherwise, the whole of the portion of the investment.</p></content></level></level></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-10-paragraph-19-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809VI">section 809VI</a> (the appropriate mitigation steps), in subsection (3), after “But” insert <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>see also section 809VIA (which makes provision treating the disposal proceeds as reduced where TRF capital is involved), and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-19-7"><num>(7)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e38654"><num>809VIA</num><heading>Application of appropriate mitigation steps where TRF capital involved</heading><subsection><num>(1)</num><content><p>This section applies in relation to a potentially chargeable event where, if no appropriate mitigation steps were regarded as taken, an amount of TRF capital would (ignoring this section) be treated as remitted to the United Kingdom immediately after the end of the relevant grace period as a result of section 809VG(2).</p></content></subsection><subsection><num>(2)</num><content><p>Where there has been a disposal of all or part of the holding (see section 809VI(1) or (2)(b)), so much of the proceeds of that disposal as are equal to that amount of TRF capital is to be regarded as comprising that TRF capital.</p></content></subsection><subsection><num>(3)</num><content><p>Section 809VI has effect as if references in that section to the disposal proceeds did not include the TRF capital.</p></content></subsection><subsection eId="d25e38676"><num>(4)</num><content><p>Unless section 809VG(2) applies in relation to the potentially chargeable event, the TRF capital is to be treated as remitted to the United Kingdom at the time the potentially chargeable event occurred.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38682"><heading>No tax credits for pre 2016-17 dividends etc</heading><paragraph eId="schedule-10-paragraph-20" class="schProv1"><num>20</num><content><p>Sections 397 to 398 of ITTOIA 2005 (which have been repealed and only have effect in relation to distributions made before tax year 2016-17) do not apply in relation to any amount of designated qualifying overseas capital.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38691"><heading>Commencement</heading><paragraph eId="schedule-10-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-10-paragraph-21-1"><num>(1)</num><content><p>The amendments made by this Part of this Schedule have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-21-2"><num>(2)</num><content><p>Sub-paragraph (1) does not apply to the modifications made by paragraphs 14 and 18.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-11"><num>Schedule 11<authorialNote class="referenceNote"><p>Section 42</p></authorialNote></num><heading>Rebasing of assets</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e38720"><heading>Rebasing of assets for individuals who have been subject to the remittance basis</heading><paragraph eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><intro><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> applies to the disposal of an asset by an individual (“<term refersTo="#term-p" eId="term-p">P</term>”) where—</p></intro><level class="para1" eId="schedule-11-paragraph-1-1-a"><num>(a)</num><content><p>the asset was held by P on 5 April 2017,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-b"><num>(b)</num><content><p>the disposal is made on or after 6 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-c"><num>(c)</num><content><p>the asset was not situated in the United Kingdom at any time in the period beginning with 6 March 2024 and ending with 5 April 2025,</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-d"><num>(d)</num><content><p>P was not domiciled in the United Kingdom at any time in a tax year before tax year 2025-26, and</p></content></level><level class="para1" eId="schedule-11-paragraph-1-1-e"><num>(e)</num><intro><p>P has made a claim under <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809B">section 809B</a> of <ref eId="c00317" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (claim for remittance basis) for at least one tax year that is—</p></intro><level class="para2" eId="schedule-11-paragraph-1-1-e-i"><num>(i)</num><content><p>one of the tax years from tax year 2017-18 to tax year 2024-25, and</p></content></level><level class="para2" eId="schedule-11-paragraph-1-1-e-ii"><num>(ii)</num><content><p>a tax year for which neither <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809D">section 809D</a> nor 809E of <ref eId="c00318" href="https://www.legislation.gov.uk/ukpga/2007/3">that Act</ref> applied to P (remittance basis applies without claim).</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><content><p>In computing, for the purpose of <ref eId="c00319" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>, the gain or loss accruing on the disposal, it is to be assumed that P acquired the asset on 5 April 2017 for a consideration equal to its market value on that date.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content><p><ref href="#schedule-11-paragraph-1-2">Sub-paragraph (2)</ref> applies notwithstanding <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">section 58</a><a href="https://www.legislation.gov.uk/ukpga/1992/12/section/58">(1)</a> of <ref eId="c00320" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (disposals between spouses).</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-4"><num>(4)</num><content><p>Where under <a href="https://www.legislation.gov.uk/ukpga/1992/12/section/127">section 127</a> of <ref eId="c00321" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> (including that section as applied by sections 132, 135 and 136 of that Act) an original and a new holding of shares or other securities are treated as the same asset, the condition in <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> applies to both the original and the new holding.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-5"><num>(5)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/835BA">Section 835BA</a> of <ref eId="c00322" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (deemed domicile) applies for the purposes of <ref href="#schedule-11-paragraph-1-1">sub-paragraph (1)</ref><ref href="#schedule-11-paragraph-1-1-d">(d)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-1-6"><num>(6)</num><content><p><ref href="#schedule-11-paragraph-1">This paragraph</ref> and <ref href="#schedule-11-paragraph-2">paragraphs 2</ref> and <ref href="#schedule-11-paragraph-3">3</ref> have effect as if they were included in <ref eId="c00323" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e38867"><heading>Assets becoming situated in the United Kingdom before 6 April 2025</heading><paragraph eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purposes of <ref href="#schedule-11-paragraph-1">paragraph 1</ref><ref href="#schedule-11-paragraph-1-1">(1)</ref><ref href="#schedule-11-paragraph-1-1-c">(c)</ref> in the case of an asset which, having been situated outside the United Kingdom, becomes situated in the United Kingdom before the end of the relevant period.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at a time in the relevant period when—</p></intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">section 809Z</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z">(c)</a> of <ref eId="c00324" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (public access),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content><p>it meets the condition in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">section 809Z3</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(a)</a>, <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(b)</a> or <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z3">(c)</a> of <ref eId="c00325" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (repairs),</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-c"><num>(c)</num><content><p>the sole or principal purpose of its being situated in the United Kingdom is to sell it or put it up for sale, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-2-d"><num>(d)</num><intro><p>in the case of clothing, footwear, jewellery or a watch, it is for the personal use of—</p></intro><level class="para2" eId="schedule-11-paragraph-2-2-d-i"><num>(i)</num><content><p>P or a husband, wife or civil partner of P, or</p></content></level><level class="para2" eId="schedule-11-paragraph-2-2-d-ii"><num>(ii)</num><content><p>a child or grandchild of a person within <ref href="#schedule-11-paragraph-2-2-d-i">sub-paragraph (i)</ref>, if the child or grandchild has not reached the age of 18.</p></content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><intro><p>The asset is to be regarded as not situated in the United Kingdom at any time in the relevant period if it is brought to, or received or used in, the United Kingdom in circumstances in which <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">section 809L</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(2)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809L">(a)</a> of <ref eId="c00326" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> applies but—</p></intro><level class="para1" eId="schedule-11-paragraph-2-3-a"><num>(a)</num><content><p>by virtue of <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">section 809X</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(5)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809X">(c)</a> of <ref eId="c00327" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (notional remitted amount less than £1000) it is treated as not remitted to the United Kingdom, or</p></content></level><level class="para1" eId="schedule-11-paragraph-2-3-b"><num>(b)</num><content><p>by the end of the relevant period it has not failed to meet the temporary importation rule in <a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809Z4">section 809Z4</a> of <ref eId="c00328" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref>.</p></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-4"><num>(4)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">Section 809M</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(3)</a><a href="https://www.legislation.gov.uk/ukpga/2007/3/section/809M">(a)</a> of <ref eId="c00329" href="https://www.legislation.gov.uk/ukpga/2007/3">ITA 2007</ref> (persons living together) apply for the purposes of <ref href="#schedule-11-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-11-paragraph-2-2-d">(d)</ref><ref href="#schedule-11-paragraph-2-2-d-i">(i)</ref>.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-2-5"><num>(5)</num><content><p>In this paragraph the “<term refersTo="#term-relevant-period" eId="term-relevant-period">relevant period</term>” means the period beginning with 6 March 2024 and ending with 5 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e39039"><heading>Election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply</heading><paragraph eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content><p>An individual may make an election for <ref href="#schedule-11-paragraph-1">paragraph 1</ref> not to apply to a disposal made by the individual.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">Sections 42</a> and <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/43">43</a> of <ref eId="c00330" href="https://www.legislation.gov.uk/ukpga/1970/9">TMA 1970</ref> (procedure and time limit for claims), except <a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">section 42</a><a href="https://www.legislation.gov.uk/ukpga/1970/9/section/42">(1A)</a> of <ref eId="c00331" href="https://www.legislation.gov.uk/ukpga/1970/9">that Act</ref>, apply in relation to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> as they apply in relation to a claim for relief.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-3"><num>(3)</num><content><p>An election under <ref href="#schedule-11-paragraph-3">this paragraph</ref> is irrevocable.</p></content></subparagraph><subparagraph eId="schedule-11-paragraph-3-4"><num>(4)</num><content><p>All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under <ref href="#schedule-11-paragraph-3">this paragraph</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e39102"><heading>Rebasing under Schedule 8 to F(No.2)A 2017</heading><paragraph eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><p><mod>In Schedule 8 to F(No.2)A 2017, in paragraph 41(4)(b), for “that in which the disposal was made” substitute <quotedText>“the tax year 2024-25”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content><p>The amendment made by this paragraph has effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-12"><num>Schedule 12<authorialNote class="referenceNote"><p>Section 43</p></authorialNote></num><heading>Trusts: connected amendments, transitional provision etc</heading><part eId="schedule-12-part-1"><num>Part 1</num><heading>Settlements (income)</heading><paragraph eId="schedule-12-paragraph-1" class="schProv1"><num>1</num><content><p>Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor or family) is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-2" class="schProv1"><num>2</num><intro><p>In section 619 (charge to tax under Chapter 5), in subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-2-a"><num>(a)</num><content><p><mod>at the end of paragraph (d), insert <quotedText>“, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-b"><num>(b)</num><content><p><mod>in paragraph (e), after “protected foreign-source income” insert <quotedText>“or transitional trust income”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-2-c"><num>(c)</num><content><p>omit paragraph (f) and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 622 (person liable), for “sections 643A and 643I to 643M” substitute <quotedText>“section 643A (under which a close member of the settlor’s family may instead be liable)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-4" class="schProv1"><num>4</num><intro><p>In section 624 (income where settlor retains an interest), in subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-4-a"><num>(a)</num><content><p><mod>after “section 627 (exceptions for certain types of income),” insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-4-b"><num>(b)</num><content><p>omit “section 628A (exception for protected foreign-source income)” and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-5" class="schProv1"><num>5</num><content><p>Omit sections 628A to 628C (protected foreign-source income and transitional trust income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-6" class="schProv1"><num>6</num><content><p>In section 629 (income paid to relevant children of settlor), in subsection (5), omit “or section 630A (exception for protected foreign-source income)”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-7" class="schProv1"><num>7</num><content><p>Omit section 630A (exception to section 629 for protected foreign-source income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-8" class="schProv1"><num>8</num><intro><p>In section 635 (capital sums charge: amount of available income)—</p></intro><level class="para1" eId="schedule-12-paragraph-8-a"><num>(a)</num><content><p>in subsections (2) and (3)(d)(i), omit “unprotected”;</p></content></level><level class="para1" eId="schedule-12-paragraph-8-b"><num>(b)</num><content><p><mod>for subsection (5) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>See also <ref href="#d25e39376">section 643ZB</ref>(2) (which provides for certain income not to be counted towards available income for the purposes of this section).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-9" class="schProv1"><num>9</num><intro><p>In section 636 (capital sums charge: calculation of undistributed income)—</p></intro><level class="para1" eId="schedule-12-paragraph-9-a"><num>(a)</num><intro><p>omit “unprotected” in the following places—</p></intro><level class="para2" eId="schedule-12-paragraph-9-a-i"><num>(i)</num><content><p>subsection (1);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-ii"><num>(ii)</num><content><p>subsection (2) (in both places it occurs);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iii"><num>(iii)</num><content><p>subsection (4);</p></content></level><level class="para2" eId="schedule-12-paragraph-9-a-iv"><num>(iv)</num><content><p>subsection (6);</p></content></level></level><level class="para1" eId="schedule-12-paragraph-9-b"><num>(b)</num><content><p>in subsection (2)(b), omit “domiciled and”.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-10" class="schProv1"><num>10</num><content><p>In section 637 (qualifications to section 636), in subsections (5) and (7A), omit “unprotected”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-11" class="schProv1"><num>11</num><content><p><mod>For the italic heading before section 643A, substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><heading ukl:Context="Pblock">Transitional provision about protected foreign-source income and transitional trust income</heading></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-12" class="schProv1"><num>12</num><content><p><mod>Before section 643A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643ZA</num><heading>“Protected foreign-source income” and “transitional trust income”</heading><subsection eId="d25e39325"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2017-18 to 2024-25, and</p></content></level><level class="para1"><num>(b)</num><content><p>was protected foreign-source income for that tax year within the meaning of section 628A (as that section had effect for that tax year).</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitional-trust-income">transitional trust income</term>” means income that—</p></intro><level class="para1"><num>(a)</num><content><p>arose under a settlement in any of the tax years 2008-09 to 2016-17, and</p></content></level><level class="para1"><num>(b)</num><content><p>was transitional trust income throughout the tax years 2017-18 to 2024-25 within the meaning of section 628C (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>For the purposes of <ref href="#d25e39325">subsection (1)</ref> ignore section 648(3) to (5) (foreign income treated as arising under settlement only if and when remitted).</p></content></subsection></section><section eId="d25e39376"><num>643ZB</num><heading>Protected foreign-source income and transitional trust income not to be taxed elsewhere in Chapter</heading><subsection><num>(1)</num><content><p>The rules in sections 624(1) and 629(1) do not apply to protected foreign-source income or transitional trust income (which, by virtue of section 648(3) to (5), may be treated as income arising under the settlement in the tax year 2025-26 or a subsequent tax year).</p></content></subsection><subsection><num>(2)</num><content><p>In the following provisions, “<term refersTo="#term-income">income</term>” does not include protected foreign-source income or transitional trust income—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 635(2) and (3)(d)(i);</p></item><item><p>section 636(1), (2) (in the words before paragraph (a)), (4) and (6);</p></item><item><p>section 637(5) and (7A).</p></item></blockList></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-13" class="schProv1"><num>13</num><content><p><mod>For section 643A substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643A</num><heading>Benefits paid out of protected foreign-source income or transitional trust income</heading><subsection eId="d25e39422"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>an individual to whom this section applies has an untaxed benefits total for a settlement for a tax year (see section 643B),</p></content></level><level class="para1"><num>(b)</num><content><p>there is available protected income in relation to the individual, the settlement and the tax year (see section 643C), and</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is UK resident for the tax year,</p></content></level><wrapUp><p>an amount equal to so much of the untaxed benefits total as does not exceed the available protected income is treated for income tax purposes as income of the individual for the tax year.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1"><num>(a)</num><content><p>the settlor, and</p></content></level><level class="para1"><num>(b)</num><content><p>anyone who has at any time been a close member of the settlor’s family.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If there is a choice about the individuals in whose case income is to be treated as arising under subsection <ref href="#d25e39422">(1)</ref>, income is to be treated as arising—</p></intro><level class="para1"><num>(a)</num><content><p>to such one or more of them as appears to an officer of Revenue and Customs to be just and reasonable, and</p></content></level><level class="para1"><num>(b)</num><content><p>if more than one, in such respective proportions as appear to the officer to be just and reasonable.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-12-paragraph-14-1"><num>(1)</num><content><p>Section 643B (meaning of “<term refersTo="#term-untaxed-benefits-total" eId="term-untaxed-benefits-total">untaxed benefits total</term>” in section 643A) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-2"><num>(2)</num><content><p><mod>In subsection (1), for Step 1 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify each benefit provided by the trustees to the individual—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in the current tax year, or an earlier tax year for which the individual was UK resident, and</p></item><item><num>(b)</num><p>if the individual is not the settlor, at a time when the individual was a close member of the settlor’s family.</p></item></blockList></item></blockList></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>For the purposes of Step 1 in subsection (1), if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees provide a benefit to an individual in a given tax year,</p></content></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for the tax year,</p></content></level><wrapUp><p>the benefit is instead treated as provided to the settlor.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-14-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “643M” substitute <quotedText>“643EA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-15" class="schProv1"><num>15</num><content><p><mod>For section 643C substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643C</num><heading>Meaning of “available protected income” in section 643A</heading><subsection eId="d25e39587"><num>(1)</num><content><p>For the purposes of section 643A, take the following steps to determine the amount of available protected income in relation to an individual (“<term refersTo="#term-p">P</term>”), a settlement and a tax year (“the current tax year”)—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i></p><p>Identify the total amount of protected foreign-source income and transitional trust income that arose (at any time) under the settlement (“the total protected income”).</p></item><item><p><i>Step 2</i></p><p>Deduct any amount of the total protected income that is matched under the transfer of assets abroad code in the current tax year or an earlier tax year.</p></item><item><p><i>Step 3</i></p><p>Deduct any amount of the total protected income on which P or any other individual is liable to income tax in the current tax year or an earlier tax year.</p></item><item><p><i>Step 4</i></p><p>Deduct any amount that, in relation to the settlement, is treated under section 643A as P’s income in an earlier tax year or as another individual’s income in any tax year.</p></item><item><p><i>Step 5</i></p><p>Add back the amount of any income falling within Step 4 that is identified as qualifying foreign income on a foreign income claim made by P or any other individual for any tax year.</p></item></blockList></content></subsection><subsection><num>(2)</num><content><p>For the purposes of Step 1 in subsection <ref href="#d25e39587">(1)</ref>, ignore section 648(3) to (5) (foreign income treated as “arising” under settlement only if and when remitted).</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of Step 2 in subsection <ref href="#d25e39587">(1)</ref>, an amount of the total protected income is “matched under the transfer of assets abroad code” if it is matched under section 735A of ITA 2007 with—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided by the trustees to P or any other individual in the current tax year or in an earlier tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount of income treated as arising to P or any other individual under section 732 of ITA 2007</p></content></level><wrapUp><p>(or if it would be so matched if section 735A applied for those purposes).</p></wrapUp></subsection><subsection eId="d25e39669"><num>(4)</num><content><p>For the purposes of Step 3 in subsection <ref href="#d25e39587">(1)</ref>, ignore any liability to income tax arising under section 643A above or under section 731 of ITA 2007 (transfer of assets abroad: benefits charge).</p></content></subsection><subsection><num>(5)</num><content><p>In Step 4 in subsection <ref href="#d25e39587">(1)</ref> and in <ref href="#d25e39669">subsection (4)</ref>, a reference to section 643A includes, in relation to any of the tax years 2018-19 to 2024-25, section 643J and 643L (old onward gifting rules).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-12-paragraph-16-1"><num>(1)</num><content><p>Section 643E (reimbursement of tax paid by settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-2"><num>(2)</num><content><p><mod>In the heading, for “section 643A” substitute <quotedText>“643B(2)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-3"><num>(3)</num><content><p><mod>In subsection (1), for “section 643A(3) or (4)” substitute <quotedText>“section 643B(2) (benefit received by close family member attributed to settlor)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-16-4"><num>(4)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 643A as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-17" class="schProv1"><num>17</num><content><p><mod>After section 643E insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>643EA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e39759"><num>(1)</num><intro><p>Subsection <ref href="#d25e39886">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of a settlement provide a benefit (“the original benefit”) to an individual (“the original recipient”),</p></content></level><level class="para1"><num>(b)</num><intro><p>the original recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is liable neither to income tax nor to capital gains tax by reference to the amount or value of the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a qualifying new resident for the tax year in which the original benefit is provided,</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 643B(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e39798"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e39816"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e39828"><num>(ii)</num><content><p>at any time before the original benefit is provided to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided,</p></content></level></level><level class="para1" eId="d25e39834"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e39858"><num>(g)</num><intro><p>the subsequent recipient—</p></intro><level class="para2"><num>(i)</num><content><p>is the settlor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>is a close member of the settlor's family at the time when they receive the onward gift or, where the onward gift is provided as mentioned in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref><ref href="#d25e39828">(ii)</ref>, at the time given by <ref href="#d25e39930">subsection (4)</ref>.</p></content></level></level></subsection><subsection eId="d25e39886"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39834">(f)</ref> is treated for the purposes of section 643B(1) and (2)(a) as a benefit provided by the trustees to the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><intro><p>For the purposes of <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39834">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection eId="d25e39930"><num>(4)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref><ref href="#d25e39828">(ii)</ref>, it is treated for the purposes of <ref href="#d25e39886">subsection (2)</ref> as made immediately after, and in the tax year in which, the original benefit is provided to the original recipient.</p></content></subsection><subsection><num>(5)</num><content><p>Where the conditions in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39816">(e)</ref> to <ref href="#d25e39858">(g)</ref> are met in any case, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e39759">subsection (1)</ref><ref href="#d25e39798">(d)</ref> is also met in that case.</p></content></subsection><subsection><num>(6)</num><content><p>Where the original recipient is liable neither to income tax nor to capital gains tax by reference to the amount or value of part only of the original benefit, this section applies as if the two parts of the original benefit were separate benefits.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-12-paragraph-18-1"><num>(1)</num><content><p>Section 643F (income attributed by section 643A to user of remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-18-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for the words from “is treated” to the end substitute <quotedText>“was treated by section 643A as arising to an individual for any of the tax years 2018-19 to 2024-25, and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-3"><num>(3)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-18-3-a"><num>(a)</num><content><p><mod>in the definition of “protected income”, for “forms” substitute <quotedText>“under section 643C formed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-18-3-b"><num>(b)</num><content><p><mod>in the definition of “the relevant individual”, in paragraphs (a) and (b), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-18-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content><p>A reference in this section to section 643A or 643C (or to any provision of that section) is to that section (or provision) as it had effect for the tax year in which the deemed income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-12-paragraph-19-1"><num>(1)</num><content><p>Section 643G (section 643F(4): benefits and income “relating” to deemed income) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-19-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-2-a"><num>(a)</num><content><p><mod>in paragraph (a), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-2-b"><num>(b)</num><content><p><mod>after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(aa)</num><content><p>references to section 643A, 643J or 643L (or to a provision of any of those sections) are to that section (or provision) as it had effect for the year,</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-19-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-12-paragraph-19-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “is allowed” substitute <quotedText>“was allowed”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-b"><num>(b)</num><content><p><mod>in paragraph (d), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-c"><num>(c)</num><content><p><mod>in paragraph (e), for “is”, in both places it occurs, substitute <quotedText>“was”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-19-3-d"><num>(d)</num><content><p><mod>in paragraph (f), for “is treated” substitute <quotedText>“was treated”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 643H (meaning of close member of settlor’s family), in the heading and in subsection (1), for “643B to 643M” substitute <quotedText>“643A to 643EA”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-21" class="schProv1"><num>21</num><content><p>Omit sections 643I to 643M (old onward gift provisions).</p></content></paragraph><paragraph eId="schedule-12-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-12-paragraph-22-1"><num>(1)</num><content><p>Section 643N (person liable under section 643J or 643L and remittance basis applies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-2"><num>(2)</num><content><p><mod>In the heading, for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-22-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-22-3-a-i"><num>(i)</num><content><p><mod>in the words before sub-paragraph (i), for “is treated as arising to an individual for a tax year” substitute <quotedText>“was treated as arising to an individual for the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-22-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-22-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-22-4"><num>(4)</num><content><p><mod>In subsection (3), after “onward payment” insert <quotedText>“referred to in section 643I(1)(d)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-22-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in this section to section 643I, 643J or 643L (or to a provision of any of those sections) is to that section (or provision) as it had effect for the tax year in which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-12-paragraph-23-1"><num>(1)</num><content><p>Section 645 (property or income originating from settlor) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-2"><num>(2)</num><content><p><mod>In subsection (1), for “sections 628A and 644” substitute <quotedText>“section 644”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-23-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>If the same property has been provided by more than one settlor for the purposes of the settlement, so much of the property as is attributable to each settlor on a just and reasonable apportionment is treated for the purposes of this section as provided by that settlor.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-12-paragraph-24-1"><num>(1)</num><content><p>Section 646 (adjustments between settlor and trustees etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-2"><num>(2)</num><content><p><mod>In subsection (2), for paragraphs (a) and (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor under section 624 or 629 (as the case may be),</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the income in respect of which the settlor has paid tax, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid.</p></content></level></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-24-3"><num>(3)</num><intro><p>In subsection (6A)—</p></intro><level class="para1" eId="schedule-12-paragraph-24-3-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-24-3-b"><num>(b)</num><content><p><mod>at the end insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which the income to which the repayment relates was treated as arising to the settlor.</p></content></level></quotedStructure></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-12-paragraph-25-1"><num>(1)</num><content><p>Section 648 (income arising under a settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-2"><num>(2)</num><content><p>In subsection (1)(b), omit “domiciled and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-25-3"><num>(3)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-25-3-a"><num>(a)</num><content><p><mod>for “if, for a tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applies”, substitute <quotedText>“if, for the tax year 2024-25 or an earlier tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applied”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-25-3-b"><num>(b)</num><content><p><mod>for “relevant foreign income” substitute <quotedText>“specified foreign income”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-25-4"><num>(4)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>In subsection (3), “<term refersTo="#term-specified-foreign-income">specified foreign income</term>” means income that would be relevant foreign income if it were the income of a UK resident individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></part><part eId="schedule-12-part-2"><num>Part 2</num><heading>Transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-26" class="schProv1"><num>26</num><content><p>Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-27" class="schProv1"><num>27</num><intro><p>In section 718 (meaning of “person abroad” etc)—</p></intro><level class="para1" eId="schedule-12-paragraph-27-a"><num>(a)</num><content><p><mod>in subsection (1), for the words from “means” to the end, substitute <quotedText>“means a person who is resident outside the United Kingdom.”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-27-b"><num>(b)</num><content><p>omit subsection (3).</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-28" class="schProv1"><num>28</num><intro><p>In section 720 (charge to tax on income treated as arising under section 721)—</p></intro><level class="para1" eId="schedule-12-paragraph-28-a"><num>(a)</num><content><p>in subsection (4), omit “and section 726 (non-UK domiciled individuals to whom remittance basis applies)”;</p></content></level><level class="para1" eId="schedule-12-paragraph-28-b"><num>(b)</num><content><p><mod>in subsection (7), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-29" class="schProv1"><num>29</num><content><p><mod>In section 721 (individuals with power to enjoy income as a result of relevant transactions), for subsections (3B) and (3BA) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3B)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to sections 724 and 725).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-30" class="schProv1"><num>30</num><content><p>Omit sections 721A and 721B (meaning of “protected foreign-source income” etc).</p></content></paragraph><paragraph eId="schedule-12-paragraph-31" class="schProv1"><num>31</num><content><p><mod>After section 725 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>725A</num><heading>Recovery of tax paid as a result of section 721</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 721 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 721 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-12-paragraph-32-1"><num>(1)</num><content><p>Section 726 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 721 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-32-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-33" class="schProv1"><num>33</num><intro><p>In section 727 (charge to tax on income treated as arising under section 728)—</p></intro><level class="para1" eId="schedule-12-paragraph-33-a"><num>(a)</num><content><p>omit subsection (3A);</p></content></level><level class="para1" eId="schedule-12-paragraph-33-b"><num>(b)</num><content><p><mod>in subsection (5), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In section 728 (individuals receiving capital sums as a result of relevant transactions), for subsections (1A) and (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to subsection (2)).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-35" class="schProv1"><num>35</num><content><p>Omit section 729A (meaning of “<term refersTo="#term-protected-foreign-source-income" eId="term-protected-foreign-source-income">protected foreign-source income</term>”).</p></content></paragraph><paragraph eId="schedule-12-paragraph-36" class="schProv1"><num>36</num><content><p><mod>Before section 730 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>729B</num><heading>Recovery of tax paid as a result of section 728</heading><subsection><num>(1)</num><content><p>Where any tax for which an individual is liable as a result of section 728 is paid, the individual is entitled to recover the amount of the tax from the person abroad.</p></content></subsection><subsection><num>(2)</num><intro><p>For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income is treated under section 728 as arising to the individual,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-12-paragraph-37-1"><num>(1)</num><content><p>Section 730 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 728 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-5"><num>(5)</num><content><p>Omit subsections (6) and (7).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-37-6"><num>(6)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-12-paragraph-38-1"><num>(1)</num><content><p>Section 731 (charge to tax on income treated as arising under section 732) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-2"><num>(2)</num><content><p><mod>In subsection (1), for “individuals receiving a benefit” substitute <quotedText>“non-transferors receiving a benefit”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-3"><num>(3)</num><content><p>Omit subsections (1A) to (1C) and (2A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-4"><num>(4)</num><content><p>In subsection (3), omit “, but this is subject to section 733A”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-38-5"><num>(5)</num><content><p><mod>In subsection (4), for “742A” substitute <quotedText>“742”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-12-paragraph-39-1"><num>(1)</num><content><p>Section 732 (deemed income where benefit received) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-2"><num>(2)</num><content><p><mod>In the heading, for “Individuals” substitute <quotedText>“Non-transferors”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-39-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-39-3-a"><num>(a)</num><content><p><mod>in paragraph (b), for “receives a benefit in a tax year” substitute <quotedText>“who is UK resident for a tax year receives a benefit in that tax year”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-39-3-b"><num>(b)</num><content><p><mod>for paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>the individual is not liable to income tax under section 720 or 727 by reference to the transfer and would not be so liable if the effect of sections 726 and 730 were ignored,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-39-4"><num>(4)</num><content><p>Omit subsection (4).</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-12-paragraph-40-1"><num>(1)</num><content><p>Section 733 (income charged under section 731) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-2"><num>(2)</num><content><p>In subsection (1), in Step 2, omit the words from “except that” to “for an earlier tax year”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-40-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>For the purposes of subsection (1), the amount deducted at Step 2 does not include the amount of any income on which tax was not charged under section 731 by virtue of—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e41272">735AD</ref><ref href="#d25e41282">(2)</ref> (transferor not taxable under benefits charge except where benefit matched to protected foreign-source income etc), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 731(1A) (equivalent provision for tax years 2024-25 and earlier).</p></content></level></subsection><subsection eId="d25e40886"><num>(2B)</num><intro><p>For the purposes of subsection (1), if in a tax year—</p></intro><level class="para1"><num>(a)</num><content><p>income is treated as arising to an individual under section 732(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>the income is identified as qualifying foreign income on a foreign income claim,</p></content></level><wrapUp><p>the income is treated for later tax years as not having been charged to income tax under section 731.</p></wrapUp></subsection><subsection><num>(2C)</num><intro><p>It follows from subsection <ref href="#d25e40886">(2B)</ref> that—</p></intro><level class="para1"><num>(a)</num><content><p>in the application of subsection (1) to the individual for subsequent tax years, the amount of the income will be deducted at Step 2 and at paragraph (a) of Step 5, but</p></content></level><level class="para1"><num>(b)</num><content><p>in the application of subsection (1) to any other individual for subsequent tax years, the amount of the income will not be deducted at paragraph (b) of Step 5.</p></content></level></subsection><subsection><num>(2D)</num><content><p>See <ref href="#schedule-10-paragraph-11">paragraph 11</ref> of Schedule <ref href="#schedule-10">10</ref> to FA 2025 (temporary repatriation facility) for special provision about income that is treated as arising under section 732 but that is exempt from income tax under that Schedule.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-41" class="schProv1"><num>41</num><content><p>Omit sections 733A to 733E and 734A (old provision about protected foreign-source income).</p></content></paragraph><paragraph eId="schedule-12-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-12-paragraph-42-1"><num>(1)</num><content><p>Section 735 (remittance basis etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Qualifying new residents and remittance-basis users: “foreign” deemed income”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to income treated under section 732 as arising to an individual (“the deemed income”)—</p></intro><level class="para1"><num>(a)</num><content><p>in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><content><p>Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-42-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>As to income falling within subsection (1)(b), see the table in <ref href="#d25e4624">section 845H</ref> of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-12-paragraph-43-1"><num>(1)</num><content><p>Section 735A (matching rules) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-2"><num>(2)</num><content><p><mod>In subsection (1), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>deduct from those benefits any benefit so far as—</p></intro><level class="para2"><num>(i)</num><content><p>chargeable gains (or offshore income gains) are treated as mentioned in section 734(1)(d) as accruing by reference to the benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>income is treated as mentioned in <ref href="#d25e41615">section 735AG</ref><ref href="#d25e41619">(1)</ref><ref href="#d25e41631">(b)</ref> as arising by reference to the benefit under section 643A, 643J or 643L of ITTOIA 2005 (settlements: benefits charge), or</p></content></level><level class="para2"><num>(iii)</num><content><p>income is treated as arising by reference to the benefit under section 732(2) and that income is identified in a foreign income claim,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-43-3"><num>(3)</num><content><p><mod>in subsection (6), for “the individual, or as a result of section 733A another person” substitute <quotedText>“a person”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-44" class="schProv1"><num>44</num><content><p><mod>After section 735A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Transitional provision about protected foreign-source income and transitionally protected income</heading><section eId="d25e41090"><num>735AA</num><heading>Settlements to which following sections apply</heading><subsection eId="d25e41094"><num>(1)</num><intro><p>Sections <ref href="#d25e41195">735AB</ref> to 735C apply if—</p></intro><level class="para1" eId="d25e41103"><num>(a)</num><content><p>a relevant transfer occurred before 6 April 2025,</p></content></level><level class="para1" eId="d25e41109"><num>(b)</num><intro><p>the person abroad was—</p></intro><level class="para2" eId="d25e41115"><num>(i)</num><content><p>the trustees of a settlement, or</p></content></level><level class="para2" eId="d25e41121"><num>(ii)</num><content><p>a company in which the trustees of a settlement were participators or indirect participators, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>protected foreign-source income or transitionally protected income arose in relation to the transfer.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In sections <ref href="#d25e41195">735AB</ref> to 735C—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-transfer">the relevant transfer</term>” means the transfer referred to in <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41103">(a)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlement">the settlement</term>” means the settlement referred to in <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41109">(b)</ref><ref href="#d25e41115">(i)</ref> or <ref href="#d25e41121">(ii)</ref> (as the case may be);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-settlor">the settlor</term>” means the settlor of that settlement.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41094">subsection (1)</ref><ref href="#d25e41109">(b)</ref><ref href="#d25e41121">(ii)</ref>, the trustees of a settlement are “indirect participators” in a company if they are participators in the first in a chain of two or more companies where the last company in the chain is the person abroad and where each company in the chain (except the last) is a participator in the next company in the chain.</p></content></subsection></section><section eId="d25e41195"><num>735AB</num><heading>“Protected foreign-source income” and “transitionally protected income”</heading><subsection><num>(1)</num><intro><p>For the purposes of <ref href="#d25e41090">sections 735AA</ref> to <ref href="#d25e41418">735AF</ref>—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-foreign-source-income">protected foreign-source income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>would have been treated as arising to the settlor under section 721 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 721A (as that section had effect for that tax year), or</p></content></level><level class="para1"><num>(b)</num><content><p>would have been treated as arising to the settlor under section 728 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 729A (as that section had effect for that tax year);</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-transitionally-protected-income">transitionally protected income</term>”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—</p></intro><level class="para1"><num>(a)</num><content><p>was treated as arising to the settlor under section 721 or 728 in a tax year earlier than the tax year 2017-18,</p></content></level><level class="para1"><num>(b)</num><content><p>was not remitted to the United Kingdom in a tax year earlier than the tax year 2017-18, and</p></content></level><level class="para1"><num>(c)</num><content><p>was transitionally protected income within the meaning of section 726(7) or 730(7) throughout the tax years 2017-18 to 2024-25 (as that section had effect for those tax years).</p></content></level></hcontainer></subsection><subsection><num>(2)</num><content><p>In subsection (1), in <ref href="#d25e41240">paragraph (b)</ref> of the definition of “transitionally protected income”, “<term refersTo="#term-remitted-to-the-united-kingdom">remitted to the United Kingdom</term>” is to be read in accordance with Chapter A1 of Part 14 (read with section 726 or 730 as the case may be).</p></content></subsection></section><section><num>735AC</num><heading>Transitionally protected income not to be taxed on remittance</heading><content><p>Section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis) does not apply to transitionally protected income.</p></content></section><section eId="d25e41272"><num>735AD</num><heading>Settlor liable for benefits charge despite being transferor</heading><subsection eId="d25e41276"><num>(1)</num><content><p>For the purposes of section 732 (benefits charge: deemed income), subsection (1)(d) of that section (benefits charge confined to individuals not liable under section 720 or 727) is to be disregarded where the individual who receives the benefit is the settlor.</p></content></subsection><subsection eId="d25e41282"><num>(2)</num><content><p>But any income treated as arising to the settlor under section 732(2) is not taxed under section 731 unless the income would, assuming that section 735A applied for this purpose by reference to the settlor, be matched under that section with an amount of relevant income that is protected foreign-source income or transitionally protected income in relation to the relevant transfer.</p></content></subsection></section><section eId="d25e41291"><num>735AE</num><heading>Settlor liable in place of close family member</heading><subsection eId="d25e41295"><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit is provided to an individual in a given tax year out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the individual is a close member of the settlor’s family at the time when the benefit is provided,</p></content></level><level class="para1"><num>(c)</num><content><p>the individual is non-UK resident, or is a qualifying new resident, for the tax year in which the benefit is provided, and</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor is UK resident for that tax year,</p></content></level><wrapUp><p>the benefit is instead treated for the purposes of section 732 and <ref href="#d25e41272">section 735AD</ref><ref href="#d25e41276">(1)</ref> as provided to the settlor.</p></wrapUp></subsection><subsection eId="d25e41344"><num>(2)</num><intro><p>For the purposes of this section, a person is a “close member of the settlor’s family” at any time if the settlor is living at that time and—</p></intro><level class="para1"><num>(a)</num><content><p>the person is the settlor’s spouse or civil partner at that time, or</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>is a child of the settlor, or of a person who at that time is the settlor’s spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>at that time has not reached the age of 18.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>For the purposes of <ref href="#d25e41344">subsection (2)</ref>, two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other.</p></content></subsection><subsection><num>(4)</num><content><p>Where any tax for which the settlor is liable as a result of this section is paid, the settlor is entitled to recover the amount of the tax from the individual concerned.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to provide the settlor with a certificate specifying—</p></intro><level class="para1"><num>(a)</num><content><p>the tax year in which income was treated as arising to the settlor,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of income treated as arising, and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of tax paid,</p></content></level><wrapUp><p>and any such certificate is conclusive evidence of the facts stated in it.</p></wrapUp></subsection></section><section eId="d25e41418"><num>735AF</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e41422"><num>(1)</num><intro><p>Subsection <ref href="#d25e41525">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><intro><p>a benefit (“the original benefit”) is provided to an individual (“the original recipient”) out of assets which are available for the purpose as a result of—</p></intro><level class="para2"><num>(i)</num><content><p>the relevant transfer, or</p></content></level><level class="para2"><num>(ii)</num><content><p>one or more associated operations,</p></content></level></level><level class="para1"><num>(b)</num><content><p>the original recipient is non-UK resident, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p><ref href="#d25e41291">section 735AE</ref><ref href="#d25e41295">(1)</ref> (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e41465"><num>(d)</num><intro><p>at the time when the original benefit is provided—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or there is an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be UK resident when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e41483"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to another person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is received by the original recipient, or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2"><num>(ii)</num><content><p>at any time before the original benefit is received by the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being provided, and</p></content></level></level><level class="para1" eId="d25e41501"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit,</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the property’s being provided to the subsequent recipient.</p></content></level></level></subsection><subsection eId="d25e41525"><num>(2)</num><content><p>For the purposes of sections 732, <ref href="#d25e41272">735AD</ref><ref href="#d25e41276">(1)</ref> and <ref href="#d25e41291">735AE</ref><ref href="#d25e41295">(1)</ref>, so much of the onward gift as falls within <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41501">(f)</ref> is (so far as would not otherwise be the case) treated as a benefit provided to the subsequent recipient out of assets which are available for the purpose as a result of an associated operation in relation to the relevant transfer.</p></content></subsection><subsection eId="d25e41546"><num>(3)</num><intro><p>For the purposes of <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41501">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the conditions in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41483">(e)</ref> and <ref href="#d25e41501">(f)</ref> are met, it is to be presumed, unless the contrary is shown, that the condition in <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41465">(d)</ref> is also met.</p></content></subsection><subsection><num>(5)</num><content><p>In <ref href="#d25e41422">subsection (1)</ref><ref href="#d25e41465">(d)</ref>, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section><section eId="d25e41615"><num>735AG</num><heading>Deduction allowed for previous settlements charge</heading><subsection eId="d25e41619"><num>(1)</num><intro><p>This section applies if—</p></intro><level class="para1"><num>(a)</num><content><p>benefits provided as mentioned in section 732(1)(c) are received in a tax year, and</p></content></level><level class="para1" eId="d25e41631"><num>(b)</num><content><p>income is treated under section 643A of ITTOIA 2005 as arising to a person in that or a subsequent tax year by reference (direct or indirect) to the whole or part of any benefits so provided.</p></content></level></subsection><subsection><num>(2)</num><content><p>For any tax year after one in which such income is so treated, the amount of income treated as arising to the individual under section 732(2) in respect of benefits provided as mentioned in section 732(1)(c) as a result of the transfer or operations in question is calculated as follows.</p></content></subsection><subsection><num>(3)</num><content><p>The amount is calculated under section 733(1) as if the total untaxed benefits were reduced by the amount of that income.</p></content></subsection><subsection><num>(4)</num><content><p>The reference in <ref href="#d25e41619">subsection (1)</ref><ref href="#d25e41631">(b)</ref> to income treated as arising under section 643A of ITTOIA 2005 includes, in relation to any of the tax years 2018-19 to 2024-25, a reference to income treated as arising under section 643J or 643L of ITTOIA 2005 (settlements code: old onward gift provisions).</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-the-total-untaxed-benefits">the total untaxed benefits</term>” has the same meaning as in section 733(1) (see Step 2).</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-12-paragraph-45-1"><num>(1)</num><content><p>Section 735B (settlor charge: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical liability under section 733A where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-45-3"><num>(3)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro><p>This section applies in relation to income if—</p></intro><level class="para1"><num>(a)</num><content><p>the income was treated under section 732 as arising to an individual (“<term refersTo="#term-the-beneficiary">the beneficiary</term>”) for any of the tax years 2017-18 to 2024-25,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor was under section 733A(2) or (3) (as it had effect for that tax year) liable for tax on the income, and</p></content></level><level class="para1"><num>(c)</num><content><p>section 809B, 809D or 809E (remittance basis) applied to the settlor for that year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-12-paragraph-46-1"><num>(1)</num><content><p>Section 735C (old onward gifts provisions: remittance-basis users) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-2"><num>(2)</num><content><p><mod>For the heading substitute <quotedText>“Historical operation of section 733C or 733E where remittance basis applied”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-46-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-46-3-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-46-3-a-i"><num>(i)</num><content><p><mod>for the words before sub-paragraph (i) substitute <quotedText>“the income was treated as arising to an individual for any of the tax years 2018-19 to 2024-25”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-46-3-a-ii"><num>(ii)</num><content><p><mod>in sub-paragraph (i), for “applies” substitute <quotedText>“applied”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-46-3-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-46-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>A reference in subsection (1) to section 733C or 733E (or to any provision of either section) is to that section (or provision) as it had effect for the tax year for which income was treated as arising to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-47" class="schProv1"><num>47</num><intro><p>In section 736 (exemptions: introduction)—</p></intro><level class="para1" eId="schedule-12-paragraph-47-a"><num>(a)</num><content><p><mod>in subsection (1), for “742A” substitute <quotedText>“742”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-47-b"><num>(b)</num><content><p>omit subsection (2A).</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-48" class="schProv1"><num>48</num><content><p>Omit section 742A (post-5 April 2012 transactions: exemption for genuine transactions).</p></content></paragraph><paragraph eId="schedule-12-paragraph-49" class="schProv1"><num>49</num><content><p>In section 747 (amounts corresponding to accrued income profits and related interest), in subsection (1)(b) and subsection (4)(b), omit “or domiciled”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-50" class="schProv1"><num>50</num><content><p>In section 751 (tribunal’s jurisdiction on appeals), omit paragraph (da).</p></content></paragraph></part><part eId="schedule-12-part-3"><num>Part 3</num><heading>Settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-51" class="schProv1"><num>51</num><content><p><ref eId="c00332" href="https://www.legislation.gov.uk/ukpga/1992/12">TCGA 1992</ref> is amended in accordance with this Part of this Schedule.</p></content></paragraph><paragraph eId="schedule-12-paragraph-52" class="schProv1"><num>52</num><content><p>In section 1A (territorial scope), in subsection (2)(e), omit “87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-53" class="schProv1"><num>53</num><content><p>In section 1E (losses deductible only when within scope of tax etc), omit subsection (4).</p></content></paragraph><paragraph eId="schedule-12-paragraph-54" class="schProv1"><num>54</num><content><p>In section 62 (death: general provisions), in subsection (2A), omit paragraph (a).</p></content></paragraph><paragraph eId="schedule-12-paragraph-55" class="schProv1"><num>55</num><subparagraph eId="schedule-12-paragraph-55-1"><num>(1)</num><content><p>Section 86 (attribution of gains to settlors with interest in non-resident or dual resident settlements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-2"><num>(2)</num><content><p>In subsection (1)(c), omit “is domiciled in the United Kingdom at some time in the year and”.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-3"><num>(3)</num><content><p>Omit subsection (3A).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-4"><num>(4)</num><content><p>In subsection (4), omit paragraph (b) and the “and” before it.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-55-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6)</num><content><p>See also <ref href="#d25e6482">paragraph 3</ref> of <ref href="#d25e6378">Schedule D1</ref> (foreign gain claims: foreign gains and losses of the trustees ignored for the purposes of subsection (1)(e)).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-56" class="schProv1"><num>56</num><content><p>In section 86A (attribution of gains to settlor where temporarily non-resident), in subsection (1)(b), omit “, 87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-57" class="schProv1"><num>57</num><content><p><mod>In section 87 (non-UK resident settlements: attribution of gains to beneficiaries), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><content><p>See also <ref href="#d25e6539">paragraph 4</ref> of <ref href="#d25e6378">Schedule D1</ref> (foreign gain claims: capital payments ignored for the purposes of this section and Schedule 4C).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-58" class="schProv1"><num>58</num><subparagraph eId="schedule-12-paragraph-58-1"><num>(1)</num><content><p>Section 87B (section 87: remittance basis) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-12-paragraph-58-2-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-12-paragraph-58-2-a-i"><num>(i)</num><content><p><mod>for “are treated” substitute <quotedText>“were treated”</quotedText>;</mod></p></content></level><level class="para2" eId="schedule-12-paragraph-58-2-a-ii"><num>(ii)</num><content><p><mod>for “a tax year” substitute <quotedText>“the tax year 2024-25 or an earlier tax year”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-12-paragraph-58-2-b"><num>(b)</num><content><p><mod>in paragraph (b), for “applies” substitute <quotedText>“applied”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-12-paragraph-58-3"><num>(3)</num><content><p><mod>In subsection (2), for “chargeable gains accruing” substitute <quotedText>“treated as having accrued”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-4"><num>(4)</num><content><p><mod>In subsection (4), for “are treated as accruing consists of” substitute <quotedText>“were treated as accruing consisted of”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-58-5"><num>(5)</num><content><p><mod>At the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><content><p>The references in this section to sections 87I(1)(c), 87K and 87L (which were repealed by <ref href="#schedule-12-part-3">Part 3</ref> of <ref href="#schedule-12">Schedule 12</ref> to the Finance Act 2025) are to those provisions as they had effect for the tax year in which the chargeable gains were treated as accruing to the individual.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-59" class="schProv1"><num>59</num><content><p>In section 87D (sections 87 and 87A: capital payments to non-residents disregarded), in subsection (1) omit paragraph (b) and the “and” before it.</p></content></paragraph><paragraph eId="schedule-12-paragraph-60" class="schProv1"><num>60</num><subparagraph eId="schedule-12-paragraph-60-1"><num>(1)</num><content><p>Section 87G (settlor liable if capital payment received by close family member) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-2"><num>(2)</num><content><p><mod>In subsection (1)(b), for “at any time in that year” substitute <quotedText>“for that tax year”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2A)</num><intro><p>But subsection (2) does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the original recipient is resident in the United Kingdom for the tax year in which they receive the capital payment, and</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is a qualifying new resident for that tax year.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-60-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-12-paragraph-60-4-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-60-4-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which those gains were treated as arising,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-61" class="schProv1"><num>61</num><content><p><mod>In section 87H (meaning of “<term refersTo="#term-close-member-of-the-settlors-family" eId="term-close-member-of-the-settlors-family">close member of the settlor’s family</term>”), in subsection (1), for “87D, 87G and 87L” substitute <quotedText>“87D and 87G”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-62" class="schProv1"><num>62</num><content><p><mod>For sections 87I to 87M (old onward gifting provisions) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e42124"><num>87HA</num><heading>Onward gifts from non-residents or qualifying new residents</heading><subsection eId="d25e42128"><num>(1)</num><intro><p>Subsection <ref href="#d25e42221">(2)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the original recipient”) receives a capital payment (“the original benefit”) from the trustees of a settlement,</p></content></level><level class="para1"><num>(b)</num><content><p>the original recipient is not resident in the United Kingdom, or is a qualifying new resident, for the tax year in which they receive the original benefit,</p></content></level><level class="para1"><num>(c)</num><content><p>section 87G(2) (close family member’s benefits attributed to settlor) does not apply to the provision of the original benefit to the original recipient,</p></content></level><level class="para1" eId="d25e42155"><num>(d)</num><intro><p>at the time when the person receives the original benefit—</p></intro><level class="para2"><num>(i)</num><content><p>there are arrangements, or an intention, as regards the (direct or indirect) passing on of the whole or part of the original benefit to another person, and</p></content></level><level class="para2"><num>(ii)</num><content><p>it is reasonable to expect that, if the whole or part of the original benefit is passed on to another person in accordance with the arrangements or intention, that other person will be resident in the United Kingdom when they receive at least part of what is passed on to them,</p></content></level></level><level class="para1" eId="d25e42173"><num>(e)</num><intro><p>the original recipient provides a benefit (“the onward gift”) to a person (“the subsequent recipient”)—</p></intro><level class="para2"><num>(i)</num><content><p>at the time when the original benefit is provided to the original recipient or at any later time in the 3 years beginning with the day containing that time, or</p></content></level><level class="para2" eId="d25e42185"><num>(ii)</num><content><p>at any time before the original benefit is made to the original recipient and, it is reasonable to assume, in anticipation of the original benefit’s being made,</p></content></level></level><level class="para1" eId="d25e42191"><num>(f)</num><intro><p>the onward gift is of or includes—</p></intro><level class="para2"><num>(i)</num><content><p>the whole or part of the original benefit</p></content></level><level class="para2"><num>(ii)</num><content><p>anything that (wholly or in part, and directly or indirectly) derives from, or represents, the whole or part of the original benefit, or</p></content></level><level class="para2"><num>(iii)</num><content><p>any other property, but only if the original benefit is provided with a view to enabling or facilitating, or otherwise in connection with, the providing of the onward gift to the subsequent recipient, and</p></content></level></level><level class="para1" eId="d25e42215"><num>(g)</num><content><p>the subsequent recipient is resident in the United Kingdom for the tax year in which they receive the onward gift.</p></content></level></subsection><subsection eId="d25e42221"><num>(2)</num><content><p>So much of the onward gift as falls within <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42191">(f)</ref> is treated for the purposes of sections 87, 87A , 87D(2) and 87G(2) as a capital payment received from the trustees by the subsequent recipient at the time when the onward gift is provided.</p></content></subsection><subsection><num>(3)</num><content><p>Where <ref href="#d25e42221">subsection (2)</ref> applies, the subsequent recipient is treated as having received the capital payment as a beneficiary of the settlement (whether or not they are otherwise a beneficiary of it).</p></content></subsection><subsection eId="d25e42241"><num>(4)</num><intro><p>For the purposes of <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref>, the circumstances in which the original recipient provides a benefit to the subsequent recipient include circumstances where there is a series of two or more benefits starting with a benefit provided by the original recipient and ending with a benefit provided to the subsequent recipient; and in such a case—</p></intro><level class="para1"><num>(a)</num><content><p>the onward gift is treated for the purposes of <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref> as provided when the final benefit in the series is provided, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference to the onward gift in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42191">(f)</ref> is to be read as a reference to each benefit in the series.</p></content></level></subsection><subsection><num>(5)</num><content><p>Where the onward gift is made as mentioned in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref><ref href="#d25e42185">(ii)</ref>, the onward gift is treated for the purposes of subsection <ref href="#d25e42221">(2)</ref> as made in the tax year in which the original benefit is made to the original recipient.</p></content></subsection><subsection><num>(6)</num><content><p>Where the conditions in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42173">(e)</ref> to <ref href="#d25e42215">(g)</ref> are met, it is to be presumed (unless the contrary is shown) that the condition in <ref href="#d25e42128">subsection (1)</ref><ref href="#d25e42155">(d)</ref> is also met.</p></content></subsection><subsection><num>(7)</num><content><p>In this section, “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-12-paragraph-63" class="schProv1"><num>63</num><content><p>In section 91 (increase in tax payable under section 87 or 89(2)), in subsection (1)(a), omit “, 87K, 87L”.</p></content></paragraph><paragraph eId="schedule-12-paragraph-64" class="schProv1"><num>64</num><intro><p>In section 97 (supplementary provisions)—</p></intro><level class="para1" eId="schedule-12-paragraph-64-a"><num>(a)</num><content><p><mod>in subsection (1)(a)(ii), for the words from “any of sections 643A” to the end of the sub-paragraph, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-64-b"><num>(b)</num><content><p><mod>in subsection (3), for the words from “section 643A” to “ITA 2007”, substitute <quotedText>“Chapter 5 of Part 5 of ITTOIA 2005 (settlements) or Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-12-paragraph-65" class="schProv1"><num>65</num><content><p>In section 279A (deferred unascertainable consideration: election for treatment of loss), in subsection (7), omit paragraph (b) (but not the “and” after it).</p></content></paragraph><paragraph eId="schedule-12-paragraph-66" class="schProv1"><num>66</num><intro><p>In section 279C (effect of election under section 279A), in subsection (6)—</p></intro><level class="para1" eId="schedule-12-paragraph-66-a"><num>(a)</num><content><p><mod>after paragraph (a) insert <quotedText>“and”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-12-paragraph-66-b"><num>(b)</num><content><p>omit paragraph (c) and the “and” before it.</p></content></level></paragraph><paragraph eId="schedule-12-paragraph-67" class="schProv1"><num>67</num><content><p>In Schedule 1 (UK resident individuals not domiciled in UK), in paragraph 3(5), omit paragraph (b) and the “and” before it.</p></content></paragraph><paragraph eId="schedule-12-paragraph-68" class="schProv1"><num>68</num><subparagraph eId="schedule-12-paragraph-68-1"><num>(1)</num><content><p>Schedule 4C (transfers of value: attribution of gains to beneficiaries) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-68-2"><num>(2)</num><content><p><mod>In paragraph 8(6), after “87G(2),” insert <quotedText>“87HA(2),”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-69" class="schProv1"><num>69</num><subparagraph eId="schedule-12-paragraph-69-1"><num>(1)</num><content><p>Schedule 5 (attribution of gains to settlors with interest in non-resident or dual resident settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-2"><num>(2)</num><content><p><mod>In paragraph 1 (construction of section 86(1)(e): losses etc), after sub-paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><intro><p>In construing section 86(1)(e) as regards a particular year of assessment, if—</p></intro><level class="para1"><num>(a)</num><content><p>section 86 did not apply to the settlement in a year of assessment ending before 6 April 2025 (“the earlier year”), but</p></content></level><level class="para1"><num>(b)</num><content><p>that section would have applied to the settlement in the earlier year if the condition in section 86(1)(e) (settlor domiciled in the United Kingdom) had been met in the earlier year,</p></content></level><wrapUp><p>deductions shall be made in respect of losses accruing in the earlier year, but only so far as those losses have not been taken into account for the purposes of section 87 in determining the section 1(3) amount for the settlement for the earlier year.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-3"><num>(3)</num><content><p>Omit paragraphs 5A and 5B (protections for deemed domiciles etc).</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-4"><num>(4)</num><content><p><mod>After paragraph 5 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Old section 87 rebasing elections to apply in relation to section 86</heading><paragraph class="schProv1"><num>5C</num><subparagraph eId="d25e42457"><num>(1)</num><intro><p>This paragraph applies if—</p></intro><level class="para1"><num>(a)</num><content><p>the trustees of the settlement made (at any time) an election under paragraph 126(1) of Schedule 7 to the Finance Act 2008 (remittance basis: capital gains rebasing), and</p></content></level><level class="para1" eId="d25e42469"><num>(b)</num><content><p>an amount of chargeable gains would (apart from this paragraph) be treated as accruing to the settlor under section 86(4) in a tax year (“the relevant tax year”).</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>The settlor is not charged to capital gains tax on so much of the chargeable gains as exceeds the relevant proportion of those gains.</p></content></subparagraph><subparagraph eId="d25e42481"><num>(3)</num><content><p>For that purpose “the relevant proportion” is—</p><tblock class="formula"><foreign><default1:math xmlns="http://www.w3.org/1998/Math/MathML" altimg="http://www.legislation.gov.uk/ukpga/2025/8/images/ukpga_20250008_en_001"><default1:mfrac><default1:mi>A</default1:mi><default1:mi>B</default1:mi></default1:mfrac></default1:math></foreign><blockContainer class="where"><p>where—</p><tblock class="definition"><p>A is the amount that would be treated under section 86(4) as accruing to the settlor in the relevant tax year if immediately before 6 April 2008 every relevant asset had been sold by the trustees and immediately re-acquired by them at its market value at that time, and</p></tblock><tblock class="definition"><p>B is the amount mentioned in <ref href="#d25e42457">sub-paragraph (1)</ref><ref href="#d25e42469">(b)</ref>.</p></tblock></blockContainer></tblock></content></subparagraph><subparagraph><num>(4)</num><intro><p>In <ref href="#d25e42481">sub-paragraph (3)</ref>, “<term refersTo="#term-relevant-asset">relevant asset</term>” means an asset—</p></intro><level class="para1"><num>(a)</num><content><p>that was disposed of in the relevant tax year, and</p></content></level><level class="para1"><num>(b)</num><content><p>that was comprised in the settlement from the beginning of 6 April 2008 until its disposal.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-69-5"><num>(5)</num><intro><p>In paragraph 6 (right of recovery), in sub-paragraph (3)—</p></intro><level class="para1" eId="schedule-12-paragraph-69-5-a"><num>(a)</num><content><p>omit the “and” after paragraph (a);</p></content></level><level class="para1" eId="schedule-12-paragraph-69-5-b"><num>(b)</num><content><p><mod>after paragraph (b) insert <quotedText startQuote="“">, and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the tax year in which gains were treated as accruing under section 86(4),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph></part><part eId="schedule-12-part-4"><num>Part 4</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e42570"><heading>Commencement</heading><paragraph eId="schedule-12-paragraph-70" class="schProv1"><num>70</num><subparagraph eId="schedule-12-paragraph-70-1"><num>(1)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-1">1</ref> to <ref href="#schedule-12-paragraph-53">53</ref>, <ref href="#schedule-12-paragraph-55">55</ref> to <ref href="#schedule-12-paragraph-64">64</ref> and <ref href="#schedule-12-paragraph-67">67</ref> to <ref href="#schedule-12-paragraph-69">69</ref> have effect for the tax year 2025-26 and subsequent tax years.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-2"><num>(2)</num><content><p>The amendment made by paragraph <ref href="#schedule-12-paragraph-54">54</ref> to section 62 of TCGA 1992 (death: general provisions) has effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70-3"><num>(3)</num><content><p>The amendments made by paragraphs <ref href="#schedule-12-paragraph-65">65</ref> and <ref href="#schedule-12-paragraph-66">66</ref> to sections 279A and 279C of TCGA 1992 (deferred unascertainable consideration: election for treatment of loss) have effect in relation to disposals made on or after 6 April 2025 of rights to which section 279A of that Act applies.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42623"><heading><ins class="first" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc"><noteRef uk:name="commentary" href="#key-d8e412a16d7c81b275bfa9b3086758bc" class="commentary"/>Settlements: transitional protection where available protected income is increased by this Schedule</ins></heading><paragraph eId="schedule-12-paragraph-70A" class="schProv1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">70A</ins></num><subparagraph eId="schedule-12-paragraph-70A-1"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(1)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">This paragraph applies for the purposes of section 643A of ITTOIA 2005 if an individual’s untaxed benefits total in relation to a settlement for the tax year 2024-25 exceeded the available protected income up to the end of that tax year.</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-2"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(2)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In determining under section 643B of that Act the individual’s untaxed benefits total for the tax year 2025-26 or a later tax year, any benefit provided to the individual in the tax year 2024-25 or an earlier tax year is to be disregarded at Step 1 in subsection (1).</ins></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-70A-3"><num><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">(3)</ins></num><content><p><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">In this paragraph “untaxed benefits total” and “</ins><term refersTo="#term-available-protected-income"><ins ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">available protected income</ins></term><ins class="last" ukl:ChangeId="key-d8e412a16d7c81b275bfa9b3086758bc-1776846721648" ukl:CommentaryRef="key-d8e412a16d7c81b275bfa9b3086758bc">”, in relation to an individual, a settlement and a tax year, are to be construed in accordance with sections 643B and 643C of ITTOIA 2005 (as they have or had effect for the tax year in question).</ins></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42661"><heading>Onward gifts: settlements (income)</heading><paragraph eId="schedule-12-paragraph-71" class="schProv1"><num>71</num><subparagraph eId="schedule-12-paragraph-71-1"><num>(1)</num><content><p>Section 643EA of ITTOIA 2005 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-17">paragraph 17</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-71-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 643EA of ITTOIA 2005; and in a case within section 643EA(3) “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-72" class="schProv1"><num>72</num><intro><p>Despite the repeal of section 643M of ITTOIA 2005 by <ref href="#schedule-12-paragraph-21">paragraph 21</ref> of this Schedule, that section continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-72-a"><num>(a)</num><content><p>it provided before its repeal for a benefit of a particular amount to be treated for the purposes of section 643B of that Act as having been provided to a particular person at a particular time, and</p></content></level><level class="para1" eId="schedule-12-paragraph-72-b"><num>(b)</num><content><p>the receipt of the benefit by the person is relevant to the application of section 643B of that Act in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42740"><heading>Onward gifts: transfer of assets abroad</heading><paragraph eId="schedule-12-paragraph-73" class="schProv1"><num>73</num><subparagraph eId="schedule-12-paragraph-73-1"><num>(1)</num><content><p><ref href="#d25e41418">Section 735AF</ref> of ITA 2007 (onward gifts from non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-44">paragraph 44</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which the original benefit is provided, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-73-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in <ref href="#d25e41418">section 735AF</ref> of ITA 2007; and in a case within <ref href="#d25e41418">section 735AF</ref><ref href="#d25e41546">(3)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e42808"><heading>Onward gifts: settlements (chargeable gains)</heading><paragraph eId="schedule-12-paragraph-74" class="schProv1"><num>74</num><subparagraph eId="schedule-12-paragraph-74-1"><num>(1)</num><content><p>Section 87HA of TCGA 1992 (benefits routed via non-residents or qualifying new residents), as inserted by <ref href="#schedule-12-paragraph-62">paragraph 62</ref> of this Schedule, applies where the onward gift is provided on or after 6 April 2025, even if the original benefit was provided before that date.</p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-2"><num>(2)</num><content><p><mod>Where the original benefit was provided before 6 April 2025, that section applies as if for subsection (1)(b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the original recipient is non-UK resident for the tax year in which they receive the original benefit, or</p></content></level><level class="para2"><num>(ii)</num><content><p>section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the original recipient for that tax year,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-12-paragraph-74-3"><num>(3)</num><content><p>In this paragraph, “<term refersTo="#term-the-original-benefit" eId="term-the-original-benefit">the original benefit</term>” and “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” have the same meanings as in section 87HA of TCGA 1992; and in a case within section <ref href="#d25e42124">87HA</ref><ref href="#d25e42241">(4)</ref> “<term refersTo="#term-the-onward-gift" eId="term-the-onward-gift">the onward gift</term>” means the final benefit in the series.</p></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-75" class="schProv1"><num>75</num><intro><p>Despite the repeal of sections 87K and 87L of TCGA 1992 (old onward gifting rules) by paragraph <ref href="#schedule-12-paragraph-62">62</ref> of this Schedule, each of those sections continues to have effect so far as—</p></intro><level class="para1" eId="schedule-12-paragraph-75-a"><num>(a)</num><content><p>before its repeal, it provided for section 87 and 87A of that Act to have effect as if a capital payment of a particular amount had been received at a particular time by a particular person, and</p></content></level><level class="para1" eId="schedule-12-paragraph-75-b"><num>(b)</num><content><p>the receipt of the capital payment by that person is relevant to the application of sections 87 and 87A in the tax year 2025-26 or a later tax year.</p></content></level></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-13"><num>Schedule 13<authorialNote class="referenceNote"><p>Section 46</p></authorialNote></num><heading>Inheritance tax</heading><part eId="schedule-13-part-1"><num>Part 1</num><heading>Amendments to <ref eId="c00333" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> and related legislation</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e42909"><heading><ref eId="c00334" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref></heading><paragraph eId="schedule-13-paragraph-1" class="schProv1"><num>1</num><content><p><ref eId="c00335" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">section 5</a> (meaning of estate), for <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/5">subsection (1B)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><intro><p>An interest in possession falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>the person became beneficially entitled to it on or after 9 December 2009 by virtue of a disposition that was prevented from being a transfer of value by section 10 (no gratuitous benefit), and</p></content></level><level class="para1"><num>(b)</num><intro><p>the person—</p></intro><level class="para2"><num>(i)</num><content><p>has been a long-term UK resident at any time on or after 6 April 2025 while beneficially entitled to it, or</p></content></level><level class="para2"><num>(ii)</num><content><p>became beneficially entitled to it at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-3" class="schProv1"><num>3</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">section 6</a> (excluded property), omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/6">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">section 8D</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/8D">(9)</a>, omit the definitions of “tax year” and “the tax year 2017-18”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-5" class="schProv1"><num>5</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">section 13A</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/13A">(3)</a>, omit the definition of “tax year”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">section 18</a> (transfers between spouses or civil partners), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/18">subsection (2)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident,”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-7" class="schProv1"><num>7</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">section 28A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/28A">subsection (3)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-13-paragraph-8-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">Section 53</a> (exceptions from charge under section 52) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-8-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/53">subsection (4)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro><p>Tax shall not be chargeable under section 52 above if—</p></intro><level class="para1"><num>(a)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(c)</num><content><p>the person whose interest comes to an end became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the person’s interest in possession in it comes to an end, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company.</p></content></level></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-13-paragraph-9-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">Section 54</a> (exceptions from charge on death) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsections (2)</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(2B)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">(e)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-9-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/54">subsection (2B)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is entitled to an interest in possession in settled property dies,</p></content></level><level class="para1"><num>(b)</num><content><p>the settled property became comprised in the settlement before 30 October 2024,</p></content></level><level class="para1"><num>(c)</num><content><p>immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),</p></content></level><level class="para1"><num>(d)</num><content><p>the person became beneficially entitled to the interest before 30 October 2024, and</p></content></level><level class="para1"><num>(e)</num><intro><p>immediately before the person’s death, the settled property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company,</p></content></level></level><wrapUp><p>the value of the settled property shall be left out of account in determining for the purposes of this Act the value of the person’s estate immediately before their death.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>Where a person became beneficially entitled to an interest in possession in settled property on or after 22 March 2006, subsection (2C) applies in relation to the interest only if it is—</p></intro><level class="para1"><num>(a)</num><content><p>an immediate post-death interest,</p></content></level><level class="para1"><num>(b)</num><content><p>a disabled person’s interest, or</p></content></level><level class="para1"><num>(c)</num><content><p>a transitional serial interest,</p></content></level><wrapUp><p>or falls within section 5(1B) (certain interests acquired with no gratuitous benefit).</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-13-paragraph-10-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">Section 64</a> (charge at ten-year anniversary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1B)</a>, for the words from the beginning to “ten-year anniversary falls” substitute <quotedText>“Where the settlor of property comprised in a settlement meets the condition in subsection <ref href="#d25e43250">(1BZA)</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-3"><num>(3)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43250"><num>(1BZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident immediately before the ten-year anniversary,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before their death, or</p></content></level><level class="para1"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-10-4"><num>(4)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/64">subsection (1BA)</a>, for “subsection (1B)” substitute <quotedText>“subsection <ref href="#d25e43250">(1BZA)</ref>(c)”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-13-paragraph-11-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">Section 65</a> (exit charges etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7A)</a>, for the words from “becomes excluded property” to the end, substitute <quotedText>“is invested in a holding in an authorised unit trust or a share in an open-ended investment company and thereby becomes excluded property by virtue of section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-4"><num>(4)</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7B)</a>.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-5"><num>(5)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (7C)</a>, for “section 48(3)(a) above” substitute <quotedText>“section <ref href="#d25e7426">48ZA</ref>”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-6"><num>(6)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/65">subsection (8)</a>, for the words from the beginning to “subsection (8A))”, substitute <quotedText>“If the condition in <ref href="#d25e43378">subsection (8ZA)</ref> is met in relation to property comprised in a settlement”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-7"><num>(7)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e43378"><num>(8ZA)</num><intro><p>The condition is that the settlor—</p></intro><level class="para1"><num>(a)</num><content><p>is alive and is not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1" eId="d25e43396"><num>(c)</num><content><p>died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-11-8"><num>(8)</num><content><p><mod>In subsection (8A), for “subsection (8)” substitute <quotedText>“<ref href="#d25e43378">subsection (8ZA)</ref><ref href="#d25e43396">(c)</ref>”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-13-paragraph-12-1"><num>(1)</num><content><p>Section 74A (arrangements involving acquisition of interest in settled property etc) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-12-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-12-2-a"><num>(a)</num><content><p>in paragraph (b)(i), omit “domiciled in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-12-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><intro><p>the individual—</p></intro><level class="para2"><num>(i)</num><content><p>is a long-term UK resident at any time on or after 6 April 2025 during the course of the arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>acquired the interest, or became able to acquire it, at a time before 6 April 2025 while domiciled in the United Kingdom.</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>Condition A is that the relevant settled property is excluded property at any time during the course of the arrangements.</p><p>Ignore for this purpose—</p></intro><level class="para1"><num>(a)</num><content><p>section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7537">(8)</ref> (as it has effect on and after 6 April 2025);</p></content></level><level class="para1"><num>(b)</num><content><p>section 48(3D) (as it had effect before 6 April 2025).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-13" class="schProv1"><num>13</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">section 75A</a>, omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/75A">subsection (4)</a>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 80 (initial interest of settlor or spouse), in subsection (1), after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-15" class="schProv1"><num>15</num><intro><p>In section 81 (property moving between settlements), in subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-15-a"><num>(a)</num><content><p><mod>after “for the purposes of this Chapter” insert <quotedText>“(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter)”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-15-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“(but held on the trusts of the second)”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-16" class="schProv1"><num>16</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/81B">section 81B</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>81B</num><heading>Excluded property: property to which section 80 applies</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>property is treated under section 80(1) as becoming comprised in a settlement, and</p></content></level><level class="para1"><num>(b)</num><content><p>the property would, apart from this section, be excluded property by virtue of meeting the condition in any of subsections <ref href="#d25e7450">(2)</ref> to <ref href="#d25e7462">(4)</ref> of section <ref href="#d25e7426">48ZA</ref> (excluded property: long-term residence and domicile tests).</p></content></level></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter, except sections 78 and 79, the property is excluded property only if the condition in any of those subsections (whether or not the same one) is met by reference to the actual settlor and the actual settlement.</p></content></subsection><subsection><num>(3)</num><content><p>Section 65(8) (no exit charge where property invested in Treasury securities thereby becomes excluded property) applies in relation to the property only if the condition in section 65<ref href="#d25e43378">(8ZA)</ref> is met by reference to the actual settlor.</p></content></subsection><subsection><num>(4)</num><content><p>In this section, “<term refersTo="#term-the-actual-settlor">the actual settlor</term>” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1); and “<term refersTo="#term-the-actual-settlement">the actual settlement</term>” means that settlement.</p></content></subsection><subsection><num>(5)</num><content><p>This section does not apply in relation to property that is a holding in an authorised unit trust or a share in an open-ended investment company if the occasion first referred to in section 80(1) occurred before 22 July 2020.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-17" class="schProv1"><num>17</num><content><p>Omit sections 82 and 82A (excluded property: property to which section 81 applies).</p></content></paragraph><paragraph eId="schedule-13-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">section 94</a> (close companies: charge on participators), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">subsection (2)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/94">(b)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">section 136</a> (transfers within three years before death: transactions of close companies), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/136">subsection (3)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-20" class="schProv1"><num>20</num><content><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">section 155</a> (visiting forces etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/155">subsections (2)</a> and (5B), omit “or domicile”.</p></content></paragraph><paragraph eId="schedule-13-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-13-paragraph-21-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">Section 157</a> (non-residents’ bank accounts) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-21-2"><num>(2)</num><intro><p>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (2)</a>—</p></intro><level class="para1" eId="schedule-13-paragraph-21-2-a"><num>(a)</num><content><p>omit “is not domiciled and not resident in the United Kingdom”;</p></content></level><level class="para1" eId="schedule-13-paragraph-21-2-b"><num>(b)</num><content><p><mod>at the end insert <quotedText>“is neither resident in the United Kingdom nor a long-term UK resident”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-21-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/157">subsection (3)</a>, for the words from “if the settlor” to the end, substitute <quotedText startQuote="“">if—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the trustees are resident in the United Kingdom immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(b)</num><content><p>the settlor is alive and is a long-term UK resident immediately before the beneficiary’s death,</p></content></level><level class="para1"><num>(c)</num><content><p>the settlor died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para1"><num>(d)</num><content><p>the settlor died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-22" class="schProv1"><num>22</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">section 218</a> (non-resident trustees), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">subsection (1)</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/218">(a)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-23" class="schProv1"><num>23</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> (persons treated as domiciled in United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-13-paragraph-24-1"><num>(1)</num><content><p>Section 267ZA (election to be treated as domiciled in the United Kingdom) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-2"><num>(2)</num><content><p><mod>In subsections (3) and (4), for “on or after 6 April 2013 and” substitute <quotedText>“before 6 April 2025 but”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-3"><num>(3)</num><content><p>Omit subsection (5).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-24-4"><num>(4)</num><intro><p>In subsection (8)—</p></intro><level class="para1" eId="schedule-13-paragraph-24-4-a"><num>(a)</num><content><p><mod>for “is or was domiciled” substitute <quotedText>“was domiciled”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-24-4-b"><num>(b)</num><content><p><mod>after “section 267” insert <quotedText>“(deemed domicile)”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-25" class="schProv1"><num>25</num><content><p><mod>In section 267ZB (section 267ZA: further provision about election) (as it has effect before its repeal by <ref href="#schedule-13-paragraph-26">paragraph 26</ref>), in subsection (4)(a), for “6 April 2013 or a later date” substitute <quotedText>“5 April 2025 or an earlier date”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-26" class="schProv1"><num>26</num><content><p>Omit <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZA">sections 267ZA</a> and <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267ZB">267ZB</a> (election to be treated as domiciled in the United Kingdom).</p></content></paragraph><paragraph eId="schedule-13-paragraph-27" class="schProv1"><num>27</num><content><p><mod>Before <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267A">section 267A</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e43858"><num>267ZC</num><heading>Election to be treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>A person (“<term refersTo="#term-p">P</term>”) who would not otherwise be a long-term UK resident is treated as one for the purposes of this Act at any time when an election under this section has effect.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under this section may be made—</p></intro><level class="para1"><num>(a)</num><content><p>if condition A or B is met, by P;</p></content></level><level class="para1"><num>(b)</num><content><p>if condition B is met, by P’s personal representatives.</p></content></level></subsection><subsection><num>(3)</num><content><p>Condition A is that, at any time within the period of 7 years ending with the date on which the election is made, P had a spouse or civil partner who was a long-term UK resident.</p></content></subsection><subsection eId="d25e43895"><num>(4)</num><intro><p>Condition B is that a person (“<term refersTo="#term-the-deceased">the deceased</term>”) dies and, at any time within the period of 7 years ending with the date of their death, the deceased was—</p></intro><level class="para1"><num>(a)</num><content><p>a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>the spouse or civil partner of P.</p></content></level></subsection></section><section><num>267ZD</num><heading>Further provision about elections under <ref href="#d25e43858">section 267ZC</ref></heading><subsection eId="d25e43925"><num>(1)</num><intro><p>An election under <ref href="#d25e43858">section 267ZC</ref>—</p></intro><level class="para1" eId="d25e43934"><num>(a)</num><content><p>must be made by notice in writing to HMRC, and</p></content></level><level class="para1"><num>(b)</num><content><p>has effect from such date as is, in accordance with <ref href="#d25e43949">subsection (2)</ref>, specified in the notice.</p></content></level></subsection><subsection eId="d25e43949"><num>(2)</num><intro><p>The date specified in a notice under <ref href="#d25e43925">subsection (1)</ref><ref href="#d25e43934">(a)</ref> (“<term refersTo="#term-the-specified-date">the specified date</term>”) must—</p></intro><level class="para1"><num>(a)</num><content><p>be after 5 April 2025,</p></content></level><level class="para1"><num>(b)</num><intro><p>be within the period of 7 years ending with—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a lifetime election, the date on which the election is made;</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a death election, the date of the deceased's death, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>meet the condition in <ref href="#d25e43996">subsection (3)</ref>.</p></content></level></subsection><subsection eId="d25e43996"><num>(3)</num><intro><p>The condition is that—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a lifetime election—</p></intro><level class="para2"><num>(i)</num><content><p>the person making the election was, on the specified date, married to or in a civil partnership with the spouse or civil partner, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the spouse or civil partner was, on the specified date, a long-term UK resident;</p></content></level></level><level class="para1"><num>(b)</num><intro><p>in the case of a death election—</p></intro><level class="para2"><num>(i)</num><content><p>the person who is, by virtue of the election, to be treated as a long-term UK resident was, on the specified date, married to or in a civil partnership with the deceased, and</p></content></level><level class="para2"><num>(ii)</num><content><p>the deceased was, on the specified date, a long-term UK resident.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>A death election may only be made within—</p></intro><level class="para1"><num>(a)</num><content><p>the period of 2 years beginning with the date of the deceased’s death, or</p></content></level><level class="para1"><num>(b)</num><content><p>such longer period as an officer of Revenue and Customs may in the particular case allow.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Subsection <ref href="#d25e44086">(6)</ref> applies if—</p></intro><level class="para1"><num>(a)</num><content><p>an election is made under <ref href="#d25e43858">section 267ZC</ref>,</p></content></level><level class="para1"><num>(b)</num><content><p>a disposition is made, or another event occurs, during the period beginning with the date on which the election first has effect and ending with the date on which the election is made, and</p></content></level><level class="para1"><num>(c)</num><content><p>the effect of the election is that the disposition or event gives rise to a transfer of value.</p></content></level></subsection><subsection eId="d25e44086"><num>(6)</num><intro><p>This Act applies with the following modifications in relation to the transfer of value—</p></intro><level class="para1"><num>(a)</num><content><p>subsections (1) and (6)(c) of section 216 (delivery of accounts) have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>sections 226 (payment: general rules) and 233 (interest on unpaid tax) have effect as if the transfer were made at the time when the election is made.</p></content></level></subsection><subsection><num>(7)</num><content><p>An election under <ref href="#d25e43858">section 267ZC</ref> cannot be revoked.</p></content></subsection><subsection><num>(8)</num><content><p>If a person who made a lifetime election is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.</p></content></subsection><subsection><num>(9)</num><intro><p>For the purposes of this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-death-election">death election</term>” means an election made under <ref href="#d25e43858">section 267ZC</ref> in circumstances where Condition B in <ref href="#d25e43895">subsection (4)</ref> of that section is met;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-lifetime-election">lifetime election</term>” means any other election made under <ref href="#d25e43858">section 267ZC</ref>.</p></content></hcontainer></subsection></section><section eId="d25e44152"><num>267ZE</num><heading>Subject of domicile election treated as a long-term UK resident</heading><subsection><num>(1)</num><content><p>This section applies where an election under section 267ZA has effect in relation to a person immediately before 6 April 2025 (whether the election was made before or after that date).</p></content></subsection><subsection eId="d25e44162"><num>(2)</num><intro><p>The person is treated for the purposes of this Act (so far as would not otherwise be the case)—</p></intro><level class="para1"><num>(a)</num><content><p>as being a long-term UK resident, and</p></content></level><level class="para1"><num>(b)</num><content><p>as having been one at all times on and after 6 April 2025.</p></content></level></subsection><subsection eId="d25e44180"><num>(3)</num><content><p>But if the person is not resident in the United Kingdom for a relevant lapse period beginning at any time after the election is made, <ref href="#d25e44162">subsection (2)</ref> ceases to apply to them at the end of that period.</p></content></subsection><subsection><num>(4)</num><intro><p>In <ref href="#d25e44180">subsection (3)</ref> “<term refersTo="#term-relevant-lapse-period">relevant lapse period</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the election was made before 30 October 2024, a period of 4 successive tax years;</p></content></level><level class="para1"><num>(b)</num><content><p>if the election was made on or after that date, a period of 10 successive tax years.</p></content></level></subsection></section><section><num>267ZF</num><heading>Double taxation conventions operating by reference to deemed domicile</heading><subsection><num>(1)</num><content><p>This section applies to a case in which the application of any arrangements having effect under section 158 (double taxation conventions) depends (to any extent) on whether a person is treated as domiciled in the United Kingdom for the purposes of inheritance tax.</p></content></subsection><subsection><num>(2)</num><content><p>The person is treated as domiciled in the United Kingdom for the purposes of inheritance tax if they are a long-term UK resident.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 276ZC to 267ZE (persons treated as long-term resident by virtue of election) are to be disregarded in applying this section in relation to any arrangements that are specified in an Order in Council made under section 158 of IHTA 1984 before 17 July 2013 (other than by way of amendment by an Order made on or after that date).</p></content></subsection><subsection><num>(4)</num><content><p>Nothing in this section affects the interpretation of any such arrangements as are mentioned in section 158(6) (certain pre-1975 arrangements).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-13-paragraph-28-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">Section 272</a> (general interpretation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-2"><num>(2)</num><content><p>The existing text becomes subsection (1).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-3"><num>(3)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-13-paragraph-28-3-a"><num>(a)</num><content><p><mod>in the definition of “excluded property”, for “6 and 48” substitute <quotedText>“6, 48 and 48ZA”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-3-b"><num>(b)</num><content><p>omit the definition of “formerly domiciled resident”.</p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-4"><num>(4)</num><intro><p>Also in subsection (1), in the definition of “foreign-owned”—</p></intro><level class="para1" eId="schedule-13-paragraph-28-4-a"><num>(a)</num><content><p><mod>in <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/272">paragraph (a)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-13-paragraph-28-4-b"><num>(b)</num><content><p><mod>for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>if the property is comprised in a settlement, in the case of which the settlor—</p></intro><level class="para2"><num>(i)</num><content><p>is alive and is at that time not a long-term UK resident,</p></content></level><level class="para2"><num>(ii)</num><content><p>died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or</p></content></level><level class="para2"><num>(iii)</num><content><p>died before 6 April 2025 and was domiciled outside the United Kingdom when the property became comprised in the settlement,</p></content></level><wrapUp><p>and <ref href="#d25e7426">section 48ZA</ref><ref href="#d25e7549">(9)</ref> (accumulation of income) applies for the purposes of this paragraph as it applies for the purposes of section <ref href="#d25e7426">48ZA</ref><ref href="#d25e7462">(4)</ref>.</p></wrapUp></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-13-paragraph-28-5"><num>(5)</num><content><p><mod>Also in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the meaning given by sections <ref href="#d25e7165">6A</ref> to <ref href="#d25e7358">6C</ref>;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="definition"><content><p>“<term refersTo="#term-tax-year">tax year</term>” means a year beginning with 6 April and ending with the following 5 April;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“<term refersTo="#term-the-tax-year-2025-26">the tax year 2025-26</term>” means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);</p></content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-28-6"><num>(6)</num><content><p><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content><p>A reference in this Act to a settlor’s being alive or dying is to be read, in relation to a settlor who is a body corporate, as a reference (respectively) to the body’s being in existence or ceasing to exist.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-13-paragraph-29-1"><num>(1)</num><content><p>Schedule A1 (non-excluded overseas property) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-2"><num>(2)</num><content><p><mod>In paragraph 1, for “48(3)(a)” substitute <quotedText>“48ZA”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-29-3"><num>(3)</num><content><p><mod>In paragraph 5(2)(a), for “or 48(3)(a), (3A) or (4)” substitute <quotedText>“, section 48(4) or section 48ZA”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4">Schedule 4</a> (maintenance funds for historic buildings etc), in <a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">paragraph 10</a><a href="https://www.legislation.gov.uk/ukpga/1984/51/schedule/4/paragraph/10">(8)</a>, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44447"><heading><ref eId="c00336" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref></heading><paragraph eId="schedule-13-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-13-paragraph-31-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/1986/41/section/102">Section 102</a> of <ref eId="c00337" href="https://www.legislation.gov.uk/ukpga/1986/41">FA 1986</ref> (gifts with reservation) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-2"><num>(2)</num><content><p><mod>In subsection (1), for “(5) and (6)” substitute <quotedText>“(5), (6) and (7A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-31-3"><num>(3)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e44482"><num>(7A)</num><intro><p>This section does not apply if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal of property by way of gift took place before 30 October 2024,</p></content></level><level class="para1"><num>(b)</num><content><p>the property became settled property by virtue of the disposal and remained settled property at all times after the disposal and before the relevant time,</p></content></level><level class="para1" eId="d25e44500"><num>(c)</num><content><p>immediately before 30 October 2024, the property was excluded property for the purposes of the 1984 Act by virtue of section 48(3) or (3A) (as it had effect at that time), and</p></content></level><level class="para1"><num>(d)</num><intro><p>immediately before the relevant time, the property—</p></intro><level class="para2"><num>(i)</num><content><p>was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 to the 1984 Act applied (overseas property with value attributable to UK residential property), or</p></content></level><level class="para2"><num>(ii)</num><content><p>was a holding in an authorised unit trust or a share in an open-ended investment company (within the meaning, in either case, of the 1984 Act).</p></content></level></level></subsection><subsection><num>(7B)</num><intro><p>In subsection <ref href="#d25e44482">(7A)</ref>, “<term refersTo="#term-the-relevant-time">the relevant time</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the property ceases to meet the condition in subsection (2) at any time before the donor’s death, that time;</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise, the time of the donor’s death.</p></content></level></subsection><subsection><num>(7C)</num><content><p>In <ref href="#d25e44482">subsection (7A)</ref><ref href="#d25e44500">(c)</ref>, “<term refersTo="#term-for-the-purposes-of-the-1984-act">for the purposes of the 1984 Act</term>” includes for the purposes only of Chapter 3 of Part 3 of that Act (ten-year anniversary charges etc) because of the operation of section 81 of that Act (property moving between settlements).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44562"><heading><ref eId="c00338" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref></heading><paragraph eId="schedule-13-paragraph-32" class="schProv1"><num>32</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15">Schedule 15</a> to <ref eId="c00339" href="https://www.legislation.gov.uk/ukpga/2004/12">FA 2004</ref> (pre-owned assets charge) is amended as follows.</p></content></paragraph><paragraph eId="schedule-13-paragraph-33" class="schProv1"><num>33</num><content><p><mod>In paragraph 11 (exemptions from charge), in sub-paragraph (5), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1"><num>(ba)</num><content><p>would fall to be so treated but for section 102<ref href="#d25e44482">(7A)</ref> of the 1986 Act (cases where property was excluded property under the old inheritance tax regime),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-34" class="schProv1"><num>34</num><content><p><mod>In the italic heading before <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">paragraph 12</a>, for “resident or domiciled outside the United Kingdom” substitute <quotedText>“non-UK resident or not a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-13-paragraph-35-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">Paragraph 12</a> is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (2)</a>, for “domiciled outside the United Kingdom” substitute <quotedText>“not a long-term UK resident”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-3"><num>(3)</num><content><p>Omit sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-35-4"><num>(4)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/ukpga/2004/12/schedule/15/paragraph/12">sub-paragraph (4)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(4)</num><content><p>In this paragraph, “<term refersTo="#term-long-term-uk-resident">long-term UK resident</term>” has the same meaning as in IHTA 1984.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44656"><heading>Constitutional Reform and Governance Act 2010</heading><paragraph eId="schedule-13-paragraph-36" class="schProv1"><num>36</num><content><p><mod>In section 41 of the Constitutional Reform and Governance Act 2010 (tax status of MPs and members of the House of Lords), for subsections (2) and (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro><p>The person is to be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as resident in the United Kingdom for the whole of that tax year for the purposes of income tax, capital gains tax and inheritance tax, and</p></content></level><level class="para1"><num>(b)</num><content><p>as a long-term UK resident at all times in that tax year for the purposes of inheritance tax.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44684"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00340" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>)</heading><paragraph eId="schedule-13-paragraph-37" class="schProv1"><num>37</num><content><p>The <ref eId="c00341" href="https://www.legislation.gov.uk/uksi/2004/2543">Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004</ref> are amended in accordance with paragraphs <ref href="#schedule-13-paragraph-38">38</ref> to <ref href="#schedule-13-paragraph-43">43</ref>.</p></content></paragraph><paragraph eId="schedule-13-paragraph-38" class="schProv1"><num>38</num><intro><p>In regulation 2 (interpretation)—</p></intro><level class="para1" eId="schedule-13-paragraph-38-a"><num>(a)</num><content><p>the existing text becomes paragraph (1);</p></content></level><level class="para1" eId="schedule-13-paragraph-38-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(2)</num><content><p>A reference in these Regulations to a person’s being domiciled in the United Kingdom includes a reference to the person’s being treated as so domiciled for the purposes of the 1984 Act.</p></content></paragraph></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-13-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-13-paragraph-39-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">Regulation 4</a> (excepted estates) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraphs (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a> and <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(3)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(a)</a>, for “, domiciled in the United Kingdom” substitute <quotedText>“and was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-39-3"><num>(3)</num><content><p><mod>For <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">paragraph (5)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/4">(b)</a> substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(b)</num><intro><p>that person—</p></intro><level class="para2"><num>(i)</num><content><p>was not a long-term UK resident at any time on or after 6 April 2025, and</p></content></level><level class="para2"><num>(ii)</num><content><p>was not domiciled in the United Kingdom at any time before that date;</p></content></level></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-13-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">regulation 5</a> (spouse, civil partner and charity transfers), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5">paragraph (2)</a>, for the words from “was not domiciled” to the end substitute <quotedText>“—</quotedText><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>was, at any time in the period beginning with 6 April 2025 and ending with the time of the transfer, not a long-term UK resident,</p></content></level><level class="para1"><num>(b)</num><content><p>was, at any time before 6 April 2025, not domiciled in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-41" class="schProv1"><num>41</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">regulation 5A</a> (IHT threshold), in <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">paragraph (4)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/5A">(a)</a>, for “died domiciled in the United Kingdom” substitute <quotedText>“was a long-term UK resident immediately before their death”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-42" class="schProv1"><num>42</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6">regulation 6</a> (production of information), in the heading, for “domiciled in the United Kingdom” substitute <quotedText>“a long-term UK resident”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-13-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-13-paragraph-43-1"><num>(1)</num><content><p><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">Regulation 6A</a> (production of information) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-2"><num>(2)</num><content><p><mod>In the heading, for “deceased domiciled outside the United Kingdom” substitute <quotedText>“cases within regulation 4(5)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-43-3"><num>(3)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">paragraph (2)</a><a href="https://www.legislation.gov.uk/uksi/2004/2543/regulation/6A">(g)</a>, for “domicile” substitute <quotedText>“place of tax residence”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e44882"><heading>Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00342" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>)</heading><paragraph eId="schedule-13-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-13-paragraph-44-1"><num>(1)</num><content><p>In the <ref eId="c00343" href="https://www.legislation.gov.uk/uksi/2008/606">Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008</ref>, <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">regulation 4</a> (excepted settlement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-2"><num>(2)</num><content><p><mod>In <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a><a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">(a)</a>, for “is domiciled in the United Kingdom” substitute <quotedText>“meets the condition in paragraph (3A)”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-13-paragraph-44-3"><num>(3)</num><content><p><mod>After <a href="https://www.legislation.gov.uk/uksi/2008/606/regulation/4">paragraph (3)</a> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="double"><paragraph><num>(3A)</num><intro><p>The condition in this paragraph is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to times on or after 6 April 2025, that the settlor is a long-term UK resident;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to times before that date, that the settlor is domiciled in the United Kingdom (or treated as such for the purposes of the 1984 Act).</p></content></level></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-13-part-2"><num>Part 2</num><heading>Commencement and transitional provision</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e44951"><heading>Commencement</heading><paragraph eId="schedule-13-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-13-paragraph-45-1"><num>(1)</num><content><p><ref href="#schedule-13-part-1">Part 1</ref> of <ref href="#schedule-13">this Schedule</ref>, other than <ref href="#schedule-13-paragraph-26">paragraph 26</ref>, comes into force on 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-2"><num>(2)</num><content><p><ref href="#schedule-13-paragraph-26">Paragraph 26</ref> (repeal of sections 267ZA and 267ZB) comes into force on 6 April 2032.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-3"><num>(3)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-12">paragraph 12</ref> to section 74A of IHTA 1984 (arrangements involving acquisition of interest in settled property etc) have effect where the relevant time (as defined in section 74C(5) of that Act) is on or after 6 April 2025 (even if the arrangements were entered into before that date).</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-4"><num>(4)</num><content><p>The amendment made by <ref href="#schedule-13-paragraph-19">paragraph 19</ref> to section 136 of IHTA 1984 (transactions of close companies) has effect in relation to relevant transactions (within the meaning of that section) on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-5"><num>(5)</num><content><p>The amendments made by <span><ref href="#schedule-13-paragraph-37">paragraphs 37</ref> to <ref href="#schedule-13-paragraph-43">43</ref></span> to the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (<ref eId="c00344" href="http://www.legislation.gov.uk/id/uksi/2004/2543">S.I. 2004/2543</ref>) have effect in relation to deaths occurring on or after 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-45-6"><num>(6)</num><content><p>The amendments made by <ref href="#schedule-13-paragraph-44">paragraph 44</ref> to the Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (<ref eId="c00345" href="http://www.legislation.gov.uk/id/uksi/2008/606">S.I. 2008/606</ref>) have effect in relation to chargeable events (within the meaning of regulation 2 of those Regulations) occurring on or after 6 April 2025.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45026"><heading>Certain pre-commencement emigrants treated as not being long-term UK residents</heading><paragraph eId="schedule-13-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-13-paragraph-46-1"><num>(1)</num><intro><p>An individual who would otherwise be a long-term UK resident at any time in a given tax year (“the relevant tax year”) is treated for the purposes of <ref eId="c00346" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> as not being a long-term UK resident at that time if the individual—</p></intro><level class="para1" eId="schedule-13-paragraph-46-1-a"><num>(a)</num><content><p>was not domiciled in the United Kingdom on 30 October 2024,</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-b"><num>(b)</num><content><p>has been resident in the United Kingdom for no tax year in the period beginning with the tax year 2025-26 and ending with the relevant tax year, and</p></content></level><level class="para1" eId="schedule-13-paragraph-46-1-c"><num>(c)</num><intro><p>either—</p></intro><level class="para2" eId="schedule-13-paragraph-46-1-c-i"><num>(i)</num><content><p>was resident in the United Kingdom for none of the 3 tax years immediately preceding the relevant tax year, or</p></content></level><level class="para2" eId="schedule-13-paragraph-46-1-c-ii"><num>(ii)</num><content><p>was resident in the United Kingdom for fewer than 15 of the 20 tax years immediately preceding the relevant tax year.</p></content></level></level></subparagraph><subparagraph eId="schedule-13-paragraph-46-2"><num>(2)</num><content><p>For the purposes of <ref href="#schedule-13-paragraph-46-1">sub-paragraph (1)</ref><ref href="#schedule-13-paragraph-46-1-a">(a)</ref>, in determining where an individual was domiciled on 30 October 2024, ignore section 267 (deemed domicile) and sections 267ZA and 267ZB (domicile elections) of IHTA 1984.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45083"><heading>Property moving between settlements</heading><paragraph eId="schedule-13-paragraph-47" class="schProv1"><num>47</num><content><p>The amendment of section 81(1) of IHTA 1984 by <ref href="#schedule-13-paragraph-15">paragraph 15</ref><ref href="#schedule-13-paragraph-15-b">(b)</ref> of this Schedule (trusts on which property moving between settlements is held) is to be disregarded in construing section 81(1) in a case where the property in question ceased to be comprised in the first settlement before 6 April 2025.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45097"><heading>Settlor’s death etc: application to bodies corporate</heading><paragraph eId="schedule-13-paragraph-48" class="schProv1"><num>48</num><content><p>The insertion of section 272(2) of IHTA 1984 by <ref href="#schedule-13-paragraph-28">paragraph 28</ref><ref href="#schedule-13-paragraph-28-6">(6)</ref> of this Schedule (meaning of references to dying or being alive in the case of corporate settlors) is to be disregarded in construing section 201(1)(d) of IHTA 1984 in relation to property that became comprised in the settlement before 6 April 2025.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e45111"><heading>Deemed domicile rules still to apply in relation to times before commencement</heading><paragraph eId="schedule-13-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-13-paragraph-49-1"><num>(1)</num><content><p>The repeal of <a href="https://www.legislation.gov.uk/ukpga/1984/51/section/267">section 267</a> of <ref eId="c00347" href="https://www.legislation.gov.uk/ukpga/1984/51">IHTA 1984</ref> (persons treated as domiciled in United Kingdom) by <ref href="#schedule-13-paragraph-23">paragraph 23</ref> is to be disregarded in determining for the purposes of that Act any question as to where a person was domiciled at any time before 6 April 2025.</p></content></subparagraph><subparagraph eId="schedule-13-paragraph-49-2"><num>(2)</num><content><p>In construing section 267 of IHTA 1984, so far as saved by sub-paragraph (1), the repeal of the definition of “formerly domiciled resident” by paragraph <ref href="#schedule-13-paragraph-28">28</ref><ref href="#schedule-13-paragraph-28-3">(3)</ref><ref href="#schedule-13-paragraph-28-3-b">(b)</ref> is also to be disregarded.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer></hcontainer>